Glossary of Forex Terms. Forex, or foreign exchange, is the concept of the global market for buying and selling foreign currencies. It’s essentially a decentralized marketplace. Investors and speculators can anticipate the strengthening or weakening of one currency against another. By assessing the relative value of The Forex glossary section elucidates terms and notions applied on the international foreign exchange market. The information is presented alphabetically to accelerate the search of the required terms and definitions. a news website, the blogger.com business analytics portal, and the RBC daily weekly analytical newspaper. RBI. Learn the definitions of the most important forex trading terms from Valutrades forex glossary. Whether you’re a novice or an experienced trader, this forex glossary is something you'll are going to want to keep close. Improve your trading skills and open up a demo account today
Forex Glossary with FX Trading Terms and Definitions | Valutrades
Profiting from differences in the price of a single currency pair that is traded on more than one market. An item that has value. The value of this pair refers to how many U. dollars is required to buy 1 Aussie Dollar the quote currency. The base currency is the first currency in a currency pair, and the currency that remains constant when determining a currency pair's price.
The United States Dollar USD and the European Union Euro EUR are the dominant base currencies in terms of daily traded volume in the foreign exchange market. The British Pound GBPforex news glossary, also called sterling, is the third ranking base currency. A chart that displays the daily trading price range open, high, forex news glossary, low and close, forex news glossary.
A form of Japanese charting that has become popular in the West. A narrow line shadow shows the day's price range. A wider body marks the area between the open and the close, forex news glossary. If the close is above the open, the body is white not filled ; if the close is below the open, the body is black filled. The principal monetary authority of a nation, controlled by the national government.
It is responsible for issuing currency, setting monetary policy, interest rates, exchange rate policy, and the regulation and supervision of the private banking sector. The Federal Reserve is the central bank of the United States.
Others include the European Central Bank, Bank of England, and the Bank of Japan. The process by which an asset or liability denominated in one currency is exchanged for an asset or liability denominated in another currency.
An exchange rate between two currencies. The cross rate is said to be non-standard in the country where the currency pair is quoted.
For example,in the U. A country's unit of exchange issued by their government or central bank whose value is the basis for trade. A deep and long-lasting decrease in the price of goods and services forex news glossary an economy. It is the opposite of inflation which is an escalation in prices.
An extended period of deflation can lead to a deflationary spiral - this is a decrease in prices resulting from reduced demand for goods and services which leads to lower employment. With fewer people earning wages, demand falls even more and further perpetuates the cycle. The volume of buy and sell orders waiting to be transacted for a particular currency pair at a particular point in time.
Lowering of the value of a country's currency relative to the currencies of other nations. When a nation devalues its currency, the goods it imports become more expensive, while its exports become less expensive abroad and thus more competitive, forex news glossary.
The magnitude of a decline in account value, either in percentage or dollar terms, as measured from peak to subsequent trough, forex news glossary. Forex ECNs broker provide access to an electronic trading network, supplied with streaming quotes from the forex news glossary tier banks in the world.
By trading through an ECN broker, a currency forex news glossary generally benefits from greater price transparency, faster processing, increased liquidity and more availability in the marketplace. A statistic that is used to gauge current economic conditions. Consumer Price Index forex news glossary Durable Goods Order.
An attempt to explain market activity by ascribing a pattern of eight waves to any complete cycle. An order used to enter a trade once a currency pair hits a pre-determined price level. Buy Entry Limit: An order to buy at a forex news glossary Below the current market. Sell Entry Limit: An order to sell at a price Above the current market.
An order initiating an open position to sell as the market falls, or buy as the market rises. The client believes that prices will continue to move in the same direction as the previous momentum after hitting the order level.
Buy Entry Stop: An order to buy at a price Above the current market. Sell Entry Stop: An order to sell at a price Below the current market. Equities Ownership interest in a corporation in the form of common stock or preferred stock. Equity Total assets minus total liabilities; also called net worth.
Equity Curve The value of a trading account graphed over a period of time. Euribor Euribor® Euro Interbank Offered Rate is the rate at which euro interbank term deposits within the euro zone are offered by one prime bank to another prime bank.
The currency of the European Monetary Union EMUwhich replaced the European Currency Unit ECU. The countries currently participating in the EMU are Austria, forex news glossary, Belgium, Cyprus, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Slovenia, and Spain. A country's decision to tie the value of its currency to another country's currency, gold or another commodityor a basket of currencies.
