Forex Glossary

EA (Expert Advisor) - an automated script which is used by the trading platform to manage positions and orders automatically without (or with little) manual control.

ADX (Average Directional Index, Average Directional Index) - standard technical indicator that measures the strength of the trend.

Fundamental analysis - an analysis based only on news, economic indicators and global events.

Technical analysis - A type based only on technical market data (quotes) with the help of several technical analysis indicators.

Floating leverage - Automatically adjusts the size levered to the number of open positions.

Ask (Offer) - A bid price; It is the price when buying used.

Aussie - A slang term used Forex for the Australian dollar.

Profit (Gain) - An amount of money earned to close the position.

Profit / loss obtained - A profit / loss already closed positions.

Profit / Loss Unrealized (Floating) - A profit / loss of their positions before closing.

Bid (Demand) - A bid price; is the price used when it is sold.

Gap (Gap) - A difference between the closing price of the past period and the opening price of the next period. In the Forex generally it occurs during weekends - between Friday's close and Monday's open.

Broker (Broker) - An entity participating in the market that serves as an intermediary between retail traders and larger commercial institutions.

Broker ECN (electronic communication network, electronic communications network) - a type of Forex brokerage firms that provide direct access to other participants in the Forex market. ECN brokers do not discourage scalping, do not trade against clients, do not charge spread (the spread is determined by current market conditions) but charge commissions for every order.

Cable - A slang term used for the Forex currency pair GBP / USD (British pound versus the US dollar).

principal - The amount of initial money invested for trading.

Carry Trade - In Forex, maintains the position of the coins positive rate difference to gain the benefit of this difference, without closing the position for many days or even months interest.

CCI (Commodity Channel Index, Index channel goods) - A cyclical technical indicator that is often used to detect market situations in the overbought / oversold.

CFD (Contract for Difference Contract for Difference) - A special trading tool that allows speculate on stocks, commodities and other financial tools without actually buying or selling.

Commission - Committee of brokers to execute orders operations.

Margin Account - An account that is used to hold the money deposited investor for Forex trading.

Desliz (Slippage) - is the execution of the order by differences with the expected price (ordered). The main reasons for this slippage are - "fast" market, low liquidity and low broker's ability to execute the orders.

ECB (European Central Bank, European Central Bank, BCO) - the main regulator of the financial system of the European Union.

Fed (Federal Reserve, Federal Reserve System) - The main regulator of the financial system of the United States, whose division - FOMC (Federal Open Market Committe, Federal Open Market Committee) - regulates, among other things, interest rates feds.

Flat (flat market) - A neutral state when all your positions are closed.

GTC (Good 'Til Canceled, Good-till-canceled) - A type of order to buy or sell a currency pair at a fixed price or worse. The order is good until execution or cancellation.

Hedging (Cover) - The process of maintaining a market position, which reduces the risk of other open positions in the opposite direction.

CPI (consumer price index) - A statistical measure of inflation based on changes in the price of a given set of consumer goods.

Jobber - a slang term for a trader pointing to the rapid but small profit and short-term intra-day operations. The jobber rarely leaves open positions overnight.

Kiwi - A slang term for Forex using New Zealand currency - New Zealand dollar.

Leading Indicators (front indicators) - A composite index (1992 = 100%) of the ten most important macroeconomic indicators that predict future economic activity (6-9 months).

Liquidity - A measure of markets which describes the relationship between trading volume and price change.

Long - A position that is in the direction of buy. In Forex, the primary currency is "long" when purchased and the other is "short."

Margin Call (Margin Call) - A levy of a broker to deposit more money into the account when the amount fall below a certain level.

Lot - The final amount of units or the amount of money accepted for handling operations (usually a multiple of 100).

Standard Lot - 100,000 units of the base currency of the currency pair that are bought or sold.

Margin - money, investors should have in their brokerage accounts to execute trading orders. It covers potential losses that may occur in margin trading.

Free Margin - The amount of money that can be used for trading.

Used Margin - The amount of money that has already been used to maintain open positions.

Mobile Media (MM, Moving Average, MA) - One of the most basic technical indicators. Shows an average price calculated over a number of periods. Exponential moving averages (EMA), weighted moving averages (MMP), etc. They are just ways to weigh the prices and periods.

Module management percentual allocation (MMAP) - a system side corridor that allows investors to invest with traders and allows traders gestiar funds investors using the corridor platform.

Momentum - A measure of the ability of a currency to move in the given direction.

Fibonacci levels - high levels likely to break or bounce off the trend, are calculated as 23.6%, 32.8%, 50% and 61.8% of the trend.

Offer (Ask) - A bid price; is the price used when buying.

Elliott waves - A set of principles for analyzing graphs based on patterns 5 and 3 waves.

Order - An order to the broker to buy or sell a currency pair at a certain price.

Market Order - An order to buy or sell an amount for the market price.

Limit Order - An order to the broker to buy the amount for a fixed price or a lower price or sell the amount for a fixed price or a better price. Such price is called limit price.

Stop Loss - A type of order to buy or sell an amount for a certain price or worse one.

Loss - Losing close a long position at the lowest price in his opening or a short position at the highest price it had at the opening, or if the profit position has been lower than the broker's commission.

GDP (Gross Domestic Product) - A measure of national income and output of the economy of a country; It is one of the most important indicators in Forex.

Pip (Point) - A last digit of the price (eg EUR / USD 1 pip (point) = 0.0001).

Open position - the position to buy or sell a currency pair.

Closed Position - The position is closed when all necessary transactions have been closed.

Market Price - The current price at which the currency is currently trading in the market.

Pivot Point - A primary point of support / resistance calculated based on the prices Maximum, Minimum, closing and opening of the previous trend.

Resistance - A price level at which the intensive selling can lead a price increase (uptrend).

RSI (Relative Strength Index, Relative Strength Indicator) - An indicator that measures the power of directional price movement by comparing the bullish and bearish portions of the trend.

Scalping - A style of trading; It is known for having many open positions and the few benefits and very short term.

SL - see Stop-loss order.

Support - A price level at which intensive buying can lead to a decrease in the price (downtrend).

Spread - A difference between prices of supply and demand currency pair.

Stop-loss order - An order to sell or buy a lot when the market reaches a certain price. It is used to prevent further losses when the market moves in the opposite direction. Usually it is a combination of the stop order and limit order.

STP (Straight Through Processing) - A treatment system where orders not require any manual interruption and is completely automatic. In fact, 99.9% of all online Forex brokers hold handle orders through STP.

Swap (swap) - A payment for holding the position overnight. As you are not physically receiving the coins you buy, your broker must pay the difference in interest rates between the two currencies in the pair. You can be for or against.

Take-profit order - An order to buy or sell a lot when the market reaches a certain price. It is used to keep the profits when the market moves in the direction of its position. Usually it is a combination of the stop order and limit order.

Interest rate - a percentage that central banks use to lend to commercial banks in the country.

Trend - A market direction is established under the influence of several factors.

TP - see Take-profit order.

Volatility - A statistical measure of the number of price changes in the currency pair given by a given time period.

VPS (Virtual Private Server) - A virtual environment hosted on the dedicated server, which can be used to run programs regardless of the user's PC. Forex traders use VPS to host trading platforms and run expert advisors without unexpected interruptions.