Forex vocabulary pdf

Traders who have an account at etoro will be paid through a cut-throat pay plan. If you have an account at other brokers, it would do you well to switch to etoro and benefit from all of its great features at a very low cost. Although there are other trading platforms out there, none has the staying power of eToro. This is because it offers a lot more than competing exchanges. In addition to having a low commission, it has several unique features that set it apart from other platforms. For example, it lets traders trade in three major trading currencies, as well as ether the most famous form of currency today , and four major commodities.

Traders will also be able to place a limit order, which is similar to a traditional stock trade, allowing them to limit the risks they are taking on a particular trade. Forex Trading Vocabulary Pdf. So does eToro have disadvantages? For instance, its trading platform lacks the personalization that some traders want. The trade in Forex occurs between two currencies, because one currency is being bought and another — sold at the same time. Download full-text PDF Read full-text.

What is Forex? The goal of this guide is to give you practice knowledge so you can understand Forex trading basics and trade by yourself. This market is considered one of the largest financial markets in the world in terms of trading volume. In simple terms, one can buy and sell currency pairs. The first currency in a currency pair is the base currency and the second one the quote currency.

A Forex PairCurrencies are always traded in pairs. This position is taken with the expectation that the market will rise. Longs Traders who have bought a product. Lot A unit to measure the amount of the deal. The value of the deal always corresponds to an integer number of lots. M Macro The longest-term trader who bases their trade decisions on fundamental analysis. Manufacturing production Measures the total output of the manufacturing aspect of the Industrial Production figures. This data only measures the 13 sub-sectors that relate directly to manufacturing. Margin call A request from a broker or dealer for additional funds or other collateral on a position that has moved against the customer.

Market maker A dealer who regularly quotes both bid and ask prices and is ready to make a two-sided market for any financial product. Market order An order to buy or sell at the current price. Market-to-market Process of re-evaluating all open positions in light of current market prices. These new values then determine margin requirements.

Maturity The date of settlement or expiry of a financial product. Medley report Refers to Medley Global Advisors, a market consultancy that maintains close contacts with central bank and government officials around the world. Their reports can frequently move the currency market as they purport to have inside information from policy makers. The accuracy of the reports has fluctuated over time, but the market still pays attention to them in the short-run. Models Synonymous with black box. Systems that automatically buy and sell based on technical analysis or other quantitative algorithms. MoM Abbreviation for month-over-month, which is the change in a data series relative to the prior month's level.

Momentum A series of technical studies e. Momentum players Traders who align themselves with an intra-day trend that attempts to grab pips. Net position The amount of currency bought or sold which has not yet been offset by opposite transactions.

New York session am — pm New York time. No touch An option that pays a fixed amount to the holder if the market never touches the predetermined Barrier Level.

• forex jedi.
• forex waluty money chf;
• ;
• Forex Trading Terminology: 15 Most Important Forex Terms Traders Should Know - My Trading Skills.
• .
• trading option 1 jam profit.

The Offer price is also known as the Ask. The Ask represents the price at which a trader can buy the base currency, which is shown to the right in a currency pair. Offsetting transaction A trade that cancels or offsets some or all of the market risk of an open position.

On top Attempting to sell at the current market order price. One cancels the other order OCO A designation for two orders whereby if one part of the two orders is executed, then the other is automatically cancelled. One touch An option that pays a fixed amount to the holder if the market touches the predetermined Barrier Level.

Open order An order that will be executed when a market moves to its designated price. Normally associated with good 'til cancelled orders. Option A derivative which gives the right, but not the obligation, to buy or sell a product at a specific price before a specified date. Order An instruction to execute a trade. Order book A system used to show market depth of traders willing to buy and sell at prices beyond the best available. Over the counter OTC Used to describe any transaction that is not conducted via an exchange.

Overnight position A trade that remains open until the next business day. P Paid Refers to the offer side of the market dealing. Pair The forex quoting convention of matching one currency against the other. Paneled A very heavy round of selling. Parabolic A market that moves a great distance in a very short period of time, frequently moving in an accelerating fashion that resembles one half of a parabola. Parabolic moves can be either up or down. Partial fill When only part of an order has been executed.

Patient Waiting for certain levels or news events to hit the market before entering a position. Pips The smallest unit of price for any foreign currency, pips refer to digits added to or subtracted from the fourth decimal place, i. Political risk Exposure to changes in governmental policy which may have an adverse effect on an investor's position. Portfolio A collection of investments owned by an entity. Position The net total holdings of a given product. Premium The amount by which the forward or futures price exceeds the spot price. Price transparency Describes quotes to which every market participant has equal access.

Profit The difference between the cost price and the sale price, when the sale price is higher than the cost price.

Pullback The tendency of a trending market to retrace a portion of the gains before continuing in the same direction. Purchasing managers index PMI An economic indicator which indicates the performance of manufacturing companies within a country.

Purchasing managers index services France, Germany, Eurozone, UK Measures the outlook of purchasing managers in the service sector. Such managers are surveyed on a number of subjects including employment, production, new orders, supplier deliveries and inventories. Readings above 50 generally indicate expansion, while readings below 50 suggest economic contraction. Put option A product which gives the owner the right, but not the obligation, to sell it at a specified price. Q Quantitative easing When a central bank injects money into an economy with the aim of stimulating growth.

Quarterly CFDs A type of future with expiry dates every three months once per quarter. R Rally A recovery in price after a period of decline. Range When a price is trading between a defined high and low, moving within these two boundaries without breaking out from them. Rate The price of one currency in terms of another, typically used for dealing purposes. Real money Traders of significant size including pension funds, asset managers, insurance companies, etc.

They are viewed as indicators of major long-term market interest, as opposed to shorter-term, intra-day speculators. Resistence level A price that may act as a ceiling. The opposite of support. Retail investor An individual investor who trades with money from personal wealth, rather than on behalf of an institution. Retail sales Measures the monthly retail sales of all goods and services sold by retailers based on a sampling of different types and sizes. This data provides a look into consumer spending behavior, which is a key determinant of growth in all major economies.

Revaluation When a pegged currency is allowed to strengthen or rise as a result of official actions; the opposite of a devaluation. Rights issue A form of corporate action where shareholders are given rights to purchase more stock. Normally issued by companies in an attempt to raise capital.

Risk Exposure to uncertain change, most often used with a negative connotation of adverse change. Rollover A rollover is the simultaneous closing of an open position for today's value date and the opening of the same position for the next day's value date at a price reflecting the interest rate differential between the two currencies. RUT Symbol for Russell index. Sector A group of securities that operate in a similar industry. Sell Taking a short position in expectation that the market is going to go down. Settlement The process by which a trade is entered into the books, recording the counterparts to a transaction.

The settlement of currency trades may or may not involve the actual physical exchange of one currency for another.