The distribution over the course of each deal of premiums and discounts on forward exchange transactions that are directly related to deposit swap (interest arbitrage) trades.
A change in internal economic policies to address a payment imbalance or in the official exchange rate typically triggers official action.
The price activity and/or traders are behaving fiercely.
A financial specialist who develops buy, sell, and hold recommendations for customers and has experience analysing investments.
When a product's price increases in response to market demand, it is called to "appreciate."
simultaneous buying or selling of a financial product to profit from slight price variations between markets.
refers to the monetary authority or central banks of Asian nations. Due to their management of expanding pools of foreign currency reserves resulting from trade surpluses, these institutions have become more involved in major currencies. Their market interest may be significant and affect short-term currency movements.
23:00 - 08:00 GMT.
the price that the market is willing to accept for a certain good. Bid/Ask quotes are used to quote prices. The Offer is another name for the Ask price.
a directive was given to a dealer to buy or sell at the best price available at a particular moment.
a request made to a dealer to buy or sell something at a certain price or even better.
an order to a dealer to buy or sell at a particular price or better
to the AUD/USD (Australian Dollar/U.S. Dollar) currency pair. Likewise "Oz" or "Ozzie."
the difference between an economy's exports and imports.
Four important components make up this sort of chart
A crucial price that is part of the construction of a barrier option. The conditions of a particular Barrier Option specify a sequence of actions that must take place if a Barrier Level price is achieved.
Any number of alternative option structures that place a high value on a certain price trading, including knock-in, knock-out, no touch, and double-no-touch-DNT. If the striking price is not "touched" before expiration in a no-touch barrier, the seller will grant a sizable fixed payout to the option buyer. This gives the option seller an incentive to push prices through the strike level, and it gives the option buyer an incentive to protect the strike level.
a currency that is the first of a pair. It displays the value of the base currency relative to the second currency. For instance, if the USD/CHF (U.S. Dollar/Swiss Franc) exchange rate is 1.6215, one USD is equivalent to 1.6215 CHF. The US dollar is often regarded as the base currency for quotations in the foreign exchange market, which means that quotes are stated as a unit of $1 USD per the other currency quoted in the pair. The British pound, the euro, and the Australian dollar are the main exceptions to this norm.
the lending rate set by a nation's central bank.
a chart pattern used in technical analysis that demonstrates when a product's demand and supply are nearly equal. It causes to support and resistance levels to merge and results in a small trading range.
a unit of measurement used to represent the smallest price change for a product.
negatively affecting price direction and supporting a market in the fall. For instance, "We are bearish EUR/USD" denotes our belief that the euro will decline in value relative to the dollar.
traders that maintain short trades and anticipate a drop in prices.
the price difference between the bid and the ask.
the cost at which the market is willing to purchase a good. Bid/Ask quotes are used to quote prices. The Bid, seen to the left in a currency pair, in foreign exchange trading refers to the price at which a trader can sell the base currency. One US dollar can be sold for 1.4527 Swiss francs, for instance, in the quote USD/CHF 1.4527/32, where the base currency is the USD and the bid price is 1.4527. The Bid in CFD trading also symbolizes the cost at which a trader can sell a certain asset. For instance, the bid price for one unit of the underlying market is Â£111.13 in the quote for UK OIL 111.13/111.16.
a currency quote's first three digits, such as 117 USD/JPY or 1.26 in the EUR/USD. The price has moved 150 pip if it changes by 1.5 big figures.
The central bank for central banks is the Bank for International Settlements, which has its headquarters in Basel, Switzerland. The BIS frequently serves as a bridge between the market and national central banks. As central banks have intensified their management of currency reserves, the BIS has been more active. The quantities can be substantial when the BIS is said to be buying or selling at a level since it often does so for a central bank. To prevent markets from mistaking purchasing or selling interest for official government involvement, the BIS is deployed.
the name given to traders who utilize models, are methodical, or are technical.
the positive absolute opposite of surrender. When shorts give up, fill in for any open short positions.
The national bank of Canada is the Bank of Canada.
the UK's central bank, the Bank of England.
Japan's central bank is the Bank of Japan.
a resource employed by technical analysers. Two standard deviations are represented in a band on either side of a simple moving average, which frequently denotes levels of support and resistance.
a tag for debt that is issued for a set duration.
A book represents the summary of all positions held by a trader or desk in a professional trading environment.
a British estimate of the inflation rate at different stores assessed. This index solely considers variations in the cost of products bought from retailers.
a person or business that serves as a middleman and connects buyers and sellers in exchange for a fee or commission, In contrast, a dealer commits capital and takes one side of a position in the hopes of closing it out in a future transaction with a third party for a spread (profit).
