Forex Glossary Index:
A | B | C | D | E | F | G | H | I | K | L | M | N | O | P | Q | R | S | T | U | V | W | Y
Forex Tutorial: Forex Glossary
----- A -----
A technical analysis indicator for identifying buying or selling opportunities. (Read more>>)
ADP National Employment Report
An estimate of monthly increase or decrease in the total number of private (Read more>>)
ADP Nonfarm Employment Change
An estimate of monthly increase or decrease in the total number of private (Read more>>)
ADX
Average Directional Movement Index. ADX is a technical analysis indicator (Read more>>)
Alligator
A technical analysis indicator for identifying trend of price movement. An (Read more>>)
Andrew's Pitchfork
A technical analysis charting method developed by Alan H. Andrews to (Read more>>)
Arbitrage
The practice of buying a financial instrument in one market and simulta- (Read more>>)
Ascending Triangle
A chart pattern of sideways movement in technical analysis. It looks like a (Read more>>)
Ask
The rate that a currency pair is offered for traders to buy in forex market. (Read More>>)
Ask Price
The rate a currency pair is offered for sale in a forex market. It is shown (Read more>>)
Asking Price
The rate a currency pair is offered for sale in a forex market. It is shown (Read more>>)
ATR
Average True Range. ATR is a technical analysis indicator developed by J. (Read more>>)
At-the-Market
An instruction given to a forex broker to buy or sell at whatever price that (Read more>>)
At-the-Markets
An instruction given to a forex broker to buy or sell at whatever price that (Read more>>)
At-the-Market Order
An instruction given to a forex broker to buy or sell at whatever price that (Read more>>)
At Best
An order to buy or sell at the best rate obtainable in the forex market.
Automated Forex Trading refers to program trading of currency pairs. Forex(Read more>>)
A technical analysis indicator that measures the trend strength of the price (Read more>>)
Average True Range (ATR) is a technical analysis indicator developed by J. (Read more>>)
A technical analysis indicator for generating buying or selling signals. (Read more>>)
----- B -----
Back Testing
Back testing in forex trading means using historical data to test and/or (Read more>>)
Balance of Trade
The value of a country's exports minus its imports. If the import of the (Read more>>)
Bar Chart
A type of chart that portrays the range between the high and the low of (Read more>>)
Base Currency
In forex trading, base currency refers to the first currency in a currency, (Read more>>)
Basis Point
1 basis point is equal to 1/100 of 1 percent. In forex readings, basis point is(Read more>>)
Bear Market
A bear market is a market in which prices are falling. Opposite of bull market .
Bears Power
A technical analysis indicator for generating buying signals. The Bears (Read more>>)
Bear Trap
Bear trap is a technical analysis term describing the situation that the price (Read more>>)
Bearish Engulfing
Bearish engulfing is a chart pattern in candlestick charting describing the (Read more>>)
Bid Price
The price a forex trader can sell a currency. It is shown on the left side of (Read more>>)
Bid/Ask Spread
The difference between the bid price and the ask price. Forex brokers may (Read more>>)
Body
A rectangle represents the difference between the opening and the close (Read more>>)
Bollinger Bands
Designed by John Bollinger in the early 1980's, Bollinger Bands are statist- (Read more>>)
Breakout
In forex trading, breakout refers to a price movement that pass through (Read more>>)
Breakout Trading
A trading strategy that focuses on identifying trading opportunities when (Read more>>)
Break-Even Point
The price level at which there is neither a profit nor a loss for a trade in forex trading.
Buck
Slang term for the U.S. Dollar. Also called greenback.
Bull Market
A market in which prices are rising. Opposite of bear market.
