A
Appreciation
A circumstance in which the price of a financial instrument rises in response to market demand.
Arbitrage
The simultaneous purchase and sale of a financial asset at two different prices in two different marketplaces, resulting in rewards with low risk.
Ask Price
The market’s willingness to sell a thing at a certain price. Bid/Ask prices are offered in a two-way format, The Ask price is sometimes referred to as the Offer price.
In a currency pair, the Ask price reflects the price at which a trader can purchase the base currency, which is indicated to the left. For example, in the quote EURUSD 1.21960/1.21980, the base currency is EUR, and the Ask price is 1.21980, meaning you can buy one EURO for 1.21980 US Dollar.
Asset
The trade’s foundational instrument. Stocks, commodities, currency pairings, and indexes are used to trade binary options and Forex.
At the Money
A circumstance in trading where the strike price equals the current price at expiry. There is no profit or loss for the trader in this situation.
Altcoin
When there was a considerably bigger disparity between bitcoin and the other cryptocurrencies in terms of popularity, market value, and trust, the term altcoin was established. Alt-coins were the term for cryptocurrencies other than bitcoin at the time. The phrase has remained among cryptocurrency dealers, and it is still used to refer to smaller-cap coins.
Aussie
Slang for the AUD/USD currency pair.
B
Base Currency
Currency pairs are used in Forex market trading to express the value of a currency. The base currency is the first of the two currencies in the pair. In a particular country, the base currency is the currency against which exchange rates are commonly stated. Examples: EUR/JPY, the EURO is the base currency; GBP/USD, the British Pound is the base currency.
Basis point
A unit of measurement for describing the smallest variation in a product’s price.
Bear
A trader who expects an asset’s price will drop.
Bear Market
The Market situation in which value of assets is decreasing.
Bid Price
The market’s willingness to purchase a thing at a certain price.
Bid/Ask prices are offered in a two-way format. The Bid is the price at which a trader can sell the base currency, which is indicated to the left in a currency pair, in Forex trading. For example, in the quote EUR/USD 1.21960/1.21980, the base currency is EUR, and the Bid price is 1.21960.
Break Even
When there is no overall profit or loss in a transaction, this word is used to characterize it.
Broker
A person or a company that acts act as an intermediary between retail traders and major, well-established financial institutions.
Bull
A trader who believes an asset’s price will increase.
Bull Market
The Market situation in which value of assets is increasing.
Blockchain
A technology in which a ledger of Bitcoin or similar cryptocurrency transactions is kept on numerous computers connected in a peer-to-peer network and this enables customers to make payments and do financial transfers on this network. just like other payment Systems (Paypal, WebMoney, Western Union and etc.)
Bar Charts
A sort of chart consisting of four major items: high and low prices, forming a vertical bar; the opening price, denoted with a horizontal line to the left of the bar; and the closing price, represented by a vertical line to the right of the bar.
Barrier level
In the architecture of a Barrier Option, there is a certain price that is very important.
A set of actions must occur if a Barrier Level price is achieved, according to the rules of a certain Barrier Option.
Barrier option
A barrier option is a form of derivative option contract whose payout is determined by the underlying asset’s value. To put it another way, the payout is only triggered if the asset underlying the barrier option has reached or surpassed a certain price established in the option contract.
Bid/ask spread
The price difference between a bid and an ask price (offer).
Big Figure
A foreign exchange price or rate’s first two or three numbers. Examples: EUR/USD price of 1.21960 the big figure is .21
British Pound
Although it is not an official name of the United Kingdom’s currency, the word “British pound” is widely used in less formal circumstances.
C
Call Option
Also referred to as a “High option.” A trader acquires a Call option when he expects the price of an asset will increase.
CFD
Stands for Contract for Difference.
It is essentially a contract between an investor and a financial institution.
When the agreement ends, the parties exchange cash payments for the difference between the opening and closing prices of a certain financial asset.
Chartist
A technical trader, someone who utilizes charts and graphs to detect patterns and anticipate future moves by interpreting previous data.
Closing price
The price at which a product was bought and sold in order to close a deal. In a day trading session, it can also refer to the price of the most recent transaction.
Commission
The payment made to a brokerage business in exchange for their assistance in processing trades.
Commodities
This term refers to “physical objects” that are either produced or mined. precious metals, and oil are just a few examples.