A million units of a currency pair with the US dollar as the base unit or the US dollar in general.
favouring price increases and a strengthening market. For instance, the phrase "We are bullish EUR/USD" denotes our belief that the euro will rise against the dollar.
traders with long positions that anticipate a price increase.
Germany's central bank.
Taking a long position on a product.
Looking at buying pullbacks of 20-30 pip/point within an intraday trend.
the Great British Pound/U.S. Dollar pair (GBP/USD). Because the rate was initially carried to the US through transatlantic cable starting in the middle of the 1800s when the GBP was the international trade currency, cable acquired its moniker.
the Canadian dollar, also known as Loonie or Funds.
a monetary transaction that takes advantage of the interest rate spread between two nations. The interest differential between the two nations will be paid to the trader while the transaction is open if they sell a currency with a low rate of interest and buy a currency with a high rate of interest.
a monthly indicator of the state of the Canadian economy released by the Richard Ivey Business School.
a chart that displays the starting and closing prices as well as the trading range for the day. The rectangle between the open and close prices is darkened if the open price is higher than the close price. The portion of the chart that has a higher closing price than the open price is not coloured.
a turning point where traders who are holding losing positions exit them at the end of an extreme trend. This typically serves as a warning that the anticipated reversal is imminent.
a trading method that makes use of the interest rate differential that results from holding long positions in one currency that pays a high-interest rate and short positions in another currency that pays a lower interest rate. For instance, the New Zealand Dollar/Japanese Yen (NZD/JPY) has long been a well-known carry trade. JPY has a low yield, whereas NZD has a high yield. Traders hoping to profit from this interest rate spread would either go long NZD/JPY or purchase NZD and sell JPY. The carry trade is considered to be unwinding when NZD/JPY starts to decline for a lengthy period of time, most commonly as a result of a shift in interest rates.
a derivatives contract's actual underlying markets, which serve as its market.
the cost of a product for immediate delivery, or the cost of a product right then.
Central bank-related abbreviation.
a body of government or a quasi-governmental entity that controls the monetary policy of a nation. For instance, the Federal Reserve is the central bank of the US, while the Bundesbank is the central bank of Germany.
A form of derivative known as a "Contract for Difference" (CFD) provides exposure to changes in the value of an underlying asset (such as an index or equity). Without actually owning the asset, it offers all the advantages of trading securities and enables traders to leverage their capital (by trading notional quantities far larger than the money in their account). In actuality, you will receive the $1 difference if you purchase a CFD at $10 and then sell it at $11. In contrast, you would have to pay the $1 difference if you went short on the trade and sold at $10 before buying back at $11.
a person, also known as a technical trader, who analyses historical data using charts and graphs to identify trends and forecast future movements.
Price movements that are brief and have little follow-through, which does not favour aggressive trading.
monies sent in to settle a trade that is readily available.
the action of concluding a trade.
exposure to a fictitious financial agreement, such as money. By putting an equal and opposite deal to offset the open position, a position is closed. A position is deemed squared once it has been closed.
executing a trade that is the exact opposite of the open trade in order to stop (close) an active trade.
a product's closing price on a trade that was used to close a position. It may also be used to describe the cost of the final trade made during a day of trading.
an asset offered as collateral for a loan or as a performance guarantee.
a cost associated with purchasing or selling a product.
currencies from nations whose exports are largely dependent on natural resources; frequently cited as examples are Canada, New Zealand, Australia, and Russia.
The components of EUR/JPY are the dollar pairs that make up the crosses (i.e., EUR/USD + USD/JPY). Selling the cross through the components is the process of alternately selling dollar pairs to establish a cross position.
Symbol for NASDAQ Composite Index.
a document outlining the terms of a transaction that is exchanged between counterparties to the transaction.
A period of range-bound activity after an extended price move.
The Census Bureau of the U.S. Department of Commerce publishes a monthly report that measures the amount spent on new buildings.
a crises' propensity to spread from one market to another.
the unit of measure used in forex trading.
a notification is provided that contains a detailed description of the transaction.
a CFD's notional representation of shares.
a position whose risk is constrained by a Guaranteed Stop.
a technical finding that shows how moving averages from various time periods are edging closer to one another, which typically predicts a price consolidation.
an occurrence that alters a stock's equity structure (and typically share price). As an illustration, corporate activities include purchases, dividends, mergers, splits, and spinoffs.
refers to businesses using the market for financial management or hedging objectives. Corporate interest is less beneficial to short-term trading because corporates are not necessarily as price sensitive as speculative funds and because their interest may be quite long-term in nature.
The second listed currency in a currency pair.
One of the participants in a financial transaction.
Risk associated with a cross-border transaction, including but not limited to legal and political conditions.
Acronym for Consumer Price Index, a measure of inflation.
The market is ready to sell off hard.
