Glossary

Glossary

Trader - is a merchant acting on his own initiative and seeking to make a profit directly from the trading process.

Trading - direct work of a trader: analysis of the current situation on the market and conclusion of trade transactions.

CFD - Contract for Difference - is a financial instrument which allows the seller and the buyer, without delivering the underlying asset, to settle by paying each other the difference between the value specified in the contract and the actual quote.

Trading terminal - is a software package through which a brokerage company provides a trader with access to the market.

Chart (chart) - graphic image of price movement.

Quotation - a constant change in price set by the seller or the buyer.

Order - is an order for a dealer to conduct a currency purchase and sale procedure.

Pending order - is a trader's request to buy (sell) when the price reaches a certain price level.

Lot - a unit of sale and purchasing during the bidding on the exchange.

Bid - the price of demand, the highest price of the buyer, at which he agrees to buy currency, securities, etc. assets.

Ask - the price which the seller declares as the price of the consent to sell.

Market order - an order that the investor gives directly to the broker or by using brokerage services to immediately buy or sell at the best price available at the moment. 

Long position - this is the position which the trader opens in the hope of making a profit from the market growth.

Short position - this is the position that the trader opens in the hope of making a profit from the market fall.

Closed position - describes a closure of all previously open orders to buy or sell.

Open position - is an order set to buy or sell currency in a currency pair, this action is carried out using the trader’s trading terminal.

Stop Loss - this is an instruction to the broker to close the transaction when reaching a certain level of price loss. 

Take Profit - is a type of a pending order to a broker to close a transaction when the price reaches a certain level - profit.

Leverage - is the ratio between the amount of collateral and the borrowed capital allocated for it.

Tick - minimum change in the value of a financial instrument.

Tick - a single quotation of a financial asset (currency, stock, etc.) sent by the information system.

Equity - a value that reflects the status of the trading account - balance of the trading account calculated in the currency of the security deposit, taking into account the transactions carried out by the Client at the current time (including open positions). Equity - is a balance +/- current profit or loss on open positions +/- swap, i.e. in fact, this means the finances of the trading account at the moment. 

Margin trading - carrying out speculative trading operations using money and / or goods provided to a trader on credit against a fixed amount - a margin.

Margin - a pledge that provides the opportunity to get a loan using money or goods used for making speculative exchange transactions in margin trading.

Free margin - is temporary free funds available for opening new positions. 

Spread - the difference between the best bid prices for the sale (ask) and the purchase (bid).

Swap - is a financial transaction to transfer open positions overnight. A swap can be either positive (commission charge) or negative (commission write off). 

Gap - in technical analysis means the price "gap". Visually on the chart, the gap indicates that no instrument transactions were made in this price gap.

Volatility - is a term used to refer to fluctuations in trade prices over a period of time. It is considered that the wider the range of price fluctuations, the higher the volatility.

Trend - is the direction of price movement of the considered financial instrument.

Consolidation - Lateral correction or a sideways trend with a narrow diapason.

Flat - is a market situation in which prices are traded in a sideways diapason without a definite general trend.

Overbought - a situation that arises after prices have risen too high and too fast, and prices are expected to fall soon.

The oversold market - a situation when prices have dropped too low and too fast; increase is expected.

Market correction or market pullback - is the movement of the price in the opposite direction in relation to the current trend, which occurs due to overbought or oversold of the considered financial instrument.

Impulse - a sharp price movement in the direction of the trend.

Slippage - order execution at a price that is different from the price at which the order was placed on the market, for worse.

Technical analysis - a set of tools to predict the likely price changes based on patterns of price changes in the past in similar circumstances. 

Fundamental analysis - is a term for designating methods for predicting the market (stock) value of a company, based on the analysis of its financial and operational indicators of its activity.

Japanese candlestick - a type of interval chart and a technical indicator used mainly to show changes in stock quotes, commodity prices, etc.

Bull factor (bulls) - are those traders who expect a price increase in the market instrument and for this reason they buy this market instrument, and open a position to buy. After that, they are waiting for the right moment when this market instrument can be sold.

Bear factor (bears) - are traders who expect a price fall for a market instrument. Therefore, they sell this instrument and are waiting for the right moment of purchase.

Indicator - a program that is used to predict price changes in the foreign exchange market. These are calculations that take into account the volume of a particular financial instrument on the market and its price.

Trading strategy - a set of analysis instruments and rules that a trader follows in his work on the FX market. 

Hedging (hedge - insurance, guarantee) - opening transactions in one market to compensate for the impact of price risks on an equal but opposite position in another market. 

Intraday - intraday trading, but the number of transactions is orders of magnitude smaller than with scalping.

Scalping - is one of the strategies of intraday speculative transactions in the stock, foreign exchange, commodity markets, the feature of which is the closing of the transaction when a small profit reaches several points.

Locked positions - positions of the same volume, opened on the same account for the same instrument in a different direction (for buying and selling).

Trading robots (advisors) - are automated trading systems that independently control the financial flows of their owners based on a certain algorithm.

Nano account - a cent account deposits of which are calculated not in dollars and euros, but in cents.

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