Account : all accounting records relating to a variety of client’s transactions, such as balance, equity, floating profit /loss and transaction history, etc..
Ask Price : a price the trader has to pay to buy a certain currency.
Bar Charts : This type of graph shows the opening and closing price; price highs and lows of a currency or stock. Its value changes from time to time. Usually used by the dealer / trader for forecasting or estimating price rises in the future. In the analysis of the bar charts there is also a variety of patterns (chart patterns) that describe a set price condition at a certain time, anticipating further price movements in a pattern that has happened in the past.
Bid Price: Price offered for sale of a currency / stock contract.
Broker : A mediator between buyer and seller of securities / money market products. Brokers usually charge a commission for each transaction from customers.
Candlestick Chart : A type of graph that indicates the range of transactions in a currency / stock. Contains information about the Opening Price - High, Low, and Closing. If the closing price is above the opening price (price rise), the candle is empty, but if the closing price is below the opening price (the price is down) then the candle is full.
Closed Position : Opening position remains at closing. If the open position is Buy then at close it is Sell, and vice versa.
Currency : A legal currency of a country which is directly monitored by the Central Bank and used for transaction tools in the country involved.
Deposit : A legal action of investing funds from trader’s bank account to a Forex trading account registered with a broker.
Fundamental Analysis : Political and economic analysis to predict a future exchange rate of currencies.
Leverage : A ratio used in Forex transactions. For example, in a 1:100 leverage the capital needed for $50.000 is only $500.
Liquidation : Closing of all open positions executed by the trader or the system.
Volume : A standard set of values for each deal executed. The volume amount is variant depending on broker policy.
Margin : Capital needed as a warranties in the transaction.
Margin Call : A request from a broker to increase the amount of deposit because of the condition of running out of margin so the existing open position will be closed by the dealer.
Pair : Currency pair traded in the Forex market. For example, EUR/USD, GBP/USD, GBP/JPY, etc.
Pips : Also called points; this is the smallest value of the currency quotes. This smallest units are the last two digits. For example, today GBP/USD moved from 1,8200 to 1,8250 which mean that GBP/USD increase by 50 pips.
Quote : The value of currencies. The quote is disclosed in the currency movement and appears in the trading terminal.
Spreads : The difference in pips value between the buy price and sell price. A smaller spread is a better spread, because it is profitable for the trader and doesn’t need a long currency movement to reach the Break Event Point (BEP).
Stop Loss Order : An order given to set an open position at a certain point, so that if the quote has reached the point, the position will be automatically closed. Stop Loss Order is low bound to prevent a further loss.
Swap : Amount of cost specified by the broker in care of any open position which is not closed yet over 24 hour or full day working hour. On certain platform for example fair trading account is free from swap/tax or also called Swap-Free.
Technical Analysis : An effort to review or analize a price of currencies according by using the statistic data based on the occurs price : average price, volume, etc.
Withdrawal : a legal action of drawing/pulling cash from forex trading account registered at broker to trader’s bank account.