A pair of currencies that does not include the U.S. dollar.
refers to the currencies of Commonwealth nations
Usually refers to Chicago-based or futures-oriented traders. Refers to commodity trading advisors, speculative traders whose activity can resemble that of short-term hedge funds.
any type of currency that has been issued by a government or central bank and is used in trade and as legal tender.
a foreign exchange rate is made up of two currencies. EUR/USD (Euro/U.S. Dollar), for instance
The probability of an adverse change in exchange rates.
A three-letter symbol that represents a specific currency. For example, USD (U.S. Dollar).
The total net factor income (such as interest and dividends), net transfer payments, and the trade balance (exports of goods and services minus imports of those same commodities and services) (such as foreign aid). The current account's main element is often the balance of trade.
Speculators who buy commodities and then sell them before the market closes on the same trading day.
Performing an open and close deal in the same goods on the same day.
A deal that is completed at the current market price. It is a live exchange rather than an order.
A person or company who serves as a primary or counterparty in a transaction. Principals take one side of a position in the hopes of earning a spread (profit) in a future transaction with another party. A broker, on the other hand, is an individual or organization who serves as a middleman, bringing buyers and sellers together for a fee or commission.
The difference between a contract's purchasing and selling prices.
A barrier option is an action performed by a trader or group of traders to restrict a product from trading at a specific price or price zone, generally because they have a vested interest in doing so.
A trade or payment balance that is negative.
Removing a stockâ€™s listing on an exchange.
A transaction in which both parties make and accept physical delivery of the product being exchanged.
The ratio of a product's price change to the price change of its underlying market.
The DCLG conducts a monthly study that employs a large sample of all completed property transactions to monitor price trends in the UK real estate market.
A annual rate that is a composite of tradable rates for lending and borrowing a currency over a certain time period (tenor). The best bid and offer are used to show a competitive picture of borrowing costs. When using a deposit rate for financing, the 1-month rate is often utilized for consistency.
The decrease in the value of an asset over time.
A financial contract whose value is determined by the underlying asset's value. Indexes, shares, commodities, and currencies are some of the most frequent underlying assets for derivative contracts.
When a pegged currency is permitted to weaken or devalue as a result of official actions; the inverse of revaluation.
The interest rate charged to a qualified depository institution for borrowing short-term money from the Federal Reserve Bank.
A condition in technical analysis in which price and momentum move in opposing directions, such as prices rising while momentum falls. Divergence is classified as either positive (bullish) or negative (bearish); both types of divergence suggest significant price changes. Positive/bullish divergence happens when a security's price sets a new bottom while the momentum indicator begins to rise. Negative/bearish divergence occurs when the security's price hits a new high but the indicator fails to do so and instead moves downwards. Divergences are common in long-term price movements and usually result in the price-switching direction to follow the momentum indicator.
A technical observation in which moving averages of distinct periods move apart from each other, predicting a price trend.
The portion of a company's earnings that is distributed to its shareholders, commonly expressed as a value per share.
Abbreviation for the Dow Jones Industrial Average or US30.
Data or a policy stance that predicts softer monetary policy or lower interest rates is referred to be dovish. The inverse of hawkish.
Lower lows and lower highs characterize the price activity.
Symbol for the US Dollar Index.
European Central Bank, the central bank for the countries using the euro.
A government-issued indicator of current economic development and stability. Common indicators include employment rates, GDP, inflation, retail sales, and so forth.
A purchase or sell order that remains open until the end of the trading day, usually at 5 pm/17:00 New York time.
New York City's time zone, which stands for Eastern Standard Time/Eastern Daylight Time in the United States.
The Euro Short-Term Rate (€STR) is the benchmark interest rate for overnight borrowing rates across the euro zone. The European Central Bank (ECB) calculates and publishes it as a substitute for the Euro Overnight Index Average (EONIA) and the Euro Interbank Offered Rate (EURIBOR).
A name for the Euronext 50 index.
The currency of the Eurozone.
A catch-all term for a set of measures aimed at coordinating economic and fiscal policies among EU Member States.
07:00 - 16:00 (London).
The yearly rate of inflation in civilian worker remuneration and benefits is considered a significant driver of total inflation.
The OECD produces a monthly index. It combines eleven leading indicators to assess overall economic health, including average weekly hours, new orders, consumer expectations, housing permits, stock prices, and interest rate spreads.
A share purchased in which the buyer waives the entitlement to the next dividend and instead gives it to the seller.
The exact day and hour at which an option will expire. The two most popular option expirations are 10:00 a.m. ET (also known as 10:00 a.m. NY time or the NY cut) and 3:00 p.m. Tokyo time (also referred to as 15:00 Tokyo time or Tokyo cut). As option hedges unwind in the spot market, these time periods usually witness an upsurge in activity.
Corporations that sell items on a global scale, making them both sellers of foreign currency and purchasers of home currency. Frequently refers to significant Japanese firms such as Sony and Toyota, who will be natural sellers of USD/JPY, exchanging money earned through commercial sales in other countries.