In practice, even fixed exchange rates fluctuate between definite upper and lower bands, leading to intervention. The seven leading industrial countries, being the United States, forex news glossary, Germany, Japan, France, Britain, Canada, and Italy. A group composed of the finance ministers and central bankers of the following 20 countries: Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, forex news glossary, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, forex news glossary, Turkey, forex news glossary United Kingdom, forex news glossary, the United States, and the European Union.
The IMF and the World Bank also participate. The G was set up to respond to the financial turmoil of through the development of policies that "promote international financial stability". A price trend pattern which has three peaks, the middle one higher than the surrounding two forming what looks to be a head with two shoulders on either side.
A term used to describe reducing risk associated with adverse market movements by using two counterbalancing investments, thereby minimizing any losses caused by price forex news glossary. A strategy designed to reduce investment risk. Its purpose is to reduce the volatility of a portfolio by investing in alternative instruments that offset the risk in the primary portfolio, forex news glossary.
A market in which financial institutions can trade. The term refers to short term money or foreign exchange markets that are only accessible to banks or financial institutions. Supranational organization established in to provide international liquidity and loans to member countries. Jordanian Dinar. The currency of Jordan. It is subdivided into 10 dirham, qirsh or fulus. A price charting technique independent of time. It is plotted as a series of connected vertical lines.
The thickness and direction of the lines, reflect the price action: An uptrend is displayed as series of thick vertical lines A downtrend is displayed as series of thin vertical lines A buy signal is generated when price moves above the most recent high whereas a sell signal is in place when it moves below the last low.
A technical analysis indicator developed by Chester Keltner. The upper band is drawn twice the value of the average true range ATR calculated over 10 periods above a forex news glossary exponential moving average of typical prices. The lower band is drawn the same distance below the exponential moving average.
A positive signal is generated when price closes above the upper band. Similarly, a close below the lower band indicates a negative signal. The standard for the interest rate that banks charge each other for loans usually in Eurodollars. This rate is applicable to the short-term international interbank deposit market, and applies to very large loans borrowed from one day to five years.
This market allows banks with liquidity requirements to borrow quickly from other banks with surpluses, enabling banks to avoid holding excessively large amounts of their asset base as liquid assets. The LIBOR is officially fixed once a day by a small group of large London banks, but the rate changes throughout the day.
The degree to which an investor or business is utilizing borrowed money. For investors, leverage means buying on margin to enhance return on value without increasing investment. The amount, expressed as a multiple, by which the notional amount traded exceeds the margin required to trade. Leveraged investing can be extremely risky because you can lose all the money you invested. London Interbank Offered Rate - The rate that banks forex news glossary when borrowing from one another.
See also: London Interbank Offered Rate. A limit order is an order tied to a specific position for the purpose of locking in the gains from that position, while a limit order placed on a buy position is an order to sell, forex news glossary. A limit order placed on a sell position is an order to buy. All limit orders remain in effect until the position is liquidated or cancelled by the client.
Funds that customers must deposit as collateral to cover any potential losses from adverse movements in prices. A requirement for additional funds or other collateral, from a broker or dealer, to increase margin to a necessary level to guarantee performance on a position that has moved against the customer. A dealer that supplies prices, and is prepared to buy and sell at those bid and ask prices.
Some CFTC registered FDMs are market makers. Non-Farm Payroll. Reported monthly, this figure represents the total number of paid U. workers of any business, excluding farm employees. A stop-loss order and a limit order linked to a specific position. One order, the stop, is to prevent additional loss on the position, and one order, the limit, forex news glossary, is to take profit forex news glossary the position.
When either order is executed, closing the position, the other is automatically cancelled. Old Lady Term for the central bank of England. Open Position A position whether long or short that is subject to market fluctuations and thus profits or losses. Order Instructions to buy or sell. Oscillators Technical analysis tools that provide buy and sell signals, characterized by a signal that oscillates between overbought and oversold levels.
Overbought A currency pair is overbought when its price rises much more quickly than usual in response to net buying.
Business English Vocabulary: The Stock Market
, time: 13:38Forex Glossary – Hundreds of Forex Terms Explained | DailyForex
The DailyForex glossary has hundreds of Forex terms explained by experts. Have a question about Forex? Get the answer in our Forex glossary now! Forex Glossary / Key Terms. Forex trading is a tough business. It is hard to make successful trades and to know about the strategies, forums, and data. However, unconsciousness for the terminologies that the Forex utilizes is also a hindrance to successful trading. We thought it necessary to Estimated Reading Time: 7 mins Forex Glossary. A Waiting for certain levels or news events to hit the market before entering a position. Personal income Measures an individual’s total annual gross earnings from wages, business enterprises and various investments. Personal income is the key to personal spending, which accounts for 2/3 of GDP in the major economies
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