Trading terms will acquaint you with the meanings of all of the central concepts that you may encounter while you are performing transactions in Forex market.
Open Position
It means that the trader has any position in the forex market. For example, if the investor is buying or selling in GBPUSD, this person has an open position.
Compound Interest
Compound interest is the addition of interest to the principal sum of a loan or deposit
Economic Calendar
It is the calendar which shows time and status of economic indicators and events. Investors can follow the relevant calendar to become quickly informed about developments in the market.
Buying Rate
It is called the price at which the investor can buy the instrument to be invested.
Bull Market
It is called markets where buying positions are strong and prices are rising rapidly.
Commodities
It refers to the type of raw material groups, such as oil, cocoa, coffee and soy.
Arbitrage
Arbitrage is the process of simultaneous buying and selling of an asset from different platforms, exchanges or locations to cash in on the price difference, usually small in percentage terms.
Broker
In the Forex market, it is the person or institution that brings the buyer and seller together and obtains intermediary income between these two parties.
Fibonacci Sequence
Fibonacci Sequence implies the series of numbers where the next number is found by adding up the two numbers before it. Technical analysis can be made based on the proportions of numbers to one another.
Demand
It is the level at which you are convinced to sell a financial product, at the current price.
Buy
In Forex, it means that it is in the buying position.
Hedge-Hedging
The same size as the open position, but in the opposite direction by opening a profit or loss situation is to lock. It can be made one to one or proportionally. It can be applied to save short-term time.
Band
Refers to the range of the highest and lowest levels at which the price moves in a given period.
Contract for Difference (CFD)
Underlying asset are the financial assets upon which a derivative's price is based. Options are an example of a derivative.
Profit/Loss Account
Different spreads, swaps and product features are evaluated while calculating profit/loss for a position in leveraged markets. The calculation varies according to these features.
Ordinary Interest
It is the interest rate that a certain amount of money earns only on the principal during the investment period
Budget Deficit
It is a financial loss for during a period where expenses exceed revenues. This concept is often used in business but more commonly used to refer to governmental spending in excess of revenues collected.
Quotation
It is the instant purchase-sale price level.
Initial Margin
It is the amount required to enter the position.
Dealer
It is the name given to persons and institutions acting on their own name and account in trading transactions.
Leverage
It is a system that allows investors to take place in financial markets with less capital and higher volumes. For example: If the highest leverage ratio used in the market is 1: 100, a transaction of $ 100,000 can be made with a capital of $ 10,000. Profit and loss is calculated over the volume of these transactions.
Expected Return
It is the return that the investor thinks he will get after a certain period of time.
Resistance
It is a concept of technical analysis which is very important for market follow-up. It can be called the level where the decrease in prices is expected to stop.
Lot
it is a term to define the volume of the transaction.
Bid
The purchase price of a product.
Doji
It is a candlestick pattern showing that the opening and closing prices are equal in unstable markets.
Margin
The deposit required to open or maintain a position. Margin can be either “free” or “used”. The used margin is that amount which is being used to maintain an open position, whereas free margin is the amount available to open new positions.
Sell
It means the transactions of selling position in the Forex market.
Scalping
It is the transactions of the investor in a very short period of time to profit.
Bear Market
A bear market is a general decline in the stock market over a period of time. It includes a transition from high investor optimism to widespread investor fear and pessimism.
