Glossary of Forex online trading platform

Trading Platform

Here are some of the most common terms used in the forex market.

Price of the Offer – Sometimes called the offer price, which is the market price to buy from the dealers’ currencies. The demand, the prices shown on the right side of a quote – for example, EUR / USD 1.1965 / 68 – means that one euro of 1.1968 USD to buy.

Bar chart – A type of chart used in technical analysis. Each time the division in time is shown in the chart as a vertical bar with the following information – the top of the bar is the high price, the bottom of the bar is the low price, the horizontal line on the side The left side of the bar shows the opening price and the horizontal line on the right side of the bar shows the closing price.

Base currency – the first currency in a currency pair. An appointment shows the amount of the base currency is worth in the currency (second) of the trade. For example, in the quote – USD / JPY 112.13 – US dollar is the base currency, with 1 dollar Its value ¥ 112.13.

Price offer – the price is a seller selling currency. The price of the offer is shown on the left side of a quote – for example, EUR / USD 1.1965 / 68 – means that € 1 was sold for $ 1.1965 UD.

Supply margin / demand – the difference between the purchase price and the offer price in all currencies offer. The diffusion represents the broker’s fees, which may vary from one broker to another.

Broker – intermediary between buyers and sellers. Most brokers are associated with large financial institutions and earn money. The differential between the prices of offer and

Candlestick Chart – A type of graph used in technical analysis. A vertical red or green bar with extensions above and below the body of candles – each time division appears on the table as the candle holder. The upper part of the extension shows the highest price of the division of the letter and the lower part of the extension shows the lowest price. Red candlesticks indicate a lower closing price of the opening and green candlesticks indicate the price is increasing.

Contrary currency – A currency pair that there are no dollars – for example, EUR / GBP.

Currency pair – two currencies involved in a currency transaction – for example, EUR / USD.

Indicator of Economic Sentiment – A statistical report of the governments or academic institutions that indicate the economic conditions exhibited a country.

First In First Out (FIFO) – refers to the order of the open orders are settled. The first orders to be liquidated, the first to be opened.

Forex market (Forex, FX) – the simultaneous purchase of one currency and the sale of another.

The fundamental analysis – Analysis of the economic and political conditions that could influence the prices of the currency.

Leverage or margin – the relationship between the value of a transaction for the required deposit. A common FOREX margin exchange is 100: 1 – money exchange time value 100 the initial payment amount.

Limit Order – An order to buy or sell when the price reaches a certain value.

Lot – The size of a currency transaction. Standard lots are worth approximately $ 100,000.

Main currency – the euro, the German mark, the Swiss franc, the pound sterling and the Japanese yen are the main currencies.

Secondary currency – the Canadian dollar, the Australian dollar and the New Zealand dollar are the minor coins.

One Cancels Others (OCO) – Two orders simultaneously with instructions to withdraw the second order if the first one is executed prepared.

Open Position – An active trade that has not closed.

Pips or Points – The smallest unit of currencies traded on the trading platform.

Currency exchange – the second currency in a currency pair. In the currency pair USD / EUR the euro, the currency exchange rate.

Rollover – Extension of time that the establishment of the point is current to the delivery date. The cost of renewal (displacement) is calculated with points based on the interest rate differential.

Technical Analysis – analysis of historical market data to predict future market movements.

Check – The minimum price change.

Transaction costs – The costs of the exchange transaction – usually the differential between supply and prices.

Volatility – Statistical measurement of the trend of sharp price movements within a certain time.

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