B
C
D
F
H
I
L
M
O
P
R
S
T
V
In terms of foreign exchange trading, currencies are quoted in terms of a currency pair. The first currency in the pair is the base currency. The base currency is the currency against which exchange rates are generally quoted in a given country. Examples: USD/JPY, the US Dollar is the base currency; EUR/USD, the Euro is the base currency.In terms of foreign exchange trading, currencies are quoted in terms of a currency pair. The first currency in the pair is the base currency. The base currency is the currency against which exchange rates are generally quoted in a given country. Examples: USD/JPY, the US Dollar is the base currency; EUR/USD, the Euro is the base currency.
A trader who believes prices will fall.
Trader who believes that prices will rise.
A Contract for Difference (or CFD) is a type of derivative that gives exposure to the change in value of an underlying asset (such as an index or equity). It allows traders to leverage their capital (by trading notional amounts far higher than the money in their account) and provides all the benefits of trading securities, without actually owning the product.
The notional number of shares one CFD represents.
The two currencies in a foreign exchange transaction. The “EUR/USD” is an example of a currency pair.
The risk that shifts in foreign exchange rates may undermine the dollar or any other foreign currency value of overseas investments.
A buy or sell order that will expire automatically at the end of the trading day on which it is entered.
Buying or selling one currency against another currency.
A currency that investors have confidence in. Examples could be the US Dollar or the Euro.
A hedge is an investment to reduce the risk of adverse price movements in an asset.
A rise in prices or a drop in the purchasing power of money.
The first deposit by a customer, which determines a corresponding maximum trade size.
The rate charged or paid for the use of money. An interest rate is expressed as an annual percentage of the principal. Interest rates often change as a result of inflation and Central Bank policies.
The ratio of margin to the maximum position size. With a deposit of $5000 and a leverage of 50, a trader could enter a position with a face value of $250,000. Leveraging allows you to profit quickly, but lose money just as fast.
An order to transact at a specified price or better.
When a currency pair is long, the first currency is bought while the second currency is sold short. To go long on a currency means that you buy it. A long position is expressed in terms of the base currency.
Standardised method of trading in Forex, which requires a trade of 100,000 units of a particular currency.
The minimum deposit required to maintain an open position. For example, with an open position of $250,000 and a leverage of 50, the required margin would be $5000.Margin Account: An account that allows leverage buying and short selling on credit.
A notification that more funds must be deposited into an account because the value of the account has fallen below the minimum margin needed to cover the size of existing positions.
An order for immediate execution at the best available price.
Also known as the Ask Price, it is the price at which a seller is willing to sell.
Buy or sell order that does not expire until cancelled. In theory the order does not expire. However, it usually does so at the end of the trading month rather than lasting forever.
A position whether long or short that is subject to market fluctuations and thus profits or losses.
The smallest upward or downward price movements quoted in Forex. In EUR/USD, a movement of 0.0001 is one pip (for example, from 140.005 to 140.004 Euro). In USD/JPY, a movement of 0.01 is one pip (for example, from 116.32 to 116.31 Yen).
Generally, the daily rollover interest rate is the amount a trader either pays or earns, depending on the currency pairs in question.
In foreign exchange, when a currency pair is sold, the position is said to be short. It is understood that the primary currency in the pair is 'short', and the secondary currency is 'long'.
The difference between the Bid and the Ask (Offer) price.
An order to buy or to sell a currency when the currency's price reaches or passes a specified level.
A customer's instructions to buy or sell a currency pair which, when executed, will result in the reduction in the size of the existing position and show a profit on said position.
A software application used for trading Forex, usually over the Internet.
Measure of how much the price of a currency changes over time