Forex Trading Glossary, Learn About Currency Trading


Forex Trading Glossary, Learn About Currency Trading

quiz: Understanding of the best times to trade Forex

It allows a trader to specify a price lower than the current price that when reached, a Sell Limit ordered is placed at a higher price level. A pending order to sell at a predefined price higher than the market price in anticipation that the market will eventually decline. The default value is 14 but 9 may also be used.

In the course of a rally a long white candle reaffirms the positive sentiment in the market. The last candlestick is a long black body, signaling a reversal. It is subdivided into 100 seniti.

A financial instrument that gives the holder the right, but not the obligation, to buy or sell an underlying asset at a predetermined price, within a given time frame. A vanilla option is a normal call or put option that has standardized terms and no special or unusual features.

forex vocabulary

It is subdivided into 100 satang. The currency of the Syrian Arab Republic.

Open positions can be either long or short – enabling you to profit from markets rising as well as falling. On exchange is a term used to mean that a trade is taking place directly on an order book. It differs from at quote, which is forex vocabulary a trade made at the price quoted by a market maker. A moving average (often shortened to MA) is a common indicator in technical analysis, used to examine price movements of assets while lessening the impact of random price spikes.

It is subdivided into 100 dirhams. Bitcoin Trading It is subdivided into 100 groszy.

forex vocabulary

The first is a mini-lot and the latter is a standard lot. Contracts in the Forex Futures market represent lots. Traders in the Spot Forex buy and sell lots. The vernacular may be confusing at first, but with some understanding the main terms may start to make perfect sense.

  • If your free margin drops to zero, you’ll receive a margin call and all your open trades will be closed at the current market rate.
  • In the course of an uptrend, the presence of a long white candlestick reaffirms the bullish sentiment.
  • For example, in the quote USD/CHF 1.4527/32, the base currency is USD, and the Ask price is 1.4532, meaning you can buy one US dollar for 1.4532 Swiss francs.
  • You always trade one currency against another currency.
  • Sloppy Choppy trading conditions that lack any meaningful trend and/or follow-through.
  • Your broker needs a so-called good-faith deposit from you.

It is subdivided into 100 fenings (or phenigs). It is subdivided into 100 qepik. The currency of Australia, Christmas Island, the Cocos (Keeling) forex vocabulary Islands, Kiribati, Nauru, Norfolk Island and Tuvalu. Netherlands Antillean Guilder. The currency of Curaçao and Sint Maarten (Dutch part).

Calculated by subtracting 26 EMA from 12 EMA. Use with a 9 period EMA signal line. Generate trade signals when crossover or divergence between price and MACD appears. In FX trading, the Ask represents the price at which a trader can buy the base currency, shown to the left in a currency pair. For example, in the quote USD/CHF 1.4527/32, the base currency is USD, and the Ask price is 1.4532, meaning you can buy one US dollar for 1.4532 Swiss francs.

Account Currency

It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress.

They are also generally easier to read and interpret. The chart makes it easier to see the relationship between the open and close and the high and low of price movements. They also give a more accurate depiction of market sentiment. A breakaway gap to the downside this time, will end the sideways movement and signal a trend reversal. The price pattern, isolated by the two gaps, is known as Island Reversal.

forex vocabulary

The result is known as the average. The oldest price is then dropped (i.e. discarded from the calculation) forex vocabulary and the same formula is applied to the next prices. Therefore, it becomes the moving average.

Trade a wide range of forex markets plus spot metals with low pricing and excellent execution. It is an order to buy or sell currency instantly at the current price. If you enter a long (buy) position and the base currency rate has gone up, you want to get your profit.

Take a look at our list of the financial terms associated with trading and the markets. Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies.

Currency pairs consist of two currencies – the first one is the base currency and the second one the counter-currency. It is subdivided into 100 cents. Japanese Candlestick bullish pattern. A long black candle forms in the direction of the downtrend. The next candle is a hammer that opened higher and tested lower prices levels but eventually rejected as shown by the long lower shadow.

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