Trading Glossary

In our learn to trade section you will find easy-to-understand information on how trading works, fundamental and technical analysis, simple explanations on technical indicators and key components you will need to get started.

Accrual

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.

Official action normally occasioned by a change either in the internal economic policies to correct a payment imbalance or in the official currency rate.

Traders and/or price action are acting with conviction.

Balance of Trade

The value of a country’s exports minus its imports.

A type of chart which consists of four significant points: the high and the low prices, which form the vertical bar; the opening price, which is marked with a horizontal line to the left of the bar; and the closing price, which is marked with a horizontal line to the right of the bar.

A certain price of great importance included in the structure of a Barrier Option. If a Barrier Level price is reached, the terms of a specific Barrier Option call for a series of events to occur.

Cable

The GBP/USD (Great British Pound/U.S. Dollar) pair. Cable earned its nickname because the rate was originally transmitted to the US via a transatlantic cable beginning in the mid 1800s when the GBP was the currency of international trade.

A currency trade which exploits the interest rate difference between two countries. By selling a currency with a low rate of interest and buying a currency with a high rate of interest, the trader will receive the interest difference between the two countries while this trade is open.

Traders and/or price action are acting with conviction.

Day Trader
Speculators who take positions in commodities and then liquidate those positions prior to the close of the same trading day.

A term that denotes a trade done at the current market price. It is a live trade as opposed to an order.

An individual or firm that acts as a principal or counterpart to a transaction. Principals take one side of a position, hoping to earn a spread (profit) by closing out the position in a subsequent trade with another party.

ECB
European Central Bank, the central bank for the countries using the euro.

The currency of the Eurozone.

A market that is thought to have traveled too far, too fast.

Factory Orders
The dollar level of new orders for both durable and nondurable goods. This report is more in depth than the durable goods report which is released earlier in the month.

The Federal Reserve Bank, the central bank of the United States, or the FOMC (Federal Open Market Committee), the policy-setting committee of the Federal Reserve.

When an order has been fully executed.

G7
 Group of 7 Nations – United States, Japan, Germany, United Kingdom, France, Italy and Canada.

 Group of 8 – G7 nations plus Russia.

A quick market move in which prices skip several levels without any trades occurring. Gaps usually follow economic data or news announcements.

Regulation: VTIFX is incorporated in St. Lucia as an International Company Restricted

 

Countries: The service is not available for US and Japan Residents.


General Risk Warning: Trading leveraged products such as Forex and CFDs may not be suitable for all investors as they carry a high degree of risk to your capital. Please ensure that you fully understand the risks involved, taking into account your investments objectives and level of experience, before trading, and if necessary, seek independent advice. Please read the full Risk Disclosure.

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