Glossary
A
A trading setup where the bids & offers made are being shown without the disclosure of the identities of the market participants.
It is the capacity of an individual, country, or organization to produce a larger quantity of goods at the almost same quantity of units in a given specified time or, produce the same quantity of goods or service with a lesser quantity of inputs as compared to it’s competitors.
B
C
A derivate tool that provides the right [not commitment] to a buyer to buy/sell a contracted currency at a specified exchange rate in time.
Known as CCI, it’s a momentum-based indicator used for the measurement of a financial instrument being overbought or oversold.
D
The purchase and sale of any currency pair on the same day by booking small profits and not holding it overnight.
A trading platform that allows the trader to get familiar with the process of trading securities and also enables him to trade virtually with dummy transactions before he jumps into the real currency trading.
E
The price at which one currency is being exchanged for another.
Known as EPS, it is the figure/rate derived after dividing the company’s total profit by the number of shares listed by the company on the stock market.
F
It is the adjusted value of an asset or instrument before the market opens for purchasing shares.
Any asset in the form of currencies, stocks, futures, etc that can be traded in the financial markets.
G
A point or area on the trading chart where the currency pair shows significant change both upwards & downwards.
An individual’s total income before the deduction of taxes and other items. This also includes the income earned by him through various sources.
H
It is a fund that is invested in order to eliminate the risk caused by a sharp negative decline in the price of any asset. Such funds are usually invested in the opposite category of securities to offset the losses if any caused in the primary dealing of money invested in securities.
It is basically a portion of money contributed by investors. A hedge fund is normally managed and looked after by a hedge fund manager whose job is to invest that money in various assets and maximize the returns thus reducing risks.
N
A noise trader is a stock trader that buys or sells securities based on rumors, hype, or what they believe are trustworthy signs of future returns, but which in reality do not provide them with higher profits.
When there is little trade and price variations are bigger than volume, this occurs. This term is frequently used interchangeably with THIN MARKET.
The phrase nickel is used by traders to describe a minor change in an underlying instrument, such as a currency pair’s interest rate. a fraction of a percentage point equivalent to five one-hundredths of a percentage point (0.05 percent )
O
Open market operations are sales and acquisitions of government securities. The number of reserves available to banks and the amount of lending is both affected by these sales and acquisitions.
An offshore market is a location that is not within a trader’s native nation. The trade would be known as offshore market trading if you were buying currencies from London’s currency exchange. The rules and regulations of an offshore market may be more flexible, allowing traders to reduce their tax liabilities.
In the forex market, the term outrights refers to a form of transaction in which two parties agree to buy or sell a specified amount of currency at a predetermined rate at a future date.
P
Q
Quantitative Analysis refers to the application of mathematical and statistical methodologies
The quote currency is the second currency in both direct and indirect currency pairs and is used to calculate the value of the base currency in foreign exchange (FX).
R
The rollover interest rate is the amount a trader pays or earns each day, depending on the margin and market position. Simply ensure that trades are closed at the conclusion of the trading day to avoid rollovers.
A rate between two currencies (also known as a foreign-exchange rate, forex rate) is the rate at which one currency is exchanged for another in finance. It is also known as the worth of a country’s currency in terms of another country’s currency.
S
The process of entering a trade into the books and records of the transaction’s counterparts. Currency trade settlement may or may not include a physical exchange of one currency for another.
The exchange rate used by the bank to sell foreign exchange to consumers is also known as the foreign exchange selling price. It shows how much of the country’s currency must be recovered if the bank sells a specific quantity of foreign money.
T
An attempt to forecast prices using chart analysis, volume, trends, moving averages, formations, and a variety of other technical indicators.
The difference between the value of a country’s exports and the value of its imports for a certain period is known as the trade balance. The main component of a country’s balance of payments is the trade balance. The trade balance, also known as the international trade balance, commercial balance, or net exports, is a term used to describe the balance of commerce.
U
Depending on the country, the definition and inclusion criteria for the unemployed and the overall workforce may differ. As a result, each country’s unemployment rate report differs differently from others.
A revised price quote that is more costly than the previous one.
V
The day on which the participants to a financial transaction agree to fulfil their obligations, i.e. exchange payments. The value date for spot currency transactions is usually two working days in advance. Maturity date is another term for the same thing.
A metric for determining price changes. Price volatility is frequently measured using the standard deviation of a price series.
The rate at which money is traded in an economy is measured by the velocity of money. It refers to the number of times money is transferred from one entity to another. It also refers to the amount of money that is spent in a specific period of time.
W
Working orders are one of several types of orders, including market orders, which execute at the best available price on the day, which remain open indefinitely.
Z
A zero-coupon bond does not pay interest and instead trades at a steep discount, resulting in a profit when the bond is redeemed for its full face value at maturity.