Accomplished transaction means two equal but opposite operations (opening position and closing position). Purchasing of financial instrument following by its future selling (opposite transaction); Selling of financial instrument foll...

The apportionment of premiums and discounts on forward exchange transactions that relate directly to deposit swap (Interest Arbitrage) deals, over the period of each deal.

Abbreviation for Average Directional Index. It is a technical indicator that is used to gauge the strength or weakness of a trend in the financial markets.

What is ADI (Anonymous Trading Appreciation)?

Trading account management algorithm in form of a program based on MetaQuotes language 4, sending inquiries and orders to a server using the client terminal.

Usually bank acting for a foreign bank.

Total demand for goods and services in the economy. It includes private and public sector demand for goods and services within the country and the demand of consumers and firms in other countries for good and services.

Size of exposure of a bank to a single customer for both spot and forward contracts.

Total supply of goods and services in the economy from domestic sources (including imports) available to meet aggregate demand.

Alpha refers to that part of a stock’s risk and return that is attributable to the stock individually, as apposed to the overall market. Alpha capture is a spread trade between a stock future and a stock index future.

The term altcoin originated when there was a much larger gap between bitcoin and the other cryptocurrencies in terms of adoption, market cap and trust. At the time, cryptocurrencies other than bitcoin were referred to as altcoins (or ...

Amazon.com, Inc. (NASDAQ: AMZN) is a US-based multinational electronic commerce company. Headquartered in Seattle, Washington, it is the largest online retailer in the United States, with nearly three times the Internet sales revenue of ...

A security that physically remains in a foreign country, usually in the custody of a bank, but is traded in the U.S.

An option contract that may be exercised at any time before it expires.

Bids and offers that are present on the financial markets without disclosing the identity of the market participants.

Apple Inc. is an American multinational corporation that designs and manufactures consumer electronics and computer software products. The company's best-known hardware products include Macintosh computers, the iPod and the iPhone. Apple...

The strengthening of a currency relative to another.

A condition whereby the value of a financial instrument increases in response to the demand in the market.

1,  The simultaneous purchase and sale of identical or equivalent financial instruments or commodity futures in order to benefit from a discrepancy in their price relationship. 2, The purchase or sale of an instrument and the simultan...

A technical indicator system that can be used to determine whether or not an instrument is trending and the strength of its trend. The Aroon Oscillator signals an upward trend when it rises above zero and a downward trend when it falls b...

A technical indicator called the Aroon Oscillator can be constructed by subtracting Aroon (down) from Aroon (up). Since Aroon (up) and Aroon (down) oscillate between 0 and +100, the Aroon Oscillator oscillate between -100 and +100 with z...

An ascending line that connects the bottoms of the down waves and is parallel to a trend-line. The ascending channel line and the trend-line form borders on an uptrend. This is a bullish pattern.

A sideways price pattern between two converging trend-lines in which the lower line is rising while the upper line is flat. This is generally a bullish pattern.

1, A motion to sell. The same as offer. Indicates a willingness to sell a futures contract at a given price. (See Bid.) 2, The quoted price at which a customer can buy a currency pair.  Also referred to as the ‘offer,’ ‘ask price,’ or...

Also referred to as offer. It is the lowest price at which a seller agrees to sell a financial asset. Ask is a price by which you can buy currency being the first in a pair (XXX) and sell corresponding amount of currency being the ...

Either a positive balance or in the context of foreign exchange the right to receive a specific currency from a counterparty (broker) as brought about from an outstanding forward or spot deal.

Dividing funds amongst different instruments in order to reduce risk.

A strategy that segregates investment portfolio over various asset classes with the intention of maximizing returns and also minimizing risks.

An individual who solicits orders, customers, or customer funds (or who supervises persons performing such duties) on behalf of a futures commission merchant, an introducing broker, a commodity trading advisor, or a commodity pool operator.

When a trade breaks even – the trader neither profits or loses.

An individual granted the mandate to trade in the financial markets on behalf of another trader.

The record of trading information identifying the parties involved in a transaction - the floor broker, clearing firm, customer, etc. - as well as the terms and time of the trade.

Slang for the Australian Dollar.

A financial institution that is authorized to deal in foreign exchange.

A financial entity that has been given the certification to engage in foreign currency transactions.

What is Automated Forex Trading System (AFTS)? Why investors use Automated Forex Trading System (AFTS)? Automated Forex Trading System (AFTS) will save you from psychological dilemma Engage in opportunities automatically How to becom...

A technical indicator and part of the Directional Movement Indicator system developed by J. Welles Wilder, the ADX line is based on the spread between the +DI and -DI lines from that same system.

A technical indicator that measures an instrument's volatility. High ATR values indicate high volatility and may be an indication of panic selling or panic buying. Low ATR readings indicate sideways movement by the instrument.

A situation in which the bid on a limit order is lower than the present market price or the offer price is more than the present market price for a financial instrument.

Futures delivery months other than the spot or front month (also called deferred months).

A financial institutions area that is responsible for settlement, administration and reporting.

Is a test of the performance of a trading strategy based on historical data prior to applying the strategy to live data.

BAE Systems plc is a British defense, security and aerospace company headquartered in Farnborough, Hampshire, England, that has global interests, particularly in North America through its subsidiary BAE Systems Inc. BAE is the world's se...

A systematic record of the economic transactions during a given period for a country. (1) The term is often used to mean either: (i) balance of payments on "current account"; or (ii) the current account plus certain long term capital mov...

A systematic record that outlines a country’s transactions with other countries within a particular period of time.

Or Trading Band is the range in which a currency is permitted to move against another, according to restrictions imposed on the currency by the local Government.

Line of credit granted by a bank to a customer, also known as a "line" or "credit line".

The rate at which a central bank is prepared to lend money to its domestic banking system.

The interest rate at which a country’s central bank gives loans to domestic commercial banks.

A chart that graphs the high, low, and settlement prices for a specific trading session over a given period of time.

Barclays is a global financial services company headquartered in London, United Kingdom. As of 2010, it is the world's 10th-largest banking and financial services group and 21st-largest company according to a composite measure by Forbes ...

The first currency in a currency pair quotation. The base currency always equals “1” while the quote, or counter currency reflects the value of the base currency.

For foreign exchange the base currency refers to the first currency in a currency pair. For example, in a EUR/USD currency pair, the EUR is the base currency. Also may be referred to as the primary currency.

What are the base currency and the quoted currency? Example of Base and Quoted currencies US is often the base currency Why currencies are quoted in pairs? What are the base currency and the quoted currency? Base currency is t...

The difference between the current cash price and the futures price of the same commodity. The basis is determined by the costs of actually holding the commodity versus contracting to buy it for a later delivery (i.e. a futures contract)...

The last decimal point shown for trading. In most currency pairs this is equivalent to 1/10,000. The most popular exception to the rule is USD/JPY where the basis point is 1/100.

Taking opposite positions in the cash and futures market with the anticipation of profiting from favorable movements in the basis.

A group of currencies normally used to manage the exchange rate of a currency, usually each currency in the basket is weighted to form the exchange rate.

A trader who believes that the price of an asset will fall.

1, One who expects a decline in prices. The opposite of a “Bull.” A bear attacks by striking his paw downward. 2, An investor who believes that prices are going to fall.

1, A market in which prices are dropping. 2, A prolonged period of generally falling prices.

The simultaneous purchase and sale of two futures contracts in the same or related commodities with the intention of profiting from a decline in prices but at the same time limiting the potential loss if this expectation does not materia...

Bid is a price by which you can sell currency being the first in a pair (XXX) and buy corresponding amount of currency being the second one in a pair (YYY). Spread is a difference between Ask and Bid. The price that the market pa...

What are bid and the ask (offer) prices?

Baidu, Inc. Simply known as Baidu and incorporated on January 18, 2000, is a Chinese web services company headquartered in the Baidu Campus in Haidian District, Beijing, People's Republic of China. Baidu provides an index of over 740 mi...

What is MT4 Binary Options Trading? Example of Binary Options Trading Why Trading Binary Options is popular? "Trade the Trend" on Binary Options Also called digital options or all-or-nothing options. Binary Options are contrac...

It is the first decentralized peer-to-peer payment network and a digital currency that is powered by its users with no central authority or middlemen.

Bitcoin address is a unique number that “stores” the bitcoins. Bitcoin addresses are used to send and receive bitcoins just like e-mail addresses are used to send and receive emails.

Black box trading, or automated trading, refers to the use of computerized systems with buy and sell instructions generated by a proprietary software program.

A mathematical formula for calculating the value of an option. Initially developed by Fischer Black and Myron Scholes for securities options and later refined by Black for options on futures.

Blocks are fundamental to how blockchains and cryptocurrencies work. A block is simply a collection of data representing transactions that took place in a given period of time. Blocks are immutable after they are published and ar...

A blockchain is essentially a ledger of transactions. Unlike the ledgers kept by banks, they are public and distributed. They are the underlying technology of all cryptocurrencies and allow users to transact with each other witho...

Blockchain a public record of Bitcoin transactions in chronological order.

Shares of large and well-established organizations.

BNP Paribas is a European leader in global banking and financial services and one of the six strongest banks in the world (Rated AA by Standard & Poor's i.e. 3rd rating on a scale of 22). Present across Europe through all its business li...

