Trading dictionary

A  |  B  |  C  |  D  |  E  |  F  |  G  |  H  |  I  |  J  |  K  |  L  |  M  |  N  |  O  |  P  |  Q  |  R  |  S  |  T  |  U  |  V  |  W  |  X  |  Y  |  Z

A

Aussie

Slang name for the currency pair AUD / USD.


B

Backtesting

Verification of trading strategies on historical data.

One of the first steps intraday Trader's exploration and acquisition of business systems. There is no need to rush anywhere. It is clear that trading for most recruits completely new area, which appears in vast amounts of information to absorb. Fortunately, approaches to practice free trade in real time on a different demoplatforms - this is called backtesting and Papertrading. Basically you can without any risk to test whether your particular trading style fits him and learn to trade in real time, without, without risking real money.

Backtesting can be divided into:

  • Manual - The trader has available historical data and tested on them "manually" apply the same rules as if they were trading in real time.
  • Automated - Dealers transform its business strategy in a formula that is applied to the selected historical data. The formula often includes purchase orders, Stopp loss, output commands and the results of automatic analysis is often an immediate summary of the strategy (the trader gets information like the greatest loss, the total profit / loss, number of transactions, etc.).
Bear Market

The period of falling prices.

Bid and Ask

Ask demand price at which traders trying to sell the currency pair against another. This price you get, if you enter into a long position (Bull market). Bid is the bid price at which traders attempt to buy from you the currency pair against another. This price you get, if you enter into a short position (Bear market).

Bull market

The period of rising prices.

Broker

The company, which provides access to the market, receiving fees (spreads) for the closed stores. The main task of brokers is to facilitate trade between the two parties. They usually have links to other brokers, banks and institutions, and often themselves become market makers. More on TYPE OF BROKER

Break Even

The acronym is B / E This is the price at which we entered the market. The term B / E is then used in conjunction with a stoploss. If we say that we move our stop loss to B / E, it means that we have moved the stop loss at the entry level, so we're already in business "without risk" and we can not lose.


C

Cable

Slang name for the currency pair GBP / USD. The name was based submarine cable (cable) between Europe and America, after which trading took place at a time when no satellites and wireless communications.

Commodity Channel Index (CCI indicator)

CCI falls into the category of momentum indicators. This means that measures the strength and speed trend. From the psychological point of view, expresses the mood - optimism or pessimism - a market crowd.

Commission (within the meaning of charge)

The fee charged for the service Borker (the brokerage commission, commission, or fees). This commission is then charged for the most complete implementation of trade (ie, entry into and exit positions of the position) - so a round turn (RT).

Chop

Chop is a term for a market that is not moving anywhere, respectively. goes to parties. Take the "enemy" of most traders, because the markets that go to the side, not the vast majority can earn more and are just lost. If a trading market in intraday "choppy", it is better not trade.


D

Day trading

Trading in one day only.

Divergence

Divergence is a discrepancy between price and indicator (oscillator). We distinguish two types. Bull and Bear of divergence. The bullish divergence, we can soon expect to turn prices upward, and vice versa in a bear divergence between price and indicator can be expected soon turn downward.

Drawdown

The fall in capital.


E

Exotic Currency

Not very liquid currency.

ECB (European Central Bank)

European Central Bank monetary union.


F

Federal Fund Rate

Basic interest rate set by the Fed.

FOMC
The Federal Open Market Committee, the Committee, which determines the objective of U.S. monetary policy. At its meetings, among other things, decide on the level of interest rates.
Fundamental Analysis

Fundamental analysis is called the method by which we are trying to determine the value of the underlying asset, which in our case if the currency or currency pairs. It is a method where we use real economic development of this economic indicators, to search the market undervalued or overvalued rates of currency pairs.

FX

Abbreviation for Forex. We find different names for the Forex. For example, the Foreign Exchange Market "or" Spot FX "or" Spot ".

Forex trader (Trader)

It's such a businessman who decides to capitalize on the movements of individual currencies, respectively. reciprocal exchange between currencies.

Fed (Federal Reserve)

The U.S. central bank known as the FED.

Fundamental Analysis

It is a way of looking at the market through economic, social and political aspects that affect supply and demand. In other words, we are looking for an economy that is doing well and logically as well as its currency. Because the better the economy of the country's lead, the more confident of its neighboring countries currency.


G

Gap

Arises when the daily price of Forex extremely above or below the daily price of the previous day. It is mainly through the weekend due to the possible macroeconomic events or various unexpected news. This means that the market opens on Monday at a value other than where it closed on Friday. Most of the gaps is closed and formed a good business opportunity.


H


I

Initial Margin (initial deposit / margin)

The minimum deposit required by the broker company.


J


K

Kiwi

Slang name for the currency pair NZD / USD. Name was based on the symbol of New Zealand


L

Lot

The spot market is normally traded in contracts, or if lots. The standard size lots (buying or selling one unit) is 100 000 units of the currency (for example $ 100,000). This means that if we are in position on EUR / USD position alters our way of one pip, so we made $ 10 At 100 Pip movement is already $ 1000 In the past few years, the market presented a so-called mini-lots, the size of the contract is 10 000 This means that if we are in a position to minilots EUR / USD position alters our way of one pip, so we earned $ 1

Long

Speculation on the rise in prices.

Leverage

Allows you to have a minimum of its own money, much more capital and enter into business with him. For example, if the leverage of 1:100 and the value of the contract is 100 000 USD, you only need 100 USD to be able to handle this contract.

