EN
A
The ADP Nonfarm Employment Change is a monthly economic indicator estimating the change in employed people in the U.S., excluding farm workers.
Execute emotion-free trades in electronic financial markets with disciplined step-by-step programming instructions, ensuring the advantages of a systematic approach to trading.
Currency strengthening due to market demand rather than official action.
Arbitrage involves exploiting price differences by buying and selling related securities simultaneously. Cross-market arbitrage entails buying and selling identical or similar financial assets across different markets to capitalize on price or currency variations.
Trading activity between 11:00 pm (GMT+2) and 08:00 am (GMT+2).
The offered price for a currency or instrument.
A market order in futures trading is a request to buy or sell a contract immediately at the prevailing market price, prioritizing speed over price precision.
Australian Dollar.
Authorized forex dealers are financial institutions with regulatory approval to engage in foreign currency trading. In the United States, the National Futures Association (NFA) is a regulatory body responsible for authorizing forex dealers. The NFA conducts thorough screenings during registration and enforces stringent regulations to ensure legal and fair transactions.
A setting in MT4 charts that automatically shifts to the left to show the latest incoming price (candlestick) when enabled.
The rate at which a trader agrees to purchase a financial instrument.
B
A systematic record of a country's economic transactions within a given period.
-
This term often denotes either
- the balance of payments on the "current account"
- the current account along with specific long-term capital movements
- It includes the trade balance, current balance, capital account, and invisible balance, forming the total balance of payments. Prolonged deficits in the balance of payments may lead to restrictions on capital transfers and potential depreciation of currency values.
The amount in the account, not including credit and floating profit from open orders.
Negotiated-term deposit issued by commercial bank.
The rate at which a central bank is willing to lend money to its domestic banks.
Used to visualize price movements through vertical bars indicating price ranges.
In currency pairs, like USD/AUD, the first currency is known as the base currency, such as USD in this case.
Profiting from favorable basis movements by taking opposing positions in cash and futures markets.
An investor who anticipates prices are going to decline.
- A securities market marked by decreasing prices
- An extended period of generally falling prices
- Maximum price an investor is willing to pay for a tradable
- The offered price for buying a currency or instrument
It is a decentalized digital currency used for peer-to-peer transactions.
Bollinger Bands, created by John Bollinger, are a technical indicator. They consist of an upper band drawn 2 standard deviations above a simple moving average and a lower band drawn 2 standard deviations below. These bands serve to measure volatility and highlight price extremes in financial markets.
A debt instrument with a fixed interest rate and specified maturity dates, issued by corporations or governments, requiring scheduled payments of interest and principal.
A trading range or price region where there's no trend.
When a security breaks out of a trading range, it creates gaps on a bar chart, often seen after significant chart patterns are completed.
When the market price exits the trend channel.
Brent oil refers to a major trading classification of sweet light crude oil that serves as a major benchmark price for purchases worldwide.
Brokers connect buyers and sellers, earning a commission from the transaction initiator without taking market positions.
A broker-dealer facilitates securities transactions for clients and trades for its own account.
Orders physically held by the floor broker in the pit.
An investor with the expectation that prices will increase.
- A securities market that is characterised by increasing prices
- A prolonged period of typically increasing prices
It is a belief that a market or a particular financial instrument will rise.
Long-term acquisition of an asset instead of quick turnover.
Pending order to buy at a predefined price lower than the market price in anticipation that the market will rise eventually.
A Buy Limit Order is an instruction to buy a security at or below a specified price.
To place an order for acquiring a financial instrument.
A pending buy order set at a predefined price higher the current market value, with the expectation that the market will sustain its upward trend.
Rate at which a market and a market maker is willing to buy a currency in the market. Also known as bid rate.
C
A term in the foreign exchange market for the US Dollar/British Pound rate.
A call option contract grants the buyer the right, without the obligation, to purchase the underlying security at a predetermined price within a specified timeframe.
Candlestick charts depict price movements using lines, shadows for high and low, and colored rectangles for open-close ranges (white for close above open, black for close below open).
Payment made by an investment company to its shareholders, representing the profits generated from the sale of portfolio securities held for the long term.