Contract size
The deliverable quantity of a stock, commodity, or other financial asset that underpins a futures or options contract is referred to as contract size. It’s a standardized number that notifies buyers and sellers the exact quantities of goods they’re buying or selling depending on the contract’s parameters.
Brokers frequently standardize contract sizes.
Counter Currency
In a currency pair quote, the second currency. Also known as quote currency. This represents the value of one unit of the pair’s initial currency (Base Currency).
Currency
This is a form of tradable financial asset.
Currency pair
A foreign exchange rate is made up of two currencies, which is called Currency Pair. For example, USD/JPY (U.S Dollar/Japanese Yen).
Currency Trading
Taking part in a monetary transaction, which includes exchanging different currencies against each other.
Cable
A Forex slang for GBP/USD Pair.
D
Day Trading
Positions are opened and closed in the market on the same day, rather than being held overnight and longer.
Deal
A trade made at the current market price is referred to as a “Deal, Which rather than being an order, is a live trade.
Dealer
Dealers are individuals or businesses who purchase and sell securities on their own account, whether via a broker or not. In contrast to a broker, who operates as an agent and executes orders on behalf of its clients, a dealer operates as a principal in trading for its own account.
Deficit
When obligations surpass the value of assets or losses outweigh earnings, the situation is called Deficit.
Demo Trader
A virtual money trading account that allows a potential investor to evaluate and become familiar with the features of a trading platform before engaging in real-money trading.
Depreciation
A circumstance in which the value of a financial instrument falls as a result of its decreased demand on the market.
Derivative
A derivative is a financial instrument that allows traders to trade on asset pricing without acquiring the assets themselves.
Due to the fact that derivative positions are not physically exchanged, they normally exist as contract between the two parties.
Downtrend
A downtrend is a decreased overall price trend, generated by lower low and lower high price levels.
Dividend
A proportion of the earnings of a corporation distributed to each stakeholder.
Dealing Desk
It is used to describe a trade handling scheme where pricing and execution of orders are facilitated by dealers.
Depth of Market
The amount of purchases and sales orders to be handled at a specific period for a certain currency pair.
E
Euro
The EURO is the official currency that euro-zone members use.
Expert Advisor
A program allowing for no manual control of analytical and trading procedures at the trading platform.
Expiry time/date
The expiry time, is the time and date of an existing deal, in which an option closes. In this situation, the entire transaction becomes null.
Expiry Level
This word refers to the real value of an underlying asset upon the expiry of the option.
Exotic Pairs
In contrast to large traded currencies, exotic currencies are the least traded.
F
Fibonacci
A common method for identifying probable support levels and resistance based on certain numbers by technical analysts.
Fill
The execution of an order on the platform.
Financial Instrument
Any kind of financial assets that have tradable markets and price feeds, like Forex Pair currencies, Option and CFDs.
Flat
A circumstance in which a trader has no open position in the market.
Forex
Stands for “Foreign Exchange”.
Fundamental Analysis
A sort of market study that assesses the economic, financial, and other tangible and intangible factors that influence a financial instrument’s behavior.
Fiat
Traditional currencies, as opposed to cryptocurrencies, are referred to as fiat in the cryptocurrency world. For Example: U.S Dollar, EURO
Future
An agreement between two parties to execute a transaction at a specified time in the future when the price is agreed in the present.
Futures contract
An obligation to exchange -a good or instrument at a set price and specified quantity grade at a future date. The primary difference between a Future and a Forward is that Futures are typically traded over an exchange (Exchange- Traded Contacts – ETC), versus Forwards, which are considered Over The Counter (OTC) contracts. An OTC is any contract NOT traded on an exchange.
G
Gap
The disparity that exists on charts between the closing price of one trading session and the opening price of the subsequent trading session.
GDP
Abbreviation for Gross Domestic Product. It’s an indicator that measures the economic health of a country by determining the total worth of finished goods and services produced within its borders in a certain period of time.
GTC
Abbreviation for Good Till Cancelled. It is an order to purchase or sell a particular financial instrument at a set price but this order is only valid, said to be good, until the trader chooses to cancel it.
Going long
The purchase of a stock, commodity or currency for investment or speculation – with the expectation of the price increasing.
Going short
The selling of a currency or product not owned by the seller – with the expectation of the price decreasing.
H
Hedging
A trading strategy that involves developing techniques of reducing or avoiding extensive losses when trading in the financial markets.