Bulls Power
A technical analysis indicator for generating selling signals. The Bulls (Read more>>)
Bull Trap
A technical analysis term describing the situation that the price movement (Read more>>)
Bullish Engulfing
Bullish engulfing is a chart pattern in candlestick charting describing the (Read more>>)
Buy Limit Order
An order to buy a currency pair at or above a specific price, which is nor- (Read more>>)
Buy Stop
An order to buy when a currency pair's price rises to the stop price, which (Read more>>)
----- C -----
Cable
The exchange rate between British pound and the US dollar (GBP/USD). (Read more>>)
Candlestick Chart
A charting method first developed by the Japanese that shows price move- (Read more>>)
Carry Trade
In forex trading, carry trade is a strategy based on buying high-interest- (Read more>>)
CCI
Commodity Channel Index. This technical analysis oscillator is typically (Read more>>)
Central Bank
An official entity in charge of the monetary policy of a country, a territory (Read more>>)
Channel
In forex charting, a channel is normally two parallel trendlines drawn along (Read more>>)
A weekly report published by the Commodity Futures Trading Commission (Read more>>)
A technical analysis oscillator typically used to signal over-bought or over- (Read more>>)
Commodity Currencies
Commodity currencies refer to the Australian dollar (AUD, aud), the Cana- (Read more>>)
Congestion
A term in technical analysis describing the situation that prices move in a (Read more>>)
Consolidation
A term in forex (FX) analysis describing the situation that prices move in a (Read more>>)
Consumer Price Index (CPI) is a key economic indicator for measuring the (Read more>>)
Contract
A unit of trading for a currency pair. Unlike futures, forward or option con- (Read more>>)
Correction
A temporary price movement that partially reverses the previous trend. (Read more>>)
Corrective Wave
The wave that moves against the main price trend. The term comes from Elliott Wave Theory.
COT
Commitments of Traders Report. COT is a weekly report published by (Read more>>)
Counter Currency
The currency listed after the base currency in a currency pair in forex (Read more>>)
CPI
Consumer Price Index.
Cross Rate
The exchange rate between two currencies in the forex market of a third (Read more>>)
Cross
Cross currency pair.
Cross Currency Pair
A pair of currencies excluding the US dollar. For example: EUR/GBP or AUD(Read more>>)
Cup and Handle
A chart pattern of price movement in technical analysis, describing the situ-(Read more>>)
Currency
A unit of exchange. As one form of money, a currency is issued by the (Read more>>)
Currency Pair
The two currencies of a quotation in forex trading. For Example, GBP/JPY. (Read more>>)
Currency Symbols
AUD, aud - Australian dollar (Read more>>)
Current Account
The component of the balance of payments recording a nation's exports (Read more>>)
Currency Risk
Risk resulting from changes in exchange rate.
----- D -----
Daily Chart
A type of price chart on which each day is shown as a single data point. In (Read more>>)
Dark Cloud Cover
A chart pattern in candlestick charting describing the situation that the (Read more>>)
Day Trader
Forex trader who opens and closes forex positions in the same trading day (Read more>>)
Day Trading
Opening and closing forex positions in the same trading day. See also (Read more>>)
DeMarker
A technical analysis indicator for predicting price reversal. The Demarker (Read more>>)
Depreciation
The decrease in the value of a currency relative to that of a foreign cur-,(Read more>>)
Descending Triangle
A chart pattern of price movement in technical analysis. It looks like a tri- (Read more>>)
Devaluation
An official lowering of the value of a currency versus foreign currencies.
Discretionary Trading
Trading forex on the basis of human judgment rather than mechanically (Read more>>)
DMI
Directional Movement Index. A trend following indicator developed by J. Welles (Read more>>)
Doji
A candlestick chart pattern describing the situation that the open price and the (Read more>>)
Doji Stars
A candlestick chart pattern that consists of a doji candle gapping away from the (Read more>>)
Double Bottom
A chart pattern in technical analysis describing the situation that the prices (Read more>>)
Double Top
A chart pattern technical analysis the situation that the prices fall after ri- (Read more>>)
----- E -----
ECB
European Central Bank. It is the Central Bank for theEuropean Economic (Read more>>)
Economic Indicator
A statistic of the economy in a country or a region. In forex trading, eco- (Read more>>)
Elliott Wave Theory
A theory of price movement developed by Ralph Elliot. When applied to (Read more>>)
Elliott Wave Analysis
An approach of technical analysis using the theory of price movement de- (Read more>>)
EMA
Exponential moving average. A moving average using a weighting factor (Read more>>)
Empire State Manufacturing Index
An indicator of economic conditions in the U.S. State of New York, pub- (Read more>>)
EMU
European Economic and Monetary Union or European Monetary Union.
