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Forex M - R

Posted by Trader On September - 2 - 2009













Margin – the amount of money on the client’s account that is necessary for opening a position or supporting an existing one. For example, a margin that equals 1% means that in order a trader to be able to open a position of 100 000$ a deposit should be not less than 1 000 $.

Margin Call – a broker’s request to add some amount of money in order to support an existing position. Sometimes the “margin call” means that the positions that have no enough deposit on the account will be soon closed by the broker. This procedure enables client’s to be sure that their risks are limited and future losses are impossible.

Market Order – an order to buy for a current seller’s price.

Offer – the price of the offer that a broker or a dealer would like to sell a financial tool for. This notion has the meaning equal to “Ask/seller’s price”.

Pip – the smallest increment of price for futures or difference agreement. This notion is usually called tick when applied to futures market.

Premium (also "Interest" or "Cost of Carry") – swop (commission or cost of supporting an investment position during one day. Premium is usually marked in US Dollars or in points per day that reflect the cost of supporting a position during one day.

Roll over – substitution of an expired futures contract for another one.

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