• EUR/USD 1.18804 13:45 24.11
  • EUR/USD 1.18784 13:30 24.11
  • AUD/JPY 84.915 12:15 24.11
  • USD/JPY 111.489 12:15 24.11
  • CAD/JPY 87.592 12:00 24.11
  • AUD/CHF 0.74770 12:00 24.11
  • EUR/CAD 1.50881 12:00 24.11
  • GBP/CHF 1.30675 11:00 24.11
  • AUD/USD 0.76101 10:30 24.11
  • BITCOIN 8205.200 10:00 24.11
  • CAD/JPY 87.435 10:00 24.11
  • EUR/AUD 1.55777 09:00 24.11
  • CAD/JPY 87.521 09:00 24.11
  • AUD/USD 0.76127 09:00 24.11
  • AUD/JPY 84.806 09:00 24.11
  • USD/JPY 111.405 09:00 24.11
  • GBP/USD 1.33239 09:00 24.11
  • USD/RUB 58.401 09:00 24.11
  • GBP/CAD 1.69597 09:00 24.11
  • AUD/CHF 0.74685 09:00 24.11
  • EUR/USD 1.18486 23:30 23.11
  • EUR/GBP 0.89048 19:30 23.11
  • LITECOIN 75.819 19:00 23.11
  • BITCOIN 8130.650 19:00 23.11
  • GOLD 1291.331 16:00 23.11
  • AUD/USD 0.76263 14:30 23.11
  • AUD/JPY 84.854 14:30 23.11
  • NZD/USD 0.68958 12:00 23.11
  • CAD/JPY 87.665 12:00 23.11
  • USD/CAD 1.26799 12:00 23.11

Glossary

Account

A record of all the transactions

Account Balance

The total amount of funds in an account

Appreciation

The increase in the value of a currency due to the market demand

Arbitrage

The act of positively exploiting countervailing prices in different markets by the purchasing or selling of an instrument, and thenimmediatelygoing for an equal and counterpointing position in a relevant market in order profit from the small differences in the price

Ask, Offer

The price at which someone is willing to sell

Asset

A stock, commodity, currency, or index.

At The Money

When the option expiry price is the same as the buying price.

Aussie

The official currency of Australia

Back Office

All the administrative bodies stranding behind the realization of financial transactions and movements

Balance of Payments

A recording of a country`s transactions with other nations during a certain period of time. Goods, services and flow of capital are also included.

Balance of Trade

The amount calculated by removing the sumof a country’s imports from its exports.

Bar Chart

A chartwhich shows4 significant points: the highest and the lowest prices, which consist the vertical bar; the beginning price, which is shownby a little horizontal line to the left of the bar; and the ending price, shownby a little horizontal line to the right of the bar.

Base Currency

The currency in which a trader records and manages his accounts; also it`s the currency against which other currencies are quoted. Usually the USD is said to be the base currency for most trades and quoting. In other words, most other currencies are quoted as their value expressed in USD.

Basis Point

A unit equal to one hundredth of a percentage point.

Bear

A trader who expects the market to go into a downward trend.

Bear Market

A market described by bad trading conditions and long periods of downward moving prices.

BID

The sum a buyer is ready and willing to purchase at.

Bonds

A financial instrument issued by some in order to gather capital. Bonds will yield interest for the buyer at a later point. The price of bonds is negatively correlated to the interest rates.

Broker

A person or company, serving as an intermediary between a buyer and a seller. Normally, the broker takes some kind of commission for the service.

Buba

The central bank of Germany.

Bull

A trader who is anticipating that the market value will go up.

UDO

Also known as Digital options or FROs, it is a prediction of the direction a stock, commodity, index, or foreign currency will take by a designated expiry time.

Cable

A slangterm referring to the British pound sterling.

Call Option

When the trader has chosen the upward direction for an asset price by expiry.

Candlestick Chart

A chart which shows the daily trading range and the beginning and endingvalues. If the beginning price is bigger than the ending price, the rectangle in-between is shaded. If not, then therectangle is blank.

Capital Markets

Markets for average and long investments, usually for more than a year.

