Terminologies

We provide you with professional terminology related to trading to help you understand the market better

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The bank’s risk comes from foreign exchange contracts with a single client.

Currency exchange charges.

The current price at which sellers are willing to sell a currency pair, also known as the ask price, the ask price, and the estimated bid price. If the buyer wants to buy, they must accept the asking price in order to match the transaction. 

Abbreviated currency pair for Australian dollar and US dollar (AUD/USD). Tells the investor how much USD (quote currency) can buy one Australian dollar (base currency). 

The price fluctuation of the linked currency within a certain range. 

The rate at which the central bank offers to borrow from its domestic banking system. 

The day of the week when commercial banks are open for business and currency trading.

A popular format for studying the price action of currency pairs. 

Prices listed inforex trading market are currency ratios. The currency in the front is the base currency. Base currency is how much currency a country needs to exchange for one unit of base currency. For example USD/JPY, USD is the base currency, EUR/USD, EUR is the base currency. 

One hundredth of 1% or 0.0001. 

A series of operations in which the dollar is being sold against various currencies. 

Prices in the asset market have been falling for a long time. 

The current price at which buyers are willing to buy a currency pair, also known as the bid price and the bid rate . If the seller wants to sell, he must accept the bid price in order to match the trading. 

The bid price is different from the ask price 

Agents, who use relevant tools to execute orders to buy and sell currencies, charge commissions or spreads. Brokers profit from commissions rather than trading on the exchange themselves. Brokers in the foreign exchange market often act as intermediaries between banks, allowing buyers and sellers to trade together and collect the spread paid by both parties.

The company provides trading management services to the public. 

Traders think prices will rise.

 Prices in the capital market are on an upward trend.

Execute the trade at the specified price (limit) or lower.

In the process of buying a currency pair, the client pays a portion of everything. The term “margin” refers to what the investor partly points out, not partly borrows.

A currency carry trade that holds a high interest rate currency against a low interest rate currency. Forex strategies based on the interest rate differential between the two countries can be profitable if the volatility of the currency pair is excluded.

A person who analyzes past price movements and makes charts to evaluate the market.

 high-yield currency.

 Funds deposited into a trading account.

Closes all unit quantities of previously opened orders. As in the case of a long position, sell all long orders. Then, your order in the market becomes zero.

Brokers charge their own clients fees.

A free exchange policy allows for fluctuations in the value of a currency, but the central bank intervenes in the exchange rate from time to time.

Financial contracts related to underlying economic fluctuations. For example, the changing value of an option is based on and asset base.

The value of one currency for another.

A one-month to three-month economic indicator, the index measures changes in the cost of living by measuring changes in the price of a common, basket of goods and services used by most people, such as food, clothing, transportation and entertainment.

A statistical term referring to the relationship between two seemingly independent things. For Forex as an example, one could say that there is a high correlation between EUR and GBP, and a correlation between EUR and BRL.

A statistical term referring to the relationship between two seemingly independent things. For Forex as an example, one could say that there is a high correlation between EUR and GBP, and a correlation between EUR and BRL.

counterparties in foreign exchange trading. For example, the opponent of online spot foreign exchange is the bank.

Two currencies for foreign exchange trading. The “EUR/USD currency pair” is an example.

The exchange rate between the two non US dollar currencies

Currency Coins and banknotes issued by the government. Currency is used in the country as a unit of exchange for commodities.

The risk of changes in foreign exchange rates that may weaken the value of overseas investments in the US dollar or any other foreign currency.

Traders trying to profit from short-term price movements often open and close orders within the same trading day.

Orders are opened and closed on the same trading day.

A list of all orders completed within a trading day.

The day the order was placed.

Acting as executor or counterparty when individuals or companies buy and sell assets.

Basic trading history in the foreign exchange system, rather than sending reports to clients.

In a trading, when the account balance is negative.

Breach of contract restrictions.

The risk that the counterparty will not be able to perform the contract, even if he is willing to do so.

A persistent and substantial decline in the prices of goods and services within an economy. It is the opposite of inflation. A longer deflation can lead to a vicious cycle of deflation. Falling prices lead to lower demand for jobs. During the cycle, the income of labor wages did not decline, and the demand continued to decline.

A significant drop in the value of a particular currency.

Necessary information to facilitate foreign exchange trading. For example, the interest rate spread for the currency pair, daily price changes, and changes in volume.

When a government allows the value of its currency to weaken against other currencies.

An account allows an institution to make trading decisions for a client, buying and selling on his or her behalf.

Quotation for the amount of USD to 1 unit of foreign currency. Some currencies are denominated in U.S. dollars per unit of foreign currency, such as British pounds.

Refers to any drop in the value of a currency or when the central bank sets monetary policy to stimulate consumption. An example of central bank easing is lowering interest rates.

The amount by which the value of an account falls from high to low.

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