Capital losses occur when the sale of an asset results in a financial loss for the investor.
Capital risk is the potential for financial loss associated with fluctuations in the value of an investment.
The interest cost incurred of financing securities or other financial instruments held.
Buy an asset today and sell a future contract.
The market pertaining to the underlying financial instrument upon which a futures or options contract depends.
A monthly survey that reflects prevailing consumer attitudes, buying intentions and economic activity for the months ahead. Released by the Conference Board Inc. in the US.
A regulatory bank of a nation.
EMS sets fixed exchange rates for currencies in relation to the ECU, with limited allowed movements from the central rate within specified bands.
It is a financial derivative in which traders have the opportunity to trade assets without owning them. The buyer and the seller enter into a contract where the seller agrees to pay the buyer the difference between the entry and exit prices, provided that the difference is positive. If the difference is negative, then the buyer pays the seller.
A person who analyzes graphs and charts containing historical data to identify trends and forecast potential trend reversals.
A display or picture of a security that shows the volume (the number of shares sold) and/or price.
Swiss Franc. The currency of Switzerland and Liechtenstein.
Part of the MT4 Trading Platform that allows traders to receive live incoming prices, open and manage orders, perform technical analysis, write, backtest and optimize trading robots, and develop indicators and scripts.
A transaction that leaves the trade with a zero net commitment in the market with respect to a specific currency.
Positions that are either liquidated or offset.
Identifying the existence of groups of vectors that shows similarity in some manner.
A coefficient is a constant that multiplies another term or series.
A projected reversal point in Gann Theory.
An asset offered by the borrower to the lender to secure the loan.
The cost that a broker might ask clients to pay for dealing on their behalf.
A natural resource or agricultural product. There are two broad types - hard commodities and soft commodities. Hard commodities include for example crude oil, gold, silver and iron ore. Soft commodities include for example wheat, rice, soybean and corn.
A device that compares two inputs.
A metric indicating the probability that a rule is accurate, potentially based on its historical success rate or a subjective assessment of our confidence in its reliability.
Refers to a pause allowing participants to reevaluate the market, also known as congestion period.
US inflation guage.
A chart that combines the price scale data at the end of a particular contract with the data at the beginning of the next contract, facilitating a smooth transition between the two contracts.
- An agreement in which rights are exchanged
- An agreement to buy or sell a predetermined quantity of a specific currency or option at a set date in the future
The procedure through which an asset or liability, expressed in one currency, is swapped for an asset or liability denominated in a different currency.
Danish Krone
Any market price reaction that results in an adjustment of up to one-third to two-thirds of the previous gain.
The representative of a foreign bank frequently provides services for a financial institution that lacks a branch in the respective area, such as facilitating fund transfers.
The price of a specific stock or a collection of stock shares.
A price bar indicating a movement in the opposite direction compared to the previous time period.
The second party or organization involved in the exchange agreement.
- Buying back a previously sold contract
- Closing a short position by purchasing the initially sold currency or securities
- Entering into a forward foreign exchange contract
Engaging in arbitrage opportunities across financial instruments denominated in distinct currencies, using forward cover to mitigate exchange risk.
The interest rate margin between two assets in different currencies, adjusted for the expense of forward cover.
The CPI is a measure of the change in the cost of a fixed basket of products and services. Released monthly by the US Bureau of Labor Statistics.
The spread between crude oil and its derivatives.
The degree to which the revenue streams of individual traders within a single enterprise demonstrate consistent patterns over time.
A currency exchange transaction involving two non-base currencies.
Unrefined petroleum found in liquid form and composed mostly of hydrocarbons, organic compounds and small amounts of metal.
Digital currency in which encryption is used to regulate the generation of units of currency. It operates independently of the traditional banking system.
The pair formed by two different currencies which are traded in a forex transaction. For example: EUR/USD.
D
A graph that illustrates the intraday movements of a financial instrument.
The difference between the highest and lowest prices within a single trading day.
Part of the MT4 Client Terminal interface. It displays information about a selected bar/candlestick. By simply placing the arrow on the desired bar/candle, the window will display the OHLC prices, the open time and date, volume and the corresponding values of any attached indicators/oscillators.