An enterprise which often is operated out of inexpensive, low-rent quarters (hence the term “boiler room”), that uses high pressure sales tactics (generally over the telephone) and possibly false or misleading information to solicit gene...

What is Bollinger Bands?

The summary of currency positions held by a dealer, desk, or room. A total of the assets and liabilities. If the average maturity of the book is less than that of the assets, the bank is said to be running a short and open book. Passing ...

BP plc is the third largest global energy company, the 5th largest company in the world and UK's largest company,  with headquarters in St James's, City of Westminster, London. The company is among the largest private sector energy corpo...

A term used to describe when there is no overall profit or loss experienced in a transaction.

A historic agreement signed in 1944 in the U.S. that stipulates the guidelines for an international monetary system.

The site of the conference which in 1944 led to the establishment of the post war foreign exchange system that remained intact until 1971. The conference resulted in the formation of the IMF. The system fixed currencies in a fixed exchan...

Generally referring to an index, it indicates that the index is composed of a sufficient number of stocks or of stocks in a variety of industry groups to satisfy certain economic or regulatory criteria. (See also NarrowBased.)

What is Broker? What is Futures Broker? What is Broker? Broker is an independent person or a company playing a middleman role in trade, stock exchange and monetary bargaining. Brokers make deals on behalf of clients and on t...

An abbreviation for the bitcoin currency.

1, One who expects prices to rise. The opposite of “Bear.” A bull attacks by thrusting his horns upward. 2, An investor who believes that prices are going to rise.

1, A market in which prices are rising. 2, A prolonged period of generally rising prices.

The simultaneous purchase and sale of two futures contracts in the same or related commodities with the intention of profiting from a rise in prices but at the same time limiting the potential loss if this expectation is wrong. In agricu...

Refers to the Central Bank of Germany.

A three-legged spread in futures or options. In the option spread, the options have the same expiration date but differ in strike prices. For example, a butterfly spread in soybean call options might consist of two short calls at a $7 st...

A condition that indicates a good time to buy an instrument. The exact circumstances of the signal will be determined by the indicator that an analyst is using. For example, it's considered a buy signal when the MACD crosses above its si...

The rate at which the market maker is willing to buy the currency. Sometimes called bid rate.

A trade that allows options traders to liquidate deep out-of-the-money options equal to less than one tick

A term used in the foreign exchange market for the GBP/USD rate.

An option to buy a commodity, security, or futures contract at a specified price at any time between the purchase and expiration of the option contract. In futures, a call gives the buyer the right but not the obligation to purchase or (...

Also known as a "High option." When a trader believes that an asset price will rise, he purchases a Call option.

The overnight inter-bank interest rate.

Another term for “exercised” when the option is a call. The writer of a call must deliver the indicated underlying commodity when the option is exercised or called.

What is Candlestick chart? Candlestick Chart is the most popular style How to read Candlestick Charts? Example of candlestick chart What is Candlestick chart? Candlestick charts provide a quick visual picture of the relation...

The risk arising from a bank having to pay to the counter party with out knowing whether the other party will or is able to meet its side of the bargain.

The interest cost of financing securities or other financial instruments held.

Is the strategy of buying high interest currencies against low interest currencies for a long period of time, with the intention of closing the trade at spot at a future date and taking a profit. As long as the higher interest rate curre...

For physical commodities such as grains and metals, the cost of storage space, insurance, and finance charges incurred by holding a physical commodity. In interest rate futures markets, it refers to the differential between the yield on ...

(Value same day) normally refers to an exchange transaction contracted for settlement on the day the deal is struck. This term is mainly used in the North American markets.

An actual physical commodity someone is buying or selling, e.g., soybeans, corn, gold, silver, Treasury bonds, etc. Also referred to as actuals.

Same day settlement.

A place where people buy and sell the instrument on which a futures contract is Stock Index and Single-Stock Futures Terminology, such as a securities exchange, bank or grain elevator. The terms “spot” and “spot price” usually refer to t...

1, The price of the actual physical commodity that a futures contracts is based upon. 2, The market for the purchase and sale of physical currencies. 3, The price of the actual underlying commodity that a futures contracts is based...

A procedure for settling futures contract where the cash difference between the future and the market price is paid instead of physical delivery.

CBOE stands for Chicago Board Options Exchange. The biggest options exchange in the globe.

Abbreviation for Commodity Channel Index. It is a technical oscillating indicator used for measuring when a financial instrument has been overbought or oversold.

A nation's main regulatory bank; traditionally, its primary responsibility is development and implementation of monetary policy.

Exchange rates against the ECU adopted for each currency within the EMS. Currencies have limited movement from the central rate according to the relevant band.

Centralization refers to any system in which trusted parties are required. Before cryptocurrency it was impossible to conduct business without trusted parties like banks or money transmitters. The Internet is the first truly decentra...

Initials for Contract for Difference. It is basically an agreement between an investor and an investment institution. When the agreement expires, the parties exchange the difference between the opening and the closing prices of a particu...

The range of prices between support and resistance levels that a market has traded in for a specific time period.

Also called non-linear dynamics, chaos theory involves complex analysis but is essentially a tool to determine whether repetitive patterns and cycles exist in the markets; that is, the presence of an underlying order. It involves the stu...

The use of graphs and charts in the technical analysis of futures markets to plot price movements, volume, open interest or other statistical indicators or price movement.

An individual who studies graphs and charts of historic data to find trends and predict trend reversals which include the observance of certain patterns and characteristics of the charts to derive resistance levels, head and shoulders pa...

A system of trading halts and price limits on equities and derivative markets designed to provide a cooling-off period during large, intraday market movements.

An exchange rate that is not materially affected by official intervention.

Financial safeguards to ensure that clearing members (usually companies or corporations) perform on their customers’ open futures and options contracts. Clearing margins are distinct from customer margins that individual buyers and selle...

A member of an exchange clearinghouse. Memberships in clearing organizations are usually held by companies. Clearing members are responsible for the financial commitments of customers that clear through their firm.

An agency or separate corporation of a futures exchange that is responsible for settling trading accounts, clearing trades, collecting and maintaining margin monies, regulating delivery, and reporting trading data. Clearinghouses act as ...

What is the Client Area and Personal Wallet? Secure Transactions and Account Management Transferring funds between wallets and accounts What is the Client Area and Personal Wallet? Client account of a “Wallet” type is just a cl...

In this model customer buys and sells through a broker. There is actually a forex broker - dealer, speaking counterpart ( the second party ) for the client in the transaction. If the client wins, the broker loses its profits, and v...

An original position that has since had an equal but opposite transaction entered against it. This transaction has a closed profit or loss.

Liquidating an existing long or short futures or options position with an equal and opposite transaction. Also called offsetting.

Coca-Cola is a carbonated soft drink sold in stores, restaurants and vending machines internationally. The Coca-Cola Company claims that the beverage is sold in more than 200 countries. It is produced by The Coca-Cola Company in Atlanta,...

An entity involved in the production, processing, or merchandising of a commodity

The fee that a broker may charge clients for a service or trade that is performed.

The fee paid to a brokerage firm for the service rendered in facilitating transactions.

A weekly report from the Commodity Futures Trading Commission providing a breakdown of each Tuesday’s open interest for markets in which 20 or more traders hold positions equal to or above the reporting levels established by the CFTC. Op...

A general name that refers to basic physical items that are either grown or mined. Examples include coffee, precious metals, and oil.

What is "Commodity CFDs"? Commodity CFDs are traded online Invest in Commodity Market with transparency How Commodity CFDs trading work? Example of Selling Spot Gold What is "Commodity CFDs"? "Commodity" is an article of comm...

A federal regulatory agency established under the Commodity Futures Trading Commission Act, as amended in 1974, that oversees futures trading in the United States. The Commission is comprised of five commissioners, one of whom is designa...

The three pairs of currencies in the foreign exchange market that are from countries with the most extensive quantities of commodities. These pairs are USD/CAD, AUD/USD, and NZD/USD.

Similar to what a mutual fund is to the securities industry. An enterprise in which funds contributed by a number of persons are combined for the purpose of trading futures or options on futures.

An individual or organization that operates or solicits funds for a commodity pool.

What is Commodity Trading Advisor (CTA)?

A memo sent from the bank or broker to its client describing all the necessary details of the transaction performed.

A period of time characterized by repetitious and limited price fluctuations.

1, Unit of trading for a financial or commodity future. Also, actual bilateral agreement between the parties (buyer and seller) of a futures or options on futures transaction as defined by a futures exchange. 2, An agreement to buy or...

Contrarian traders take positions against the prevailing market trend, that is, buy, or go long, when prices are falling and sell, or go short, when prices are rising. A contrarian trader may aim to profit from a series of small trades b...

The tendency for cash and futures prices to come together (i.e., the basis approaches zero) as the futures contract nears expiration.

The process by which an asset or liability denominated in one currency is exchanged for an asset or liability denominated in another currency.

Currency which can be freely exchanged for other currencies or gold without special authorization from the appropriate central bank.

Trading slang for the Danish krone.

A temporary reversal in prices following a significant trending period.

The foreign banks representative who regularly performs services for a bank which has no branch in the relevant centre, e.g. to facilitate the transfer of funds.

The second currency in a currency pair quotation. Also called quote currency. This reflects the value of one unit of the first currency in the pair (Base Currency).

