Forex Education
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.
Adjustment
Official action normally occasioned by a change either in the internal economic policies to correct a payment imbalance or in the official currency rate.
Aggressive
Traders and/or price action are acting with conviction.
Balance of Trade
The value of a country’s exports minus its imports.
Bar Chart
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.
Barrier Level
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.
Cad
Call Option
Traders and/or price action are acting with conviction.
Day Trader
Deal
A term that denotes a trade done at the current market price. It is a live trade as opposed to an order.
Dealear
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
Euro
The currency of the Eurozone.
Extended
A market that is thought to have traveled too far, too fast.
Factory Orders
FED
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.
Fill
When an order has been fully executed.
G7
G8
Group of 8 – G7 nations plus Russia.
GAP
A quick market move in which prices skip several levels without any trades occurring. Gaps usually follow economic data or news announcements.
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