A market judged to have traveled too far and too quickly.
The amount of money spent on new orders for both durable and nondurable items. This report goes into greater detail than the previous month's durable goods report.
The Federal Reserve Bank, the United States central bank, or the FOMC (Federal Open Market Group), the Federal Reserve's policy-making committee.
Refers to members of the Federal Reserve Board of Governors or regional Federal Reserve Bank Presidents.
Refers to the '00' price quote in a price such as 00-03 (1.2600-03) and is interpreted as 'figure-three.' Traders would state 'the figure was given' or 'the figure was hit if someone sold at 1.2600.
When an order has been fully executed.
An order that, if it cannot be filled in its entirety, will be canceled.
All positions opened inside a certain currency pair are liquidated in the order they were opened.
One of about five occasions throughout the forex trading day when a big quantity of currency must be purchased or sold to meet the orders of a business customer. These are often volatile moments in the market. The usual fixes are as follows (all times are in New York)
Economic data values that are unchanged from the preceding period.
Dealer jargon for a totally reversed position, such as buying $500,000 and then selling $500,000, resulting in a neutral (flat) position.
Following a directional breach of a specific price level, there is new buying or selling activity. In most cases, a lack of follow-through suggests that a directional change will not be sustained and may revert.
Federal Open Market Committee, the policy-setting committee of the US Federal Reserve.
The written record of FOMC policy-setting meetings is made available three weeks after the meeting. The minutes reveal more about the FOMC's discussions and can cause substantial market reactions.
The simultaneous purchase of one currency and the sale of another. The currency or FX market refers to the global market for such transactions.
The exchange rate for a foreign currency contract that settles at some agreed-upon future date, depending on the interest rate differential between the two currencies involved.
To calculate a forward price, pips are added to or subtracted from the current exchange rate.
A name for the index of the top 40 companies (by market capitalization) listed on the French stock exchange. FRA40 is also known as CAC40.
The name of the UK 100 index.
The evaluation of all available information on a tradable product in order to forecast where the price will go in the future. In basic analysis, non-measurable and subjective judgments, as well as quantitative measures, are frequently made.
Hedge fund kinds that are active in the market. Also referred to as the USD/CAD (U.S. Dollar/Canadian Dollar) pair.
An agreement between two parties to carry out a transaction at a defined future period when the price is agreed upon in the present.
An agreement to swap an item or instrument at a given price and quantity grade at a later date. The fundamental distinction between a Future and a Forward is that Futures are normally traded on an exchange (Exchange-Traded Contacts - ETC), whereas Forwards are Over The Counter (OTC) contracts. An OTC contract is one that is not traded on an exchange
Group of 7 Nations - United States, Japan, Germany, United Kingdom, France, Italy, and Canada.
Group of 8 - G7 nations plus Russia.
A market move in which prices skip many levels without any deals taking place. Gaps typically occur after economic data or news releases.
Trading a notional value larger than the amount of capital necessary in a trader's trading account is referred to as gearing. It is given as a percentage or as a fraction.
The DAX is another name for an index of the top 40 businesses (by market capitalization) listed on the German stock exchange.
Refers to a good offer or selling interest.
A technical level is defeated after a long fight.
Greenwich Mean Time - The time zone most typically used in the FX industry. In contrast to daylight savings/summer time, GMT does not alter throughout the year.
The acquisition of a stock, commodity, or currency for the purpose of investment or speculation, with the assumption that the price would rise.
The selling of a currency or product that the seller does not possess, with the hope that the price would fall.
Gold is widely assumed to move in the opposite direction of the US currency. Although the long-term correlation coefficient is mostly negative, shorter-term correlations are less dependable.
A certificate of ownership that gold investors use to buy and sell the commodity rather than dealing with the transfer and storage of real gold.
The usual trading unit for gold is one contract, which is equivalent to ten troy ounces.
An order that, if not filled, will expire at the end of the day.
An order to purchase or sell at a set price that stays open until filled or canceled by the customer.
An order type that will expire on the date you specify if it is not completed sooner.
Nickname for the US dollar.
The total value of a country's output, revenue, or expenditure generated inside its borders.
Gross domestic product plus revenue from foreign investment or employment.
A type of order that protects a trader from market gapping. It guarantees that your order will be filled at the price requested.
A stop-loss order guarantees that your position will be closed at the level you choose if the market moves to or beyond that level. Even if there are gaps in the market, it is assured.
Traders attempting to trigger established market stops or technical levels.
In the FX market, every 100 pips begins with 000.
When monetary authorities in a nation consider that higher interest rates are required, either to battle inflation to slow fast economic expansion, or both, they are known to as hawkish.
A position or group of positions that mitigates the risk of your primary position.