I
In the Money
A phrase used to illustrate when a trader makes profit.
Index
Represents a group of representative stocks within a stock exchange. Some of the most popular indices are the S&P 500, NASDAQ and the FTSE 100.
Inflation
The progressive rise in the price levels of goods and services in a country. When this happens, the purchasing power consequently decreases.
Interbank Rate
The interest rate at which banks offer loans to one another so that they can manage liquidity and comply with the statutory conditions.
Initial Margin
The first deposit by a customer which determines a corresponding maximum trade size.
Initial Margin Requirement
When entering a position, the minimum amount that must be paid in cash.
Interest Rate
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.
Introducing Broker
A person or firm that introduces customers to the broker often in return for commission or a portion of the spread.
J
Japanese Yen
It is the Japanese currency unit, which is the third most-traded currency in the forex market.
Jobber
Also called a scalper. It is used to describe a trader who opens and closes short-term positions with the intention of making accumulated profits.
K
Kill
An order that is to be cancelled (that is to say “killed”) if it cannot be wholly filled in the market.
Kiwi
The slang term for the New Zealand Dollar.
L
Lagging Indicators
Statistics that change after the economy has already started to change or has started to follow a particular direction or trend.
Leading Indicators
Statistics that are used to forecast the economic performance of a country since they change before (ahead of) the economy begins to follow a particular direction or trend.
Leverage
A financial tool that enables an investor to amplify his or her market exposure to a level that surpasses his or her initial capital.
Liquidity
The extent to which a financial instrument can be bought or sold with minimal or no effect to its price.
Liquidation
The closing of an existing position through the execution of an offsetting transaction.
Long
The act of opening a buy position in the market.
Long position
A position that appreciates in value if market price increases. When the base currency in the pair is bought, the position is said to be long. This position is taken with the expectation that the market will rise.
Limit Order
An order to transact at a specified price or better.
Line Chart
The simplest form of charting, a line chart plots a series of lines connecting the various price levels over a specified time period.
Lot
Standardized method of trading in forex which requires a trade of 100,000 units of a particular currency.
M
Margin
It is basically the amount of deposit needed to ensure the running positions in the market are kept active.
Margin Account
An account provided by brokers that gives traders the opportunity to borrow funds to engage in securities transactions.
Margin Call
The assertion by a brokerage firm that a trader adds more money to make up for probable losses.
Market Maker
A brokerage company that is willing to buy and sell financial instruments to provide the needed liquidity to the markets.
Market Price
The present price at which a financial instrument is being traded in the market.
Market Risk
The likelihood that a trader will incur losses when the market conditions do not behave as initially expected.
Mine and Yours
Language employed by investors to denote the desire to purchase or sell. For purchasing something, they say “Mine”. If they want to sell, they say “Yours”.
Money Market
A part of the financial market whereby transactions of financial instruments having high liquidity as well as faster maturities take place.
Moving Average Convergence Divergence (MACD)
A common and versatile technical indicator used for determining the trend or the momentum of the market.
Miners/Mining
Mining is the first and still the most popular method of keeping blockchains secure. Miners confirm transactions, time-stamping entries to the blockchain and hashing them. They are also rewarded with newly minted coins for contributing their processing power to keep the network secure.
Maximum Leverage
The biggest position that a margin deposit would cover. At a leverage of 50, one could enter a maximum leveraged position of $100,000 by depositing $2,000 worth of margin.
MetaTrader 4
MetaTrader 4 is the cutting-edge online trading platform designed by MetaQuotes Software Corp. to provide brokerage services to customers in Forex, CFD and Futures markets.
Monetary Policy
Central bank attempts to influence the economy through money supply levels.
Moving Average
Oscillators Method of smoothing out data on price charts so that trends are easier to spot. Average refers to a mathematical average or a statistical mean that is plotted over the original curve.
N
Noise
Frequent price fluctuations in the market that can make it difficult to make a trading decision.
Net Position
Currency positions that have not been offset with opposite positions.
News Trader
An investor who bases his/her decisions on the outcome of a news announcement and its impact on the market.
NOK
Interbank Rate Resistance Currency symbol for the Norwegian Krone.
NZD
NZD is the currency symbol for the New Zealand Dollar.
O
Open order
An order that is running in the market until the trader chooses to close it.
Order
An instruction to a brokerage firm to either buy or sell a financial instrument at the said price.