Liquidity

A liquid market is one in which the roaring trade. One particular shop does not have such a high impact on the price change. Sufficiently liquid market also means that a trader can open and close positions in virtually any situation. If the market is illiquid, it may be that although the position may be close, but at significantly lower price than we would wish. In other words - if the market daily trade be tens of thousands of contracts (such as maize), then we can be sure that in fact any time we deal close / open lot at a price similar to that seen on the screen (we If live data is available). Such a market is highly liquid.


M

Moving average

The arithmetic mean or average number of awards during the period. Summary of prices of a selected number of time values, divided by the total number of values. Moving averages emphasize the direction of the trend, moving averages indicate a growing bull (bullish) trend of decreasing contrast Bear (bear) trend.

Metatrader - MT

One of the most popular technical analysis software exclusively for Forex. (Metatrader 4 or latest MT 5)

Mini Account

Trading with mini lots. (10 000 units per one lot)

Margin Call

To supplement the margin deposit, deposit.


N


O

Options

Category of financial instrument derivatives, gives the purchaser the right, but not the obligation, to buy or sell a basic instrument at a specified price within a certain time.

Order

Purchase orders or sales of the lots / contracts through brokers.

One Cancels The Other (OCO)

It is a trade order, combining two orders written on a ticket with the fact that the second order is automatically canceled when the first execution. OCO command is used for speculation as to puncture the channel - in this case, we wish to go either long (buy) or short (sell), depending on which way the market breaks through the channel. Can we enter both commands at once using the OCO order - once executed trade on the one hand, the second order is automatically canceled.

Oversold / overbought prices

This concept is determined by the oscillator. It is based on the assumption that the price p?eprodaného p?ekoupeného or currency pair will bounce back.


P

Papertrading

Papertrading (trading "on paper") is one of the fundamental stages of development (testing) of the new trading system, the trader trading system testing on live data but still not real money.

Price Action

is a phrase that could be translated such as' price behavior ". Traders dealing PA then traded above the price - price chart of the monitor market conduct and obtain all the necessary signals to open and close positions. The term "Price action usually means the trading price of the net graph, ie without indicators.

Profit target

The price at which the holder assumes completion of an instrument of trade. For example, we can specify a profit target 50 pips, and after reaching this value, we store the end profit of 50 pips.

Pip

Currency pairs are increasing the minimum value, which is called the pip (or point). When the EUR / USD moves from 1.1238 to 1.1239, it is one pip (point).


Q


R

Resistance

The term used in technical analysis and determining the price level that is recommended where an investor should sell. It is the price level at which prices stopped rising and started to move either sideways or reverse direction.

Retracement

Price movement in the opposite direction of the previous trend.

Relative Strength Index. (RSI)

Technical analysis indicator which measures the size of gains against the magnitude of the losses of the period. The value can range from 1 to 100 Generally, the value below 30 indicates oversold prices, the value above 70 indicates overbought prices.

Rollover (transfer)

The spot market is usually the end of the workday at 21:59 (London time). Any positions still open at this time are automatically transferred to the next business day, which again finishes at 21:59. Today, many brokers do this automatically and it's part of their practice.


S

Scalper

Scalper is a business term for traders who seek to profit from the minimal movement. Scalper is mostly intra-day trader who enters the market, often only a few seconds, with many contracts to collect the profits to be only 10-20 USD per contract. Scalping method of trading is the most challenging, requiring a lot of experience. Scalper trader is the only kind that can benefit even if the market Chop.

Spread

is the difference between Bid and Ask price. It also has a fee of broker. Contributes to the merchant profits or loss. The smaller the number of pips, which requires the broker for trade, the dealer makes more profit. Bid / ask spread for EUR / USD is usually 3 pips, see if it pips 1-2, so of course it's even better. Therefore, every investor / trader chooses the broker who offers the lowest spreads.

Spot

Spot price is immediate, you can see and which in turn is settled.

Stop Loss

Risk management techniques, in which the transaction is discarded to prevent any further descent the value of your capital. A very important part tradigu. The point is that when a certain price, open position is automatically terminated. Often used to minimize exposure to losses if the market moves against the position of the merchant. For example, if the trader is long EUR / USD at 1.2050 rate, you may want to set the instruction stop loss at 1.2000 which would limit losses in case it would be EUR / USD to go below 1.2000.

Spot Market

It is a market where there is a shop of one currency against another currency.

Slippage

The difference in the price of the award and execution. (Slides) - Loss of pips between the order (a stop or limit), when it becomes a market order and where it can be entered this market order is executed. This slippage may be caused by poor connectivity, the high volatility of the market itself or broker for a reason.

Standard Account

Dealing with the standard lot size of 100 000 units of the currency.

Support

The historical price level at which falling prices stopped and began to move either sideways or reverse direction.

Short

Speculation on the descent prices.

Spike

Great, a temporary rise or fall in price or trading volume.

Swiss

Slang name for the currency pair USD / CHF.


T

Time frame

Time scale chart. Positional traders will be used as daily charts, where a segment (candle) represents the change in price in one day. This is called the daily timeframe. Intra-day traders use intra-day timeframe - for example, five minute, where a segment (candle) represents the change in price in five minutes.

Trend

It is a climb series of higher prices for an uptrend and a series of lower prices for them as downtrend.Trend start the train and it is very important, and why no one goes against the trend. Only enter into a position in the direction of the prevailing trend. Moment when the market goes against you, it is very likely that the size of the market moves against your position will be smaller than the opening position against the trend. This is not the development trend in the reporting of key data, the contrary trends often change.

Technical Analysis (Technical Analysis)

The method of market analysis that studies demand and supply of an instrument based on the graphical display price trends.

Volatility

The volatility of exchange rate / price of an instrument. The greater the volatility, the greater the range within which the exchange rate fluctuates.


U


V


W


X


Y


Z

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Daily Forex Analysis November 13, 2012


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