Forex Glossary

Forex Glossary

Here are some of the most common terms used in FOREX trading.

Ask Forex Price - sometimes called the offer price, this is the market price for traders to buy currencies. Ask Prices are shown on the right side of the property - for example, EUR / USD 1,1965 / 68-1 € means it can be bought for 1.1968 U.S. dollars from UD.

Bar Forex Chart - A type of chart used in Stuttgart. Every time the division of the table is shown as a vertical bar that shows the following information - the top of the bar's high price at the bottom of the bar is low cost, in a horizontal line from the left lane shows the opening price and the horizontal line on the right side the bar shows the closing price.

Base Forex Currency - is the first currency in the currency pair. A quote shows how much the base currency is worth in the quote (second) currency. For example, in the quote - USD / JPY 112,13 - USD base currency, with $ 1 worth 112.13 Japanese yen.

Bid Forex price - the price a trader can sell currencies. The bid price is shown on the left side of the property - for example, EUR / USD 1,1965 / 68-1 € means that you can sell 1,1965 UD dollars.

Buy / Sell Forex Spread - the difference between bid price and ask price in any currency quotation. The spread represents compensation for the broker, and differs from broker to broker.

Broker - an intermediary between buyer and seller. Most Forex brokers are associated with major financial institutions and earn money by setting the spread between bid and ask prices.

Candlestick Chart - A type of Forex chart used in Stuttgart. Every time the division of the table is shown as a beacon - red or green vertical bar with extensions above and below the candlestick body. On top of the extension shows the highest price for the card division and at the bottom of the extension shows the lowest price. Red candlesticks indicate a lower closing price than opening price, and green candlesticks indicate the price increases.

Cross Currency - A currency Forex pair that does not include U.S. dollars - for example, EUR / GBP.

Currency Pair - Two currencies involved in the transaction currency - for example, EUR / USD.

Economic indicator - A statistical report issued by governments or academic institutions indicating economic conditions in the country.

The first First Out (FIFO) - refers to the order open orders are liquidated. The first ordered to be Forex liquidated are the first to open.

Foreign Exchange (FOREX, FX) - Simultaneously buying and selling a currency with another.

Fundamental analysis - Analysis of political and economic conditions that may affect currency prices.

Leverage or Margin - The ratio of transaction value at the required deposit. A common margin for FOREX trading is 100:1 - you can trade currency worth 100 times the amount of your deposit.

Limitation on - in order to buy or sell when the price reaches a certain level.

Lot - The size of a Forex transaction. Standard are very worth about $ 100,000.

Large currency - the euro, German mark, Swiss franc, British pound, Japanese yen and major Forex currencies.

Minor Currency - Canadian dollar, Australian dollar and New Zealand currencies dollar fine.

One Cancels Other (OCO) - Two orders simultaneously with instructions to cancel the second order to perform first.

Open Forex position - An active trade that is not closed.

Pips or Points - The smallest unit of currency can be traded in.

Quote currency - the second Forex currency in a currency pair. In the currency pair USD / EUR the euro as a currency quote.

Rollover - Extending the settlement time of spot deals with the current delivery date. The cost of rollover is Forex calculated using swap points based on interest rate differentials.

Forex Technical Analysis - Analysis of historical market data to predict future movements in the market.

Tick ​​- The minimum change in price.

Transaction Cost - The cost of the transaction FOREX - usually spread between bid and ask prices.

Volatility - A statistical measure shows the tendency of sharp price movements within a specified Forex time period.