An order to buy or sell at a specified price that is left open until the end of (Read more>>)
Engulfing Pattern
A chart pattern in candlestick charting describing the situation that a candle (Read more>>)
Envelopes
A technical analysis indicator that uses two moving averages to identify (Read more>>)
An international organization of European countries with the goal to share (Read more>>)
European Monetary Union
European Economic and Monetary Union.
Euro
The common currency for the countries of the European Economic and Mo- (Read more>>)
The Central Bank for the European Economic and Monetary Union.
Evening Doji Star
A three-candle chart pattern for bearish reversal in candlestick charting. (Read more>>)
Evening Star
A three-candle chart pattern for bearish reversal in candlestick charting. (Read more>>)
Exchange Rate
The value of one currency expressed in terms of another currency. It is (Read more>>)
A moving average using a weighting factor known as exponential smooth- (Read more>>)
----- F -----
Fed
Federal Reserve, the Central Bank of the United States of America.
Federal Funds Rate
The interest rate charged between depository institutions (mostly banks) (Read more>>)
Fed Implied Volatility Rates
Fed Implied Volatility Rates refers to the implied volatility rates for foreign (Read more>>)
Fibonacci Ratio
The ratio between two successive numbers in the number series disco- (Read more>>)
Flag
A chart pattern of price consolidation in technical analysis. It looks like a (Read more>>)
Flat
Being flat in forex trading means no order is placed or all earlier positions (Read more>>)
Flat Position
A neutral state with all earlier positions in a currency pair closed out or off-(Read more>>)
FOMC
Federal Open Market Committee. It is the component within the Federal (Read more>>)
Exchange of one currency for another currency.
Foreign Exchange Rate
The value of one currency expressed in terms of another currency. It is (Read more>>)
Forex
Foreign exchange.
Forex Demo
Refer to practice forex trading, usually using the same trading platforms (Read more>>)
Forex Trading Platforms
Forex trading platforms are software programs provided by forex brokers (Read more>>)
Forex Trading Systems
Forex trading systems can either refer to the overall trading strategies and (Read more>>)
Forward
A currency forward or forex (FX) forward is a contract in the forex market (Read more>>)
Fractals
A technical analysis indicator developed by Bill Williams for detecting price (Read more>>)
Fundamental Analysis
Fundamental analysis in forex trading is typically performed through eva- (Read more>>)
Fundamentals
Fundamentals in forex trading refer to the economic, political, and other (Read more>>)
Futures
Currency futures or a currency futures contract is an exchange-traded (Read more>>)
FX
Foreign exchange.
----- G -----
G7
Group of Seven, a group of seven industrialized nations including Canada, (Read more>>)
Gann Theory
A theory of price movement developed by W. D. Gann. When applied to (Read more>>)
Gap
A chart pattern of technical analysis in which the price range of a bar or (Read more>>)
GDP
Gross Domestic Product.
Going Long
Buying a currency in forex trading.
Going Short
Selling a currency in forex trading.
An order to buy or sell that remains open until filled by the broker or can- (Read more>>)
Greenback
Slang term for the U.S. Dollar. Also called buck.
The market values of goods and services produced within a country's bor- (Read more>>)
A group of seven industrialized nations including Canada, France, Germa- (Read more>>)
GTC
Good 'Til Cancelled order. An order to buy or sell that remains open until (Read more>>)
----- H -----
Hammer
A one-candle chart pattern for bullish reversal during a downward trend (Read more>>)
Hanging Man
A one-candle chart pattern for bearish reversal during an uptrend in can- (Read more>>)
Harami
A price chart pattern of candlestick describing the situation that the shorter (Read more>>)
Hedging
A trading strategy designed to minimize risk, usually through taking offset- (Read more>>)
Head and Shoulders
A chart pattern which is generally considered indicating price trend reversal(Read more>>)
Head and Shoulders Bottom
The upside-down chart formation of a head and shoulders top. Breaking of (Read more>>)
Head and Shoulders Top
A chart pattern which is generally considered indicating price trend reversal(Read more>>)
----- I -----
Ichimoku Kinko Hyo
A technical analysis indicator for detecting price trend, support and resis- (Read more>>)
Impulsive Wave
The wave that moves in the direction of the larger trend. The term comes (Read more>>)
Industrial Production
Industrial production measures the aggregated output value of production (Read more>>)
Inflation
A general rise in prices of goods and services.