Deutscher Aktien Index (German Stock Index) is an index of 30 large German company shares.
Traders who speculate on commodities and close their positions before the end of the trading day.
The date when a transaction is mutually agreed upon.
The main method for documenting fundamental details of a transaction.
Someone who, in contrast to a broker, serves as a principal in every transaction, engaging in the buying and selling of assets for their own accounts.
The maturity date of the contract refers to the point at which the exchange of currencies takes place. This particular date is commonly referred to as the value date in the FX or Money markets.
A trading account which is funded with virtual money, giving the trader a chance to explore the markets and test the trading platform they're using before investing real money in a live trading account.
A fall in the currency's value resulting from market forces rather than deliberate official actions.
The number of open buy and sell orders placed for a financial instrument at varying prices.
Derivative financial instruments derive their value from the performance of an underlying asset, which could be a commodity, bond, equity, currency, or a combination thereof.
A deliberate lowering of a currency's value in relation to its fixed benchmarks or ranges, typically done through an official announcement.
DI Plus (plus Directional Indicator) is paired with -DI (minus Directional Indicator) to generate buy/sell signals in the context of the Average Directional Movement Index (ADX) A crossing of +DI above -DI generates A buy signal. A crossing of +DI below -DI generates A sell signal.
When multiple averages or indices do not indicate consistent trends.
Distribution of a portion of a company's earnings to its shareholders.
Price pattern seen on charts.
A stock market index composed of 30 stocks of large American companies. It’s based on Charles Dow’s 1884 stock market average composed of nine railroad and two manufacturing companies. It is used to gauge stock market activity and the country’s economic health.
The decrease in the overall equity of an account due to a trade or a sequence of trades.
E
Expert Advisor, is an automated set of detailed programming instructions on how to open, modify and close trading positions without human intervention.
A significant price swing in a particular direction occurring within the initial 15 minutes after the opening of the daily trading session.
The estimated earnings forecasted for a company within a fiscal year.
The ECB (European National Bank) was established in 1998 in Frankfurt (Germany) to manage the euro, keep the prices stable, and conduct European Union economic & monetary policy. Its main aim is to stabilize prices, thereby supporting economic growth and job creation.
A broker who uses Electronic Communications Networks (ECNs) to provide its clients with direct access to liquidity providers.
A statistical analysis reflecting the present economic growth rates and patterns, including indicators like retail sales and employment trends.
Brokerage firms establish independent execution systems that match newly placed retail limit orders with existing compatible orders within the system.
Ralph Nelson Elliott introduced a pattern recognition method in 1939, suggesting that the stock market adheres to a rhythmic sequence consisting of five upward and three downward waves, completing a full cycle of eight waves. The three descending waves are commonly termed as "correction", corresponding to the preceding five upward waves.
The moment when a trader initiates a position in the market.
Eurodollar denotes U.S. dollar deposits held in foreign banks or the overseas branches of American banks.
A Japanese candlestick pattern signaling a bearish reversal.
The rate at which one currency can be exchanged for another.
The day on or after which the right to receive a current dividend is not automatically transferred to a buyer of a stock.
When a trade is carried out and completed.
A less traded currency.
Expert systems are characterized by being dynamic yet not adaptable; these rule-driven systems lack the capacity to learn from new information introduced into the system.
The last day to trade an option.
Exponential Moving Average (EMA) is a weighted moving average that prioritizes recent prices, widely used in technical analysis for trend identification.
F
Selling as the price rises or buying as it falls.
Price's inability to confirm a new high in an uptrend or a new low in a downtrend.
It is the central bank of the United States. It was established in 1913 to provide the nation with a safer, more flexible, and more stable monetary and financial system.
It is a technical analysis tool that is drawn between two major points - top and bottom.
A technical Analysis tool used to draw a channel with diagonal Fibonacci retracements.
Each number in the sequence is composed by the sum of the two previous numbers. The sequence is: 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233 etc.
