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Learning forex terminology

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learning forex terminology

Advance Retail Sales - United States A monthly measure of retailers sales of goods to consumers in the United States. Essentially retail sales are determined by accumulating all sale receipts, in nominal dollars, This statistic measures total sales in dollars at all retail outlets. Retail spending forex a particularly large percentage of consumer spending. As such, retail output An American option, as opposed to European-style options, can be exercised anytime between the its date of purchase and expiration date. Due to this level of freedom to exercise Annual Percentage Yield, or APY for short, is the annual rate of return for compounded interest. It is often used for interest bearing savings accounts. A chart pattern that is representative of a bullish commodity. The shape of the chart is what characterizes its name. The crests of the chart are bounded above by a horizontal The following is a breakdown of key economic reports in Austrailia's Economic Indicators: Balance of Payments Current Account, Trade Balance, Imports, Exports ; GDP and Output The daily quantity of shares or unites traded. After a certain period of time, usually in a year's time the number of shares are averaged. The average daily volume of the forex The average movement of the DMI trend. Generally, an ADX trend is strong if the reading is above The trend is weak if the terminology is below The relationship between these two lines indicate whether it is advantageous to buy or A country's comprehensive report on its economic transactions such as activity in the country's reserves, income earned overseas, goods and services traded internationally, as An account of payments and net transfers made between two countries. An increase in the interest rate tends The decision that the bank has a tremendous When the Bank of England Monetary Committee meets to discuss and decide upon the national interest rate, detailed notes are taken indicating the minutes taken to discuss key subjects For instance one basis point will be 1. A bear market is when prices in market investments have decreased over an extended period of time. Usually a bear market takes place in times of rapid inflation, rapid levels of An option method that takes advantage of plummeting security values through buying postponed month futures contract or selling near-month futures contract A bear straddle is when a short is exercised on a put and a call option The perception that either a market, a section of the market or a security will drop in value A candlestick chart pattern wherein a bullish upward surge ultimately tops and almost immediately transforms into a bearish pattern tanking downward. In this pattern, one terminology not The amount by which the ask price exceeds the bid price. Put another way, it represents the difference between the price at which buyers are willing to buy and the A set of three lines that serve to act as a bound on the average movement of a commodity. One line tracks the average value of the commodity over time; the remaining two are placed The total number of new building projects authorized in a given period. As infrastructure development represents a sizable portion of investment spending, this number reflects developments A bull market occurs when prices in investments appreciate higher than usual. Generally this occurs either during a boom or recovery in the economy, or by investor psychology A high-risk option trading strategy wherein the investor profits only if the underlying financial instrument increases in value over the investment horizon. Either put or calls may An option method that chooses to take advantage of an increase in security value by either selling postponed month futures contracts or buying near-month futures contracts A relatively low-risk straddle wherein the investor goes long in both a call and a put option of a given security. This trading strategy makes the most sense when the market A bull straddle is when a put or call option are exercised in a long position A term that is used to either describe the belief that a market, a section of the market or a security will appreciate in value or act in a positive manner This implies that the uptrend is ultimately Balance of Payments GDP and Output Report Ivey Purchasing Managers Index PMI Manufacturing The Central Forex name is used to refer to any nation's preeminent authority in monetary manners Also referred to terminology 'twisting' or 'overtrading', churning occurs when a broker overly trades in their client's account in order to gain as much commission as possible. One who acts in contest to the general public. In terms of financial trading a contrarian might be inclined to sell a security, while the general market is buying Also known as a 'trading desk' it is where securities such as commodities, futures, equities, and foreign exchanges can be bought or sold. A dealing desk can be usually found An index based on a scale of that rates whether a particular financial instrument is experiencing a trend or not. Accounted in GDP growth, it occurs in times of great external occurrences. It is the great change in a country's output in goods and services terminology a period of time. Balance of Payments Japanese Trade Balance, Merchandise Trade Balance Monthly, Japanese Emerging markets are those economies in developing countries. These markets are those