Out of the Money
A phrase that is used to illustrate a loss in a trade.
Overnight Position
A trading position that continues to run until the next trading day.
Overtrading
The dangerous habit of engaging in uncouth and excessive trading practices without carrying out appropriate due diligence.
Offer
Also known as the Ask Price, it is the price at which a seller is willing to sell.
Options
The right, but not the obligation, to buy (long call) or sell (long put) an underlying asset.
Oscillators
Technical analysis tools that provide buy and sell signals, characterized by a signal that oscillates between overbought and oversold levels.
One Cancels the Other Order (OCO)
Two orders that are submitted simultaneously. If either one is executed, the other one is automatically cancelled.
One touch
An option that pays a fixed amount to the holder if the market touches the predetermined Barrier Level.
Overnight position
A trade that remains open until the next business day.
Over the counter (OTC)
Used to describe any transaction that is not conducted via an exchange.
P
Payout
The amount of money earned from a successful trade.
Pip
The smallest unit of measurement used in determining exchange rates between currencies.
Platform
The system or technology provided by brokers.
Position
The net total holdings of a given product.
Price/Earnings Ratio (P/E)
A common valuation method used to gauge a company’s profitability by assessing the connection between its stock’s price and its earnings per share.
Principal Value
The initial capital that an individual invests for trading in the financial markets.
Put Option
Also known as a “Low option.” When a trader believes that an asset price will fall, he purchases a Put option.
Private Key
Your private key is the digital signature used to unlock your cryptocurrency wallet and to sign transactions. It is essentially the password for your cryptocurrency holdings and as such should be kept secure and not shared with anyone.
Profit
The difference between the cost price and the sale price, when the sale price is higher than the cost price.
Public Key
Your public key is basically your cryptocurrency address. This is the code that you give out when requesting a payment.
Pump and Dump
Pump and dump schemes are a type of market manipulation in which an asset is bought up in order to raise its price. The rise in value attracts other traders wanting to benefit from the move, who also buy in, raising the price even more. Eventually the perpetrators of the scheme dump their holdings at the new inflated price and everyone follows suit, dropping its price back down to former levels or even lower. Latecomers to pump and dumps are the ones who lose the most as they tend to buy in at the most inflated prices.
Q
Quantitative Easing
A technique employed by central banks to stimulate economic growth by encouraging spending.
Quote Currency
The second currency in a currency pair quotation. Also called counter currency. This reflects the value of one unit of the first currency in the pair (Base Currency).
Quote
When both a bid and ask price are provided for a currency pair.
R
Rate
The price of one currency compared to another one. Also referred to as the exchange rate.
Range
When a price is trading between a defined high and low, moving within these two boundaries without breaking out from them.
Rebate
Also called refund. It is the portion or the entire invested amount given back to the investor at the end of a trade.
Relative Strength Index (RSI)
A technical oscillating indicator used to measure the overbought and oversold conditions of a financial instrument.
Risk Capital
The amount of cash that an individual is ready to invest in the financial markets.
Robot
Software designed with pre-set trading signals that gauge when to open or close a position in the market without human intervention.
Rollover
The act of prolonging the settlement date of a running position in the market.
Resistance
Price level at which technical analysts note persistent selling of a currency.
Risk Management
The use of strategies to control or reduce financial risk. An example is a stop-loss order that minimizes maximum loss.
S
Scalping
A trading strategy that involves opening and closing short-term positions with the intention of making accumulated profits.
SEC
US Securities and Exchange Commission.
Security
A tradable financial instrument of any kind.
Sell
Taking a short position in expectation that the market is going to go down.
Short Position
The act of opening a sell position in the market.
Slippage
The difference between the price displayed on a financial instrument and the actual price when a trade is entered on the trading platform.
Spot Price
The present exchange rate at which traders can buy or sell a particular financial instrument.
Spread
The difference between the ask price and the bid price of a financial instrument.
Stochastic
An oscillating indicator that determines the level of change of the price of a financial instrument from one closing period to the next.
Stock
Representation of a share in the ownership of a company that is available for trading on the financial markets.
Stop Loss Order
An order designed to limit an investor’s loss by buying (or selling) a financial instrument once its price sails above (or falls below) a certain stop price.
Strike Price
The value of a financial instrument at the time when it is bought or sold.
Swap
A transaction that moves the maturity date of an open position to a future date.