Little volume being traded in the market; a lack of liquidity typically generates turbulent market conditions.
The International Monetary Market is a currency futures market in Chicago that is part of the Chicago Mercantile Exchange.
A conventional futures contract in which various currencies are traded against the US dollar. IMM futures are traded on the Chicago Mercantile Exchange's floor.
8:00 am - 3:00 pm New York.
Abbreviation for the Dow Jones Industrial Average.
The entire value of output produced by manufacturers, mines, and utilities is calculated. This data tends to react fast to economic cycle expansions and contractions and can serve as a leading predictor of employment and personal income statistics.
An economic state in which consumer goods prices grow, reducing buying power.
The first collateral deposit necessary to open a position.
Foreign currency rates quoted by significant multinational banks to one another.
Cash adjustments to represent the effect of owing or receiving the notional amount of a CFD position's equity.
A central bank's intervention in the market to influence the value of its currency. The operation of many central banks to regulate exchange rates is referred to as concerted intervention.
In exchange for a fee, a person or corporate entity introduces accounts to a broker.
Symbol for S&P 500 index.
The initial public offering of stock by a private firm. Is an abbreviation for initial public offering.
A poll of executives on future output, new orders, inventory, employment, and delivery is used to assess the status of the US manufacturing industry. Values more than 50 normally imply expansion, whereas values less than 50 suggest contraction.
An indicator that polls service sector enterprises to gauge their outlook, covering the remaining 80% of the US economy not represented by the ISM Manufacturing Report. Values more than 50 normally imply expansion, whereas values less than 50 suggest contraction.
Due to poor economic circumstances, you should minimize your trades. In either turbulent or highly narrow markets, it may be best to sit out until a clear chance presents itself.
Nickname for NZD/USD (New Zealand Dollar/U.S. Dollar).
Option method in which the underlying product must trade at a specified price before an option previously purchased becomes active. Knock-ins are used to minimize the premium expenses of the underlying option and can cause hedging operations to be triggered whenever an option is activated.
Option that cancels a previously purchased option if the underlying product trades at a specific level. When a knock-out level is traded, the underlying option is no longer available and any hedging must be undone.
The mood of enterprises that directly serve clients, such as waiters, drivers, and beauticians, is measured. In general, readings above 50 indicate an improvement in mood.
The total value of new orders placed with machine tool makers is calculated. Machine tool orders are a leading indicator of future industrial production because they gauge demand for machine manufacturers. Strong data typically indicates that manufacturing is strengthening and the economy is expanding.
A name for the NIKKEI index.
The last day to trade a certain product.
The final time you can trade a certain product.
Statistics that are thought to forecast future economic activity.
A pricing zone or specific price that is noteworthy technically or based on reported orders/option interest.
This is the percentage or fractional increase you may trade from the amount of capital you have available, also known as margin. It enables dealers to trade notional values much in excess of their available capital. A leverage of 100:1 means you can trade a notional value that is 100 times greater than the capital in your trading account.
Short-term traders, primarily referring to the hedge fund world.
Possibility of loss, debt, or financial obligation
The London Inter-Bank Offered Rate. Banks use LIBOR as a base rate for international lending. Is being replaced by SONIA.
An order to purchase at a lower price than the current market or sell at a higher price than the present market. A limit order limits the maximum price that may be paid or the minimum price that can be received. For example, if the current price of USD/JPY is 117.00/05, a limit order to purchase USD would be at a price lower than the current market, say 116.50. A Limit Order tied to an existing open position (or a pending entry order) with the intent of closing that position is also known as a "Take Profit" order.
A market with a sufficient number of buyers and sellers to allow prices to move smoothly.
An existing position is closed by executing an offsetting transaction.
08:00 - 17:00 (London).
A position that gains value when the market price rises. When the pair's base currency is purchased, the position is considered to be long. The market is expected to grow, thus this position is taken.
Traders who have bought a product.
Nickname for the Canadian dollar or the USD/CAD (U.S. Dollar/Canadian Dollar) currency pair.
A unit used to calculate the value of a transaction. The value of the transaction is always an integer number of lots.
The long-term trader who makes trading decisions based on basic analysis. The holding duration of a macro transaction might range from six months to many years.
The overall production of the manufacturing sector of the Industrial Production statistics is measured. This data only looks at the 13 sub-sectors that are directly related to manufacturing. Manufacturing accounts for over 80% of total Industrial Production.
A request for additional funds or other collateral from a broker or dealer on a position that has moved against the customer.
A dealer who quotes both bid and ask prices on a regular basis and is prepared to make a two-sided market for any financial instrument.
An order to buy or sell at the current price.
Re-evaluation of all open positions in light of current market prices These new values are then used to calculate margin requirements.
A financial product's settlement or expiration date.