that are currently new and inexperienced in the world market but possess great potential It establishes the labor and employment trends and is a contributing factor in various economic activities such as consumer spending Balance of Payments GDP and Output Report GDP Estimate British Industrial ProductionCBI Industrial It is when a foreign financial establishment, usually in Europe, hold US dollars. It is usually in result of firms, outside the US, being paid for their goods or services from The European Central Bank determines and sets the monetary policy for the group of European countries that use the Euro currency. Like many central bank systems around the world Unlike American options, the European-style option have learning restrictions in exercising their investments, such as being restricted to only exercise their investment in It documents the sales of homes in the US that were previously owned. It is an important report that gives an indication about the current status of the housing market and the The Export Price Index is the actual change in price over exported goods from the US. Within the index there is a headline percentage change in price that are either measured monthly Also recognizable as FNMA, it makes sure that all home-owners as well as potential home-owners in the US have available funds and finances to buying a home. When banks borrow money from one another, they are charged an interest rate that is determined by the Fed called the Federal Funds Rate. Banks are usually more inclined to borrow They are the individuals that determine the discount rate, reserve requirements, and open market operations. The FOMC consists of seven governing board member of the Federal Reserve, Leonardo Fibonacci, an Italian mathematician, created a number sequence, Fibonacci numbers, which are a sequence of said numbers in which each number in succession is A transaction that is given to a broker to either quickly fill the terminology fill or completely stop it kill. Investors usually demand this action when forex want a security A set rate that remains unchanged over the entire duration of the loan. This is often thought of as the most transparent loan type Also referred to as the 'even yield curve', it displays short-term and long-term bonds' yield curve. It is the currency exchange rate without the influence of the government, terminology the natural performance of the market. Some countries with floating exchange rates include the US, Equivalent to broker in securities market, a futures commission merchant is a firm or an individual who has the ability to approve transactions in futures options. Ginnie Mae stands for Government National Mortgage Association and it offers better mortgage loans in the secondary market for middle and low-income households A monetary system in which the nation's currency can be converted to gold by its holders. This is done by having the currency reserved by gold Referred to as 'earnest money', it is an initial deposit that guarantees the buyer or seller's intention to complete the transaction or purchase Referred to also as 'open order', it is an effective order to either buy or sell until the transaction is terminated or executed. Usually brokers allow a 30 to 60 day timeframe GDP is displayed as a percentage and is an annual measurement based on quarterly figures. It is calculated as follows: As one of the most valuable economic measurements in the economy, GDP which is measured in real and nominal terms determines the value of goods and services produced in terminology US As one of the most valuable economic measurements in the economy, GDP which is measured in real and nominal terms determines the value of goods and services produced in countries A country's total private and public outstanding debt The Gross National Product GNP is calculated as the GDP plus the income earned outside the country by the nation's citizens minus the income earned within the country by foreigners. In an instance of inflation, hawks credits the effects of inflation to decrease purchasing power, cause hyperinflation, and an ambivalence in future prices. Hawks are rather pessimistic Those that are "hawkish" are pessimistic in their views of the economies. They focus on the negative effects on inflation, rather finding specific solutions to offset high levels A price chart in which three figures form a trend where the second figure's performance is higher than the first and third figure It is a position in which it hopes to offset opposed performance in a security's value by making an investment in another security. The goal of a hedge position is to lower risk It is the change in house prices in the capital cities of eight of Australia's provinces. The index indicates inflation within the housing market and reflects the quarterly change Housing starts is a quantitative measure of houses currently being constructed. This measurement can indicate the health of the housing market. For instance if the housing starts Housing starts is a quantitative measure of houses currently being constructed in the United States. This measurement can indicate the health of the US housing and construction Housing starts is a quantitative measure of houses currently being constructed in Canada. This measurement can indicate the health of the Canadian housing and construction Housing starts is a quantitative measure of houses currently being constructed in Japan. This measurement can indicate the health of the Japanese housing and construction markets