The other organization or party with whom the exchange deal is being transacted.

Against the prevailing trend. The market may make a short-term counter-trend move within a prevailing long-term trend. Countertrend traders aim to take advantage of this tendency by buying when prices are low and selling when prices are ...

The method by which a trader takes a position contrary to the current market direction in anticipation of a change in that direction.

The risk attached to a borrower by virtue of its location in a particular country. This involves examination of economic, political and geographical factors.

To hedge or close an existing trade.

An option spread position where calls are sold against a long position in the underlying instrument. In essence, the trader is limiting his profit on the long position in exchange for receiving the option premium. On option expiration da...

A short call or put option position that is covered by the sale or purchase of the underlying futures contract or physical commodity. For example, in the case of options on futures contracts, a covered call is a short call position combi...

An option spread position where puts are sold against a short position in the underlying instrument. In essence, the trader is limiting his profit on the short position in exchange for receiving the option premium. On option expiration d...

Initials for Consumer Price Index. It is a statistical measure that tracks the changes in the purchasing power of a currency as well as the rate of inflation.

A method of exchange rate adjustment; the rate is fixed/ pegged, but adjusted at certain intervals in line with certain economic or market indicators.

Credit lever is granted by dealing center (bank or broker) to its clients. Credit lever means that a dealing company gives clients credit for trading operations on Forex market. It means that with credit lever of 1:1000 client ca...

Risk of loss that may arise on open positions should a counter party default on its obligations.

A type of transaction in which two or more currencies are traded at the same time.

An exchange rate between two currencies, usually constructed from the individual exchange rates of the two currencies, measured against the USD. Cross rate is a correlation between two currencies based on correlation between their exc...

A procedure for margining related securities, options, and futures contracts jointly when different clearing houses clear each side of the position.

Cryptocurrencies are currencies that do not have a centralized lender like a country Central Bank. They are created using computer encryption techniques that limit the amount of monetary units (or coins) created and then verify any t...

A type of a financial asset that can be traded. Currencies are usually traded in pairs.

(European) Option contract which gives the right to buy or sell a currency against another currency at a specified exchange rate at a specified period.

The two currencies that make up a foreign exchange rate. For example, EUR/USD is a currency pair.

Currency rates are displayed by a pair of currencies participating in one transaction. For instance, GBP/USD, USD/CHF, GPB/USD, where GPB/USD shows how many dollars is equal to 1 British Pound (how many dollars can be purchased for 1...

The risk of incurring losses resulting from an adverse change in exchange rates.

Contract which commits two counter-parties to exchange streams of interest payments in different currencies for an agreed period of time and to exchange principal amounts in different currencies at a pre-agreed exchange rate at maturity.

OTC Option to enter into a currency swap contract.

The act of participating in the exchange of one currency for another currency.

OTC Option; long-dated (more than one year) currency option. Current Account - The net balance of a country's international payment arising from exports and imports together with unilateral transfers such as aid and migrant remittances,...

Within the futures industry, financial guarantees required of both buyers and sellers of futures contracts and sellers of options contracts to ensure fulfillment of contract obligations. FCMs are responsible for overseeing customer margi...

The maximum price range set by the exchange each day for a contract. A trading limit does not halt trading, but rather, limits how far the price can move in a given day.

1, An order that is placed for execution during only one trading session. If the order cannot be executed (filled) that day, it automatically expires at the close of the trading session. 2, An order that is placed for execution during...

1, The purchase and sale of a futures or options contract during only one trading session. If the order cannot be executed during that session, it is automatically cancelled. A day trader places and liquidates trades during one trading s...

Speculators who take positions in financial markets which are then liquidated prior to the close of the same trading day.

What is Day Trading?

The date on which a transaction is agreed upon.

The primary method of recording the basic information relating to a transaction.

Dealer is a firm or professional working within the firm that is in the business of acting as a counterparty or principle to foreign currency transactions. Dealer is a person or company performing exchange or trading mediation at its ...

The more distant month(s) in which futurestrading is taking place, as distinguished from the nearby (delivery) month.

A state in which liabilities exceeds the value of assets or losses exceeds profits.

Deflator -

The standard grades of commodities or instruments listed in the rules of the exchanges that must be met when delivering cash commodities against futures contracts. Grades are often accompanied by a schedule of discounts and premiums all...

The transfer of the cash commodity from the seller of a futures contract to the buyer of a futures contract. Each futures exchange has specific procedures for delivery of a cash commodity. Some futures contracts, such as stock index cont...

The date of maturity of the contract, when the exchange of the currencies is made; this date is more commonly known as the value date in the FX or Money markets.

A specific month in which delivery may takeplace under the terms of a futures contract. Also referred to as contract month or front month.

The locations and facilities designated by a futures exchange where stocks of a commodity may be delivered in fulfillment of a futures contract, under procedures established by the exchange.

A term to describe when a situation when a counter-party will not be able to complete his side of the deal, although willing to do so.

A measure of how much an option premium changes, given a unit change in the underlying futures price. Delta often is interpreted as the probability that the option will be in-the-money by expiration

A trading account that enables a potential investor to review and get accustomed to the features of a trading platform using virtual money before engaging in actual trading.

A condition in which the value of a financial instrument decreases according to the demand in the market.

Depreciation -

A financial contract whose worth relies upon or is derived from the performance of one or more underlying assets. Examples of underlying assets are stocks, bonds, or indices.

A type of investment whose value depends on the value of other investments, indices or assets. Futures contracts and stock options are common types of derivatives. A single-stock futures contract is a derivative security of the underlyin...

Term referring to a group dealing with a specific currency or currencies.

All the information required to finalize a foreign exchange transaction, i.e. instrument, rate, dates, and point of delivery.

Deliberate downward adjustment of a currency against its fixed parities or bands, normally by formal announcement.

Price differences between classes, grades, and delivery locations of various supplies of the same commodity.

Quoting in fixed units of foreign currency against variable amounts of the domestic currency.

Currency exchange rates of different countries are expressed by national currencies. This is a so called direct quotation system. For example, In Japan one US dollar (USD) will be equal to some amount of Japanese Yens (JPY), while in...

A trend-following indicator used to determine market trends. It has three components-- one for upward price movement, one for downward price movement, and a third that measures the difference in these up-and-down market forces to arrive ...

A technical indicator that plots a positive +DI line measuring buying pressure and a negative -DI line measuring selling pressure. The DMI pattern is bullish as long as the +DI line is above the -DI line. The Average Directional Index li...

Floating a currency when the rate is controlled by intervention by the monetary authorities.

An arrangement by which the holder of the account gives written power of attorney to another person to make trading decisions. Also known as a controlled or managed account.

A portion of a company’s profits paid to every shareholder.

A candlestick formation with a body so small that the open and close prices are equal. A Doji occurs when the open and close for that day are the same, or very close to being the same.

Chart pattern describing a drop in price, a rebound, and another drop to the same or close to the level of the first drop, then another rebound. The chart typically looks like a “W” in shape, and the two bottom points of the W represent ...

1, Chart pattern describing a rise in price, a fall, another rise to the same or close to the level of the first rise, then another fall. The chart typically looks like an “M” in shape, with the two top points of the M representing resis...

A trademark of CME Group Inc., an E-mini is a contract that is traded exclusively on its electronic trading facility. It is usually based on a similar, larger contract but priced more favorably for smaller investors with a reduced margin...

The fraction of an organization’s earnings apportioned to every outstanding share of common stock.

Modest decline in price.

A brokerage firm that employs electronic communication networks (ECNs) to enable major brokerages and individuals benefit from the direct access to other market.

Statistics which indicate current economic growth rates, trends and health of the local economy such as retail sales and employment.

Electronic Fund Transfer.

A theory named after Ralph Elliott, who contended that stock market trends move in discernable and predictable patterns reflecting the basic harmony of nature. In technical analysis, it reflects a charting method based on the belief that...

Abbreviation for European Monetary System, an agreement between member nations of the European Union to maintain an alignment between the exchange rates of their respective currencies.

An order to buy or sell a foreign currency against another at a specific price. As opposed to a market order, limit orders might not be filled if the market moves away from the specified price.

An instruction to the dealer to buy or sell a currency pair when it trades beyond a specified price. A buy order is at a rate that is higher then the current market rate, a sell order is at a rate that is lower then the current market ra...

Equity CFDs

Futures contracts on exchange-traded Funds. ETFs have similar characteristics to single-stock futures, although the underlying security is the fund itself rather than common stock in a specific company. Thus at expiration, the de...

Functions as an open software platform through which people can use ether tokens to create and run applications and, more importantly, smart contracts.

A single European currency called the Euro, which officially replaced the national currencies of the member EU countries.

An option contract that can be exercised only on the day of expiration (see American Style Option).

Rules used to preserve or protect the value of a countries currency.

A transaction in which the buyer of a cash commodity transfers to the seller a corresponding amount of long futures contracts, or receives from the seller a corresponding amount of short futures contracts, at a price difference mutually ...

The price of one currency stated in terms of another currency. Currency exchange rate is a price of currency of one country expressed in units of another currency. This price can be set up reasoning from correlation between demand...

An ETF is a basket of securities designed to track an index yet trades like a stock. For example OneChicago’s DIAMONDS contract is a future on the DIAMOND’s ETF, which tracks the Dow Jones Industrial Average Index

The action taken by the holder of a call option if he or she wishes to purchase the underlying futures contract or by the holder of a put option if he or she wishes to sell the underlying futures contract.