Medley Global Advisors is a market consultant with excellent relationships with the central bank and government leaders all around the world. Because they claim to have inside knowledge from policymakers, their reports may regularly impact the currency market. The reports' accuracy has shifted over time, but the market still pays attention to them in the short run.
Black box is a synonym. Systems that purchase and sell automatically using technical analysis or other quantitative methods.
Month-over-month refers to the change in a data series compared to the previous month's level.
A set of technical studies (for example, RSI, MACD, Stochastics, and Momentum) that evaluates the rate of change in prices.
Traders who align themselves with an intraday trend in order to capture 50-100 pips.
An abbreviation for the NASDAQ 100 index.
The amount of cash-bought or sold that has not yet been countered by opposing transactions.
8:00 am - 5:00 pm (New York time).
An option that pays the holder a specified amount if the market never reaches the predetermined Barrier Level.
Symbol for NYSE Composite index.
The market's willingness to sell a thing at a certain price. Prices are presented in the form of a bid/offer. The Ask price is another name for the Offer price. In a currency pair, the Ask represents the price at which a trader can buy the base currency, which is shown to the right. In the quote USD/CHF 1.4527/32, for example, the base currency is USD and the ask price is 1.4532, implying that you can buy one US dollar for 1.4532 Swiss francs.
When a market is reported to be trading offered, it signifies that a pair is receiving a lot of selling interest, or offers.
A trade that cancels or offsets some or all of an open position's market risk.
Making an attempt to sell at the current market order price.
A designation for two orders that states that if one of the instructions is implemented, the other is immediately canceled.
An option that pays the holder a specific amount if the market reaches the predetermined Barrier Level.
An order that will be executed when the market reaches the specified price. Normally linked with orders that are good 'til canceled.
An active trade with a corresponding unrealized profit and loss that has not been offset by an equal and opposite transaction.
A derivative that grants the right, but not the responsibility, to purchase or sell a product at a predetermined price before a given date.
A trade execution instruction.
A system for displaying the market depth of traders prepared to purchase and sell at prices higher than the best available.
Any transaction that does not take place through an exchange is referred to as a non-exchange transaction.
A trade that is open until the next business day.
refers to the trading on the offer side of the market.
the practice of quoting currencies side by side in foreign exchange.
an intense selling session.
a market that commonly moves in an accelerating pattern that resembles one-half of a parabola and covers a significant distance in a short amount of time. Moves along a parabola might be upward or downward.
when a portion of an order has only been carried out.
putting off taking a position until certain market levels or news events had occurred.
calculates a person's total yearly gross income from all sources, including wages, businesses, and investments. Personal expenditure, which comprises 2/3 of GDP in the main nations, is largely dependent on personal income.
stands for digits added to or subtracted from the fourth decimal place, or 0.0001, are the lowest unit of pricing for any foreign currency.
exposure to alterations in governmental policy that could harm an investor's position.
a group of investments that one entity owns.
the sum of a product's net holdings.
the difference between the spot price and the forward or futures price.
Quotes to which all market participants have equal access.
When the sale price is higher than the cost price, the difference between the cost price and the sale price.
A trending market's tendency to retrace a portion of its gains before continuing in the same direction.
The propensity of a moving market to retrace a portion of its gains before continuing in the same direction.
The purchasing managers' outlook in the service sector is measured. These managers are polled on a variety of topics such as employment, production, new orders, supplier deliveries, and stocks. Numbers above 50 imply economic expansion, while readings below 50 indicate economic recession.
A product that grants the owner the right, but not the obligation, to sell it at a set price.
when a central bank injects cash into a country's economy in an effort to promote expansion.
a futures contract with quarterly (once every three months) expiration dates.
a hypothetical market price that is often solely used for informational reasons.
a price increase following a drop.
when a price is moving inside these two parameters without departing from them while fluctuating between a specified high and low.
The exchange rate between two currencies, which is frequently employed in trading.
Reserve Bank of Australia, the central bank of Australia.
Reserve Bank of New Zealand, the central bank of New Zealand.
Investors with a significant trading volume, such as pension funds, asset managers, insurance firms, etc. As opposed to shorter-term, intra-day speculators, they are seen as evidence of significant long-term market interest.
the amount of profit or loss you experienced as a result of a trade being closed.
a cost that might serve as a floor. Opposition to support.
an investor who trades on their own behalf rather than on behalf of a company or organization.
based on a sample of various sorts and sizes, calculates the monthly retail sales of all the products and services provided by merchants. This information gives insight into consumer purchasing patterns, which influence growth in all significant economies.