Initial Margin
The initial deposit required from a trader by a broker as a 'good faith' gua- (Read more>>)
Inside Day
A candlestick or bar that has a higher low and lower high than the previous (Read more>>)
Interbank Rates
Forex interbank rates refer to the exchange rates at the interbank system (Read more>>)
Intervention
An attempt by a central bank or a government to influence the the exc- (Read more>>)
Inverse Head and Shoulders
The upside-down chart formation of a head and shoulders top. Breaking of (Read more>>)
Inverted Hammer
A one-candle chart pattern for bullish reversal during a downward trend in (Read more>>)
----- K -----
Kiwi
The slang term for the New Zealand dollar (NZD, nzd).
----- L -----
Leading Indicators
Statistics that are regarded as early signals of changes in economic growth (Read more>>)
Leverage
Leverage in forex trading is the ratio of the amount that a trader can buy (Read more>>)
LIBOR
The London Inter-Bank Offered Rate. It is a trimmed average of interbank (Read more>>)
Limit Order
An order to buy or sell a currency pair at a specific price, which is normally (Read more>>)
Limit Buy Order
An order to buy a currency pair at or above a specific price, which is nor- (Read more>>)
Limit Sell Order
An order to sell a currency pair at a specific price, which is normally above (Read more>>)
Liquidation
The closing or offsetting of a position.
Liquidity
Liquidity in forex refers to a forex market's ability of filling orders without (Read more>>)
Long
(1) Buying a currency pair in forex trading; (2) when a forex trader's long (Read more>>)
Long Position
A long position in a currency pair means that the base currency of the pair is bought.
Lot
A unit of trading. In forex trading lot sizes may vary between different (Read more>>)
Loonie
Slang for the Canadian dollar (CAD).
----- M -----
MA
Moving average. A technical analysis indicator for identifying trend in the (Read more>>)
MACD
Moving Average Convergence Divergence. A popular technical analysis (Read more>>)
Major
Major currency pair.
Major Currency Pair
A pair of currencies including the US dollar. For example: EUR/USD or (Read more>>)
Margin
The amount of money or collateral deposited by a forex trader with his (Read more>>)
Maintenance Margin
Maintenance margin is an amount of money that must be maintained on (Read more>>)
Margin Call
A request from a forex broker to a forex trader to restore the margin de- (Read more>>)
Market Maker
A forex broker which quotes both bid and offer prices for each currency (Read more>>)
Market Order
An instruction given to a forex broker to buy or sell at whatever price that (Read more>>)
Market Risk
Exposure to adverse price movement in market.
Mark-to-Market
Process of calculating the gain or loss in each open forex position with the (Read more>>)
Momentum
Momentum refers to the speed of price movement or rate of price change (Read more>>)
Momentum Indicator
Technical analysis indicator for assessing future market trends on the (Read more>>)
Money Management
Money management in forex trading usually refers to following a set of (Read more>>)
Morning Doji Star
A three-candle chart pattern for bullish reversal in candlestick charting. A (Read more>>)
Morning Star
A three-candle chart pattern for bullish reversal in candlestick charting. An (Read more>>)
Moving Average
A technical analysis indicator for identifying trend in forex market. It is the (Read more>>)
Moving Average Crossover
When a shorter-term moving average and a longer-term moving average (Read more>>)
----- N -----
News Trading
News trading in forex is a strategy to take advantage of the sharp price (Read more>>)
Net Position
The difference between the open long positions and the open short posi- (Read more>>)
NFP
Non-farm payroll.
A monthly statistic of the total number of paid U.S. employees in private (Read more>>)
----- O -----
Offer
The rate that a currency pair is offered for sale in a forex market. It is (Read more>>)
Offer Price
The rate a currency pair is offered for sale in a forex market. It is shown (Read more>>)
Offsetting Transaction
Liquidating a forex long position by selling an equal amount of the same (Read more>>)
A pair of orders whereby filling one order will automatically canceling the other order.
Open Market Operations
Activities undertaken by a central bank in the markets in order to bring (Read more>>)
Open Position
A forex order that has been executed but not been closed.