Phi (f), the ratio between consecutive numbers in the Fibonacci sequence, is commonly referred to as the Golden Mean or Golden Ratio. The ratio of any number to its next higher number is approximately 0.618, while the ratio to the lower number is around 1.618, following the first four numbers of the series. The Fibonacci sequence provides three significant ratios: 0.618, 1.0, and 1.618.
It is a technical analysis tool attached from bottom to top in a rising market and from top to bottom in a declining market.
The numerical sequence, originated by the 13th-century Italian mathematician Leonardo de Pisa and serving as the foundational concept for the Elliott wave theory, follows a pattern where each number is the sum of the two preceding numbers. Starting with 0 and 1 as the initial terms, the sequence progresses as 0, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233... It is important to note that technically, it is a sequence rather than a series.
An order that must be filled immediately.
Rate set by monetary authorities officially.
Number of shares available for trading currently.
A currency exchange rate determined by the dynamics of the market.
Buying or selling of a currency against the sale or purchase of another.
Term used to refer the foreign exchange market.
The analytical approach that focuses on evaluating a tradable's sales, earnings, and asset value.
This theory suggests that analyzing a stock's data, statistics, company management, and earnings can help predict its performance in the stock market.
A prediction of the potential volatility levels expected in the future.
G
The group consists of the following countries: Argentina, Australia, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, South Africa, Saudi Arabia, South Korea, Turkey, United Kingdom, United States of America, The European Union (represented by the European Council).
- A day where the entire daily price range is either above or below the preceding day's range
- A mismatch between the maturities and cash flows in a bank or individual dealer's portfolio, resulting in gap exposure that essentially translates to interest rate exposure
It's a technical analysis oscillator developed by Bill Williams. It consists of two histograms, above and below zero.
Gross domestic product (GDP) is the total value of goods and services a country produces in a one year period. GDP is calculated annually but it can also be calculated quarterly. A GDP Economic report that shows the annualized change in total value of goods and services produced in a country and is an indicator of a country’s economic health.
To buy a financial instrument with the expectation that it will rise in price.
To sell a financial instrument with the expectation that it will decline in price.
The purchase of a stock, commodity, or currency with the intent of investment or speculation.
Selling a currency or instrument not owned by the seller.
The gold standard is a monetary system in which a country's currency is directly linked to a specific quantity of gold, establishing a fixed exchange rate between the currency and the precious metal.
An instruction to a broker stating that, contrary to typical procedure where orders expire at the close of the trading day, this order remains active until the end of the trading month.
The overall worth of a nation's production, earnings, or spending within its geographical boundaries.
The monetary sum of all unprofitable trades.
The monetary sum of all profitable trades.
H
A bullish reversal is indicated by these Japanese candlestick patterns when a hammer exists at the end of a downtrend or decline.
The buying or selling of futures or options contracts as an interim solution for a futures transaction. Opposite positions in the cash, futures, or options markets are typically involved.
A mutual fund that specializes in speculative stock and option trading.
Two open positions in the same currency, one for purchase and one for sale.
A dip in the market for a brief period.
The previous volatility of the contract price, which is often determined by measuring the standard deviation of price fluctuations over a given period of time.
A rundown of previous market prices on a daily, weekly, or monthly basis (open, high, low, close, volume, and open interest).
Historical Data is used in charts, backtesting and Expert Advisors’ Optimization. They are stored in the History Center of the client terminal.
Acceptance of selling at the bid or buying at the offer.
Hang Seng Index. An index of the stock market made up of the 50 biggest stocks on the Hong Kong Stock Market. It is implemented to evaluate stock market performance.
I
(International Monetary Fund) The International Monetary Fund, or IMF, promotes international financial stability and monetary cooperation. It also facilitates international trade, promotes employment, sustainable economic growth, and helps to reduce global poverty.
The volatility calculated using one of several pricing models and the actual market prices for an option contract. Implied volatility will have increased, for instance, if the market price of an option increases without the price of the underlying stock or futures changing.
A distinct shift in a range of input data that is being examined, like volume or pricing in the market.
Payments to shareholders in mutual funds that, after deducting operating costs, include dividends, interest, and short-term capital gains on the assets in the fund's portfolio.
The price set by a market maker that is not fixed.