When a pegged currency is permitted to gain value due to government initiatives; the reverse of a devaluation.
a business activity in which stockholders are granted the ability to buy extra shares. Typically, firms issue them in an effort to raise cash.
exposure to unknown change, which is most frequently used to imply unfavorable change.
the use of trading and financial analysis strategies to lower and/or regulate exposure to different kinds of risk
A rollover occurs when an open trade is simultaneously closed for the value date of today and opened for the value date of the next day at a price that reflects the difference in interest rates between the two currencies.
a transaction that has been initiated and then is followed by a counter-trade.
An indication of the state of your open positions; specifically, the amount of unrealized profit or loss you would experience if you closed all of your open positions at that moment.
Symbol for Russell 2000 index.
The Securities and Exchange Commission.
a group of securities participating in the same business.
assuming that the market would decline and take a short position.
the procedure used to record the counterparties to a transaction and enter a trade into the books. The actual physical exchange of one money for another may or may not be a part of the settlement of currency deals.
Symbol for the Shanghai A index.
Traders who had previously gone short start buying back after a drop.
a type of investment that gains from a drop in market value. The position is referred to as short when the base currency in the pair is sold.
a circumstance where traders are massively shorted and a market trigger prompts them to cover (buy) quickly, leading to a sudden price gain.
traders with a bearish outlook on the market or those who have sold or shorted a product.
The term "on the sidelines" or "sitting on their hands" refers to traders who choose to avoid the markets because of turbulent, uncertain, or directionless market circumstances.
a basic average of a specified quantity of price bars. A 50-period daily chart SMA, for instance, represents the average closing price of the 50 prior daily closing bars. Any time period may be used.
The difference between the price that was requested and the price obtained is typically due to changing market conditions.
A term used when the market feels like it is ready for a quick move in any direction.
Choppy trading conditions that lack any meaningful trend and/or follow-through.
Swiss National Bank, the central bank of Switzerland.
The overnight interest rate applied to loans and derivatives denominated in US dollars is known as the Secured Overnight Financing Rate (SOFR).
The actual overnight interest rate that banks are required to pay when borrowing sterling from other financial institutions is known as the Sterling Overnight Index Average (SONIA). In place of LIBOR, it is used to support overnight trades that take place after business hours.
relates to central banks engaged in spot trading.
a marketplace where goods are exchanged right away at market value.
the cost on the market now. Spot transaction settlement typically takes place in two working days.
the buying or selling of goods with a deadline for delivery (as opposed to a date in the future). Usually, spot contracts are paid online.
The difference between the bid and offer prices.
A name for the S&P index.
As a result of an even balance between purchases and sales, the dealer has no open positions.
shorthand for the British pound or the GBP/USD currency pair (Great British Pound/U.S. Dollar).
A market on which securities are traded.
The total price of a group of equities, presented against a base value, which enables comparison of the current performance of the group of firms.
This is a purchase or sale order that is made above or below the current price. If you have a target entry price and think the market is moving in one way, these orders might be helpful.
When a market appears to be heading toward a particular level, stops are seen to be heavily loaded. When stops are activated, the price will frequently surge past the level due to the flood of stop-loss orders that will be activated.
To settle a long position, this order is to sell below the current price, and this order is to purchase above the current price (to close a short position). A crucial risk management strategy is to stop loss orders. Stop-loss orders can be placed on open positions to reduce your potential loss should the market go against you. Keep in mind that stop orders do not guarantee the price at which they will be executed; rather, they are activated when the stop level is reached and are executed at the next available price.
A stop order is a request to purchase or sell something after a certain price has been achieved. The stop order becomes a market order and is executed at the best price when the price is achieved. Keep in mind that stop orders are susceptible to slippage and market gaps and may not necessarily be executed at the stop level if the market does not trade at this price. Once the stop level is achieved, a stop order will be filled at the following price. Putting in contingent orders cannot always help you reduce your losses.
Describes the process by which stop-loss orders to purchase above the market in an up move or to sell below the market in a down move accumulate.
the set price at which the option holder may purchase or dispose of the product.
a cost that serves as a floor for existing and upcoming price changes.
a method used in technical analysis to pinpoint the price ranges at which a certain exchange rate would automatically adjust itself. A reaction to the opposition.
a short-term stop to a product's trade.
The simultaneous selling and purchase of the same quantity of a particular currency at a forward exchange rate is known as a currency swap.
the abbreviation for the Swiss franc or the currency pair USD/CHF (U.S. Dollar/Swiss Franc).
see Limit Order definition.
buying a company's stock and taking over control.
the procedure through which price pattern charts from the past are examined for hints about the direction of impending price movements.
traders that make trading choices based on a chart or technical analysis.
ten-year-repayable debt issued by the US government. A US 10-year note, as an illustration.
a market environment that is choppy, slippery, or illiquid. A market with little volume and volatile trading circumstances.
30-year repayment period for debt issued by the UK government. a UK 30-year gilt, as an illustration.
a minimal price change, either up or down.
the amount of time before a contract expires.
