Basic Terms and Slang Expressions – Forex For Beginners

black and white book business close up

This page contains common terms and slang expressions that should know any trader!

Thank you for reading this post, don't forget to subscribe!

Ask
Rate at which bank (dealer) sells a financial instrument. For example, if the quote is EUR / USD = 1.2234/38 at the rate of 1.2238 (ask) the Bank shall sell euros for U.S. dollars.

Bid
Rate at which bank (dealer) buys a financial instrument. For example, if the quote is EUR / USD = 1.2234/38 at the rate of 1.2234 (bid) shall purchase the bank euros for U.S. dollars.

CFD
Transactions in shares of any product without their actual delivery.

Change
The difference between the current price and the closing price the previous trading day.

Change%
% Change is calculated as the ratio of Change and the current price of an instrument (% Change = (Change / Price) * 100)

MetaStock
One of the most popular and powerful Programs of technical analysis.

OCO (Order Cancel Order)
This order is a combination of two separate orders for the purchase or sale. Once executed one part of the order (the first that can be executed), the alternative order is automatically canceled.

Omega
One of the most popular and powerful Programs of technical analysis.

Active Balance
Cash account

Broker
Professional market participants conduct transactions with a specific set of instruments on behalf of and at the expense of the client or on its behalf and the client’s account on the basis of onerous contracts with the client.

Usable Margin
Funds that can be used to open new positions or removed from the account.

Used Margin
Funds involved in the maintenance of all open positions at the time of the data.

Close position
Make a transaction leading to the closure of the open position.

Indicative quotes (Composit)
Quotes coming from several banks. Show the general trend in the forex market and allow for those. Analysis.

Indicators graphic
Means of technical analysis to help predict the behavior of the market.

Execution warrant
Committing a transaction broker in accordance with the order (warrant) and cancellation of orders.

Leverage
Credit provided by the bank customer to conduct transactions. Shows how many times the required margin is less than the contract price.

Liquidation Balance (Equity)
Calculated as the difference between the active and total balance of Profit / Loss on all open positions.

Market Liquidity
Liquid market – the market in which relatively frequently committed transaction of buying and selling. A liquid market is characterized by opportunity for the seller (buyer) to quickly sell (buy) goods.

Limit
Order to buy or sell currency at a specified price or better. This warrant is usually exposed to capture profits. Can also be used for open positions.

Lock
The opening of two positions for one instrument, one specification and the same size in different directions. For example, the opening position 1 eur buy at the open 1 eur sell – called “zalokirovat position.”

Loss
Loss of the transaction (or in the open position)

Lot
Target volume transaction torguemovogo financial instrument. When trading on forex and CFD markets differentiate minimum and standard lots.

Better price
When selling price is better, if it is higher than is currently available in the market. When purchasing price is better, if it is lower than is currently available in the market.

Market maker
Large banks and financial companies, determining the current level of the exchange rate at the expense of a significant portion of its operations in the total market. Market makers set the current level of the exchange rate through a transaction with each other and with the smaller banks are users of the market.

Market order
Order for immediate purchase / sale of currency at the prevailing price at the moment on the market.

Margin call
The moment when there is a lack of maintenance margin account, you must either update your account or close some open positions.

Margin
Deposit (deposit insurance), which provides cover possible losses that may arise in margin trading.

Mini Lot (Mini)
Trade mini lots.

Illiquid market
Illiquid market – the market, which is relatively rare to contract for the purchase and sale. Illiquid market is characterized by lack of opportunities for the seller (buyer) to quickly sell (buy) goods.

Necessary Margin
The amount required to maintain an open position

Overnight
The fee is charged when passing an open position on the next day.

Order
Order broker to complete the deal under certain conditions.

Refused order
When installing the order agent may refuse to accept it in some cases: If the customer does not have enough funds in the account for the transaction If the warrant specifies incorrect price: worse for the limit, or better to stop.

Open Position
If the transaction has taken place (buying / selling) and has not yet been committed to her opposite transaction (sale / purchase) on the client’s balance existing open positions.

Open positions
To make a deal leading to the emergence of Open Position

Cancel Order
Order broker to cancel an active warrant

Pips
The last digit of writing the exchange rate, for example, EURUSD 0.0005 – a five pips.

Scalping
Enter the market at the minimum possible time, sufficient to take profits, as a rule, the entire capital.

Profit
Profit from the transaction (or in the open position)

Item
For forex is the same as teak.

Session
Intraday time trading tool.

Spread
The difference between the quotations of Bid and Ask.

Standard
Trade standard lots.

Stop
Order to buy or sell currencies in the market reaches a certain price, worse than the current market price. This warrant is usually billed to limit losses if the market moved in the opposite direction expected. Can also be used for open positions

Stop Loss
Stop order, fixing a possible loss for a specific open position.

Take Profit
Limit orders, fixing possible profit for a specific open position.

Technical Analysis
The method of forecasting future price trends through the study of graphs of the dynamics of the market for prior periods.

Teak
The minimum step change in the price

trading quotes
Quotations particular bank (broker / a dealer firms). These quotes are committed transaction.

forex (Foreign Exchange Currency Market)
International market exchange

Fundamental Analysis
The method of forecasting future price trends, based on the analysis of economic data.

Futures Contract
The agreement to buy or sell a specified quantity of a certain commodity at a specified time at a specified price.

Worse price
When selling price is considered to be worse if it is lower than is currently available in the market.

When you purchase price is considered to be worse if it is higher than is currently available in the market.

Welcome to Max Health Wealth Blog, Click here to get more tips on how to make money online Programs

You May Also Like

About the Author: Karim

Hello! My name is Karim, and I share my thoughts on 3 topics that affect our world. Health, wealth, and self-improvement. I am not an expert in any of those but have done research on them during my time here. The three are important for a quality life because they're all about your success and well-being. In this space, you can follow along with me as I tackle challenges: successes or failures or even just simply growth that happens on the way towards achieving goals - something we all experience day by day!
error: Content is protected !!