The price at which the futures contract underlying a call or put option can be purchased (if a call) or sold (if a put). Also referred to as strike price.

A less broadly traded currency, lower liquidity.

"Expert Advisor" is a script that enables the analytical and trading processes in the trading platform to be carried out with little or no manual control.

This is the last day on which an option may either be exercised.

A term referring to the quarterly expiration dates applicable to various classes of derivatives. There are three commonly used cycles: January/April/July/October, February/ May/August/November, and March/June/ September/December.

The day on which all open positions in a futures contract are transformed into delivery or receipt responsibilities for the underlying instrument. Often used as a synonym for the last day of trading in a given contract, although the expi...

In options trading, this is the last day an option may be exercised into the underlying futures contract.

Also called expiration. It’s the time and date when a trade of a financial instrument expires.

A moving average that gives greater weight to more recent data in an attempt to reduce the lag of (or "smooth") the moving average. Moving averages can not only smooth the price chart, but also simplify opportunities for traders to ent...

In foreign exchange this relates to a potential for gain or a loss because of a movement in a foreign exchange rate.

Fud is an acronym that stands for fear, uncertainty and doubt. It is used by cryptocurrency traders to refer to the spreading of negative sentiment.

The theoretical worth of a futures contract as determined by a mathematical model. Fair value is a popular calculation that quickly shows the relationship between a stock index futures contract and the underlying stock index. Traders use...

Rapid movement in a market caused by strong interest by buyers and/or sellers. In such circumstances price levels may be omitted and bid and offer quotations may occur too rapidly to be fully reported, often occurs during major economic ...

The interest rate where registered banks can borrow from the Fed. This also indicates the Feds view as to the state of the money supply.

Also commonly referred to as Fed. It is the central bank of the U.S. and the most influential financial institution in the globe. It oversees the monetary and financial system in the U.S.

The Central Bank of the United States.

Fiat S.p.A., an acronym for Fabbrica Italiana Automobili Torino (English: Italian Automobile Factory of Turin), is an Italian automobile manufacturer, engine manufacturer, financial and industrial group based in Turin in the Piedmont reg...

In the cryptocurrency space, the word fiat is used to describe traditional currencies as opposed to cryptocurrencies. The word means “it shall be” in Latin, referring to the fact that traditional currencies are simply declared to be ...

A “regular” currency such as Dollar or Pound that is given value based on people giving them a value.

A popular tool used by technical analysts to identify potential support and resistance levels based on some key numbers.

Leonardo Fibonacci was a thirteenth-century Italian mathematician who discovered the significance and unique properties of a simple number series, in which each numeral is added to the previous to create the next one in the series: 0,1,2...

The Fibonacci number sequence (1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144,...) is constructed by adding the first two numbers to arrive at the third. The ratio of any number to the next number is 61.8 percent, which is a popular Fibonacci re...

The process of executing an order on the trading platform.

An order that must be filled immediately at a specified price, or cancelled if not filled at that price.

Any type of a tradable asset. Examples include currencies, futures, options, and CFDs.

According to CME Group rules, the first day on which a notice of intent to deliver a commodity in fulfillment of a given month’s futures contract can be made by the clearinghouse to a buyer.

The relationship that exists between interest rates and exchange rate movements, so that in an ideal situation interest rate differentials would be exactly off set by exchange rate movements. See interest rate parity.

Official rate set by monetary authorities for one or more currencies. In practice, even fixed exchange rates are allowed to fluctuate between definite upper and lower bands, leading to intervention.

A situation whereby a trader does not have any running position in the market.

To be neither long nor short is the same as to be flat or square. One would have a flat book if he has no positions or if all the positions cancel each other out.

Exchange rates with a fixed parity against one or more currencies with frequent revaluations, a form of a managed float.

An exchange rate where the value is determined by market forces. Even floating currencies are subject to intervention by the monetary authorities. When such activity is frequent the float is known as a dirty float.

As opposed to a fixed rate, the interest rate on this type of deal will fluctuate with market rates or benchmark rates. One example of a floating rate interest is a standard mortgage.

An individual who executes orders for the purchase or sale of any commodity futures or options contract on any contract market for any other person. A floor broker executing orders must be licensed by the CFTC.

An exchange member who generally trades only for his/her own account or for an account controlled by him/her. Also referred to as a “local.”

Federal Open Market Committee, the committee that sets money supply targets in the US which tend to be implemented through Fed Fund interest rates etc.

The purchase or sale of a currency against sale or purchase of another.

Transaction which involves the actual exchange of two currencies (principal amount only) on a specific date at a rate agreed at the time of the conclusion of the contract (short leg), at a date further in the future at a rate agreed at t...

The short form of foreign exchange.

The short form of foreign exchange.

Groups formed in the major financial centers to encourage educational and social contacts between foreign exchange dealers, under the umbrella of Association Cambiste International (ACI).

A shortened term for foreign exchange futures, also known as FX or currency futures. Forex futures are exchange-traded contracts to buy or sell a specified amount of a currency on a set future date, at a specified price.

A deal trade that is executed today for a period longer then two working days (spot value). The forward rate is made up of the spot rate plus or minus the interest rate differentials between the two currencies over time. The interest rat...

A cash contract in which a seller agrees to deliver a specific cash commodity to a buyer sometime in the future. Forward contracts, in contrast to futures contracts, are priv

Discounts or premiums between spot rate and the forward rate for a currency, normally quoted in points (pips).

A commitment to buy or sell a currency for delivery on a specified future date or period. The price is quoted as the Spot rate minus or plus the forward points for the chosen period. (See forward).

France Telecom S.A. is the main telecommunications company in France. France Telecom, one of the world’s leading telecommunications operators. With almost 131 million customers.At the end of 2009, France Telecom had sales of 44.8 billion...

Total reserves held by a bank less the reserves required by the authority.

The activities carried out by the dealer, normal trading activities.

Thorough analysis of economic and political data with the goal of determining future movements in a financial market. A type of market analysis that evaluates the related economic, financial and other qualitative and quantitative aspect...

A type of market analysis that evaluates the related economic, financial and other qualitative and quantitative aspects that affect the performance of a particular financial instrument.

What is the "Fundamentals" of financial economy? Factors That Affect Currency Values.

What is Futures (Contract)? Invest in Future and Index CFDs with FP Markets Unique Features of Futures Contract Why you should trade Future CFDs? High Market Liquidity You can apply technical analysis The market is open almost 24...

A firm or person engaged in soliciting or accepting and handling orders for the purchase or sale of futures contracts, subject to the rules of a futures exchange and, who, in connection with solicitation or acceptance of orders, accepts ...

A central marketplace with established rules and regulations where buyers and sellers meet to trade futures and options on futures contracts.

FX –

Includes the ten industrialized nations and in clued the G7 countries plus Belgium, Netherlands and Sweden, a group associated with IMF discussions. Switzerland is sometimes peripherally involved.

The seven leading industrial countries, being made up of the United States, Germany, Japan, France, UK, Canada and Ital

A measurement of how fast delta changes, given a unit change in the underlying futures price.

A method of predicting price movements through the relationship of geometric angles in charts depicting time and price. The methodology was created by W.D. Gann, a financial astrologer who was born in 1878 and became one of the most succ...

1, Price areas on a chart where no trading takes place. Gaps happen often in markets that trade only part of a day because price-moving events and announcements take place during times when markets are closed. Follow-up price action may ...

The disparity that exists on charts between the closing price of one trading session and the opening price of the subsequent trading session.

Gazprom (English: Open Joint Stock Company "Gazprom", Russian: Открытое акционерное общество "Газпром" Otkrytoye aktsionernoye obshchestvo "Gazprom") is the largest extractor of natural gas in the world and the largest Russian company. ...

Abbreviation for Gross Domestic Product. It’s an indicator that measures the economic health of a country by determining the total worth of finished goods and services produced within its borders in a certain period of time.

Reducing Gender Pay Gap is Great for the Economy How does PwC suggest narrowing this gap? Will this lead to any change? We all can invest online Reducing Gender Pay Gap is Great for the Economy This week, the world marks Inter...

A contract executed by one broker for the client of another broker that the client orders to be turned over to the second broker. The broker accepting the order from the customer collects a fee from the carrying broker for the use of the...

A strategy in which trading decisions are based on global economic and political factors, that is, macroeconomic principles.

The purchase of a stock, commodity, or currency for investment or speculation.

The selling of a currency or instrument not owned by the seller.

The original system for supporting the value of currency issued. When this was used the price of gold was fixed against the currency, this meant that any increase in the supply of gold did not lower the price of gold but caused prices to...

The Goldman Sachs Group, Inc. is a global investment banking and securities firm which engages in investment banking, securities, investment management, and other financial services primarily with institutional clients. Goldman Sachs was...

1, An order that is worked until it can be filled or until canceled. 2, An order worked until it can be filled or until canceled

Google Inc. is an American public corporation, earning revenue from advertising related to its Internet search, e-mail, online mapping, office productivity, social networking, etc. Google has also developed an open source web browser and...

Various qualities of a commodity

Fixed margin within which exchange rates are allowed to fluctuate.

Gross domestic product plus "factor income from abroad" - income earned from investment or work abroad.