Oscillator
Technical indicator for identifying overbought or oversold conditions of (Read more>>)
Outside Day
A candlestick or bar that has a higher high and lower low than the pre- (Read more>>)
Overbought
A technical opinion that the market price of a currency price has risen too (Read more>>)
Overnight Trade
A forex transaction which is not liquidated during the same trading day on (Read more>>)
Oversold
A technical opinion that the market price of a currency price has fallen too (Read more>>)
Overnight Position
A forex transaction which remains open until the next trading day.
Order
An instruction by a forex trader to a forex broker to fill a trade at a designated price.
---- P -----
A technical analysis indicator for identifying price trend and exit points. A (Read more>>)
A chart pattern of price consolidation in technical analysis. It looks like a (Read more>>)
A price chart pattern for bullish reversal during a downward trend in (Read more>>)
Pip is the smallest price unit of a currency in forex (fx) trading, for ex- (Read more>>)
High-probability price levels derived and assumed from technical analysis. (Read more>>)
Purchasing Managers' Index.
A charting method which uses prices to form patterns of movement while (Read more>>)
Risk of loss due to non-market factors such as shifts of a government's (Read more>>)
Ponzi scheme refers to pyramid arrangements whereby a person or an (Read more>>)
Position in forex trading usually refers to the amount of a currency held by (Read more>>)
A forex trader who opens a forex position and holds it for an extended per (Read more>>)
Opening a forex position and holding it for an extended period of time, as (Read more>>)
Producer Price Index.
The Producer Price Index (PPI) is an economic indicator for measuring the (Read more>>)
Purchasing Managers' Index (PMI) is an economic indicator for measuring (Read more>>)
Using profits on existing positions as margin to trade forex in larger sizes.
---- Q -----
Quote
An indicative price for information in forex trading.
Quote Currency
The currency listed after the base currency in a currency pair in forex tra (Read more>>)
Quoted Currency
The currency listed after the base currency in a currency pair in forex tra (Read more>>)
---- R -----
Rally
An upward price movement.
Range
The difference between the highest and the lowest prices of a currency (Read more>>)
Range Trading
A trading strategy that sells at the upper boundary or buy at the lower (Read more>>)
Rate
Exchange rate in forex trading; the price of one currency relative to another currency.
Reaction
A decline in the price of a currency pair after a rise in forex trading.
Resistance
Resistance is a term in technical analysis referring to a price level where (Read more>>)
Retail Trader
Retail trader in future trading refers to an individual trader with total as- (Read more>>)
Retracement
A reversal within a major price trend of a currency pair in forex trading.
Revaluation
An increase in the exchange rate of a currency as a result of central bank (Read more>>)
Reversal
Reversal refers to a change of direction in the price movement of a (Read more>>)
Reverse Head and Shoulders
The upside-down chart formation of a head and shoulders top. Breaking (Read more>>)
Risk Control
Risk control in forex trading refers to applying trading rules to minimize trading losses.
Risk Management
Risk management in forex trading refers to identifying exposure to various (Read more>>)
Risk/Reward Ratio
Risk/reward Ratio in forex trading refers to the rate between the probabi- (Read more>>)
Rollover
A forex trading procedure involving the shift of the settlement of a forex (Read more>>)
RSI
Relative Strength Index. A technical analysis oscillator that measures the (Read more>>)
Risk Appetite
Acceptable level of financial risk for traders or investors in forex trading. (Read more>>)
---- S -----
Scalper
A forex trader who buys and sells rapidly, with the goal to gain a small (Read more>>)
Scalping
Buying and selling rapidly, with the goal to gain a small profit at each trade (Read more>>)
Secondary Currency
The currency listed after the base currency in a currency pair in forex tra (Read more>>)
Sell Limit Order
An order to sell a currency pair at a specific price, which is normally above (Read more>>)
Shooting Star
A candlestick chart pattern that consists of a candle with a short body and (Read more>>)
Short
(1) Selling a currency pair in forex trading; (2) when a forex trader's short (Read more>>)
Short Position
A short position in a currency pair means that the base currency of the (Read more>>)
The equally-weighted mean price of a currency pair over a given period of (Read more>>)
Slippage
Slippage in forex trading refers to the situation when an order is filled at a (Read more>>)
Speculator
A forex trader who trades with the goal of gaining profits through the suc- (Read more>>)
Spinning Top
A one-candle chart pattern in candlestick charting. A spinning top is a can (Read more>>)
Spot Market
Spot market in forex trading refers to the market where currency pairs (Read more>>)
Spot Price
Spot price in forex trading refers to the current market price. Settlement (Read more>>)
Spot Rate
The current market price. Settlement of spot forex transactions usually oc (Read more>>)
Spread
The difference between the bid price and the ask price of a currency pair (Read more>>)
Square
See square position. It is also called flat.