Technical tools based on inductive statistics and mathematical formulas, which use price data, volume and open interest in order to identify future price trends.
Persistent increase in overall prices combined with a corresponding decline in purchasing power. Occasionally denoted as an extreme fluctuation in said pricing points.
The first or first two half-hour trading windows in the CBOT Market Profile; the first auction of the trading day; the time when prices typically converge.
The amount of margin needed by a foreign exchange firm to start buying or selling a specific amount of currency.
The bid and offer rates at which foreign banks make deposits to one another.
To increase interest yields, interest arbitrage entails buying spot and selling forward in a different currency. It may be inward or outward. Since fluctuations in exchange rates can result in losses, there are situations when better outcomes can be obtained without selling forward interest.
Keeping a close watch on one market's price fluctuation in order to assess another market.
A central bank's move to influence the value of its currency with entering a market. A group of central banks acting in concert to regulate exchange rates is referred to as concerted intervention.
Usually, opening and closing a position within the day.
A Japanese candlestick pattern signaling a bullish reversal. An Inverted Hammer formed at the end of a downtrend or at a support area has bullish reversal implications.
J
A charting method. They are also generally easier to read and interpret. The chart makes it easier to see the relationship between the open and close and the high and low of price movements.
Yen or Japanese Yen. The currency of Japan.
K
Currency of New Zealand. New Zealand Dollar is also known as Kiwi.
L
In the financial markets, latency refers to time units (usually milliseconds) required for a trade order to be sent and executed by the broker’s server.
The percentage difference between the most recent earnings reports and those from the same quarter last year.
Similar to a moving average, the number of data points that a filter eliminates before the input price data.
Leverage is offered by brokers to maximize traders' buying power by giving them the ability to deposit a small amount of funds and trade larger volumes. Leverage is expressed as a ratio form like 1:100. Leverage provides opportunities for multiplied profits but at the same time one may incur multiplied losses as well.
The duty to transfer money to a counterparty in relation to a balance sheet position at a future date or in relation to an unfulfilled forward or spot transaction.
A price shift that goes beyond the restrictions imposed by the exchange on which the contract is traded.
- An order to purchase or sell at a predetermined price
- A request to trade foreign exchange as a buyer or seller at a given price, or, if a better price is available, at a higher price
Limitations imposed by commodities exchanges on the maximum amount that a commodity's price may fluctuate in either direction during a trading day.
A price chart that uses only the closing price for each period. A line connects all closing prices on the chart. Extra information such as open, high and low prices are sacrificed for simplicity.
Any transaction that eliminates or balances a position that has already been established.
It is the ability of a market to manage significant transactions.
A decentralized digital currency used for peer-to-peer transactions.
Assuming responsibility for the obligations of a buyer; holding securities in expectation of a rise in market price.
The nickname of the Canadian Dollar (CAD).
A lot is a standardized quantity of the instrument a traders is trading. In forex, one lot is 100,000 units of a particular currency.
M
Refers to Convergence/Divergence of Moving Average.
The minimal amount of margin that an investor is required to maintain in an account designated for margin usage for every open contract.
The sum of money required to initiate a leveraged trading position is known as the margin. It's the amount that separates the entire value of a trader's position from the money that a broker or leverage provider is lending the trader.
An investor's broker or dealer may make a claim for additional good faith performance funds when their account experiences adverse fluctuations in prices.
It is the ratio of Equity to Margin used for the open positions and indicated as a percentage. It indicates the “health” of a trader's account.
The order will be filled at the next available price.
A bank or broker continually prepared to offer a two-way price for buying or selling an asset or money.
Directions to the broker to purchase from the best offer or sell promptly to the highest bidder.
The unpredictability of results due to market-wide fluctuations.
Crowd psychology, usually a gauge of traders' and investors' bullish or bearish sentiments.
An application store where traders can buy trading indicators, expert advisors, scripts and other applications.
Investors assess the company's value by multiplying the current stock price by the total number of outstanding common shares.
It consists of two windows: Symbols and Tick Chart. In the Symbols window all financial instruments (symbols) available on the client terminal, are listed in the first column along with their corresponding bid and ask prices. The Tick Chart displays the incoming bid and ask price for the selected symbol. The Market Watch title bar displays the current server time.
