Glossary of terms

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List of terms

Aggregate Risk - Aggregate Risk The total amount of an invoice issued to a client by a bank or financial authority.

Ask - Purchase price The price at which the trader agrees to buy a financial instrument.

Asset - Asset A unit of value or asset of value. & nbsp;

Bank Rate - Bank rate The rate at which the country's central bank lends to local banks.

Base Currency - Base currency In a currency pair, the first currency is called the base currency. For example, in the USD / JPY pair, the base currency is USD.

Bear Market - Bear Market A market in which prices for specific securities or assets are declining.

Bid - Sell price The price at which the trader is ready to sell the asset.

Bull Market - Bull Market A market in which prices for specific securities or assets rise.

Buy Limit - An order to execute a deal to buy an asset if the falling price reaches or falls below a certain level - the limit.

Carry Trade - An investment strategy in which an investor borrows funds in a currency with a low interest rate, and then buys an asset with a potentially higher interest rate.

Closed Position - Closed Position When a position is closed, it means that the trade is completed, whether it is a long or short position, profitable or unprofitable.
< br> Closing Market Rate - The closing market rate Also known as the closing price, this is the last known rate of the day, candle rate or rate for a specific time period. >
Currency Appreciation - Growth in the exchange rate The growth of one currency in relation to another.

Currency Basket - Currency basket A specific group of currencies that forms a weighted average value that can be used to measure liabilities.

Currency Futures - Currency futures This is a contract to buy or sell currency on a certain day in the future at a certain price. Futures contracts are often used to hedge risks.

Currency Pair - Currency Pair A pair formed by two different currencies that take part in a currency exchange transaction. For example: EUR / USD.

Daily Chart - Daily chart A chart that displays the price movement of an asset during the day.

Day Trade - Day Trade A trade that was opened and closed on the same day.

Demo Account - Demo Account A trading account that is funded with virtual money, allowing the trader to study the markets and test the trading platform before investing real money in real trading. trading account.

Depth of Market - Market depth The number of orders placed to buy and sell an asset at different prices.

Drawdown - Drawdown The difference between the highest value of your balance and the lowest is called the drawdown.

ECN broker - A broker that uses an electronic commodity trading system to provide clients with direct access to liquidity providers.

Exchange Rate - Exchange rate The rate at which one currency can be exchanged for another.

Execution - Execution Execution and completion of the transaction.

Exposure - Risk The amount of investments in assets that are exposed to market risks.

Fill - Order execution Execution of a market order according to certain conditions.

Fill or Kill When an investor needs to execute a trade only at a certain price, then an order placed on the basis of the Fill or Kill principle, in case of non-execution by the desired price will be canceled.

Fill Price - Fill price The price at which the order was executed.

Floating Exchange Rate - Floating exchange rate The rate that depends on the levels of supply and demand for a particular currency in relation to another currency and is not fixed at one value.

Forex Chart - Forex Charts A digital chart that displays price movements for a currency pair to help an investor make a particular trading decision.

Forex Signal System - Forex Signal System A system that provides the trader with signals that help him determine the right time to buy or sell a particular currency pair.

Forex Trading Robot - Forex Trading Robot This is an automatic trading software that independently determines the moment to sell or buy a currency pair.

Forex scalping - A trading strategy based on the assumption that if you buy and sell (or sell and buy) currency in a very short period of time, you will get more profit. likely than when trading large and prolonged price movements.

Forex spot rate - The current exchange rate at which a currency pair can be bought or sold.

Fundamental Analysis - Fundamental Analysis Analysis of economic and political events that may affect the movement of prices in financial markets (announcements of interest rates, unemployment rate, etc.)

Hedge - Hedging Investors use hedging to protect themselves by mitigating the risks associated with adverse market movements. Hedging implies the simultaneous execution of opposite transactions, thus reducing possible losses from sudden price fluctuations.

Interbank Rate - Interbank rate The interest rate used in short-term loans between banks.

Leverage - Leverage The leverage offered by brokers helps to increase the trader's purchasing power. With the help of leverage, traders can invest small funds and still trade in large volumes. Leverage is expressed as a ratio, for example 1: 100, i.e. a trader's purchasing power increases 100 times.

Limit Price - The limit price The price specified in the Limit order.

Limit order - Trade order for a deal at the specified price or a price higher than the specified one.

Liquidity - Liquidity Trading volume in the market for a certain currency pair.

Long Position - Long Position To open a long position in currency trading means to buy it. In a currency pair, you buy the first of the two indicated currencies - the base currency.

Lots Lot is a standardized unit of measure for your trade. On the Forex market, one lot equals 100,000 units of the traded currency.

Margin - Margin The amount of money in your account required to maintain open positions.

Margin Call - This is a notification that you need to replenish your account, as the current funds on your trading account are not enough to maintain open positions.

Mark-to-Market - Evaluation of an open position as if it were closed at the current market rate.

Market Order - Market Order An order that is executed immediately after it is placed and at the best possible price.

Market Rate - Market rate The current quote of the currency pair.

Micro Lot - The micro lot is equal to 1000 units of the base currency of the currency pair.

Middle Rate - Average rate The price of an asset is exactly between the Bid price and the Ask price.

No Dealing Desk - An order execution system where a trader has direct access to the interbank market, while dealing with his orders is not involved.

Open Position - Open Position A trading position for a currency pair / security, from which either profit or loss is expected.

Over the Counter - OTC Trade The traditional way of trading in the Forex market, which is the OTC market - a trader enters into trades over the phone or using electronic devices.

Overnight Position - Position at the end of the working day Transfer of the trader's open position to the next trading day.

Pip - Point Point (pip, pip) - the percentage of the price that is the minimum step in changing the exchange rate. In most currency pairs, the rate is written as a digit with four decimal places and, accordingly, the smallest rate changes are displayed as the last digit.

Profit Taking Closing a position with a profit.

Quote Currency - Quote Currency The second currency in a currency pair is called the Quote Currency. For example, in the EUR / USD currency pair, the quoted currency is USD.

Regulated Market - Regulated Market A market that is governed by the rules and regulations of the law to protect investors.

Resistance - Resistance A price level that is difficult to overcome by a rising asset price, as a result of which the price, on the contrary, may start to decline.

Risk Management - Risk Management Trader's tools and strategies designed to limit possible financial risks as much as possible.

Rollover Rate - Rollover rate The interest rate at which a certain percentage is charged or deducted from the trader's account when an open position is saved (transferred) to the next trading day.

Round Trip - Round Trip The total amount of investments raised to open and close a position.

Slippage - Slippage Slippage is a situation when an order is executed at a price that is significantly different from what the trader expected. This usually happens during periods of high market volatility, when a trader uses market and Stop Loss orders.

Soft Currency - Soft currency Currency whose rate is sensitive to political and economic events, as a result of which it is subject to significant fluctuations and is mostly unstable.

Speculator - Speculator A trader who trades high-risk instruments, hoping to make a big profit from this trade.

Spike - Spike Unexpected short-term upward or downward price movement.

Spread - Spread The difference between the Ask price and the Bid price of a currency pair.

Stop Loss - order An order to buy or sell a security or currency, provided that a certain price level is reached. These orders are used to limit losses of a losing position.

Take Profit order (T / P) - An order to close a position if a certain price level is reached.

Technical Analysis - Technical Analysis Traders use technical analysis to predict price movements by examining historical data using charts and trading indicators.

Volatility - Volatility The level of uncertainty about price fluctuations for a particular asset.

Yield - Return on Investment, usually expressed as a percentage.