Forex Glossary

ADR (إيصالات الإيداع الأمريكية)

يُستخدم إيصال الإيداع الأمريكي لتداول الأوراق المالية للشركات الأجنبية في الولايات المتحدة. يستحوذ بنك الإيداع الأمريكي على أسهم الشركات الأجنبية خلال عملية إدراج هذه الأسهم في البورصات الأمريكية. يُستخدم هذا النظام منذ عام ١٩٢٧. تُقوّم شهادات الإيداع الأمريكية (ADRs) بالدولار الأمريكي. ويتم تداولها بحرية كذلك في أوروبا. تُعدّ شهادات الإيداع الأمريكية أداةً لجمع رأس المال في الأسواق الأمريكية والعالمية. وقد تحمل أسماءً مختلفةً تُلبي متطلبات سوق مُحددة.

AMEX (بورصة الأوراق المالية الأمريكية)

نشأت بورصة الأوراق المالية الأمريكية (AMEX) من شركة صغيرة لتداول الأسهم وأصبحت ثاني أكبر بورصة في الولايات المتحدة. تكمن ميزتها الفريدة في تداول أسهم الشركات في مرحلة التطوير (الشركات الصغيرة والمتوسطة). ويُحسب في هذه البورصة مؤشرين رئيسيين: مؤشر السوق الرئيسي AMEX Major Market Index ومؤشر القيمة السوقية AMEX Market Value Index.

AUDUSD

زوج العملات الدولار الأسترالي / الدولار الأمريكي في هذا الزوج، الدولار الأسترالي هو عملة الأساس، والدولار الأمريكي هو عملة التسعير.

Aussie

مصطلح عامي يُستخدم للإشارة إلى الدولار الأسترالي.

Backwardation

الـ Backwardation هي حالة يكون فيها سعر العقود الآجلة الحالي أقل من سعر الأصل الأساسي. ويُطلق هذا المصطلح أيضًا على الحالة التي يكون فيها سعر العقد الآجل الأقرب تاريخًا أعلى من سعر العقد الآجل الأبعد زمنًا.

Candlestick chart

This type of chart shows the opening and closing prices and also the highest and the lowest prices during a period. In case the opening price is higher than the closing price the body of the candle is shaded. In contrast, when the closing price is higher than the opening price, the body is not shaded.

CFD

The abbreviation CFD stands for “Contract for Difference”. It is a contract between two parties: the seller pays the buyer the difference between the current value of an underlying asset and its value at the moment the contract is made if the difference is positive, and, vice versa, if the difference is negative, the buyer pays the seller. With CFDs traders can get access to underlying assets without actually owning them.

Channel

The Channel is a sustainable corridor of fluctuations in the asset price with a constant width.

Chart

Charts are graphical reflections of price changes of a financial instrument over time.

Clearing

The procedure of settling orders between transacting parties.

Commodity Channel Index (CCI)

The Commodity Channel Index is an indicator developed by Donald Lambert. Despite the original purpose of the indicator to identify new trends, nowadays it is widely used to measure the current price level in relation to its average value.

Commodity currencies

Currencies of the countries, whose exports are mainly based on natural resources. The group may include currencies of both developing and developed countries, such as the Canadian dollar, the Australian dollar, the New Zealand dollar, the Russian ruble and others.

Cross pair

An exchange rate between two currencies derived from their corresponding rates with a third currency. As a rule, the term refers to a currency pair which does not contain the US dollar.

Currency Cross Pairs

Those currency pairs that do not include the US dollar in foreign exchange market trade are referred to as cross currency pairs or crosses

Currency Pair

A financial instrument representing an operation of buying/selling of one currency for another.

Daily chart

A chart of the market movement, where one day is the time unit.

Day trading

Trading operations which are performed within one day.

Dealer

A company or an individual which acts as a leading executor or a counterparty to the transaction.

DeMarker (DeM) Indicator

This indicator was developed as a tool to identify emerging buying and selling opportunities. It demonstrates the phases of the growing probability of price changes which usually correspond to the highs and lows of a price.

Depreciation

Decrease in value of an asset.

Derivative

A financial contract, the value of which depends on the value of one or more underlying assets. Such underlying assets may include indices, stocks, commodities, currencies and other assets.

Descending Triangle

The Descending triangle graphical price pattern is a chart pattern of an existing trend continuation, which is usually formed in a downtrend and confirms its further direction.

Diamond

The graphical price pattern “Diamond” is a sign of a subsequent reversal of an existing trend. Traditionally, the pattern is formed in an uptrend.

Double Bottom

The double bottom graphical price pattern is a sign of a reversal of an existing downtrend. It is considered that the longer the formation of the pattern, the more reliably it indicates a reversal.