"Good Till Cancelled". An order left with a Dealer to buy or sell at a fixed price. The order remains in place until it is cancelled by the client

Abbreviation for Good Till Cancelled. It is an order to purchase or sell a particular financial instrument at a set price but this order is only valid, said to be good, until the trader chooses to cancel it.

An introducing broker that has entered into a guarantee agreement with a futures commission merchant (FCM), whereby the FCM agrees to be jointly and severally liable for all of the introducing broker’s obligations under the Commodity Exc...

Any one of the major world currencies that is well traded and easily converted into other currencies.

A pattern in price trends which chartist consider indicates a price trend reversal. The price has risen for some time, at the peak of the left shoulder; profit taking has caused the price to drop or level. The price then rises steeply ag...

Also known as a reverse head and shoulders, a well-known reversal pattern marked by three (or more) prominent troughs with a middle trough (the head) that is lower than the other troughs (the shoulders). When the trendline (neckline) con...

A well-known reversal pattern marked by three (or more) prominent peaks with a middle peak (the head) that is higher than the other peaks (the shoulders). When the trendline (neckline) connecting the troughs at the bottom of the pattern ...

A chart formation that resembles a human head-and-shoulders and is generally considered to be predictive of a price reversal. A head and shoulders top (which is considered predictive of a price decline) consists of a high price, a declin...

A market in which prices are demonstrating either an inability to advance, or a slight tendency to decline.

1, The purchase or sale of a futures contract as a temporary substitute for a cash market transaction to be made at a later date. Usually it involves opposite positions in the cash market and futures market at the same time. 2, The pr...

One open buy position and one open sell position in the same currency.

An individual or company owning or planning to own a cash commodity such as corn, soybeans, wheat, U.S. Treasury bonds, notes, bills, etc. and who is concerned that the cost of the commodity may change before either buying or selling it ...

A trading strategy that involves developing techniques of reducing or avoiding extensive losses when trading in the financial markets.

A natural gas pipeline hub in Louisiana that serves as the delivery point for New York Mercantile Exchange natural gas futures contracts. It often serves as a benchmark for wholesale natural gas prices across the U.S.

Usually the highest traded price and the lowest traded price for the underlying instrument for the current trading day.

Selling at the bid by the trader.

Hitachi is a Japanese multinational corporation specializing in high-technology and services headquartered in Marunouchi 1-chome, Chiyoda, Tokyo, Japan. The company is the parent of the Hitachi Group (Hitachi Gurūpu) as part of the large...

One who purchases an option.

The purchase of either a call or put option and the simultaneous sale of the same type of option with typically the same strike price but with a different expiration month. Also referred to as a calendar spread.

HSBC Holdings plc is a public limited company incorporated in England and Wales in 1990, and headquartered in London since 1993.As of 2009, it is both the world's largest banking group and the world's 6th largest company according to a c...

International Business Machines (IBM) (NYSE: IBM) is an American multinational technology and consulting firm headquartered in Armonk, New York. IBM manufactures and sells computer hardware and software, and it offers infrastructure, hos...

(I/D) A conditional order usually based on an existing limit order.

International Monetary Fund, established in 1946 to provide international liquidity on a short and medium term and encourage liberalization of exchange rates. The IMF supports countries with balance of payments problems with the provisio...

International Monetary Market part of the Chicago Mercantile Exchange that lists a number of currency and financial futures implied volatility; this is a measurement of the market's expected price range of the underlying currency futures...

The interest rate determined by calculating the difference between spot and forward rates.

A phrase used to illustrate when a trader makes profit.

An option with intrinsic value. A call option is in-the-money if its strike price is below the current price of the underlying futures contract. A put option is in-the-money if its strike price is above the current price of the underlyin...

Represents a group of representative stocks within a stock exchange. Some of the most popular indices are the S&P 500, NASDAQ and the FTSE 100.

A market-maker's price which is not firm.

(CPI) Continued rise in the general price level in conjunction with a related drop in purchasing power. Sometimes referred to as an excessive movement in such price levels.

The progressive rise in the price levels of goods and services in a country. When this happens, the purchasing power consequently decreases.

1, The minimum value on deposit in an account to establish a new futures or options position, or to add to an existing position. Initial margin amount levels differ by contract. Normally brokers sets the level of initial margin required,...

The required initial deposit of collateral to enter into a position as a guarantee on future performance.

A loose network of currency transactions negotiated between financial institutions and other large companies.

The foreign exchange rates at which large international banks quote other large international banks

Launch of Interbank Foreign Exchange Market The purpose of Interbank Foreign Exchange Market Development of Forex brokers and ECN Launch of Interbank Foreign Exchange Market Interbank FX trading started in 1971 when US Presiden...

The interest rate at which banks offer loans to one another so that they can manage liquidity and comply with the statutory conditions.

Switching into another currency by buying spot and selling forward, and investing proceeds in order to obtain a higher interest yield. Interest arbitrage can be inward, i.e. from foreign currency into the local one or outward, i.e. from ...

One currency is in interest parity with another when the difference in the interest rates is equalized by the forward exchange margins. For instance, if the operative interest rate in Europe is 3% and in the US is 5%, a forward premium o...

An agreement to swap interest rate exposures from floating to fixed or vice versa. There is no swap of the principal. It is the interest cash flows be they payments or receipts that are exchanged.

Referring to a currency that is widely used to denominate trade and credit transactions by non-residents of the country of issue. US dollar and Swiss Franc are examples.

- Action by a central bank to affect the value of its currency by entering the market. Concerted intervention refers to action by a number of central banks to control exchange rates.

The amount by which an option is in-the-money

A person or organization that solicits or accepts orders to buy or sell futures contracts or commodity options but does not accept money or other assets from customers to support such orders.

A futures market in which contracts nearer to expiration are priced higher than those in more distant months. Also called backwardation, an inverted market typically reflects a market facing a supply shortage.

Investor is natural or legal person who makes investment. Investment includes money capital, bank deposits, shares, assets and other types of securities invested into entrepreneurial objects in order to get profits.

It is the Japanese currency unit, which is the third most-traded currency in the forex market.

Also called a scalper. It is used to describe a trader who opens and closes short-term positions with the intention of making accumulated profits.

An order that is to be cancelled (that is to say “killed”) if it cannot be wholly filled in the market.

The slang term for the New Zealand Dollar.

Slang for the New Zealand dollar.

Statistics that change after the economy has already started to change or has started to follow a particular direction or trend.

According to CME Group rules, the final day when trading may occur in a given futures or options contract month. Futures contracts outstanding at the end of the last trading day must be settled by delivery of the underlying commodity or ...

A statistic that is considered to precede changes in economic growth rates and total business activity, e.g. factory orders.

Statistics that are used to forecast the economic performance of a country since they change before (ahead of) the economy begins to follow a particular direction or trend.

A physical or electronic log book containing a list of transactions and balances typically involving financial accounts. The Bitcoin blockchain is the first distributed, decentralized, public ledger.

A financial tool that enables an investor to amplify his or her market exposure to a level that surpasses his or her initial capital.

What is Leverage? Leverage is the key tool of Forex What is Leverage? Leverage is a financial tool that enables an investor to amplify his or her market exposure to a level that surpasses his or her initial capital. The abi...

In terms of foreign exchange , the obligation to deliver to a counterparty an amount of currency either in respect of a balance sheet holding at a specified future date or in respect of an un-matured forward or spot transaction.

1, An order type that is to be filled at a specified price or better. A limit buy order is placed at or below market price, while a limit sell order is placed at or above the current market price. 2, An order to buy or sell a foreign ...

Price charts that connect periodical prices of a given market over a span of time that form a curving line on the chart. This type of chart is most useful with overlay or comparison charts that are commonly employed in intermarket analys...

A characteristic of a security or commodity market with enough units outstanding to allow large transactions without a substantial change in price.

A market in which selling and buying can be accomplished with minimal effect on price.

Selling (or purchasing) futures contracts of the same delivery month purchased (or sold) during an earlier transaction. Or, making (or taking) delivery of the cash commodity represented by the futures contract

Any transaction that offsets or closes out a previously established position.

The extent to which a financial instrument can be bought or sold with minimal or no effect to its price.

What is liquidity? Who are the liquidity provider and major market participants in Forex market? Commercial banks Companies engaged in foreign trade operations Companies engaged in foreign investments of assets (Investment Funds, M...

Litecoin is a cryptocurrency that runs on a peer-to-peer basis and facilitates larger transactions in higher volume and in a faster time frame.

The act of opening a buy position in the market.

What is "Long" Going Long Example of Long trading What is "Long" The act of opening a buy position in the market. (1) One who has bought a futures contract to establish a market position; (2) a market position that obligat...

The purchase of a futures contract in anticipation of an actual purchase in the cash market. Used by processors or exporters as protection against an advance in the cash price. (See Hedge, Short Hedge.)

It is the combined value of all options purchased. It is marked-to-market. Options marked to the last reported price.

Slang for the Canadian Dollar.

A unit of trading; one futures contract.

Lukoil (RTS:LKOH LSE: LKOD NASDAQ: LUKOY) (Russian: Лукойл; pronounced /lukɔɪl/) is Russia's largest oil company and its largest producer of oil. In 2007, the company produced 96.645 million tons of oil; 1.953 million barrels per day. I...