Central Bank

A government institution that takes care of the monetary matters in a country and also prints its currency.An example for a central bank is the US Federal Reserve.

Chartist

An investor who heavily relies on charts and graphs for price trend analysis. Sometimes also referred to as a Technical Trader.

Clearing

The finalization of a trade.

Closed Position

Exposures in Foreign Currencies that are no longer actual.(Putting an end to a position by selling or purchasing currency with the purpose of offsetting an equal amount of the open position).

Commission

A charge or a fee given to a broker.

Confirmation

A document exchanged by two parties,certifying the exact terms of a given transaction.

Contract

The regulartrading unit.

Counter Party

The second party of a transaction. It could be a person or a financial institution.

Cross Rate

The exchange rate of a currency pair.

Currency

Any form of money that serves as a medium for economic exchange and is issued by the government or a central bank.

Currency Pair

Two currencies whichare quoted against each other. An example is the EUR-USD pair.

Currency Risk

The risk of losing due to changes in the market stability and exchange rates.

Day Trading

The opening and closing of the same position throughout the same trading session.

Dealer

A person or companywhichserves as a principal or counterparty to an exchange. The principals take one side of a position in order to make money by finishing the position in a trade with another party. Oppositely, a broker is someone who acts as an intermediarybetweena buyer and seller in return of a fee.

Deficit

A negative account balance.

Delivery

The transferal of an asset between two sides.

Deposit

The borrowing and giving of funds. The borrowing/lendingrate is alsoreferred to as the deposit rate. Certificates of Deposit are also tradable assets.

Depreciation

The negative decline in the value of an asset, usually as a result of bad economic conditions.

Derivative

A contract that changes its value according to the changes in the value of a relatedasset.

Devaluation

The purposeful,negativechange of a currency’s value.Usually done by an official announcement.

ECB

The European Monetary Union Central Bank.

Economic Indicator

A quantitative unit showingthe economic conditions and performance.It`s usually issued by a government or a non-government institution. Examples for economic indicators are: Gross Domestic Product, Employment Rates, Trade Deficits and Industrial Production.

End of Day

Traders account for their investments in two ways: accrual and mark-to-market. The accrual method accounts for cash earnings and outcomes only when they are realized.It only reflectsthe profit or loss when the funds were actually transferred. The mark-to-market method accounts for the trader investments at the end of each day, using the closing market indicators. Any profit or loss is accounted for and the trader will start the next day with a net position.

Euro

The official currency of the European Union.

Execution Date

The official date of a trade.

Expiry Price

The price of the underlying asset at the time of expiry according to the real-time market price. The expiry price determines whether the option has expired in-the-money or out-of-the-money.

Expiry Time

The designated time and date at which an option expires.

Federal Open Market Committee

The monetary committee of the Federal Reserve.

Federal Reserve

The United States` Central Bank.

Fixed Exchange Rate

An official exchange rate applied by a monetary institution for one or more currencies. However, even a fixed exchange ratecan result in small price fluctuations.

Flat

A trader is said to have a flat book when he doesn`t haveany positions or if all his positions arenegating each other out.

Forex

The buying and selling of a currency with the hope of realizing a profit in an over-the-counter market.

Forward

The previously agreed upon exchange rate for a foreign exchange contract that settles at a predetermined date. This is based upon the interest rate difference of the currencies involved in the transaction.

Forward Points

The pips added to or deducted from the exchange rate in order to calculate the forward price.

Forward Rate Agreements

FRAs are transactions whichlet a person borrow or lend at a previously agreed upon interest rate over a specific time period.

Front Office

The front office is usually the official place of trade and other business related processes.

Fundamental Analysis

Studying and examining economic news, events and other related data in order to better forecast future price movements.

Futures Contract

A contractual agreement for the exchange of an asset at a certain price at some point in the future.What differentiates a Future Contract from a Forward is that the latter is usually deemed as an Over the Counter contract, whereas a Future Contract is typically traded over an exchange. An OTC contract is any contract not traded on an official exchange.

G5

The top 5 industrial countries in the world- US, Germany, Japan, France, United Kingdom.