Double Top

The double top graphical price pattern is a sign of a reversal of an existing uptrend. It is considered that the longer the formation of the pattern, the more reliably it indicates a reversal.

EUR/JPY

زوج العملات المكوّن من اليورو والين الياباني، ويُظهر عدد وحدات الين المطلوبة لشراء يورو واحد.

EURUSD

هو أشهر أزواج العملات والذي يكون فيه اليورو هو عملة الأساس المتداولة مقابل الدولار الأمريكي – عملة التسعير.

Flag

The Flag refers to short-term graphical price patterns of trend continuation which show that its direction will remain unchanged in the near future. For example, on the daily chart, this pattern is often formed within a week or two.

Force Index

The Force Index is an indicator developed by Alexander Elder to measure the power of price movements interpreting the changes of its components: direction, magnitude and volume. This oscillator fluctuates around the zero level, which is the point of relative balance of forces that move the price.

Foreign Exchange (Forex)

The market where participants have the opportunity to buy, sell, exchange and speculate on currencies. The Forex market is comprised of commercial banks, central banks, investment management companies, hedge- funds, retail forex brokers and investors (traders).

Forex Dealer

A Forex dealer is a financial company authorized to organize foreign currency trading.

Forex Resistance

Price level which acts as a ceiling and caps the rise of the current currency price.

Forward transaction

Forward transaction is an urgent transaction in which the seller and the buyer agree to deliver the sold asset (currency, commodity) on a certain date in the future, while the price of the asset is decided at the moment of making the deal.

Fractals Indicator

Fractal is an indicator, which displays the local highs and lows where the price movement has stopped and reversed. These reversal points are respectively called Peaks and Troughs.

Fundamental analysis

The analysis of economic and political events, which may affect the future direction of prices in financial markets. In the currency market, fundamental analysis is based primarily on macroeconomic events.

GBPUSD

الاختصار GBP يُشير إلى الجنيه الإسترليني، والذي يُتداول في هذا الزوج مقابل الدولار الأمريكي. يُظهر زوج العملات عدد الدولارات المطلوبة لشراء جنيه إسترليني واحد.

Head and Shoulders

The head and shoulders graphical price pattern indicates the end of an existing trend and the further change in the direction of the price movement. It is typically formed in a developed uptrend.

Hedge/hedging

A strategy to decrease the risk of impact of volatile price fluctuations on trader’s positions. As a rule, hedging involves the sale or purchase at the forward price or the opening of a position on a similar asset. Hedging becomes more popular with the increase of market uncertainty.

Ichimoku Indicator

The Ichimoku indicator is a comprehensive technical analysis tool introduced in 1968 by Tokyo columnist Goichi Hosoda. The concept of the system was the opportunity to quickly understand the direction of the trend, its dynamics and strength by interpreting all the five components of the system combined with the price dynamics in terms of cyclical character of their interaction caused by the group dynamics of human behavior.

Inflation

A process of a persistent rising of general level of prices of goods and services.

Inverse Head and Shoulders

The inverse head and shoulders graphical price pattern is a sign of a trend reversal. This pattern is usually formed in a developed downtrend.

Leverage

A credit provided by the broker to his client for making large volume deals with a relatively small amount of capital.

Libid/Libor

LIBID stands for London Interbank Bid Rate. LIBOR stands for London Interbank Offered Rate.

Limit order

An order to buy or sell the given amount of an asset at a specified price or at a better one. For example, if the current price of USD/JPY is 108.24/108.26 (Bid/Ask), the trader can set a buy limit order, for example, at 107.50, if the price falls and the Ask price reaches 107.50, the deal will be made and the corresponding Buy position will be opened.

Liquid market

A market where traders can buy and sell large volumes of assets anytime and with low transaction costs.

Liquidity

The feature of the market (its volume) to provide the execution of large deals with no significant influence on prices.

Listed Stocks

This list contains stocks which are approved for trading on the stock exchanges. Before you get to the stock in the list, the shares go through the admission procedure - listing. Only companies that have been checked for compliance with certain requirements, such as capitalization, volumes of products sold, the number of securities in circulation, and others, are admitted to trading.

Lot

Standard quantity of financial assets in one transaction.

Margin

A certain amount of money required from a client to maintain opened positions.

Margin call

Company’s request for additional deposit of funds into a trading account.

Market Facilitation Index

The Market Facilitation Index is created to evaluate the market willingness to move the price. The absolute values of the indicator have no practical use therefore the dynamics of their changes is considered relative to the dynamics of the volume change.

Market order

The order of the purchase or sale of a financial instrument (e.g. currency) at the current market price.

Momentum Indicator

The Momentum is a technical analysis indicator which reflects the direction of a trend and measures the speed of the price change based on the comparison of the current and previous values.