(Moving Average Convergence/Divergence) – A technical indicator developed by Gerald Appel that is calculated by subtracting the 26-period exponential moving average of a given security from its 12-period exponential moving average. By co...

A technical indicator shows a visual representation of the difference between the MACD line and the MACD signal line. The plot of this difference is presented as a histogram, making the centerline crossovers and divergences easily identi...

1, The minimum value that must be present in an account in order to continue to hold a position. The maintenance margin is typically less than the initial margin, and also differs by contract. If the account falls below the maintenance m...

A dealer is said to make a market when he or she quotes bid and offer prices at which he or she stands ready to buy and sell.

What is MAM? The main advantages provided by the MAM module What is MAM? To professional traders possessing some practical experience and skills in attracted asset management, we recommend the MAM (Multi Account Management) modu...

When the monetary authorities intervene regularly in the market to stabilize the rates or to aim the exchange rate in a required direction.

Represents an asset class comprised of professional money managers known as commodity trading advisors (CTAs) who manage client assets on a discretionary basis, using global futures markets as an investment medium.

It is basically the amount of deposit needed to ensure the running positions in the market are kept active.

It is basically the amount of deposit needed to ensure the running positions in the market are kept active.

An account provided by brokers that gives traders the opportunity to borrow funds to engage in securities transactions.

1, A demand from a clearinghouse to a clearing member, or from a brokerage firm to a customer, to bring margin deposits up to a minimum level required to support the positions held. This can be done by either depositing more funds or off...

Marginal trading is selling or buying of financial instruments by Forex clients via their own margin (deposit) and credit leverage, given to him/her by a broker (dealing center or bank). Marginal trading requires accomplished transaction.

1, A daily accounting entry that is the bedrock of regulated futures bookkeeping. It’s the end-of-day adjustment made to trading accounts to reflect profits and losses on existing positions. In other words, winnings are credited and imme...

A portfolio of common stocks whose performance is intended to simulate the performance of a specific index or other benchmark.

A dimension of market liquidity that refers to the ability of the market to handle large trading volumes without a significant impact on prices. Traders may study market depth to determine how and when particular orders may impact price ...

A dealer who supplies prices and is prepared to buy or sell at those stated bid and ask prices. A market maker runs a trading book.

A brokerage company that is willing to buy and sell financial instruments to provide the needed liquidity to the markets.

A trading strategy that aims to profit from both rising and falling prices, often by taking a combination of long and short positions in one or more markets. True market neutrality means the expected beta, or market risk, is equal to zer...

An order to buy or sell at the end of the trading session at a price within the closing range of prices

1, An order to buy or sell a specified commodity, including quantity and delivery month at the best possible prices available, as soon as possible. 2, An order to buy or sell a security at the prevailing market price. Sometimes referr...

The present price at which a financial instrument is being traded in the market.

The likelihood that a trader will incur losses when the market conditions do not behave as initially expected.

A price order that automatically becomes a market order if the price is reached.

The study of economic activity as it applies to individual firms or well defined small groups of individuals or economic sectors.

Microsoft Corporation is a multinational computer technology corporation that develops, manufactures, licenses, and supports a wide range of software products for computing devices. Its most profitable products are the Microsoft Windows ...

The price half-way between the two prices, or the average of both buying and selling prices offered by the market makers.

Mining is the first and still the most popular method of keeping blockchains secure. Miners confirm transactions, time-stamping entries to the blockchain and hashing them. They are also rewarded with newly minted coins for contri...

The smallest increment of market price movement possible in a given financial market instrument.

Mining is the process used to create new bitcoin is and complete transactions in the block chain. As a reward for their services, Bitcoin miners can collect transaction fees for the transactions they confirm, along with newly created...

What is Mirror trading? The advantages of this method are as follows What is Mirror trading? Mirror trading means imitating the earning methods of successful traders. Select your managers, and you will have their deals repeat...

1, The relative change in price over a specific time interval. Often equated with speed or velocity and considered in terms of relative strength. 2, A technical indicator measuring a security's rate-of-change. The ongoing plot forms a...

Currency in circulation plus banks' required and excess deposits at the central bank.

A part of the financial market whereby transactions of financial instruments having high liquidity as well as faster maturities take place.

1, A technical indicator showing an average of data for a certain number of time periods. It "moves" because for each calculation, we use the latest x number of time periods' data. By definition, a moving average lags the market. An expo...

A common and versatile technical indicator used for determining the trend or the momentum of the market.

MACD analysis uses three moving averages, often exponential. Two of them are based on the number of price periods used and the third an average of the difference between the two moving averages. The difference between the readings of the...

The sale of a call or put option without holding an offsetting position in the underlying commodity. Also referred to as an uncovered option, naked call, or naked put.

Similar to a stock index future, but targeted to a specific group of stocks, such as the auto, airline or telecom industries. Also called industry-sector futures and exchangetraded baskets.

The biggest electronic stock exchange in the U.S.

An industry-wide, industry-supported, self-regulatory organization for futures and options markets. The primary responsibilities of the NFA are to enforce ethical standards and customer protection rules, screen futures professionals for ...

The credit or debit value of all option positions combined. It is marked-to-market.

The difference between the total long position against the total short position in any currency.

Non Farm Payroll - economic indicator released monthly by the United States Department of Labor as part of a comprehensive report on the state labor market.

Nike, Inc. is a major publicly traded sportswear and equipment supplier based in the United States. It is the world's leading supplier of athletic shoes and apparel and a major manufacturer of sports equipment with revenue in excess of $...

Nissan Motor Company Ltd usually shortened to Nissan (play /ˈniːsɑːn/ or UK /ˈnɪsæn/; Japanese: [nisːaɴ]), is a multinational automaker headquartered in Japan. It was formerly a core member of the Nissan Group, but has become more indepe...

A kind of binary options that does not attain or exceed its target price.

A futures spread trade involving the buying (selling) of a 10-year U.S. Treasury note futures contract and the selling (buying) of a U.S. Treasury bond futures contract.

Frequent price fluctuations in the market that can make it difficult to make a trading decision.

The underlying value (face value), normally expressed is U.S. dollars, of the instrument specified in a futures contract.

The New York Stock Exchange.

A non standard amount for a transaction.

1, Indicates a willingness to sell a contract at a given price; opposite to the bid. Also called the “ask” price. 2, Indicates a willingness to sell at a given price; opposite to the bid. Also called the “ask” price 3, The price, o...

1, Taking a second futures or options position opposite to the initial or opening position. This means selling, if one has bought, or buying, if one has sold, a futures or option on a futures contract. 2, The closing-out or liquidatio...

1, A contingent order where the execution of one part of the order automatically cancels the other part. 2, A pair of orders, typically limit orders, whereby if one order is filled, the other order will automatically be cancelled.

The sum of all long or short futures contracts in one delivery month in one market that have been entered into and not yet liquidated by an offsetting transaction or fulfilled by delivery.

1, An order that is good until it is canceled or executed. 2, An order that remains in force until it is filled, canceled or until the futures contract expires.

An order that is running in the market until the trader chooses to close it.

Method of public auction for making verbal bids and offers in the trading pits or rings of futures exchanges. (See Pit.)

Any deal which has not been settled by physical payment or reversed by an equal and opposite deal for the same value date.

A contract giving the holder the right, but not the obligation, hence, “option,” to buy (call option) or sell (put option) a futures contract in a given commodity at a specified price at any time between now and the expiration of the opt...

The purchaser of either a call or put option. Option buyers receive the right, but not the obligation, to assume a futures position. Also referred to as the holder.

The price of an option. For U.S. options, the sum of money that the option buyer pays and the option seller receives for the rights granted by the option.

The person who sells a call or put option in return for a premium, and is obligated to fulfill the terms of contract through delivery when the holder exercises his right under the option contract. Also referred to as the Writer or Grantor.

The simultaneous purchase and sale of one or more options contracts, futures, and/or cash positions.

A type of a limit order in which the market is at or better than the limit specified. The term is often used to help clarify that the order was not mistakenly given as a limit when it looks like it should be a stop order.

An instruction to a brokerage firm to either buy or sell a financial instrument at the said price.

1, A term for indicators used to determine overbought and oversold conditions, often useful when a clear trend can’t easily be determined. Oscillators include stochastics, moving average convergence/divergence, relative strength index an...

A phrase that is used to illustrate a loss in a trade.

1, An option with no intrinsic value, i.e., a call whose strike price is above the current futures price or a put whose strike price is below the current futures price. Its value is solely time related. 2, A term used to describe an o...

A situation that results when there is some confusion or error on a trade, e.g., over difference in the understanding of a price at which a trade is done, or the number of contracts traded.

A phrase in binary options used to describe when the underlying asset expires beyond the higher and lower limits of the projected prices.

1, The trading of commodities, contracts, or other instruments not listed on any exchange. OTC transactions can occur electronically or over the telephone. Also referred to as off-exchange. 2, Used to describe any transaction that is ...

1, A term used to describe a technical opinion on a market that has risen too steeply and too fast in relation to underlying fundamental factors. 2, A technical condition that occurs when prices are considered too high and susceptible...

A deal from today until the next business day.

Net long or short position in one or more currencies that a dealer can carry over into the next dealing day. Passing the book to other bank dealing rooms in the next trading time zone reduces the need for dealers to maintain these unmoni...