It is the maximum top-to-bottom decline in the value of a position or portfolio.
A market breadth indicator. It was developed by Sherman and Marian McClellan. It is the difference of a 19-period EMA and a 39-period EMA of advancing minus declining issues in the New York Stock Exchange.
The trader's account's average profitability over a particular period of time.
A programming environment for the development of Expert Advisors, Indicators and Scripts.
The study of economic activity as it relates to specific enterprises, clearly defined small groups of people, or economic sectors.
A micro lot is equal to 1,000 units of the base currency in a currency pair.
The smallest probable change in market price in a specific futures contract.
It measures the difference between the current price and the price n periods ago of a financial instrument.
It is an important factor in trading the financial markets. It involves, position size, stop loss, diversification, asset allocation and reward to risk ratio.
A trend following indicator. It is a series of averages of sequential data subsets. It may be used as a curving trend line that follows the price action.
A company that allocates shareholder funds over a range of investments, typically in stocks.
N
A stock market index of all shares traded on Nasdaq. It is weighted index according to the stocks’ capitalization.
The Navigator window is part of the Client Terminal. It lists the trader’s accounts, Expert Advisors, Indicators, Scripts and Custom Indicators.
When one or more averages, indices, or indicators fail to reveal confirmed patterns.
A tab in the Terminal (MT4) or Toolbox (MT5) listing all News by Subject, Category and incoming Time.
High impact, monthly report presenting the change of US employed people, excluding the farming and the government sector. Released, usually, the first Friday of the month by the Bureau of Labor Statistics.
A stock market index for the Tokyo Stock Exchange, composed of 225 stocks of large Japanese companies.
When traders have direct access to the interbank market and there is no dealing desk involved in their transactions.
A reversal pattern. During the course of an uptrend as defined by successively higher tops and higher bottoms, the last bottom is violated thus prices fall below the last bottom signaling a reversal to the downside.
The number of contracts multiplied by the market price of the underlying financial instrument.
O
Trades that are still pending and open in a trader's account.
An option is a written contract from a seller that gives the buyer the right, but not the obligation, to purchase or sell a certain item at a given price at a later date.
Technical indicator that shows price zones that are overbought and oversold. An indicator that reverses the trend of data, such as price.
Confirms the trend. Determines overextended markets (Overbought/Oversold). Spots divergence between the oscillator and price.
When a trader’s position is kept open and carried over to the next trading day.
The interest rate at which financial institutions in Canada borrow and lend money among themselves. It is updated 8 times per year and released by the Bank of Canada.
The traditional way of trading forex was ‘over the counter’, meaning traders made forex transactions over the telephone or on electronic devices.
Market values that have increased very rapidly and sharply.
An indicator that seeks to pinpoint the point at which prices have risen excessively fast or far in either direction, making them susceptible to a reaction.
Market prices that have dropped rapidly and sharply.
P
Refers to the U-shaped curve in the plane.
A variable, collection of information, or regulation that defines a model's exact structure.
Orders to buy or sell a financial instrument in the future when certain conditions are met. They consist of limit orders and stop orders.
A single unit of change in a currency's bid/ask price. It represents 1/100 of one percent (.01%) and the fourth decimal position in an exchange rate for the majority of currencies.
A reversal point in the market activity.
The total commitments netted in a particular currency. A position might be long (more funds bought than sold), short (more funds sold than bought), or flat or square (no exposure).
- Selling tradables to capitalize on appreciation that has occurred since the original purchase
- Closing a deal in order to incur profits
Q
Identifies investment potential by studying unquantifiable factors that affect the market movement, such as traders’ sentiment, Psychology and behavior. Technical Analysis is a form of Qualitative Analysis, as many concepts and theories such as Elliott Wave Theory, Dow Theory and Cycle Theory study the behavior of the market participants.
Identifies investment potential by applying mathematical and statistical models. Technical analysis is a form of quantitative analysis, as indicators and technical tools are based on mathematical and statistical models.
It's the price that a financial instrument may be bought (Ask price) or sold (Bid price).
