Dictionary Forex
Trading
Acceleration Theory: Theory forex saying that changes
in consumption levels will lead to changes even greater in the number of
purchases and production levels. This action is seen as one of the drivers of
inflation.
Account:
All
accounting records related to various forex transactions a customer, including
credit or debit balance, floating loss / profit forex and the book value of the
real.
Account Balance:
The difference between debit and credit in a forex account. If the debit
greater than credit, then the account is said to have a negative balance. In
other words, the deficit. Whereas the so-called surplus.
Account Statement:
Periodic reports describing the status of the various transactions to buy /
sell securities / currency contracts a customer.
Around:
Beberpa
points above or below the target price (par). For example, when mengkuotasikan
premium or spot prices, which want to buy / sell. The term three-three means
around 3 points below or above the desired price (par).
Ask Price: The
offer price of the sale contract currency / stock / forex.
Asset: Anything
that is owned by a company or individual, from the start of the building,
perlalatan, to intangible assets such as patents and reputation.
Back Office: Department or division in charge of processing the matters on financial
transactions outside the department forex dealing room. Usually consists of
departments settlement, accounting, finance.
Bail Out: bailout
funds.
Balance: Balance.
Balance of Payment: Balance of payments. Balance sheet records all international financial
transactions of a country dengandasar double-entry bookkeeping. The components
are the current account balance of payments (imports and exports of goods and
services), capital account (investment mobility), and the balance of gold
(gold-owned mobility). Surplus and deficit addressed in different accounts.
Balance of Trade: The value of a country's exports minus imports.
Ballooning Deficit Effect:
The effects of government deficits soaring to produce a greater effect on the
economy.
Bar Charts: A bar
chart. This chart type shows the opening price, closing highest and lowest of a
currency or stock. The changes in value occur from time to time. Usually used
by the dealer / trader in the currency / securities to make forcasting, or
estimated prices that may arise in the future. In the analysis of bar charts is
also known a variety of patterns (chart pattern) that describes something
conditions set price at a certain time and then diantaisipasi subsequent price
movement according to the pattern that has ever happened in the past.
Barrel of Oil: The barrel is a standard measure of the volume of crude oil in the
international oil trade. One barrel equals 42 gallons at 60 degrees Fahrenheit.
Base Currency: In
a general sense, it describes a currency that is owned by an investor forex
balance sheet. In the forex market, the US Dollar is normally named as the base
currency to trade against various other currencies. Calculated per one US
dollar per currency counterparties. Exceptions are the system base currency
against the Euro, Pound Sterling, Australian dollar and other currencies are
placed upfront dollars on kuotasinya, indicating the currency into direct
currency.
Bear Market:A
market condition in which prices continue to decline.
Bearish: The term
practitioners of the money market / stock prices down trend.
Bid Rate: The
price desired by the trader to buy a particular currency.
Bid / Ask Spread:
The difference between buying and selling prices at any given time. Distance /
difference in buying and selling prices are often used as an indication of
market liquidity. That is, if the spread is reduced, then the higher the
liquidity of the market situation at the time.
Bond: Bonds.
Long-term debt securities issued by a company or the government, which has an
interest rate and maturity date is fixed. The characteristics of these bonds
contained in the bond indenture, among them is whether interest and principal
will be paid to the person listed on the certificate anamnya bonds, or to
anyone who holds bonds, which dsalam this case the bond is called the bond
bearrer.
Bottom Price:
lowest price that occurred at a certain time span.
Bull Market: A
condition in which the market price continues to rise.
Bullish: The term
practitioners of the money market / stock that shows the trend of rising
prices.
Cable: Another
term that addressed the global forex trader for an exchange STERLING / DOLLAR. So
called because the exchange rate was originally transmitted via a wired sender
(transatlantic cable) that began in mid-1800.
Candlestick Chart:
A chart that indicates the range of transactions in a currency / share.
Contains information on pricing Opening, High, lows, and Closing. If the
closing price is above the opening price, then the type of Candle empty,
otherwise if the closing price is below the opening price (prices down) then
the candle will contain. The pattern of this analysis was first introduced by
commodity traders in Japan in the early 18th century's.
Central Bank:
Bank owned by the government in charge of the monetary policy of the country
concerned. For example, in the United States called the Federal Reserve, in
Indonesia called Bank Indonesia.
Chartist: A
person who uses charts and graphs, and make interpretation of data trends /
historical price movements to determine trends and make predictions of the
future. Often referred to as Broker Teknkikal
Choice Market: A
condition in which there is no difference in market prices. All buyers and
sellers pointing at the same price.
Clearing: The
process of settlement of a transaction
Closed Position:
Closing a position to do after opening do. When opening a position is Buy then
the closure is Sell and vice versa.