A trading position that continues to run until the next trading day.

1, A term used to describe a technical opinion of a market has declined too steeply and too fast in relation to underlying fundamental factors. 2, A technical condition that occurs when prices are considered too low and ripe for a ral...

The dangerous habit of engaging in uncouth and excessive trading practices without carrying out appropriate due diligence.

Another term for spread trading but more specifically to securities products (stocks in particular) rather than commodities. Commonly refers to buying one stock and selling another related stock against it. An example would be spreading ...

What is PAMM (Percentage Allocation Management Module)? How does PAMM system work? Standard features of PAMM system What is PAMM (Percentage Allocation Management Module)? Many online Forex and CFD brokers offer unique PAMM Acc...

A strategy that uses trailing stops and a reverse method called stop-and-reversal (SAR) to pinpoint entry and exit points. Price action above the SAR would signal a bullish posture, price action below, a bearish posture.

The value of one currency in terms of another.

The amount of money earned from a successful trade.

Funds that must be deposited as a performance bond by a customer with his or her broker, by a broker with a clearing member, or by a clearing member, with the clearing house. The performance bond helps to ensure the financial integrity o...

Petrobras is the largest company in Latin America by market capitalization and revenue, and the largest company headquartered in the Southern Hemisphere by market value.The company was founded in 1953, mainly due to the efforts of then B...

The transfer of the underlying commodity from the seller of a futures contract to the buyer of a futures contract. Each futures exchange has specific procedures for delivery of a physical commodity. Some futures contracts, such as stock ...

The term used in currency market to represent the smallest incremental move an exchange rate can make. Depending on context, normally one basis point (0.0001 in the case of EUR/USD, GBD/USD, USD/CHF and .01 in the case of USD/JPY).

Pip is the smallest unit of measurement used in determining exchange rates between currencies.

A specially constructed arena on the trading floor of some exchanges where trading in a futures contract is conducted. On some exchanges the term “ring” designates the trading area for a commodity.

The system or technology provided by brokers.

A method of charting that uses prices to form patterns of movement without regard to time. It defines a price trend as a continued movement in one direction until a reversal or predetermined criterion is met. “Xs” are used to represent u...

The uncertainty in return on an investment due to the possibility that a government might take actions which are detrimental to the investor's interests.

1, A market commitment. A buyer of an initial futures contract is said to have a long position and, conversely, a seller of an initial futures contract is said to have a short position. 2, The netted total commitments in a given curre...

The maximum number of speculative futures contracts one can hold as determined by the Commodity Futures Trading Commission and/ or the exchange upon which the contract is traded. Also referred to as trading limit.

An approach to trading in which the trader either buys or sells contracts and holds them for an extended period of time.

The generation of information about “future’’ cash market prices through the futures markets. It has been said that futures markets are often the place of “original price discovery” because that’s where the buyers and sellers are brought...

A common valuation method used to gauge a company’s profitability by assessing the connection between its stock’s price and its earnings per share.

The initial capital that an individual invests for trading in the financial markets.

Your private key is the digital signature used to unlock your cryptocurrency wallet and to sign transactions. It is essentially the password for your cryptocurrency holdings and as such should be kept secure and not shared with anyone.

Private key is a string of data that allows the bitcoin owner to spend the bitcoins from his bitcoin wallet through a cryptographic signature.

The unwinding of a position to realize profits.

A catch-all phrase for trading activities that involve the purchase (or sale) of a large number of stocks. The term commonly includes computer-aided stock market buying or selling programs, portfolio insurance, and index arbitrage.

Proof of work is a protocol that has the main goal of deterring cyber-attacks such as a distributed denial-of-service attack (DDoS) which has the purpose of exhausting the resources of a computer system by sending multiple fake requests.

Your public key is basically your cryptocurrency address. This is the code that you give out when requesting a payment.

Public key is a cryptographic key that acts like a bank account number where funds are sent to.

Pump and dump schemes are a type of market manipulation in which an asset is bought up in order to raise its price. The rise in value attracts other traders wanting to benefit from the move, who also buy in, raising the price even mo...

An option to sell a commodity, security, or futures contract at a specified price at any time between the purchase and the expiration of the option contract. A put gives the option buyer the right but not the obligation to sell (go “shor...

Also known as a “Low option.” When a trader believes that an asset price will fall, he purchases a Put option.

The use of profits on existing positions as margin to increase the size of the position, normally in successively smaller increments.

What is Quantitative Easing (Monetary Easing)?

An indicative market price, depending on the market may be either an indicative price not for trading or a tradable price.

The second currency in a currency pair is referred to as the quote currency. For example, in a USD/JPY currency pair, the Japanese yen is the quote currency. Also referred to as the secondary currency or the counter currency.

The second currency in a currency pair quotation. Also called counter currency. This reflects the value of one unit of the first currency in the pair (Base Currency).

1, An upward movement of prices. 2, A recovery in price after a period of decline.

1, The difference between the high and low price of a commodity during a given trading session, week, month, year, etc. 2, The distance between the high price and the low price for a given time period. For example, the daily range is ...

1, The distance between the high price and the low price for a given time period. For example, the daily range is equal to the day's high minus the same day's low. 2, The price of one currency in terms of another.

The price of one currency compared to another one. Also referred to as the exchange rate.

Rate of adoption is the relative speed at which participants adopt an innovation.

The number of options compared to the number of futures contracts bought or sold in order to establish a hedge that is risk neutral.

This strategy, which applies to both puts and calls, involves buying or selling options at one strike price in greater number than those bought or sold at another strike price.

A decline in prices following an advance.

Also called refund. It is the portion or the entire invested amount given back to the investor at the end of a trade.

A currency that is normally quoted as dollars per unit of currency rather than the normal quote method of units of currency per dollar. Euro is the most common example.

A person employed by, and soliciting business for, a commission house or futures commission merchant.

Rekt is cryptocurrency slang for the word “wrecked” and refers to losing your coins by making bad trades or being taken in by a pump and dump scheme.

A technical oscillating indicator used to measure the overbought and oversold conditions of a financial instrument.

1, The Relative Strength Index compares periods with up closes with periods that have down closes to produce an index reading reflecting the strength of price changes on a scale of 0 to 100. The index provides overbought or oversold sign...

Sizes of positions set by the exchanges and/ or the CFTC at or above which commodity traders or brokers who carry these accounts must make daily reports about the size of the position by commodity, by delivery month, and whether the posi...

1, A price area where new selling is expected to emerge to dampen a continued rise. Areas of resistance are found above current prices. 2, A price level at which you would expect selling to take place.

A price recognized by technical analysts as a price which is likely to result in a rebound but if broken through is likely to result in a significant price movement.

A move opposite the direction of the main market trend.

Reuters Group Limited is a UK-based, Canadian company. This news company provides information about financial markets from around the world to newspapers and broadcasters. Its main focus is on supplying the financial markets with infor...

Increase in the exchange rate of a currency as a result of official action.

The rate for any period or currency which is used to revalue a position or book.

A change in the direction of prices.

A chart pattern that occurs before an existing trend reverses direction. For example, a Head and Shoulders reversal pattern marks a change in trend. A break below neckline support indicates that the H&S pattern is complete and the pr...

When a trader will asks for a live quote from a dealer, as opposed to streaming prices.

1, The amount of money that an individual can afford to invest, which, if lost should not affect their lifestyle. 2, Capital that is not needed for ordinary living expenses.

The amount of cash that an individual is ready to invest in the financial markets.

The identification of a potential loss and the handling of the risk usually under strict guidelines.

RAn asset or liability, which is exposed to fluctuations in value through changes in exchange rates or interest rates.

1, The relationship between the probability of loss and profit. This ratio is often used as a basis for trade selection or comparison. 2, A calculation equal to the potential reward divided by the potential risk of a position. A long ...

British American Tobacco p.l.c. (LSE: BATS, JSE: BTI) is a global tobacco company headquartered in London, United Kingdom.It is the world’s second largest quoted tobacco company by global market share (after Philip Morris International),...

Software designed with pre-set trading signals that gauge when to open or close a position in the market without human intervention.

What is a swap and rollover rate? Where do these rates come from? Why interbank rates rather than benchmark rates? What is a "rollover" on futures? What is a swap and rollover rate? Swap rates, also known as overnight or rollo...

Rolls-Royce plc (LSE: RR.) is a British aircraft engine maker, and the second-largest in the world, behind GE Aviation. The company has related businesses in the defense aerospace, marine and energy markets. Rolls-Royce was nationalized...

Buying and selling of a specified amount of currency.

A round turn counts both the buy and the sell of a trade as one event. In a typical exchange volume measurement, a one-contract trade between a buyer and seller would be counted as one round turn. From the customer’s perspective, a round...

The principles for governing a futures exchange. In some exchanges, rules are adopted by a vote of the membership, while regulations can be imposed by the governing board.

State Bank of India is the largest state-owned banking and financial services company with its headquartered in Mumbai, India. The bank traces its ancestry to British India, through the Imperial Bank of India, to the founding in 1806 of...

SABMiller plc is one of the world's largest brewers, with brewing interests and distribution agreements across six continents. The group’s wide portfolio of brands includes premium international beers such as Pilsner Urquell, Peroni N...

A transaction that matures on the day the transaction takes place.