Security Exchange Commission (SEC)
The U.S. government agency that oversees and regulates the national securities industry, stock markets and electronic securities markets.
Satoshi
A Satoshi is the smallest unit of a bitcoin, which is the eighth decimal place. It was named in honour of Satoshi Nakamoto, the inventor of bitcoin.
Sell Limit Order
An order to execute a transaction only at a specified price (the limit) or higher.
Sell Stop
A limit order with a limit placed below the current market price. Once triggered, the limit order becomes a market order.
Short Position
In Forex Market, 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’.
Spot
Buying and selling forex with the current date’s price for valuation, but where settlement usually takes place in two days.
Sterling
Another name for the British Pound (GBP). The full, official name, pound sterling, (plural: pounds sterling).
Stop-buy
A buy order for a currency price that is above the current market, or current price. It becomes a market order when the specified price is reached.
T
Technical Analysis
A method of evaluating the movement of financial instruments through studying past market data, such as charts of price and volume, as a basis for forecasting future price behavior.
Trader
An investor engaging in transactions in the financial markets.
Trailing stop loss
RSimilar to a stop loss in that it limits potential losses in an open order. But unlike a simple stop loss where the threshold does not change, a trailing stop loss can be instructed to automatically adjust the limit price closer to the market price when the market price moves in your favor.
Transaction Date
The date upon which the trading of a financial instrument takes place.
Take Profit
A limit order that is placed above the market with a long position or below the market with a short position. When the market reaches the limit price, the position is closed thereby locking in a profit.
Trading Platforms
A software application used for trading forex, usually over the Internet.
Transaction
Buying or selling a currency pair.
Trend
The current direction of the market, whether up or down or sideways (which is sometimes referred to as non-trending or trading market).
Turnover
The total money value or volume of all executed transactions in a given time period.
U
Under-Valuation
An exchange rate that is usually regarded to be undervalued. This happens if it does not exceed its purchasing power parity.
Unemployment Rate
The percentage of people within the labor force who are considered to be without jobs.
US Dollar
The currency of the United States of America.
V
Value Date
It is also called maturity date. It is the date upon which the different parties involved in a financial deal consent to make the final settlement.
Variation Margin
Additional amount of money needed by a broker to make up for losses when the balance drops below the required minimum level due to adverse price movements.
Volatility
A measure of the rate of fluctuation of the price of a financial instrument over a period of time.
W
Wire Transfer
The electronic transfer of money from one financial institution to another.
World Bank Group
An organization that offers technical and financial support to different developing countries around the globe.
Wallet
A wallet is simply somewhere that you can keep your cryptocurrency holdings. Crypto wallets are divided into:
Software wallets, which can be installed on your computer.
Mobile wallets, which are available for mobile devices.
Web wallets, which are hosted online and are available through any web browser.
Paper wallets, which are made by printing your public and private keys (or QR codes) on a piece of paper and securing it the old fashioned way.
Hardware wallets, which are small USB devices that hold your private keys and so must be plugged into your computer for you to be able to sign a transaction.
Whipsaw
Slang for a condition of a highly volatile market where a sharp price movement is quickly followed by a sharp reversal.
X
XAG
A currency symbol of silver. It is precious metal with the highest electrical conduction properties of any metal. It is used mainly in jewellery, photography, and for scientific and industrial purposes. It has been used as the basis for currencies in the past. Silver is traded as a commodity on various security exchanges. Like many precious metals, silver is volatile but generally maintains relatively high prices.
XAU
XAU is the currency code for gold. By popular demand, here are live gold bullion prices in eleven major currencies, US Dollars XAU/USD, Pounds Sterling XAU/GBP, Euros XAU/EUR, Australian Dollars XAU/AUD, Canadian Dollars XAU/CAD, Hong Kong Dollars, Rands XAU/ZAR, Rubles XAU/RUB, Rupees XAU/INR, Swiss Francs XAU/CHF, Yen XAU/JPY.
XAU/USD
XAU/USD exchange rates for Gold to U.S. Dollar Starting July 15th, 2011
Y
Yield Curve
A graph that illustrates the correlation between the interest rate and the time to maturity of the debt instrument for a particular borrower using a particular currency.
Yard
A billion units.
Z
ZAR
The currency symbol of the South African Rand.
Zero-Bound
A situation whereby interest rates are very low (close to zero percent), making it difficult for central banks to institute measures for stimulating expansion of the economy.