IFO is a monthly survey that asks German companies a variety of questions on the German business climate as well as any expectation they have for the following 6 months. It is a monthly measure of the total number of output manufactured in the utility, mining and manufacturing industries. Because the figure is learning monthly measure and external factors Also referred to as 'negative yield curve' it is a rare scenario in which short-term interest rates produce higher yields than long-term interest rates. When this happens it is It is a measurement where US executives in the manufacturing unit are surveyed to acquire their expectations in future inventories, production, deliveries, new orders and employment It quantifies the employment trends, prices and new orders within non-manufacturing industries. They do this by surveying executives in the purchasing and supplying industries The quantity of forex that are sold in Japan on a monthly basis. This number is based on the quantity of newly registered automobiles. It displays the moving trend of stocks and relates them to two bands, the lower and higher moving average band. This measures the volatility in price and can indicate when to The amount of debt that an investor acquires to finance its investments. A high amount of leverage allows the possibility of a higher return on investment but also a higher It is a command to close trading when a security is at a specific price, at the advantage of the trader. The purpose of a limit is to ensure profits in the unlikely event that It is a transaction order to buy or sell a security at a favorable price. For example if you would like to buy a security, then you must set a limit entry below the current value A market order that an investor makes to his broker to buy or sell a specified number of shares at a set price or better. The set price is the limit price. It is a command made to a broker to buy or sell a specified quantity of shares at a specific price or better. The purpose of making a limit is to establish profits without the Liquidity can be used to refer to two different areas: A liquid market is a situation in which investors in the market are willing to trade securities When an asset is hard to sell, then that asset is said to have liquidity risk The London Inter-Bank Offer Rate LIBOR is an interest rate that is charged when a loan is made to and from a large international bank Different positions that you may take in a security. Going long means buying a security. Going short means selling a security. Also referred to as a 'bull straddle' it is when a call or put option is exercised in a long position As one of the best tools used to understand business capital spending, machine orders Japan calculates the value of Japanese machinery orders made around the world. The detailed study of a country's economy. It focuses on every aspect of the inner workings of the economy like employment, unemployment rate, inflation, GDP, and economic growth. Also referred to as 'controlled account' or 'discretionary account' it is where the owner of an account allows the broker to buy and sell securities It is a payment fee for the services of a mutual fund's manager. The fee is generally determined by the percentage of assets the manager is taking on It is a deposit that is used as collateral. The trader makes this deposit in 'good faith' in order to hold position of a security. It is the same thing as a leverage but the only This specific account is one in which cash is lent to a brokerage's client in order to buy securities Also referred to as 'federal margin call', 'Reg. T Call' or 'house call' it is either a call from a broker to a client or a clearinghouse to a member In a margin account it is a money deposit required when the owner is about to short sell or buy on margin. This is a requirement by the Federal Reserve Board's Registration T It is the daily documented worth or price of an account or security It is an authorized market order in the scenario where a security's favorable specified price is achieved It is when a forex institution such as a bank or brokerage firm possess a established ask and bid price by being continually prepared and amenable to trade at the currently Also known as the 'market' it is an order to a broker to either buy or sell a security at the most favorable and current available price Known as the 'market value' it is the most recent ask and bid price or sale price of a security This measurement is generally used for short to intermediate-term trading and emphasizes overly bought or sold markets based on the market indexes, such as the NYSE. Similar to the McClellan Oscillator, it is also identifies market breath and is used for intermediate to long term trading. It is the cumulative total of the McClellan Oscillator Also referred to as 'intermediate-term', it is 2 to 10 year period for bonds Known also as an 'uncovered call', it is a short call on an option. In a naked call the writer does not own the quantity of shares that it is exercising A situation in which either a call option is sold or a put option is purchased and the trader does not own the asset or is not in an offsetting position. It is also known as an Also referred to as an 'uncovered put' it is were a short is made on a put option but the writer does not possess a short position in that security on the specific put that was The National Futures Association NFA is a self-regulated agency created in that is involved in the futures industry. The NFA operates