Here are some of the most
typical terms used in FOREX dealing.
Ask Price — Sometimes called
the Offer Price, this is the rate for traders to buy forex dealing. Ask Costs
are proven on the right part of a quote — e.g. EUR/USD 1.1965 / 68 — indicates that
one money can be bought for 1.1968 UD money.
Bar Data — A form of chart
used in Specialized Research. Everytime department on the chart is proven as a
straight bar which show the following information — the top of the bar is the
high price, the end of the bar is the affordable, the horizontally range on the
remaining of the bar reveals the starting price and the horizontally range on
the right of bar reveals the ending price.
Base Currency dealing — is
the first currency in a currency couple. A quote reveals how much the platform
currency is value in the quote (second) currency. For example, in the quote —
USD/JPY 112.13 — US money
are the platform currency, with 1 US
Bid Price — is the price a
investor can offer forex dealing. The Bid Price is proven on the remaining part
of a quote — e.g. EUR/USD 1.1965 / 68 — indicates that one money can be sold
for 1.1965 UD money.
Bid/Ask Propagate — is the
difference between the bid price and the ask price in any currency quote.
Multiplication symbolizes the broker's fee, and varies from agent to agent.
Broker — the broker between
buyer and seller. Most FOREX brokers are associated with large banking
organizations and generate income by setting an assortment between bid and ask
prices.
Candlestick Data — A form of
chart used in Specialized Research. Everytime department on the chart is proven
as a candlepower unit — a red or natural straight bar with additions above and
below the candlepower unit body. The top of the expansion reveals the highest
price for the chart department and the end of the expansion reveals the lowest
price. Red candlesticks indicate a lower ending price than starting price, and
natural candlesticks indicate the costs are rising.
Cross Currency dealing — A
currency couple that does not include US money — e.g. EUR/GBP.
Currency Pair — Two forex
dealing involved in a FOREX deal — e.g. EUR/USD.
Economic Sign — A
mathematical report from authorities or educational organizations showing
financial circumstances within a country.
First In First Out (FIFO) —
represents the transaction start purchases are liquidated. The first purchases
to be liquidated are the first that were started out.
Foreign Exchange (FOREX, FX)
— Simultaneously buying one currency and selling another.
Fundamental Research —
Research of financial and political circumstances that can affect currency
prices.
Leverage or Edge — The rate
of the value of a deal to the required first deposit. A typical margin for
FOREX dealing is 100:1 — you can business currency value 100 times the amount
of your first deposit.
Limit Purchase — An to buy or
offer when the price reaches a specified level.
Major Currency dealing — The
money, German mark, Europe franc, British lb,
and the Japoneses yen are the significant forex dealing.
Minor Currency dealing — The Canada money, the Australia
money, and the New Zealand
One Cancels the Other (OCO) —
Two purchases placed simultaneously with guidelines to terminate the second
order on performance of the first.
Open Position — An active
business that has not been closed.
Pips or Factors — The
smallest unit a currency can be traded in.
Quote Currency dealing — The
second currency in a currency couple. In the currency couple USD/EUR the money
is the quote currency.
Rollover — Increasing the
settlement duration of spot deals to the current delivery date. The price of
flip is measured using substitute points based on monthly interest
differentials.
Technical Research — Research
of traditional industry data to predict future motions in the marketplace.
Tick — The minimum change in
price.
Transaction Price — The price
of a FOREX deal — typically the spread between bid and ask prices.
Volatility — A mathematical
measure showing the tendency of sharp price motions within a period of time
period.