A Satoshi is the smallest unit of a bitcoin, which is the eighth decimal place. It was named in honour of Satoshi Nakamoto, the inventor of bitcoin.

Sberbank Rossii (MICEX:SBER RTS:SBER) (Russian: Сбербанк России, a contraction of "сберегательный банк"; English: "Savings Bank of the Russian Federation") is the largest bank in Russia and Eastern Europe. The company's headquarters are ...

To purchase or sell a scale down means to buy or sell at regular price intervals in a declining market. To buy or sell on scale up means to buy or sell at regular price intervals as the market advances.

To trade for small gains. Scalping normally involves establishing and liquidating a position quickly, usually within the same day, hour or even just a few minutes.

What is Scalping trading strategy?

US Securities and Exchange Commission.

The amount of money needed to open or maintain a position. Also known as ‘margin.’

The U.S. government agency that oversees and regulates the national securities industry, stock markets and electronic securities markets.

A specific type of index arbitrage that involves the simultaneous purchase of stock index futures against the sale of a large number of stocks that comprise (or closely resemble) the index.

A condition that indicates a good time to sell An instrument. The exact circumstances of the signal will be determined by the indicator that an analyst is using. For example, it's often considered a sell signal when the RSI crosses down ...

Rate at which a financial institution or dealer is willing to sell foreign currency, also known as "ask" or "offer".

The actual delivery of currencies made on the maturity date of a trade.

The date upon which foreign exchange contracts settle.

Also referred to as settle or closing price. If there is a closing range of prices, the settlement price is determined by averaging those prices. The exchange clearinghouse determines a firm’s net gains or losses, margin requirements, an...

Where a payment is made to a counter party before the counter value payment has been made. The risk is that the counter party's payment will not be received.

A temporary restriction in the trading of stock index futures which becomes effective following a significant intraday decrease in stock index futures prices. Designed to provide an adjustment period to digest new market information, the...

What is "Short"? Going Short means Example of Short trading position What is "Short"? The act of opening a sell position in the market. (1) The selling side of an open futures contract; (2) a trader whose net position in f...

The act of opening a sell position in the market.

What is short covering?

The total cost of purchasing back all short options. It is marked-to-market. Market movement may cause bids and offers to be away from the last reported price.

Normally the 90 day rate.

A side considers the buy and sell actions of a trade as separate events. Each matched trade, and each contract, has two sides - the buyer side and the seller side. Taken together, these two sides equal one round turn. Measuring matched t...

A major currency that is lightly traded due to major market interest being in another currency pair.

Also known as a "trigger line", it is a moving average of another indicator that is used to generate simple buy and sell signals. Probably the most used signal line is the one that is built into the MACD Indicator display. The signal lin...

An underground website, as part of the “dark web”, that was essentially the black market online. One could purchase illegal drugs, organs or hire assassins online. The site used cryptocurrencies such as bitcoin and was shut down in 2...

A moving average that gives equal weight to each day's price data.

Single-stock futures are an agreement between two parties that commits one party to buy a stock and one party to sell a stock at a given price and on a specified date. They are similar to existing futures contracts for gold, crude oil, b...

The difference between the price displayed on a financial instrument and the actual price when a trade is entered on the trading platform.

Refers to the negative (or depreciating) pip value between where a stop loss order becomes a market order and where that market order may be filled.

Traders who hold or control positions in futures or options that are below the reporting level specified by the exchange or the CFTC.

More potential sellers than buyers, which creates an environment where rapid price falls are likely.

A rapid, but usually short-lived, run-up in prices caused by excessive buying which is unrelated to any of the basic, underlying factors affecting the supply or demand for the commodity. Speculative bubbles are usually associated with a ...

One who attempts to anticipate price changes and, through buying and selling futures contracts, aims to make profits. A speculator does not use the futures market in connection with the production, processing, marketing or handling of a ...

1, Market of immediate delivery of and payment for the product. The terms “spot” and “spot price” usually refer to the cash market price for the underlying instrument that is available for immediate delivery. 2, A transaction for the ...

The overnight swap from the spot date to the next business day.

What is Spot Rate? Why Traders prefer Currency Trading Forex based on Spot Rate? Advantages of Currency Trading Forex based on Spot Rate What is Spot Rate? The present exchange rate at which traders can buy or sell a particular...

The difference between the ask price and the bid price of a financial instrument.

1, The price difference between two related markets or commodities. 2, The difference between the bid and the ask. Generally speaking, more liquid (heavy volume) currency pairs usually have smaller bid/ask spreads. Less liquid currenc...

The simultaneous buying and selling of two related markets in the expectation that a profit will be made when the position is offset. Examples include: buying one futures contract and selling another futures contract of the same commodit...

The simultaneous buying and selling of two related markets in the expectation that a profit will be made when the position is offset. Examples include: buying one futures contract and selling another futures contract of the same commodit...

Purchase and sales are in balance and thus the trader or dealer has no open position.

A speaker connected to a phone often used in broker trading desks.

1, A market situation in which the lack of supplies tends to force shorts to cover their positions by offsetting at higher prices. 2, Action by a central bank to reduce supply in order to increase the price of money.

An active market which can absorb large sale or purchases of currency without major moves.

A term referring to certain normal amounts and maturities for dealing.

Central Bank activity in the domestic money market to reduce the impact on money supply of its intervention activities in the FX market.

British pound, also known as cable.

An oscillating indicator that determines the level of change of the price of a financial instrument from one closing period to the next.

A technical momentum indicator developed by George Lane that measures the price of a security relative to the high/low range over a set period of time. The indicator oscillates between 0 and 100, with readings below 20 considered oversol...

The stochastics indicator measures the closing price relative to the low of the range for a selected period to indicate rising or falling momentum, providing trading signals when its lines cross into overbought or oversold territory. As ...

An oscillator used to identify overbought and oversold readings in RSI. Because RSI can go for extended periods without becoming overbought (above 70) or oversold (below 30), StochRSI provides an alternative means to identify these extre...

What is Stock (Share)? Buying Stocks means you becoming a Stock Owner What types of shares exist? Ordinary shares Preference shares Cash (documentary) shares Uncertificated shares Nominal shares Bearer shares Shares of open jo...

Stock exchange market is an organized form of wholesale trade including international trading of popular goods that have stable and specific qualitative features (goods stock exchange market) or a form of systematic operations on trading...

Index or Stock Index Invest in Stock Index CFDs online How Stock Index CFDs Work? Example of Stock Index CFDs trading Index or Stock Index An indicator used to measure and report value changes in a selected group of stocks. ...

Futures contracts on a stock index, such as the Standard and Poor’s 500 or the Dow Jones Industrial Average. Stock index futures contracts are a derivative of the underlying index, and are cash-settled. The stock exchange, on whic...

Market slang for Swedish Krona.

A variation of a stop order. A stop limit order goes into effect as soon as there is a trade at the specified price. However, the order can only be filled at the stop limit price or better.

What is Stop Loss Order? Stop Loss Order is an Insurance How to setup Stop-loss order? Example of Stop Loss Order Example of Stop Loss Order What is Stop Loss Order? Stop Loss Order is an order designed to limit an invest...

Sometimes called a stop loss order, although it can be used to initiate a new position as well as offset an existing position. It’s an order to buy or sell when the market reaches a specified price point. A sell stop is placed below the ...

1, An option position consisting of the purchase (or sale) of both calls and puts having the same expiration and the same strike price. 2, An option position consisting of the purchase or sale of put and call options with the same

1, An option position consisting of the purchase (or sale) of both puts and calls having the same expiration but different strike prices. 2, An option position consisting of the purchase or sale of put and call options having the same...

The value of a financial instrument at the time when it is bought or sold.

When used in connection with delivery of commodities on futures contracts, the term usually means that the party receiving the delivery notice probably will take delivery and retain ownership of the commodity; when used in connection wit...

A requirement that any investing strategy fall within the financial means and investment objectives of an investor.

1, The place on a price chart where it is expected buying of futures contracts will be sufficient to halt a price decline. Areas of support are found beneath current prices. 2, A price level at which there is an expectation of buying ...

What are Support and Resistance levels? Properties of support and resistance levels How the support and resistance levels are formed? What is going on Forex at this time? When there is the break of support and resistance levels? ...

The overnight or rollover interest (which is earned or paid) for having open positions running up to the next trading day.

 The simultaneous purchase and sale of the same amount of a given currency for two different dates, against the sale and purchase of another. A swap can be a swap against a forward. In essence, swapping is somewhat similar to borrowing o...

A price as a differential between two dates of the swap.

Market slang for Swiss Franc.

A sideways chart pattern between two converging trendlines in which the upper trendline is declining and the lower trendline is rising. This pattern represents an even balance between buyers and sellers, although the prior trend is usual...

A position created by combining call and put options. A synthetic long futures position is created by combining a long call option and a short put option for the same expiration date and the same strike price. A synthetic short futures p...

A mechanical means of trading in which a computerized trading “system” is developed from a mathematical formula (containing a group of specific rules, or technical-based parameters) that determines entry and exit points for a given trade...

Market risk due to price fluctuations which cannot be eliminated by diversification.

Tata Motors Limited (NSE: TATAMOTORS, BSE: 500570, NYSE: TTM), is a multinational corporation headquartered in Mumbai, India. Part of the Tata Group, it was formerly known as TELCO (TATA Engineering and Locomotive Company). Tata Motors h...