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Forex market basic vocabulary and forex trading basic terms

ADX (Average Directional Index) a st f forexrebatesbrokersexbonusrebateard technical forexdiscountbrokersdicator that measures the length of direction ATR (Average True Range) a standard technical indicator used to measure the volatility of a cashback forex pair View a detailed guide to ATR the forex discount brokers at which the ask price is offered, the price at which you buy the Australian dollar Australian dollar forex name bank rate the central bank of a particular country lends to commercial banks interest rate the price at which you buy the price demanded, the price at which you sell the brokerage firm market participant group the institution that serves as an intermediary between retail traders and large commercial groups GBP/USD forex traders slang for GBP/USD currency pair arbitrage trading in forex, taking a position in a currency with a positive overnight interest rate for a gain, only to gain access to interest rates between different central banks CCI (Commodity Channel Indicator) a cyclical technical indicator that Often used to monitor overbought/oversold indicators CFD CFDs special trading instruments allow financial institutions to buy real stocks, futures and other instruments without the need for commission brokerage fees CPI Consumer Price Indicator, which measures inflation based on price fluctuations of specified commodities EA (intelligent trading) software used in trading platforms to automatically manage positions and place orders automatically without human intervention ECN brokerage company foreign exchange brokerage services a way to provide its customers with direct access to the market ECN brokerage company does not oppose the dialing of scalps, not betting with customers, do not charge spreads, but charge a commission on each transaction ECB (European Central Bank) the main regulator of the EU financial system Elliott Wave Theory a set of chart analysis theory based on the 5 and 3 wave model Fed (Federal Reserve) The main regulator of the U.S. financial system FOMC (Federal Market Committee) regulation, interest rates, etc. Fibre forex is a slang term used by forex traders to refer to the EUR/USD (EURUSD) currency pair Fibonacci retracement trend breakout levels calculated at 23.6%, 32.8%, 50% and 61.8% flat When all your positions are closed the floating leverage ratio changes depending on the total number of lots opened The basic analysis of the leverage ratio is based only on news, economic indicators and global events The difference between the previous closing price and the opening price of the gap in the Forex market usually occurs only on weekends between the Friday closing and Monday opening prices GDP (Gross Domestic Product) a measure of the countrys economic income and expenditure; is one of the most important Forex indicators GTC (exist until withdrawn) buy or sell a currency pair at a fixed price currency pair order will remain in place until filled or withdrawn hedge in the direction opposite to the position opened before the single to protect the current single forex speculators committed to quick short-term gain small benefits of speculators slang speculators rarely leave a single overnight SGD a forex currency slang name - New Zealand US dollar leading indicator one of the 10 most important macroeconomic indicators composite index (annual 1992 = 100% ), used to predict the future (6-9 months) economic trends limit orders refer to the broker to buy at a fixed or lower price or sell at a fixed or better price this price is called the limit price liquidity to describe the relationship between the volume of transactions and price movements in the market assessment of the long position is located in the buyers position in the foreign exchange market, the main currency buy is called long, the other is a short loss at a lower rate than when the position was opened Closing a long position at a lower rate than when the position was opened or closing a short position at a higher rate than when the position was opened, or closing a position for less than the commission paid to the broker will result in a loss of a specified amount of units or the amount of currency (usually a multiple of 100) of margin funds held in the brokers account that the investor needs to execute the transaction to replenish the funds held in the Margin trading Margin account means the account used to hold the funds deposited by the investor for the foreign exchange to cover the position notice When the margin account funds fall below a certain minimum limit, the broker issued a notice of the need to deposit more margin into the margin account Market order means the current market price to buy or sell a certain number of lots of orders Martingale (harness) after each loss doubled Position size adjustment strategy for placing betsView Martingale trading systemMarket price refers to the current price of a currency traded on the marketMomentum refers to a way of evaluating the ability of a currency to move in a given mannerMoving average (MA) one of the most basic technical indicators represents the average number of exponential moving averages (EMA) calculated from a certain period of time in the past, weighted moving Moving Average (WMA), etc. is a calculation of ratios and time weights Sell Price the price offered by the seller, the price at which you buy Proportional Allocation Management Model a system provided by a brokerage firm that supports investors in investing with traders and allows traders to use the brokerage firms platform to manage investors funds Open Positions (trades) a buy (long) position or a sell (short) position in a currency pair Position order means an order for a broker to buy or sell a currency at a certain exchange rate Axis point calculated based on the high, low and closing price of the previous trend and the last decimal digit of the exchange rate (e.g. EUR/USD 1 point = 0.0001) Profit closing a position gained positive amount of money principal value of the initial amount of money invested Realized profit/loss closing a position gained Gain/loss QE (quantitative easing) monetary policy adopted by the central bank it refers to the purchase and holding of financial assets from national financial institutions to provide a supply of money and keep the price of these financial assets down resistance may lead to an increase in the price of intensive selling price level (uptrend) RSI (relative strength indicator) a way to predict the direction of price movements by comparing the relative size of the strength of buyers and sellers in the market scalping an indicator scalping a type of trading characterized by closing a position in a very short period of time and with very small profits closing a position ends all positions that have been made that need to be traded trailing stop loss a stop loss level that is closer to the current market price as position losses decrease or profits increase stop loss see stop loss order slippage an order is executed at a price different from the desired (set), the main reason for slippage is the execution of The main reasons for slippage are the rapid fluctuation of market prices at the time of order execution, low liquidity and the low capacity of the broker. The spread between the bid and ask prices of a currency pair is a standard lot of 100,000 units of the base currency of the currency pair you want to buy or sell Stop Loss orders to sell or buy at a certain price or worse Stop Loss orders to sell or buy when the market price reaches a certain price are used to avoid the market price moving in the opposite direction Additional losses are usually a combination of stop orders and limit orders applying STP (Straight-Through-Processing) refers to an order processing system that does not require any human intervention and is completely automatic. Since you are not the actual recipient of the currency you bought, your broker will pay you the difference between the interest on that currency and the interest on the two currencies Overnight interest may be positive or negative Stop Loss orders are orders to sell or buy when the market price reaches a certain price to fix your profit usually a combination of stop and limit orders Application of technical analysis with the help of various technical indicators, based on technical market data (quotes) Take Profit analysis based on Stop Loss see Take Profit Order Trend is the market direction established by a combination of factors floating profit/loss due to open positions profit/loss amount of funds available for trading in the available margin account amount of funds already used to maintain open positions in the used margin account volatility means a statistical analysis of the number of price movements in a given currency pair over a given period of time virtual dedicated Server means a virtual environment set up on a dedicated server to run the corresponding software installed independently on the users personal computer Forex traders use a virtual dedicated server to run trading platforms and intelligent trading systems without expected interference VSA (Volume Spread Analysis) focuses on chart analysis of trading volume and price ranges
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