Collateral:
Something tendency on the security of a loan or as a guarantee of execution.
Commission: Commission fees charged by a broker to the
investor.
Confirmation: The
form of confirmation either in the form of recordings and documents that
indicate the occurrence of a transaction of konterparti or certain parties
concerned with the quantity, unit and time of the transaction is conducted.
Contagion:
inclination / tendency of an economic crisis in one market to switch to other
markets. In 1997, political stability in Indonesia has led to high tensions on
the price of Indonesian Rupiah. From there, a tendency to spread to other Asian
countries such as Hong Kong, Latin America.
Contract: The
standard of the deal size. Usually also the minimum unit of transaction
contract.
Counterparty: One
or more konterparti in a financial transaction.
Country Risk:
Risk is defined sourced from the bedrock of the transaction is conducted,
including consideration of legal and political conditions of the region.
Cross Rate: The
exchange rate between one or several currencies not become a standard benchmark
countries where currencies are traded. Examples are, in Indonesia or in United
States currency transactions EUR / JPY will be referred to as a cross transaction
rate, which for the euro zone countries in the region and Japan both currencies
referred to as the primary currencies traded.
Currency: A
currency that is legalized by a state that is monitored directly by the central
bank and used as a tool of official transactions of those countries.
Currency Risk:
Opportunities risks that might exist in a change in current prices or in the
future.
Currency Symbol:
Abbreviation for the currency of a country. For example: AUD-Australian Dollar;
CAD-Canadian Dollar; EUR-Euro; JPY-Japanese Yen; GBP-British Pound; CHF-Swiss
Franc, IDR-Indonesian Rupiah. Currency code is defined by the International
Standards Organization in ISO 4000.
Day Trading:
Refers to a position of certain financial transactions that are opened and closed
on the same day (not overnight).
Dealer: An
individual who acts perform various financial transactions for and on behalf of
a particular principal or konterparti. Usually certain Principals take the
position that hope to be able to profit from the difference between the
transaction price of konterpartinya. Another thing done by a broker usually
mediates certain transactions from individuals or corporations either for sale
or purchase transaction by earning commissions transkaksi.
Deficit: A
negative conditions on a balance of trade / finance.
Depresiation: The fall in the value of the currency of the
country against another country because of market pressures.
Derivative: The
contract trades can vary in value in accordance with the movement of the price
or time. The most common example of this type is konrak stocks and forex.
Devaluation: The
decline in the exchange rate, usually because a formal announcement.
Economic Indicator:
The statistical data issued by the government over its economic growth. Common
indicators include unemployment rates, gross domestic product, inflation,
retail sales, and so forth.
Euro: Exchange
rate of the European Monetary Union (EMU), a union of European countries.
European Monetary
union (EMU): It is a union of European countries. Main purpose of
establishment of this union is to create a single currency European countries
called the Euro, which in turn replaced the currency of each member state.
Transition began in 1999 and at the end of Euro 2002 is planned only applicable
in countries members of the EMU. Members of the EMU are Germany, Belgium,
Luxembourg, Austria, Finland, Ireland, the Netherlands, Italy, Spain and
Portugal.
Federal Reserve
(Fed): Central Bank of the United States (US).
Flat: The term
trader / dealer to the stagnant market. For example, you buy a $ 10,000 and $
10,000 selling so-called flat (flat).
Foreign Exchange
(Forex, FX): The exchange of foreign currency, which in essence is to buy
and sell back the currency at different prices.
Fundamental Analysis:
An economic and political with the goal of determining the exchange rate in the
future.
G7: Seven
industrialized nations, namely the US, Germany, France, Britain, Canada and
Italy.
Gross Domestic
Product (GDP): The total value of a country's output, income based on the
country's physical borders.
Gross National
Product (GNP): GDP plus the income from the investment income or income
from the other outside.
Hawk: Economic
policy that tends to maintain the stability of prices of goods and services by
raising interest rates. Alan Greespan, governor of the Fed before Ben Bernanke
is one type of government officials hawk.
Hedge: A position
or combination of positions are taken to reduce the risk of loss.
Hit the Bid: The
term as a sales receipt at the desired bid.
Inflation:
Economic condition where the price of goods has increased, thereby reducing
power consumption.
Initial Margin
Deposit: The minimum charged to start trading as a guarantee of the future
(future).
Intervention:
Action taken by the Central Bank to control the currency of the country
concerned.
Leading Indicator:
key statistics used to predict economic activity in the future.
Leverage: Also
called margin. The ratio required in the transaction on the forex. For example,
if the specified leverage of 1: 100 then to $ 500, customers can buy Dollar 100
times that amount is $ 50,000.
Limit Orders:
Used to limit the maximum value at the desired transaction so that if it has
reached the desired rate then the position will be closed by itself.