The second currency of a currency pair is called the Quote currency. In EUR/USD for example, USD is the quote currency.
(%) Historical earnings difference between the most recent reported earnings and the previous quarter's earnings.
R
A price surge following a time of decrease.
A price point that signals the end of a brief upswing in a continuing trend. A sequence of rally peaks characterizes a bull market.
The variation in price from the peak to the bottom over a specific time frame.
- The value of a currency relative to another, usually the US dollar
- Evaluation of an institution's credit worthiness
Where the closing price of today is divided by the closing price of n days prior. Increase by 100. Deduct 100 from this amount. 100 - ((C today/Cn) * 100).
The relationship, in terms of magnitude or numerical value, between two quantities of the same kind.
A short term fall in price.
The distinction between trading profits obtained from closed and offset positions and those resulting from marking open positions to current market values.
The highest percentage drop of Equity.
An indicator developed by J. Welles Wilder that's used to identify divergence and overbought/oversold conditions.
A type of candlestick chart where the chart's construction is done without considering the time.
A price charting method. A price move is registered as a “brick” in the direction of the trend, as long as the move is equal to the box size, i.e. the minimum amount. There are two types of bricks - white and black.
When a broker is not able to fill a trader’s order at the specific price due to an unusually rapid price movement. The broker would then quote the next best available price, seeking the trader’s confirmation to fill the order.
A price level, typically shown by a price chart pattern, at which rising prices have stopped growing and have either moved sideways or reversed direction.
A line drawn on a chart indicates the price level at which growing prices have stopped rising and either gone sideways or reversed direction.
A price that technical analysts believe will likely see a rebound but, should it break through, will probably cause a major price movement.
The change in the average value in response to an impulse.
A change in pricing that goes against the previous trend.
A stop that signals a change in trading position from long to short when it is reached. Also referred to as reverse and stop.
The amount of risk a trader is willing to take.
The recognition, acceptance, or mitigation of the risks threatening an organization's bottom line or continued existence. Concerning foreign exchange, factors to be taken into account include the market, the nation, the sovereign, the transfer, counterparty, credit, and delivery risk.
A liability or asset that is subject to value fluctuations due to fluctuations in interest rates or exchange rates.
Roll forward or roll over; exchanging a far option for a close option at the same strike price on the same underlying instrument.
Overnight swapping, also known as Tomorrow Next, or Tom-Next, pits one business day against the next business day.
S
A speculative attempt to make a rapid profit by buying at the initial offering price in the expectation that the issue will increase and be able to be sold; in the case of commodities, purchasing and selling in equal amounts to ensure there is no net position at the end of the trading day.
A regular, but transient, increase or decrease in market activity brought on by cyclical shifts in the calendar or climate.
The price at which a bank will offer foreign exchange.
Selling a security, then borrowing it to be delivered with the plan to replace it later at a reduced cost. Selling short in futures trading refers to taking on the buyer's and seller's responsibilities in the futures market's establishment. An agreement between the parties.
The cost at which all open positions in a commodity or equity are marked to market. The closing price, usually.
The day that contracts involving foreign exchange settle.
Shares that are shorted but not yet bought back.
The selling of a predetermined sum of currency that the seller did not have at the time of the trade. Typically, short sales are carried out in anticipation of a price drop.
The term refers to the rate at which short-term government paper is issued or traded in the market, or the rate at which short-term borrowings are made between financial institutions.
This usually refers to daily or weekly prices in the context of historical time series data for stocks or commodities.
A numerical variable that is prevalued in the knowledge base in artificial intelligence. In the language of moving averages, a second moving average softens the first moving average. The signal line is the second moving average.
the average or arithmetic mean of a range of prices over a particular period of time. An individual data point has less of an effect on the average the longer the period of time investigated (i.e., the larger the denominator of the average).
- The discrepancy between the transaction expenses that were estimated and those that were incurred
- Describes the decreasing or negative pip value that exists between the point at which a stop loss order turns into a market order and the possible filling point for that market order
A significant price increase that occurs in a day or two; the increase could be as much as 15–30%, signaling the need for a quick sale.
