Forex Glossary
Friday, 8 August 2008
Some of the most common terms used in Forex Trading.
Ask Price ¨ C Sometimes called offer price, this market is the price for traders to buy currencies. Ask prices are quoted on the right side to cite one example ¨ C EUR / USD 1.1965 / 68 ¨ C means that one euro can be bought for UD 1.1968 dollars.
Bar Chart ¨ CA chart type used in technical analysis. Whenever the division on the map is displayed as a vertical bar which show the following information ¨ C top of the bar is the high price, the bottom of the bar is the low price, the horizontal line on the left side of the bar indicates the opening price and the horizontal line on the right side shows the closing price.
Currency ¨ C is the first currency in a pair of currencies. A quote shows how the base currency is worth mentioning in the (second) currency. For example, a quote - USD / JPY 112.13 ¨ C U.S. dollars are the currency base, with 1 U.S. dollar being valued at 112.13 Japanese yen.
Price Bid ¨ C is the price of a trader can sell currencies. The price is displayed on the left side of a citation - for example EUR / USD 1.1965 / 68 ¨ C means that the euro may be sold for UD 1.1965 dollars.
Purchase / Sale proliferation ¨ C is the difference between the bid price and selling price in any currency rating. Represents the spread of broker fee, and varies from broker to broker.
¨ C broker intermediary between buyer and seller. Most FOREX brokers are associated with major financial institutions and earn money by creating a gap between the bid and ask prices.
Candlestick Chart - A type of card used in technical analysis. Whenever the division on the map is displayed as a chandelier ¨ C red or green vertical bar with extensions above and below the chandelier body. The summit of the extension shows the highest price of the card division and at the bottom of the extension shows the lowest price. Red candlesticks indicate a closing price lower than the opening price, chandeliers and green indicate the price is rising.
Cross Currency ¨ CA currency pair that does not include U.S. dollars ¨ C for example EUR / GBP.
Pair of currencies ¨ C Two currencies involved in a transaction FOREX ¨ C for example EUR / USD.
Economic indicators ¨ CA statistical report issued by governments or educational institutions indicating economic conditions in a country.
In the first First Out (FIFO) ¨ C refers to the order open orders are liquidated. The first orders to be settled are the first that have been opened.
Some changes (Forex, FX) ¨ C the same time buying one currency and selling another.
Fundamental analysis ¨ C Analysis of political and economic conditions that may affect currency prices.
Margin leverage or ¨ C The ratio of the value of a transaction to the filing. A margin of Forex Trading is 100:1 ¨ C, you can trade currency worth 100 times the amount of your deposit.
Order to limit ¨ C an order to buy or sell when the price reaches a certain level.
Lot C ¨ The size of a transaction FOREX. Standard lots are worth about 100,000 U.S. dollars.
Grand ¨ C currency, the euro, German mark, Swiss franc, sterling and Japanese yen are the major currencies.
¨ C Minor Currency The Canadian dollar, Australian dollar and New Zealand dollar currencies are minor.
Cancels Other (OCO) ¨ C Two orders placed at the same time that instructions to cancel the second order on the execution of the first.
Position open ¨ C an active trade which has not been closed.
Pips or points ¨ C The smallest unit of a currency can be traded in.
Prices Currency ¨ C The second currency in a pair of currencies. In the currency pair USD / EUR, the euro is the currency quote.
¨ C rollover extension of time settlement covers up the delivery date. The cost of rollover is calculated using exchange points based on interest rate differentials.
Technical Analysis ¨ C Analysis of historical market data to predict movements in the market.
Check ¨ C The minimum price change.
Transaction costs ¨ C The cost of a transaction FOREX ¨ C usually spread between buyer and seller.
¨ CA volatility statistical measure indicating the trend of price movements in a period of time.
Labels: forex
posted by Master @ 04:48,