in the private-sector It is the situation in which a loss is incurred with the exception of a tax advantage when the cost of borrowing money is far greater than the profit made possible by the investment. Balance of Payments Current Account - New Zealand, Non Resident Bond Holdings, Terms This report measures the job loss, learning creation, wages, and the quantitative hours worked Like a broker, an online broker offers online trading services to customers The learning of financial trading buying and selling securities online. Popularity in terminology trading began in the mids where internet technology experienced rapid growth in technology A position on a security where it is not yet closed This acronym stands for Over-the-Counter, and it refers to securities that are unable to make listing requirements and thus it is not traded on the exchange. This is why these securities A market for trading stocks, bonds, futures, or options that pairs individual investors without involving trading on some formal centralized exchange system e. Refers to securities that are unable to make listing requirements and thus it is not traded on the exchange. This is why these securities are also called 'unlisted'. Used to describe a stock that is either too expensive or has increased too much It is a tool used to determine if price trends move suddenly or distant than normal. Overbought and oversold indicators together determine if prices have suddenly moved upward It is a technical analysis term used to refer to an under priced stock or a stock that has occurred a massive fall in value When prices or exchange rates are held over a certain period of time It is a measurement that indicates advanced trends in the US housing market by tracking residential housing forex activity within existing single-family homes. PMI measures the New Zealand Manufacturing sector's business sentiment by constructing a monthly survey of each of the manufacturing sector's different units. It is the measurement of total consumer spending each month. It calculates this by accumulating expenditures on consumer products, durable goods, and other services. It is an individual's personal earnings from wages, passive incomes, dividends, and interest on investments Measures the employee earnings in the US. Personal income is calculated by the pre-tax income earned by employment, investments, and transfer payments. A report made by the Philadelphia Fed where they survey Third Federal Reserve District manufacturers on general business conditions. When the Philadelphia Fed Survey is high it Calculating pivot points involves averaging high, low, and closing equity prices to detect new resistance and support levels. Day traders use pivot points usually in addition PMI is an acronym that stands for Private Mortgage Insurance and it is mortgage insurance provided by nongovernmental insurers and safeguards the lender from loss if the borrower Measures the German Service sector's overall performance by interviewing German executives on the performance and rank of sales, employment and the overall market. A chart figure that displays price movements without the duration of time. A position trader is one who trades commodities in a long-term buy and hold approach. Long-term can be defined as 5 to 7 months in terms of commodity trading A situation in which the return of an initial investment is greater than the original cost of financing forex investment It is a continuation pattern that can slope in either direction while being bound by an upper and lower trendline. Within these boundaries the price action is confined as the price A situation in which indications of a trend will diverge from the price action. When traders in the market recognize a price divergence, they often change their position against Determining the price of a good or service rather than allowing the price determined by market forces Also referred to as a 'gap', it is the significant movement in a security's price or commodity between two trading rounds Refers to any index, such as the Consumer Price Index or Producer Price Index, that records and analyzes inflation through gauging price changes A prime broker is an individual who acts as a settlement agent, offers custody for assets, gives financing for leveraging, and creates a daily account statement for their clients. Tracks the changes producers and manufacturers charge their goods or services, as well as how the prices charged are distributed through the production process. The PPI can indicate Range trading is a tactic that includes buying when prices veer toward lower support levels and selling when prices veer to upper resistance levels. It is a strategy that learning benchmarked A momentum indicator that indicates sharp indicator moves which is caused when a new data point is added just as the last is dropped. The RSI is calculated as follows: A situation in which a currency pair's price becomes stagnant or falls, making it difficult for it to trade above a certain price level Gauges the price change in goods and services for household consumption in the United Kingdom. The Retail Price Index RPI is calculated by sampling such retail goods as food, The interest earned by traders or the daily learning charged for positions in the spot Forex market. All currency pairs have an attached interest rate and depending on the currency An index used by investors to determine whether a particular security is being overbought or oversold. An order from a broker, bank, market marker, or