G7

The top 7 industrial countries in the world – US, Germany, Japan, France, United Kingdom, Canada, Italy.

Good-Till-Cancelled

An order for a Dealer to buy or sell at a previously agreed upon price. The GTC remains intact until accomplished or revoked.

Gross Domestic Product

The sum of a nation`s output, income or expenditure manufactured within its physical borders.

Gross National Product

The total value of everything earned or created by a country`s legal residents, even if it`s outside of the country`s physical borders.

Hedge

A position or a number of positions which help the investor minimize eventual losses.

High/Low

The daily highest and lowest values of a given trading asset.

In the Money

A trader’s option is in-the-money when his prediction on the direction (regardless if it was above or below) was correct.  Options expires in-the-money, and the trader receives the full payout even if the trader was correct by a single pip.

Inflation

An economic occurrencedescribed by jumping prices of all consumer goods and consequently resulting in the decrease of purchasing power.

Initial Margin

The first deposit of collateral used as a guarantee in order to enter into a position.

Interbank Rates

The Foreign Exchange rates at which bigmultinational banks quote other large multinational banks.

Interest Rate Swaps

Swapping two debt obligations which have different payment streams (the transaction usually switches two parallel loans; one fixed and the other floating).

International Monetary Fund

The IMF is a global institutionconsisting of 184 countries. It was createdwith the purpose ofboosting international monetary cooperation and stability efforts. Also to stimulate economic development and high employment stats and provide temporary financial help to countriesin need.

Intervention

A deliberate change to the value of a currency by the central bank.

Investment

The amount invested in a specific option.

Kiwi

An informal term referring to the currency of New Zealand.

Leading Indicators

Economic variables which signalforfuture economic development (Unemployment, Consumer Price Index, Producer Price Index, Retail Sales, Personal Income, Prime Rate, Discount Rate, and Federal Funds Rate).

Leverage

The ratio of the security deposit given in a transaction (also referred to as margin).

Limit Order

An order limiting the highest or lowest price in a transaction.

Liquidation

Putting an end to an existing position by the making of an offsetting transaction.

Liquidity

The market`s ability to take large transactions with little to no impact on the overall price level.

Long

A position to purchase more of an asset than actually is being sold.If the market prices go up, there is also an increase in the asset`s value.

Long Position

A position that increases its value parallel to the increase in market value (when the base currency in a pair is bought, the position is referred to as long).

Loonie

The Canadian one dollar coin.

Lot

A unit used for measuring the size of a deal.

At The Money

When the option expiry price is the same as the buying price.

In the Money

A trader’s option is in-the-money when his prediction on the direction (regardless if it was above or below) was correct.  Options expires in-the-money, and the trader receives the full payout even if the trader was correct by a single pip.

Margin

The amount of equity an investor needs in order to collateralize a position.

Market Maker

A dealer who quotes both the bidding and asking prices and is ready for a two-sided market trade for any financial instrument.

Market Order

An order to purchase or sell at the best price available when the order reaches the market.

Monetary Policy Committee

A central bank committee whose role is to direct monetary policy issues.

Money Markets

Short-term investments whose participants are banks and other financial institutions. Examples are: Deposits, Certificates of Deposit, Repurchase Agreements, Overnight Index Swaps and Commercial Paper. This type of investment is considered to be secure and very liquid.

Out Of The Money

A Up Down Options is out-of-the-money when the trader’s prediction was incorrect regarding the direction of the price by expiry time.  The trader will then receive 10% of his investment amount.

Call Option

When the trader has chosen the upward direction for an asset price by expiry.

One cancels the other

An order, which if carried out partially, negates the other part of the order.

Open order

An order that finalized when a market gets to its designated level; usually related to Good-Till-Cancelled Orders.

Open Position

– An active trade that hasn`t made any profit and loss yet and has not been offset by an equivalent and opposing deal.

Option

An agreement which lets the owner purchase or sell a given asset at a certain price for some time period. (There are two types of options – call and put; a call gives the right to purchase while a put gives the right to sell.)

