Forex terms
  • Equity
    trading account balance reduced by a current loss of positions opened and increased by a current profit of positions opened.
  • Forex (Foreign Exchange)
    foreign currency exchange market; electronic stock exchange for conducting currency transactions.
  • Free Margin
    assets uncommitted to a pledge for opened positions.
  • Margin
    required pledge amount for opened positions equaling 1% (with 1:100 leverage) of the opened position size.
  • Margin Level
    account balance calculated in the following way: (Equity / Margin)*100%.
  • Base currency
    monetary unit of an account to be nominated in and that of balances, commissions and payments to be calculated.
  • Forex broker
    organization granting access to the world financial markets for conducting speculative operations.
  • "Bulls"
    professional slang meaning traders playing for the currency rate upturn.
  • "Bull market"
    professional slang meaning a market with up-directed tendency of currency rates.
  • Currency rate
    currency rate text record; two currencies making an exchange rate come as trading operation object.
  • Currency dealing
    purchase and/or sale of currency assets in the world currency market with a purpose of deriving profit from rate fluctuations with the course of time.
  • Ascending trend
    is a tendency by which the price moves upwards and most of drops fix above the previous drop.
  • Intraday trading
    trading activity oriented to profit earning during the day; execution of short term trades.
  • Diversification
    a form of capital aggregation; risk reduction strategy by spreading capital investments to different trading instruments.
  • Dealing center
    organization offering a prospect of making trading transactions in financial markets without accessing the external trade area
  • Client terminal
    MetaTrader program product allowing to get trading session data online, carry out a technical analysis, run trading.
  • Quote
    one currency unit cost (base currency) expressed in another currency (quoted currency).
  • Leverage
    rate of credit given to a trader by broker; a ratio of pledge amount and the given borrowed capital.
  • Lot
    standard contract measure unit for evaluating the currency volume traded by this contract on Forex.
  • Cross rate
    a ratio between two currency pairs relatively the third one (USD); exchange rate between two currencies, except for USD.
  • Trend line
    chart direct lines coming through extremums of up-going and down-going trends determining the current tendency.
  • Margin trading
    buy/sell operating method using monetary assets provided by a broker as a loan on security of stipulated amount.
  • Market makers
    big banks and financial companies cooperating with an exchange market and supporting the gap between Ask and Bid due to a substantial share in the total market turnover.
  • "Bears"
    professional slang meaning traders operating with a currency downtrend.
  • "Bear market"
    professional slang meaning a market with down-directed rate tendency.
  • Nontrading operation
    deposit/withdrawal of money from a trading account or credit allowance/ reimbursement.
  • Normal market conditions
    lack of price gaps, sharp breakdowns of a quote flow in a trading platform, violent price dynamics.
  • Order
    trader’s command to a broker of buying or selling one currency for another at market price.
  • Open (currency) position
    mismatch of requirements (assets) and commitments (liabilities) in foreign currency for a currency market participant (banks, companies).
  • Market opening
    trade start after weekends/holidays/breaks between trading sessions.
  • Pending order
    brokerage company command to buy or sell a currency pair in future at a set price.
  • Pipser, scalper, surfer
    trader earning on a small number of pips and setting a position for several minutes.
  • Pip
    minimal measuring unit of one currency change relatively another reflected in quotes released by a broker.
  • Accounting currency
    monetary unit used for carrying out deposit and withdrawal transactions.
  • Range
    lack of trend (flat trend) appearing after abrupt rate fluctuations; distance between support and resistance levels.
  • Swap
    assets held or added to a trading account for prolongation (carrying over) of a position to the next day.
  • Advisor
    trading account managing program in a specialized language, which sends requests and orders to the system using the client terminal.
  • Spike
    market situation when the next quote differs much from the preceding one.
  • Spread
    difference between Ask and Bid expressed in pips.
  • Ticker
    unique identification number assigned to every open position or pending order in a trading platform.
  • Trading platform
    program solution directed to transmit online information on trades, trading transactions execution and recording of mutual commitments between trader and broker.
  • Transaction
    aggregate of trading operations with funds switching from base currency into quoted one and vice versa.
  • Trader
    stock dealer selling and buying currency pairs on Forex for the purpose of profit deriving.
  • Trend
    clearly defined market direction; general price movement direction.
  • Hedging
    execution of buy or sell operations with different financial instruments simultaneously for the avoidance of huge losses in case of sharp price fluctuations.
  • Price gap
    any of cases: Bid of the current quote is higher than Ask of the preceding one; Ask of the current quote is higher than Bid of the preceding one.
Forex dictionary mt5.com