a financial institution to sell a security, commodity or currency. In the FX market if a trader makes a sell order on a specific A position in which a trader sells a currency pair in an attempt to profit from a currency pair's falling prices It is the difference between the expected filled price of the trader and the actual price filled. In the FX market, this learning be caused by an ineffective broker, increased liquidity, It is a strategy where investors select certain investments, that are prone to risk, in hopes to gain a profit from terminology fluctuations. The decisions that speculators make are A trading market for cash wherein goods are sold forex specified amounts of cash. These markets behave somewhat like futures markets except that the spot contracts take effect The price difference between a security's sell bid and buy ask price. All markets including foreign exchange, futures and equity markets have a spread. The size of the As one type of Entry Orders it is an order to penetrate the market at a somewhat unfavorable price. A stop entry price will be placed below the current price, if a currency pair It is a position to make a close order on a security after the specified price is achieved A hybrid of a limit order and a stop order, it is an order to sell or buy a specified quantity of a security at a particular price. However this can only be done after that particular A position learning close when the market veers toward a specific value against your position. Traders make a stop-loss position in order to prevent any more loss on their securities A situation in which it is difficult for a currency pair's price to fall. The price action at support generally stall before breaking below or move in the opposite direction. Balance of Payments Trade Balance ; GDP and Output Report Gross Domestic Product An investigative approach to foresee the market's price trends. Analysts may do this by analyzing price patterns, indicator signals, sentiment readings, open interest and volume. The nominal gap between exported goods and services, and imported goods in the United States. It is a significant figure of the US Balance of Payments and its headline figure is A specific type of leverage wherein the investor borrows cash in order to finance his investments. Margin refers to the specific percentage equity that the investor An entry order is one wherein an investor requests to buy or sell at a specified A market order made by an investor to a broker to sell a financial instrument only when it reaches a specified price. The purpose of the specified price is to limit It is apart of the stop-order loss, in which the trader's stop position gains to their advantage at the same time the market moves at its advantage. This specific order prescribe A special stop loss order where as the market moves in the favor of the open position, the stop moves up to lock in profits. Rates and prices' overall pattern of activity in the market An forex is often used to describe the most favorable scenario, but not necessarily the perfect situation The percentage of the population that is unemployed in the United States. It is the most commonly used measurement in determining the US labor market's performance. Balance of Payments Current Account Balance - United States, Trade Balance - United States, As one of the most significant indicators of American consumer's opinion of the economy, the University of Michigan Consumer Sentiment Index surveys the consumer's opinion on such If the cloud lies above the price action, then the trend is bullish. The quantity of trade units of a security during a certain time. To verify a change in trade units both the buyer and seller must be included in the transaction. If you want to purchase securities but cannot cover the total cost, buying in a margin account allows you to tap into additional funds credited by your broker. More than just a famous Dickens character, a pip is the smallest increment of price in the forex market. It is the fourth decimal place out for all major Quantifies the level of unsold goods stocked my wholesalers. When a wholesaler has a high number of inventories, then that indicates that consumer demand is plummeting whereas OFXT is here to help you in your path to becoming a forex trader or broker. Our goal is to help you learn, practice, and master the art of currency trading. There is a high amount of risk involved in FX trading, for more information, please see our risk disclosure policy. Choosing a forex brokerage, signal provider, or charting software are difficult decisions, so we've established a set of reviews based on a variety of criteria for evaluating their credibility. Foreign currency trading is different from futures, options, or stock trading, and it's important to understand the terminology. We hope you will continue to learn to trade with us, and if you ever have questions, please drop us a line. Online Forex Trading Home Learning Forex Trading Glossary Forex Tools Broker Reviews News Blog. Would you like to be contacted to receive more information about opening a trading account? Choose the brokers you would like more information on. We recommend starting with at least 2. What amount are you expecting to invest? learning forex terminology

Forex Trading for Beginners - Learn to Trade Forex with cTrader - Episode 1

Forex Trading for Beginners - Learn to Trade Forex with cTrader - Episode 1

4 thoughts on “Learning forex terminology”

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