Money Flow Index (MFI)

Money Flow Index (MFI) is a technical indicator developed to evaluate money inflow intensity into an asset by comparing price increases and decreases over a certain period, considering trading volumes.

Moving Average Envelopes

Moving Average is a technical analysis tool which shows the average price of an asset price over a certain period of time, smoothens price fluctuations and thus, reflects the direction and strength of a trend.

Moving Average Indicator

Moving Average is a technical analysis tool which shows the average price of an asset price over a certain period of time, smoothens price fluctuations and thus, reflects the direction and strength of a trend.

Moving Average of Oscillator

Moving Average of Oscillator (OsMA) is a technical analysis tool which reflects the difference between the oscillator (like MACD) and its moving average (the signal line).

Moving-Average Convergence/Divergence Indicator

MACD indicator shows the convergence/divergence of moving averages and is designed to assess the strength and direction of a trend, as well as to identify the possible reversal points by receiving signals from the combination of three time series of moving averages (fast, slow and signal).

OCO order

OCO order is a combination of two pending orders set to open a position at prices different from the current market price. Execution of one of the two orders brings to an automatic removal of the remaining one.

Offer

The suggested price at which a currency can be bought (“Ask” price).

On-Balance Volume (OBV)

On-Balance Volume is a cumulative indicator, based on the index of trade volumes, and reflecting the relation between the volume of deals and asset price movements.

Open position

Any transaction that has not been closed by a corresponding opposite transaction.

Order

Any instruction by a client on performing trading operations.

Out-of-the-money Option

An Out-of-the-money Option is when, during trading, the option is worth less than was paid for it. For example, you predict that the price of an asset will rise, but it falls. Your forecast doesn’t come true and you lose money on the option. The option can fluctuate in and out of the money: i.e. be profit making (in-the-money) at one point and loss making (out-of-the-money) at another before the option expires.

Pair

A financial instrument, which shows the value of one currency unit in terms of another.

Parabolic Indicator

Parabolic indicator was developed to confirm or reject trend direction, to determine the emergence of the correction phase or sideways movement, as well as to determine possible closing points for positions. The underlying principle of the indicator can be described by the phrase “stop and reverse” (SAR).

Pennant

Pennant refers to short-term graphical price patterns of trend continuation, indicating that its direction will be unchanged in the near future. For example, on the daily chart the pattern is usually formed within a week or two.

Point or pip

The smallest possible change of quotation. As a rule, pip is equal to 0.0001 or 0.00001 for the majority of currency pairs, which are quoted to the fourth or fifth decimal point after the comma, but for JPY pairs it is 0.01 or 0.001 and is quoted to the second or third decimal point. For other financial instruments, the pip is usually equal from 0.1 to 0.001.

Portfolio Trading

The simultaneous purchase or sale of a basket of securities, combined in a portfolio based on some criteria.

Profit

A positive financial result from trading operations.

Quoted currency

The second currency in a currency pair is called a quoted currency.

Rate

The value of one currency in terms of another.

Relative Strength Index (RSI)

Relative Strength Index was developed to assess the strength or, on the contrary, the weakness of a trend, measure the speed of the price change by comparing its increases and decreases on the basis of closing prices.

Relative Vigor Index

Relative Vigor Index was developed to determine the direction of the prevailing trend. The behavior of the indicator is based on a simple idea that closing prices are significantly higher than opening prices in the bullish market and lower in the bearish market.

Resistance Level

Resistance is one of the key concepts of technical analysis. Resistance is defined as a price level at which the activity of asset sellers is quite significant to prevent the further purchase and increase in asset price.

Retail customer

Any party to a forex trade who is not an eligible contract participant as defined under the Commodity Exchange Act. This includes individuals with assets of less than $10 million and most small businesses.

Risk management

The identification and assessment of the risk level, as well as taking actions to eliminate the risk to a new desired level and monitoring that new risk level.

Rollover

The process of extending the settlement date on an open position by rolling it over to the next settlement date.

Saucer

The saucer is a long-term figure of technical analysis, signifying a slow change in the tendency of price to fall on a growth trend. Usually the saucer has an arcuate bottom, which is clearly seen on the weekly charts. The period of formation of this figure can last more than a year.

Security deposit

The amount of money needed to open or maintain a position. Also known as 'margin.'

Settlement

The business process whereby securities are delivered to the buyer in exchange for payment to the seller, which usually takes place one to three days after the deal.

Spot market

A market, where trades are conducted with instant execution. Also note, that in the spot market the proprietary rights are transferred from the seller to the buyer at the moment of making a deal, and the final settlements may take up to two working days.

Spot price

The current price in the spot market.

Spread

The difference between the Bid and Ask prices. In the quotes flow, received by the client in the trading terminal, both prices are presented. The current spread for a currency pair or an asset is an important part of liquidity of that financial instrument.