- The most typical exchange of currencies
- The term "spot" or "spot date" describes the spot transaction value date that needs to be settled within two business days, once the value date has been determined
- The price, sometimes referred to as the cash price, at which a good is sold at a particular moment and place
- The current spot market exchange rate at which the currency is trading
- The variation in a currency's asking and bid prices
- The variation between two related futures contract's prices
- A trade that compares two connected contracts, stocks, bonds, or options in order to take advantage of the differences in pricing variation between the two
The currency of United Kingdom.
An overbought/oversold indicator that assesses the current market value relative to a predetermined range of high and low values. After that, these values are smoothed and converted into a range between 0 and 100.
A slang for Swedish Krona.
The risk management strategy that involves liquidating the deal to prevent its value from declining any further.
In the event that an exchange rate falls or rises to a point where:
- Technical analysis methods indicate that the currency will rise, or not go below; or
- The monetary authorities step in to prevent further declines. View point of resistance
A line drawn on a chart that shows the point at which declining prices have halted and are either moving sideways or have reversed course.
A price as the difference between the two swap dates.
Selling one security to buy another security with similar features.
Slang for Swiss Franc.
T
A type of market analysis that examines at supply and demand in commodities and securities using price and trading volume data. Technicians try to determine price trends in a market by using charts and modeling approaches.
A price change based on technical elements like volume and charting rather than the sentiment of the market.
A low trading volume market where wide bid and ask quotes are the result, and the traded asset has little liquidity.
A minimal price adjustment, either up or down. the smallest variation in an asset that is tradable. Bonds, for instance, trade in 32nds, whereas the majority of stocks trade in eighths.
The quantity of stocks that had a rise or fall in their most recent trade.
The date on which a trade is placed or opened.
Smallest transaction size that is accepted.
The variance between the highest and lowest prices that are exchanged over a given duration; for commodities, the maximum and lowest price that the exchange sets for a particular commodity during any given trading day.
A stop-loss order that tracks the direction of the market.
The purchase or selling of a tradable as a result of an order being executed, such as currencies.
The date on which a trade occurs.
The overall inclination, bent, or drift of a collection of statistical data with respect to time.
U
The synonym for an open position.
An instrument for trading that can be purchased upon exercise.
An underlying security is a stock or bond on which derivative instruments are based.
The percentage of the labour force that were unemployed the previous month but made specific efforts to find employment. Released monthly by the Bureau of Labor Statistics.
A trade carried out at a price higher than the one before it.
V
The CBOT Market Profile pricing range where about 70% of the day's trades take place.
The spot value date for a spot transaction is determined by the bank supplying the quotations, and it is two days ahead of that country. The only time this general norm is broken is when a banking holiday falls on the spot day in the quotation center. In the country or countries that hold the foreign currency. After then, the value date advances by one day.
A measurement of the projected range of price fluctuations for an asset over a specific time period.
The shares that can be exchanged on a certain market or during a designated time frame.
A server that runs 24/7 without any downtime due to internet connectivity, electricity cutoffs or hardware faults. Ideal for automated trading (expert advisors).
W
Elliott wave theory describes a market's price moving steadily in one direction based on the reversal points that initiated and halted it.
An impulse wave, which is composed of five smaller, numbered waves that alternate in different directions and are numbered 1, 2, 3, 4, and 5, is followed by a corrective wave, which is made up of three smaller, alternating waves. Labelled as a, b, and c.
A moving average where recent prices are given greater weightage. A multiple of 1 would be added to the first date, 2 to the second, and 3 to the third date in a three-day weighted moving average.
West Texas Intermediate, WTI is considered one of the major benchmarks for crude oil pricing globally. It has a low Sulphur content (sweet) and it has a relatively low density (light). Hence, it is also known as Texas Light Sweet . It is listed in the New York Mercantile Exchange's oil futures.
X
Silver
Gold
Y
Yield is the return on an investment and is usually expressed as a percentage.
Z
An Elliott three-wave pattern that splits into a 5-3-5 pattern in a bull market, with wave B's peak being substantially lower than wave A's beginning. This pattern will be the opposite in a bear market.
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