Liquidation: The
closing an existing position through the execution carried out by the trader or
system.
Long Position:
Position forex which opened in span length / long term.
Lot: The standard
unit for the deal happens. Every deal, the set value is the number of lots. In
Indonesia, the amount varies depending on the policy of Broker / Brokerage.
Suppose 1 Lot = Rp 1 million.
Margin: capital
required as collateral in the deal.
Margin Call: A
request from a broker to add a deposit for the position that there is not
liquidated because the margin has been exhausted.
Offer (ask): Rate
given dealer at the time of sale rate. See 'ask'
Cancel One Others
(OCO): One order cancels the other order-execution for one pitch between
the second order.
Open Order: Order
is executed.
Open Position:
The transaction is currently active. Changes in the exchange rate for the pair
that open means there are also changes in profit / loss.
Order: An
instruction to execute a trade at a certain rate.
Overnight Position:
Open forex position that continued until the following day bussiness day.
Pair: forex
currency pair that ditransaksikan.Contoh EURUSD, GBPUSD, etc.
Pips: The
smallest unit of forex. Pips taken two numbers terakhirdari exchange rate, also
called point. For example GBPUSD today moves from 1.8200 to 1.8250 that means
GBPUSD increased by 50 pips or 50 points
Political Risk:
The risk that may arise on the exchange rate changes because of the political
subject.
Premium: For
every transaction that melewarti one day (overnight position) will be charged a
premium by the bank the amount of which can be positive or negative.
Price Transparency:
Concerning the validity of the price offered by the broker. Prices should be
accessible to everyone and valid.
Profit / Loss or P / L or Gain / Loss: gains / losses that
were realized after the open position on the cap.
Quote: The
exchange rate value. Normally used only for mere information.
Range: The
difference between the highest and lowest price at a given moment.
Resistance Point: certain
psychological level which is above the price at that time. On the eve of the
resistance point the market will resell the exchange rate has been purchased so
that the exchange rate will weaken.
Revaluation: The
strengthening of the exchange rate of a currency due to the intervention of the
Central Bank of the country concerned. Opponents of devaluation.
Risk: The risk of
forex because of their things are uncertain or outside the existing calculation
of potential losses.
Risk Managemet:
Some forex analysis and forex facilities that are used to minimize risks and
prevent losses.
Roll Over:
Contract trading is forwarded to the next day to do the closing position. Products
trading floor is a contract of this type.
Settlement: The
process of placement and recording transactions that are placed by traders
regarding price and exchange rate prevailing base. Performed by dealers through
the system.
Short Position:
Another term for the opening of Sell.
Spot Price: The
price of the forex market at the time.
Spread: The
difference pip for the open position at a price "buy" prices and
"sell". The smaller the spread, the more profitable investor due to
reach the breakeven point (BEP) does not require a large price movement.
Sterling: Another
word of currency British Pound.
Stop Loss Order:
Order given to a transaction at a certain point so that if the exchange rate
has touched the point, automatically orders closed position. This is a
"lower limit" to prevent further losses.
Support Level:
The lower limit of certain analyzed. Expected towards this limit, the exchange
rate will bounce back. Is the opposite of the "resistance".
Swap: A currency
swap is the simultaneous transactions on a certain amount of a given currency
at a level determined later.
Swissy: The term
for the currency Swiss Franc.
Technical Analysis:
An effort review or analysis of the price of a currency by using statistical
data such as prices that have occurred, the average price, volume, and others.
Tick: forex price
changes in the shortest span.
Transaction Cost:
The cost of financial transactions required.
Transaction Date:
The date of the transaction.
Turnover: The
total money value (volume) in all financial transactions at a time.
Two Ways Transaction:
Transaction in both directions.
Uptick: The price
of the new exchange rate whose value is higher than the value predicted
US Prime Rate:
The interest rate of loans granted by commercial banks to major commercial
customers. Other types of interest rates usually depends on the type of
interest rates, which in many ways? But not always, rely on past trends and
potential trends in the future.
Value Date: The date
specified by a brokerage firm to the needs of a transaction or payments due,
under normal circumstances usually takes two working days. Also known as the
Maturity Date.
Variation Margin:
Funds that should be asked a broker to his client for the needs of the position
in the currency market to be maintained by the client.
Volatility: A
price is said to be high volatility when the price is moving on up and down
quickly.
Volatility (Vol):
A statistical method that measures price movements in the forex market within a
certain time period.
Whipsaw: Another
term for a market condition that has a high degree of price volatelitas, where
a currency is moving very quickly in one direction, and then followed by a
reversal of the price immediately.
We hope summary Dictionary of Terms Forex above can help you
to understand the meaning of the term forex that you encounter in the world of
trading.
By: aboutforextrader.blogspot.com
Always try and do not despair
“GOOD LUCK”