Sterling

Slang term for the British pound (GBP).

Stochastic Oscillator

The Stochastic indicator determines the position of the current closing price in the price range of the last few periods, based on the idea that the price tends to the upper bound of fluctuations in an uptrend and to the lower bound- in a downtrend.

Stock

Investments can be attracted in different ways. One of them is the issue of share , which allows investors to become shareholders of the company and have the right, thereby, to receive dividends from the company's profit. Shares are not only a tool for receiving dividends, but on the stock market, investors can earn money due to periodic fluctuations in the price of these share.

Stop Loss order

Stop loss order is designed to limit possible losses and is set at a price worse than the price of position opening or the price of pending order execution.

Strike price

The exchange rate at which the buyer of a call has the right to purchase a specific currency pair or at which the buyer of a put has the right to sell a specific currency pair. Also known as the 'exercise price.'

Support Level

Support is one of the key concepts of technical analysis. Support is defined as a price level at which the activity of asset buyers is quite significant to prevent the further sale and decrease in its price.

Swap

The operation of crediting or debiting acertain amount of money from a client’s account when rolling the position over to the next value date (“to the next day”). The size of swap is proportional to the volume of the position and depends on the current difference of interest rates of base and quoted currencies (or assets) in the interbank lending market.

Symmetric Triangle

The Symmetric triangle graphical price pattern is a chart pattern of an existing trend continuation, which may be formed both in an uptrend and in a downtrend, and serves to confirm its further directions.

Take Profit order

Take Profit is designed to close a position once the targeted profit level has been reached by setting it at a price better than the price of position opening or the price of pending order execution.

Technical analysis

Technical analysis is used to forecast future changes in financial and commodity markets based on the history of price changes, i.e. past price movements.

Technical Indicators

Technical indicators are the inseparable part of technical analysis. Their aim is to predict the direction of the market to help a trader. There is a great number of indicators used by traders for determining the market movement. Some traders prefer to use those indicators which have proved to be efficient in trading in the past, while others try using new indicators. Bill Williams' indicators, Oscillators, Trend and Volume indicators may serve as examples.

Tick

The smallest movement possible in the price of a financial instrument.

Trailing Stop

Trailing Stop mode maintains the mechanism of automatic shift of a linked Stop Loss order according to the following rule: if the profit of a position becomes higher than the set fixed distance, the Stop Loss order moves to the level on which the difference between the current market price and order price is equal to this distance.

Transaction costs

The costs, incurred by a trader when buying or selling currencies or commodities, which include the commission fee of a broker.

Transaction date

The date of the deal.

Trend Continuation Patterns

Trend continuation patterns (graphical models, patterns) are formed during the pause in the current market trends, and mark the movement continuation rather than its reversal.

Trend line

The lines connecting a series of extreme upper or extreme lower points on a price chart.

Trend Reversal Patterns

The Trend Reversal patterns are graphical models (patterns), which are formed after the price level reaches its high in the current trend and indicate high probability of trend reversal.

Triple Bottom

The Triple bottom graphical price pattern is usually formed in a downtrend and serves as a sign of its further reversal. This pattern is considered to be more significant than the “double bottom”.

Triple Top

The Triple top graphical price pattern is usually formed in an uptrend anticipating its further reversal and decrease in prices. This pattern is considered to be more significant than the “double top”.

USDCAD

زوج العملات المكوّن من الدولار الأمريكي والدولار الكندي، والذي يُظهر عدد الدولارات الكندية المطلوبة لشراء دولار أمريكي واحد.

USDCHF

زوج الدولار الأمريكي والفرنك السويسري، حيث الدولار الأمريكي هو عملة الأساس، والفرنك السويسري هو عملة التسعير.

USDJPY

زوج الدولار الأمريكي والين الياباني، حيث الدولار الأمريكي هو عملة الأساس، والين الياباني هو عملة التسعير.

Value date

Date on which counterparties must deliver funds, that is when the currency bought is received and the currency sold is paid.

Volatility

A measure of risk, usually a statistical indicator, which evaluates the degree of the price fluctuation of an asset.

Volume Indicator

Volume is a technical analysis indicator, which reflects investors’ trading activity for a certain period of time.

Volume Indicators

The Volume of deals characterizes the activity of market participants involved in asset trading, its strength and intensity.

Wedge

The wedge refers to short-term graphical price patterns of trend continuation indicating that its direction will remain unchanged in the near future. For example, on the daily chart the pattern is often formed within a week or two.

Williams Alligator

Williams Alligator is an indicator created to identify the trends and their directions.

Williams Percent Range Indicator

The objective of the indicator is to determine the overbought or oversold conditions of the asset and the possible reversal points.

Yen

The monetary unit of Japan.