Order

An order is an affirmation, from a customer allowing a broker to trade. An order can be issued at a certain price or at the market value. Also, it can be valid until filed or until the end of the trading day.

Out Of The Money

A Up Down Options is out-of-the-money when the trader’s prediction was incorrect regarding the direction of the price by expiry time.  The trader will then receive 10% of his investment amount.

Overnight Position

A trade that remains open until the next trading day.

Put Option

When the trader has chosen a downward direction for the asset price.

UDO

Also known as Digital options or FROs, it is a prediction of the direction a stock, commodity, index, or foreign currency will take by a designated expiry time.

Payout

The percentage amount that the trader will receive at option expiry.

Points, Pips

This is the smallest possible movement that an exchange rate can make on the market.

Position

A position is an investment term used to express the trader`s willingness to purchase or sell. It can refer to how much currency the trader owns or owes.

Premium

In the currency markets, it refers to how many points have been added to the spot price in order to determine a forward`s or a future`s price.

Profit/Loss

The actual profit or loss which resulted from investment activities on Closed Positions, along with the theoretical unrealized profit or loss on any Open Positions that have been Mark-to-Market.

Put Option

When the trader has chosen a downward direction for the asset price.

Quote

A ranging market price, showing the highest bid or lowest ask price available on a security at any given time.

Expiry Price

The price of the underlying asset at the time of expiry according to the real-time market price. The expiry price determines whether the option has expired in-the-money or out-of-the-money.

Rally

A stabilization in price following a period of negative market performance.

Range

The difference between the largest and smallest value of a futures contract, recorded during a given trading day.

Rate

The value of a currency expressed as an amount of another currency.

Re-purchase

A transaction involving the sale and re-purchase of the same asset, at a previously agreed upon time and date. The transaction is made on the short-term money market.

Resistance

A technical analysis term,referring to a price level which a currency cannot go over. Repeated and unsuccessful attempts for the price to go over that point will usually create a pattern shaped as a straight line.

Risk Management

The act of minimizing risk by using financial analysis and other trading techniques.

Roll-Over

Postponing the closing and finalization of a deal to another value date (the expenses of this process are calculated based on the interest rate difference between the two currencies).

Settlement

The act of switching the consideration for financial instruments as soon as a transaction has been finalized. (The closing of currency trade doesn`t necessarily have to involve the actual physical of two currencies.)

Short

To go `short` is to sell an asset that isn`t actually yours, with the expectations that its value will go down and the asset can be purchased back at a better price.

Short Position

An investment position which is profitable when there is a downward market movement (also when the main currency in a pair is sold, the position is referred to as short).

Spot

A transaction which happens momentarily, but the funds will actually get to the right place two days after the deal is finalized.

Spot Price

The market price at the moment (the finalization of a spot transaction usually occurs in two trading days).

Spread

The price discrepancy between the bid and the offer. It`s used to evaluate market liquidity (smaller spreads normally point towards high liquidity).

Stop Loss Order

A command to buy or sell at an agreed upon price (in some occasions there are also prearranged stop orders, where an open position is liquidated if it reaches or goes above a certain price).

Support Levels

A technique used in technical analysis,showing a particular price ceiling and bottom at which an exchange rate will get fixed by itself.

Swap

A currency swap is the instantaneous sale and purchase of the same amount of currency at a forward exchange rate.

Technical Analysis

A technique for analyzing market news and conditions, as well as historical price, trends and averages, with the purpose of predicting future price movements.

Tick

The minimal possible price movement, be it positive or negative.

Tomorrow Next

Momentary buying and selling of a currency for the purpose of delivering it the following day.

Two Way Price

The bid and ask rate which are quoted for a Forex investment.

US Prime Rate

The interest rate which most United States` banks give to their main corporate customers.

Value Date

The date on which the participants of a transaction should meet their duties and financial commitments. For spot currency deals, the value date is normally within 2 trading days (it can sometimes be called the maturity date).

Volatility

A statistical indicator of a market or a security’s price performance over a period of time, derived by applying standard deviation.

Volume

The bulk of securities traded within a certain time period.

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