Square Position
In forex trading square position means a neutral state with all earlier posi- (Read more>>)
Stars
A candlestick chart pattern that consists of a candle with a short body gap- (Read more>>)
Stochastic
A technical analysis oscillator for identifying overbought or oversold condi- (Read more>>)
Stop Limit Order
A stop limit order is a type of order that will be filled at the specified price or better.
Stop Loss Order
A stop order in forex trading is an order to buy or sell a currency pair at (Read more>>)
Sterling
Slang term for the British pound. It can also refer to the exchange rate (Read more>>)
Stocky
Slang term for Swedish Kronain in forex.
Support
Support is a term in technical analysis referring to a price level where new (Read more>>)
Support Levels
A technique used in technical analysis that indicates a specific price ceiling (Read more>>)
Swap
Swap in general means exchanging one asset or liability for a similar asset (Read more>>)
Swing Trading
Swing trading in forex is a trading strategy that on identifying trading op- (Read more>>)
Swissy
Market slang for Swiss franc.
---- T -----
Technical Analysis
An approach to forecast price movements through analyzing historical (Read more>>)
Technical Correction
An adjustment to price based on technical factors such as volume and (Read more>>)
Tick
Tick in forex trading means a minimum change in price, up or down.
An (Read more>>)
Timing Indicator
A technical analysis tool that helps determine times when a selected mar- (Read more>>)
When a forex trader simultaneously buys and sells a currency for delivery the next day.
Transaction The entry or close of a forex trade.
Transaction Date
The date on which a forex buy or sell order is processed.
Trend
The general direction, either upward or downward, of price movement in forex market.
Trendline
A line drawn in charting along the price lows (support) or highs (resis-) (Read more>>)
Trend Trading
Trend trading is a trading strategy that focuses on identifying and following (Read more>>)
Triangle
A chart pattern of price movement in technical analysis. It looks like a tri- (Read more>>)
Triple Bottom
A chart pattern in technical analysis describing the situation that the prices (Read more>>)
Triple Top
A chart pattern in technical analysis describing the situation that the prices (Read more>>)
Tweezers Bottoms and Tops
A candlestick chart pattern that consists of two candles with almost the (Read more>>)
Two-Way Price
When both buying and selling rates are quoted for forex transactions by a forex broker.
---- U -----
Under-Valuation
A currency is is normally considered undervalued when its exchange rate (Read more>>)
Uptick
A new price quote for a currency pair that is higher than its preceding quote.
US Dollar Index (DX, ICE[NYBOT])
A measure of the value of the U.S. dollar relative to a basket of foreign (Read more>>)
US Dollar Index (NYBOT)
A measure of the value of the U.S. dollar relative to a basket of foreign (Read more>>)
US Dollar Index (USDX)
A measure of the value of the U.S. dollar relative to a basket of foreign (Read more>>)
US Prime Rate
One of several base interest rates used by US banks to price short-term (Read more>>)
---- V -----
Value Date
Value date refers to the date that the value of an asset is ascertained in (Read more>>)
VIX
VIX refers to the Chicago Board Options Exchange (COBE) Volatility Index (Read more>>)
Volatility
A statistical measurement of the rate of price change in the market.
---- W -----
The mean of prices over a given period with greater weight given to the (Read more>>)
Williams' Percent Range
A technical analysis indicator for detecting overbought or oversold condi- (Read more>>)
WMA
Weighted moving average. The mean of prices over a given period with (Read more>>)
Working Day
Working day in forex trading refers to a day when the banks in a cur- (Read more>>)
---- Y -----
Yard
Slang for a billion.
Site Index:
A | B | C | D | E | F | G | H | I | K | L | M | N | O | P | Q | R | S | T | U | V | W | Y
|
