Glossary

The price at which the market sells a product, also defined as the offer price.

Used when a dealer buys or sells at the best rate possible.

An instruction to sell or buy for a specific price or better.

The Australian Securities Exchange (ASX 200) which is an index of the top 200 companies recorded on the Australian stock exchange

Also known as, “Oz” or “Ozzie”; pertains to the AUD/USD pair.

Describes the value of a country’s exports minus its imports.

Any number of different option structures that has a great importance to a specific price trading.

Defines the first currency in a currency pair. It displays how much the base currency is worth as measured against the second currency.

A chart pattern that shows when demand and supply of a product are almost equal.

A measurement, which defines the minimum change in the price of a product.

Means favoring a declining market. For instance, “We are bearish EUR/USD” means ‘’we think the Euro will decline against the dollar’’.

The price at which the market buys a product.

A term used for methodical, model-based or technical traders.

The central bank of Canada.

A name for debt that is issued for a specified period.

Also known in Forex as taking a long position on a product.

A strategy that shows the difference in the interest rates earned from buying a currency that pays a relatively high interest rate and selling another currency that pays a lower interest rate.

The market in the actual underlying markets on which a derivatives contract is based.

Defines the price of a product at that moment in time.

A trader, who uses charts and interprets historical data to find trends and predict future movements.

Funds that are available in to trade.

An asset given to secure a loan or as a guarantee of performance.

The possibility of an economic crisis to spread from one market to another.

An event that changes share price of a stock, such as acquisitions, dividends, mergers, splits etc.

Describes a pair of currencies that does not include the US Dollar.

Refers to CAD (Canadian Dollar), Aussie (Australian Dollar), Sterling (British Pound) and Kiwi (New Zealand Dollar) – countries off the Commonwealth.

Used to describe speculative traders whose activity could resemble that of short-term hedge funds.

A symbol of three letters that represents a specific currency (US Dollar).

The sum of the balance of trade, left factor income and net transfer payments.

A term that means a trade done at the current market price.

The difference between the buying and selling price of a contract.

When traders want to prevent a product from trading at a certain price.

Removing a stock’s listing on an exchange.

The ratio between the change in price of a product and the change in price of its underlying market.

Refers to a situation where price and momentum move in opposite directions, for example prices rise while momentum falls.

Refers to a policy view that suggests easier monetary policy or lower interest rates.

Price action consisting of lower-lows and lower-highs.

A share bought where the buyer gives up the right to receive the next dividend and instead it is given to the seller.

The exact date and time when an option will expire.

A market that is expanding too fast.

The difference between the price of a derivative financial product and the underlying cash market price.

A term used when an order has been fully filled.

Defines an order, which if not filled in its entirety, will be cancelled.

All positions opened within a particular currency pair are executed in the order in which they were originally opened.

Economic data that matched the previous period’s levels that are unchanged.

Buying or selling interest after a changing of direction of a particular price level.

An agreement between two parties to complete a transaction at a specified time in the future with a defined price.

Buying of a stock, commodity or currency with the expectation of the price to increase.

The selling of a currency or product with the expectation of the price to decrease.

It is commonly accepted that gold moves in the opposite direction of the US dollar.

An order type that will expire at the end of the day if it is not executed.

A type of order that will expire on the date a trader has chosen. It should not be filled earlier.

A type of order that protects a trader against the market gapping. It guarantees an order to be executed at the price asked.

A stop-loss order guaranteed to close your position at the desired level, which is guaranteed even if there is gapping in the market.

it is every 100 pips in the Forex market starting with 000.

To sell at the current market bid.

Defines the Hong Kong Hang Seng Index.

A little volume being traded in the market, which often creates changing market conditions.

Defines the initial deposit required to enter into a position.

When a central bank enters the market in order to affect the value of its currency.

A person or corporate entity, which introduces accounts to a broker.

Symbol for S&P 500 Index.

Measures the attitude of businesses that directly service consumers such as waiters, drivers etc.

Measures the attitude of businesses that directly service consumers such as waiters, drivers etc.

A name for the NEKKEI index.

A term that means limiting your trades due to extreme trading conditions

A strategy that requires the underlying product to be traded at a defined price before a previously bought option becomes active.

