Sunday, February 22, 2009

Forex glossary

Forex glossary "A"

Abandon - Situation when an option holder choose not to exercise or offset an option.
Accommodation Trading - Non-competitive trading used to assist one trader by another with illegal trades.
Account Statement - Contains data about all operations of the client bill at the broker for the chosen period.
Accrued Interest - The interest between the most recent interest payment and the present date but not yet paid to the lender.
Action Type - It is a category of rule violation, sales practice violations and trade practice violations.
Actuals - The physical or cash commodity from a commodity futures contract.
Add-on Method - At this method of payment the interest is added onto the principal at maturity or interest payment dates.

Forex glossary "B"
Balance of Forex market trading - Country's exports minus its imports.
Balance of Trade - Exports less imports.
Bank Notese - Paper money issued by the central bank.
Bank Rate - At this rate a central bank lend money to the domestic banking system.
Bar Chart - It is the image of the price direction in the form of diagram.
Base Currency - It is the currency in which an investor maintains its book of accounts. In the FX markets, the US Dollar is normally considered the 'base' currency for quotes.
Bear - Market participant whose purpose is to decline prices.
Bid - A price value indicating a desire to buy a currency at a given price.
Bid/Ask Spread - The difference between the bid and ask price.
Bid Forex rate - at this rate forex trader is willing to buy a currency.
Book - the summary of a Forex market trader's positions.
Boris - Russian forex trading (slang).
Forex glossary "C"
Cable - Sterling/US Dollar exchange rate (slang)
CACE - abbreviation for Citrus Associates of the Cotton Exchange.
Calendar Spread - the same as Horizontal Spread.
Call Option - it is the right but not the obligation giving to the buyer of a call option to purchase a particular futures contract at a stated price on or before a particular date.
Canceling Order - this order deletes a customer's previous order.
Candlestick Chart - type of price chart that indicates the trading range for the day as well as the opening and closing price.
CBOE - abbreviation for Chicago Board Options Exchange.
CBOT - abbreviation for Chicago Board of Trade.
CD - abbreviation for Certificate of Deposit.
CEI - abbreviation for Commodity Exchange, Inc. (also known as COMEX).
Central Bank - A government organization that manages a monetary policy of the particular country.
Forex glossary "D"
Dealer -An individual who acts as a principal or counterpart to a transaction.
Depreciation - a falling of currency value due to market forces.
Derivative - it is the type of stock contract that value changes in relation to the price movements of a related security, future or other physical instrument.
Discount rate - From this interest rate the central bank gives credits to financial establishments of the country.
Double Bottom - a technical analysis’ figure at which the rate fell on some level twice, and then again rose.
Double Top - a technical analysis’ figure at which the rate rose on some level twice, and then again fell.

Forex glossary "E"
Economic Indicator - it is a statistic measure issued by government that indicates current economic growth and stability.
Elliot Wave Theory - Ralph Elliot’s theory, who contended that the stock market tends to move in and predictable patterns reflecting the basic harmony of nature; also this theory is used in technical analysis to define charting method based on the belief that all prices act as wavers, rising and falling rhythmically.
EURO - now it is the currency of the European Monetary Union (EMU) instead of the European Currency Unit (ECU).
European Central Bank (ECB) - The Central Bank of the European Monetary Union.
Exchange Rate - it is the price of one currency evaluated in units of another currency.

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