Reviewing the articles like “Forex special vocabulary”, Support and resistance levels strategy, Average moving medium strategy, Spot forex vs. currency futures can be useful for complete understanding of this article.
Options is a very multisided trading instrument. As the option cost is lower than the cost of the basic active (in this case, a trading pair), it enables trade with a credit arm providing better risks management. Said in plain words,...
Forex special vocabulary
On October - 20 - 2009
Support and resistance levels strategy, Average moving medium strategy, Spot forex vs. currency futures can be found in any Forex overview. Yet, something is hidden behind the scene.
Forex trading, as well as any other kind of human activity has its unique professional terms – the vocabulary, used by the professionals daily, but absolutely not understandable for a newcomer or an industry outsider.
Notion
Currency Pair
Trading term
GBPUSD
British...
Forex S – T
On September - 3 - 2009
Spot Foreign Exchange – often referred as an interbank trading market and means trade only between the two sides that are large banking or financial institutions. The spot market trading is carried out with the use of margin, taking into account high liquidity comparatively to the futures. That causes high popularity of this trading market with traders and professional financial institutions and professional trading organizations.
Stop – stop...
Forex M - R
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...
Forex F – L
On September - 1 - 2009
Forex – brief of Foreign Exchange. The term is applied to currency trading or currencies.
Fundamental Analysis – the strategic assessment and currency rates forecasting method, based on the analysis of any other criteria but the currency rates change. The main criteria are usually economic situation in a country issuing the currency, a loan-monetary policy and other fundamental aspects.
Leverage – loan arm: the value marked by a divisible number,...
