Showing posts with label Glossary. Show all posts
Showing posts with label Glossary. Show all posts

Friday, May 4, 2018

Glossary of Terms of the Forex market

ASK - the price of the offer, on which the transaction for the purchase is made


BID - the price of demand, which is the transaction for the sale


COMMISSION - (commission) remuneration of the broker for conducting transactions on behalf of the client as an agent.


FLAT (SQUARE) - (closed) neutral position when all positions are closed.


GTC (Good Till Canceled) - (good until cancelled) order (order) to buy or sell currency at a fixed price or worse. The order remains in effect until it is executed or cancelled by the client.


LIMIT ORDER - (limited order) order to the broker to buy a lot of a certain instrument and the volume of assets at a specified price or below it, or sell at a specified price or higher. The specified price is called a limited price.




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LOSS - (loss, loss) reduction of the volume of invested assets as a result of transactions or excess of expenses for the operation of the proceeds from it.


LOT - a certain number of units or the amount of assets taken to perform an operation on the market for a particular instrument (usually the number of units of volume in the lot is a multiple of 100).


MARGIN - (margin, collateral) the amount of money or a certain amount of securities that the investor must deposit with the broker to secure a loan for investment. This amount of cash represents security or collateral on the investor's margin account, which provides coverage for possible losses that may arise in the case of a margin trade.


MARGIN ACCOUNT - (margin account) the account by which the client receives a loan from a broker/dealer for transactions.


MARGIN CALL - the requirement for additional security. The requirement for the client to deposit money from the broker when performing financial transactions, when the amount of the margin is reduced below the minimum level established on the exchange or by that firm.


MARKET ORDER - (market order) order to buy or sell a lot of a certain instrument and the volume at which the broker executes it at the best price available at the time of receipt of the order.


MARKET PRICE - (market rate) in an open market is dynamically variable prices of buyers and sellers for a particular market instrument. In the conditions of the exchange, the last announced selling price.


OFFER - the offer of the price by the seller. Offer to sell at a certain price.


OPENED POSITION (TRADE) - (open position) the market volume of contracts for unfinished transactions. When playing on a raise, the position is called "long", while playing on a slide is called "short".


ORDER - (order) order the broker to buy or sell a lot of a certain instrument and volume at a given rate.


PIPS (POINT) - (pip, item) is the last digit in the spelling of the quotation (0.0001 = 1 pip).


PROFIT (GAIN) - (profit, profit) is a positive result of an investment or a business transaction after clearing the costs of its implementation.


REALIZED PROFIT / LOSS - profit / loss on settled (closed-back transactions) positions.


RESISTANCE - (resistance) price level at which active sales can suspend or unfold the upward trend.


SETTLED (CLOSED) POSITION - (closed position) the settled market position on which the reverse transaction was made and the settlement was made.


SPREAD - the difference between the bid price and the bid price


STOP-LIMIT ORDER - an order to buy or sell a lot of a certain instrument and volume, but only when the price reaches a given level. Usually, it is a combination of a stop order and a limit order.


STOP-LOSS ORDER - (stop-loss order) order to buy or sell currency at a fixed price or worse. This order is usually issued to limit losses, in case the market moved in the opposite direction to the expected one.


SUPPORT - (support) the price level at which active purchases can suspend or unfold the downward trend.


TREND - the resulting direction of price movement as a result of various factors.


UNREALIZED (FLOATING) PROFIT / LOSS - non-fixed profit / loss, unrealized until the position is settled, i.e. is blocked by a reverse transaction.


USEABLE MARGIN - (available margin) amount of funds on the margin account, available for settlements based on the results of transactions. Calculated as the difference between the current balance of the account, taking into account the unrealized profit and the amount of funds blocked under the coverage of open positions.


USED MARGIN - the amount of funds on the account, blocked to cover possible losses on open positions. It is an instrument for regulating client risks when playing on margin trading conditions.

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