Option that invalidates a formerly bought option if the underlying product trades a certain level.

The last day a trader may trade a particular product.

The last time a trader may trade a particular product.

Statistics that are used to predict future economic activity.

Represents a price zone that is based on reported orders or option interest.

Debt or financial obligation.

A type of order that aims to buy at lower levels or sell at higher levels than the current market.

Defines a market, which has enough participant for the price to move in a smooth manner.

A long-term trading strategy, in which decisions are based on fundamental analysis.

Measures the total output of the manufacturing aspect of the Industrial Production figures.

The required amount that an investor must deposit to hold a position.

A request from a broker or dealer for additional funds or other collateral on a position that has moved against the customer.

Defines a process of re-evaluating all open positions in regards to the current market prices.

The total value of a listed company, representing a share price multiplied by the number of shares issued.

When the market is exposed to changes in the prices.

The settlement or expiry date of a financial product.

A series of technical studies that measure the rate of change in prices.

A name for the NASDAQ 100 index.

The amount of currency bought or sold which has not yet been compensated by opposite transactions.

An option in which a fixed amount is paid to the holder if the market never touches the predetermined Barrier Level.

Symbol for NYSE Composite Index.

The price at which the market is prepared to sell a product.

Means a pair is attracting a lot of selling interest, or offers.

A trade that nullifies the market risk of an open position.

A description for two orders whereby if one part is executed, the other is automatically cancelled.

An option in which the holder is paid a fixed amount if the market touches the predetermined Barrier Level.

Attempting to sell at the current market order price.

A system used to display market depth of traders willing to buy and sell at prices beyond the best offered.

The forex quoting agreement of matching one currency against the other.

A market that moves a great distance in a very short period. Parabolic moves can be either up or down.

An option where only part of an order has been executed.

Waiting for the markets to reach a certain levels before entering a position.

The smallest unit of price for any foreign currency.

Changes in governmental policy, which may have a risky effect on an investor’s position.

Describes quotes to which every market participant has equal access.

A tendency of the market to go back over before continuing in the same direction.

A product that gives the owner the right to sell it at a determined price.

A type of future with expiry dates every three months.

An indicative market price, which is generally used for information purposes.

When a price is trading between a defined high and low without breaking out from them.

The price of one currency in terms of another.

A price that might act as a ceiling.

When a fixed currency is allowed to rise as a result of official actions; the opposite of a devaluation.

A trade that has been opened and then closed by an equal and opposite deal.

An indicator of the status of an open positions, which means a trader should close all open positions at an unrealized money that he would gain or lose.

A term used to describe a market condition when it can move in any direction.

Choppy trading conditions that lack any meaningful trend and/or follow-through.

A market where products are traded at their market price for immediate exchange.

The buying or selling of a product for immediate delivery.

When buying and selling are in balance and the dealer has no open position.

An order placed to buy above the current price, or to sell below the current price.

The accumulation of stop-loss orders to buy above the market when it’s moving up, or to sell below the market it’s moving down.

The defined price at which the trader can buy or sell a product.

A temporary pause in the trading of a product.

A trading strategy that allows a trade to continue to increase in value when the market price moves in a favorable direction, but automatically closes the trade if the market price suddenly moves in an unfavorable direction .

The cost of buying or selling a financial product.

The date on which a trade occurs.

Price movement that leads to a change in value.

The total volume of all executed transactions in a given time period.

A name for the FTSE 100 index.

The traded market from where the price of a product originates.

The hypothetical gain or loss on open positions estimated at current market rates.

A new price quote at a price higher than the previous quote.

The date on which a broker and a trader agree to settle their respective obligations. The value date is normally two business days forward.

Represents required funds traders must have in their accounts to have to cope with market fluctuations.

Displays the market’s expectation of 30-day volatility.

Chart construction that shows a price pattern over time, where price rising dramatically decrease incrementally.

A highly instable market where a sharp price movement is followed by a sharp reversal.

When a limit order has been requested but not filled.

Symbol for Silver Index.

Symbol for Gold Index.

The percentage return from an investment.

Abbreviation for year over year.

The base unit of currency in China.