Friday, November 21, 2008

Forex Glossary

ASK (Offer) _price of the offer,the price you buy for.

Aussie_ a Forex slang name for the Australian dollar.

Bank Rate _ the percentage rate at which central bank of a country lends money to the country's commercial banks.

Bid_ price of the demand,the price you sell for.

Broken_ the market participating body which serves as the middleman between retail traders and larger commercial institutions.

Cable_ a Forex,traders slang word GBP/USD currency pair.

Carry Trade_ in Forex,holding a position with w positive overnight interest return in hope of gaining profits,without closing the position,just for the central banks interest rates difference.

CFD_ a Contract for Difference_special trading instrument that allows financial speculation on stocks,commodities and other instruments without actually buying.

Commission_broker commissions for operation handling.

CPI_consumer price index the statistical measure of inflation based upon changer of prices of a specified set of goods.

EA (Expert Advisor) _ an automated script which is used by the trading platform software to manage positions and orders automatically without _or with little) manual control.

ECN Broker _ a type of forex brokerage firm that provide its clients direct access to other Forex market participants.ECN brokers dont discourage scalping,dont trade against the client,dont charge spread (low spread is defined by current market prices)but change commissions for every order.

ECB(European Central Bank)_ the main regulatory body of the European Union financial system.

Fed (Federal Reserve)_ the main regulatory body of the United states of America financial system,which division_ FOMC ( Federal Poen Market Committee)_ regulates,among other things,federal interest raets.

Fibonacci Retracements_ the levels with a high probability of trend break or bounce,calculated as the 23.6%,32.8%,50% and 61.8% of the trend range.

Flat (Square) _ neutral state when all your positions are closed.

Fundamental analysis _the analysis based only an news,economic indicators and global events.

GDP(Gross Domestic Product) _ is a measure of the national income and output for the country's economy; it's one of the most important Forex indicators.

Hedging _ maintaining a market position which secures the existing open positions in the opposite direction.

Jobber _ a slang word for a trader which is aimed toward fast but small and short-term profit from an intre-day trading.Jobber rarely leaves open positions overnight.

Kiwi _
a Forex slang name for the New Zealand currency _ New Zealand dollar.

leading Indicators _ a composite index (year 1992 =100%) of the most important macroeconomic indicators that predicts future (6-9 months) economic activity.









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