18 Ekim 2010 Pazartesi

Basic Forex Glossary

in part this time I will discuss some terms related to Forex Basics

Equity (Equity) - the secure part of the client account, considering the open position, which is tied with the balance and thresholded value (profit / loss) by the following formula: Balance (balance) + Floating rate (thresholded value) + Swap (exchange), ie the funds on a client's account is deducted from the amount required for open positions, plus the income for current open positions.

Free margin (free margin) - funds, which are not used for the security of open positions. Calculated using the following formula: Free Margin = Equity - Margin.

Margin (Limit) - The required equity that an investor must deposit to collateralize a position equal to 1% (when leverage - 1:100) from paid positions open.

Margin level (the level of margin) - determine the conditions of an account. Calculated using the following formula: (Equity / Margin) * 100%.

Base currency (base currency) - the unit of currency in which an account, balances, commission fees and payments are designated and calculated.

Balance (balance) - the total financial result of the transaction is fully executed and deposits / withdrawals to / from an account.

Brokers - crediting firm that provides services and support for traders.

Bulls - traders who depend on the currency rate escalation.

Bull market - a market which tends toward the exchange rate continues to rise.

Currency pairs (currency pair) - The two currencies that make up a foreign currency exchange rates. For example, EUR / USD.

Rising trend (trend up) - every time curve appears highest value, compared with the previous exchange rate. The lowest curve points are connected by a straight line - trend line.

Intraday trade - trade that is directed at gains in one day.

Dealing - trade in non-cash currency.

Dealing center - a company that provides access to the money market.

Account history (account history) - a list of transactions and non-trading is complete.

Client - physical or legal parties engaged in activities with the company.

Client terminal (client terminal) - Meta Trader 4.xx software product enables clients to get information about trading the financial markets in real time (quantity determined by the company), perform technical analysis of markets, operate, set / modify / cancel orders and receive messages from dealers and companies.

Trend lines (trend line) - These lines are straight lines, with a positive slope, which is depicted on the graph through the low points when the tendency to rise, and with a negative slope, which is described at points higher when the tendency to decrease. These lines define the current trends. Trend line usually signal changes in the trend.

Client log files - files created by the client terminal, which records all requests and orders sent from the client to a dealer with 1 second accuracy.

Server log files - files created by the client terminal, which records all requests and orders received from clients to the dealer, and also the result of processing, with 1 second accuracy.

Margin trading - using borrowed money to buy securities, in the hope of increasing profits.

Market-makers - the big banks and financial firms that provide liquidity by accepting the other side of the trade in currencies, securities or futures contract.

Initial margin (initial margin) - The initial deposit of collateral required to enter into a position as a guarantee for future performance.

Non-trading operation (non-trading activities) - depositing or withdrawing funds from trading account, or extending credit.

Normal market conditions (normal market conditions) - market conditions that meet the following requirements:

1.Absence of noticeable breaks in relation with quote trading platform;

2.Absence of price dynamics that are too sudden;

3.Absence of the price gap is too big;

Trade operation volume - the number of lots multiplied by lot size.

Open position (open position) - the first part of the transaction is complete, at the opening position, the client has the following obligations:

1.Reverse trading closed with the same amount;

2.To maintain equity of not less than 10% of the necessary margin.

Market opening (opening of the market) - the reopening of trading after the weekend, holiday or after a rest interval during the trading session.

Pending orders (pending order) - the client instructs the dealer to buy or sell when the price reaches the order level.

Complete the transaction closed (closed transaction perfect) - consists of two trading operation opposite and equal (opening and closing positions): purchases followed by sales or sales followed by purchases.

Quote thread - blocks of numerical data that describes the meaning of the price at a specific time period.

Pips (points) - The smallest unit of price for foreign currency, also known as points.

Lot Size (lot size) - total assets, products, or the base currency is defined in the contract as one lot.

Developers (developers) - "Meta Quotes Software Corp.." Is a trading platform developers.

Currency accounting (accounting currency) - unit of currency in which the deposit / withdrawal operations carried out.

Range (range) - the distance between the level of support and resistance levels.

Swap - money resources are reduced or added to a client's account to get a position in one night.

Adviser - type of trading account management algorithm in the form of a program based Meta Quotes Language 4. This program sends requests and orders to the server using the client terminal.

Spike - see "Non-market quoting."

Contract specifications (contract specifications) - the main trading terms (such as spread, lot size, minimum quantity of trading operations, changes in volume of trading operations, movement, initial margin, margin lock, etc.) for each instrument.

Spread - pip difference between the Bid price and demand price.

Account (account) - a special personal account opened by the client in the company. This account is used to offset the obligations of clients and dealers, which arises from an agreement under the present agreement.

Ticker - identification number given to every position of opening or pending order in the trading platform

Trading operations (trading transactions) - When a client buy or sell any instrument.
Trading platform - the set of software and technical resources that support financial market trading information received in real time; processes trading, consider the mutual obligations between clients and dealers, and considering the conditions and restrictions. Conform with current regulations, trading platform consists of the "Server" and "Client" terminals
Trading Account (trading account) - personal stock-taking activities specifically listed on the trading platform, where the transaction is closed, open positions, non-market transactions are fully reflected in it.

Transaction (Transaction) - trading activities where money resources to move from the base currency to the currency demanded and vice versa.

Trader - people who trade currencies on the Forex market for profit.

Trend - direction of price movement in general.

Order level (Level order) - the price of the order.

Support level (level support) - the lowest limit of the channel.

Resistance level (resistance level) - the highest limit of the channel.

Figure - price changes for 100 pips. For example, changes in the price of EUR / USD from 1.3770 to 1.3870 0 This means that figure increase.

Force major circumstances (unexpected events) - events that can not be predicted or prevented. Which include: natural disasters; war; acts of terrorism; governmental action, acts of government authority in both the executive and legislative branches, hacker attacks and other acts of unlawful server.

Hedging - the operation that protects an asset or liability against a fluctuation in foreign currency exchange rates.

Price prior to non-market - the closing price per minute, before the minutes with non-market quotations. Price Gap - occurs when:

1.Offer price is now higher than the price of the previous request;

2.Price is now offering lower prices than the previous request.

Market opening price gap - occurs when:

1.The opening of the market price is higher than the previous market closing price;

2.Market opening is lower than the closing price of the market;

Obvious mistake - the client's position during the opening / closing or client orders at prices far different from the offering price per instrument supply current at the time of processing. Or activity or inactivity associated with determining the dealer pricing error on the current market.

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