09:00 - 18:00 (Tokyo).
purchasing and selling a currency at the same time for delivery the next day.
represents "take profit." Describes limit orders that attempt to sell above the level at which they were purchased or to buy back below the level at which they were sold.
Measures the difference in value between imported and exported goods and services. Nations with trade surpluses (exports greater than imports), such as Japan, tend to see their currencies appreciate, while countries with trade deficits (imports greater than exports), such as the US, tend to see their currencies weaken.
the number of units in a contract or lot.
A pair is acting aggressively and/or going upward; new bids continue to enter the market, driving prices higher.
a delay in a trade that does not entail a suspension.
a market that appears to want to decline; typically used to describe an offered market that has been tried to be bought but has failed to rally.
While a pair is exhibiting weakness and/or is moving lower, offers to sell continue to enter the market.
The difference between a stock's highest and lowest price, typically defined in terms of a time frame. The 52-week trading range, for instance.
When the market price advances in a positive direction, a trailing stop permits a transaction to continue to increase in value but automatically stops the deal if the market price suddenly swings by a certain amount in an unfavorable direction. You might not be able to reduce your losses by placing dependent orders.
The cost of buying or selling a financial product.
The date on which a trade occurs.
a shift in prices that results in a net change in value. Higher highs and higher lows indicate an uptrend. Lower highs and lower lows indicate a downtrend.
The total money value or volume of all executed transactions in a given time period.
When both a bid and offer rate is quoted for a forex transaction.
Symbol for CBOE 10-Year Treasury Yield Index.
describing harsh and rapid market circumstances that are merciless.
determines whether bonuses are included in the average wage or not. In comparison to the prior quarter (QoQ), this is measured.
determines the number of claimants for unemployment benefits. Due to the fact that not all jobless people are eligible for benefits, the claimant count estimates are often lower than the unemployment data.
determines the relative level of UK home prices in order to get a sense of the country's real estate market trends and how they might affect the country's overall economic outlook. The Halifax Building Society/Bank of Scotland, the largest mortgage lender in the UK, publishes this index, which has the longest monthly data series of any UK housing index.
counts the increase or decrease in the number of people requesting unemployment benefits from the previous month.
calculates the change in the total amount of labor that is used to produce one unit of output.
A name for Brent Crude Oil.
determines the inflation rate that manufacturers encounter when making purchases of goods and services. Since it may be a leading indicator of consumer inflation, this data is carefully examined.
determines the inflation rate that manufacturers face when selling their products and services.
A name for the FTSE 100 index.
the actual trading market where a product's price is established.
calculates the proportion of the labor force that is both actively looking for work and currently unemployed.
500 US households are surveyed each month. A preliminary version of the report is released in the middle of the month, followed by a final version at the end. Concerns center on people's perspectives on the US economy. The strength of consumer spending is thought to be proxied by consumer sentiment.
the hypothetical profit or loss on open positions valued at the current market rate, as chosen by the broker in its exclusive discretion. When a trade is ended, unrealized gains and losses are converted to profits and losses.
a new price estimate that is more expensive than the previous estimate.
A rule that states that security may not be sold short in the US unless the last trade made before the short sale was made at a lower price than the price at which the short sale is carried out.
A name for WTI Crude Oil.
the rate of interest at which US banks will lend to their most esteemed business clients.
A name for the Dow Jones index.
It is the day that the parties to a financial transaction agree to fulfill their respective obligations, i.e., exchange payments, and is sometimes referred to as the maturity date. The value date for spot currency transactions is typically two business days in the future.
Traders should also have money in their accounts to have the appropriate margin to handle market volatility.
demonstrates the 30-day volatility anticipated in the market. It is created using a variety of S&P 500 index options' implied volatilities. The VIX, sometimes known as the "investor fear gauge," is a commonly used indicator of market risk.
refers to markets that are busy and frequently provide trading possibilities.
Chart formation that depicts a gradually contracting price range over time, with incrementally lower price highs in an ascending wedge or incrementally smaller price declines in a descending wedge. In general, descending wedges end with an upside breakout and ascending wedges with a downside breakout.
Slang for a market that is extremely volatile and frequently experiences sharp price movements followed by sharp reversals.
measures fluctuations in the prices that retailers are willing to pay for completed products. Typically, inflationary forces manifest before the headline retail.
when a limit order has been asked for but hasn't been filled yet.
Acronym for the Wall Street Journal.
Symbol for Silver.
Symbol for Gold.
Symbol for AMEX Composite Index.
the investment's percentage return.
Abbreviation for year over year.
China's primary monetary unit is the yuan. In China, the Yuan serves as the basic unit and is known as the renminbi.
in currencies, this is the abbreviation for the South African Rand.
In currencies, this is the abbreviation for the Zambian Kwacha.
In currencies, this is the abbreviation for the Zimbabwe Dollar.