Wiki Glossary

a
Arbitrage
Sale or purchase of a certain product at a low price and an instantaneous opposite action (buying or selling) in another market in order to profit from the difference in rates.
Ask
The price at which a trader wants to sell a certain currency. Also, it can be called an offer.
Ask price
The number of national currency units required to purchase a financial instrument (another currency, option, futures, etc.).
b
Base Currency
The first currency declared in a currency pair on Forex. For example, in USD/RUB the base currency is USD (US dollar).
Bid price
The number of units of the national currency for which the seller agrees to sell a certain financial instrument (another currency, option, futures, etc.).
Broker
A mediator, an individual or a legal entity that fulfills the clients\' trading requirements, thereby binding buyers and sellers.
Bullish market
The growth market for securities and assets.
c
Central Bank
The main member of the country\'s monetary system, which has a monopoly right to issue banknotes, regulates the monetary policy of the state and controls the activities of commercial banks.
CFD
A trading tool that allows you to earn on increasing or lowering the price of assets in the world\'s stock markets.
Commission
The amount paid by the trader or investor for the services of the broker.
Confirmation
Notification of the trader about the transaction completion by the broker or a document that fixes the transaction`s details or agreement`s.
Cross course
The quotation of a currency pair, which is carried out through the ratio of two currencies to a third (most often, to the US dollar).
Currency basket
A conditional set that consists of two or more currencies, helping to determine the weighted average rate of one currency.
d
Daily trading
Trade in the market, in which transactions do not remain open for the night and close during the session on the exchange.
Deal
Operation of buying and selling a trading tool.
Dealer
A market participant, an individual or legal entity that participates in trading in the financial market or exchange without intermediaries and performs the sale and purchase of goods on its own behalf.
Delay
The time interval between placing and execution of the order. The minimum delay is an indicator of the quality of service provision which depends on the reliable operation of the server.
Double bottom
The figure in the technical analysis, in which the trend line twice fell to a certain level and then rose higher.
Downtrend
Expressed price movement on the downward line in a certain time interval of the chart.
f
Flat
1.Slang expression, which means no open positions on the trading account. 
2.The state of the market, in which the price fluctuations are minimal, there are no pronounced trends.
Forex - Foreign Exchange Market
The international financial market, whose members carry out free exchange of currencies and earn on the difference of rates. The Forex market is regulated by the largest national banks with the help of instruments such as: interest rate change, intervention, transactions with financial instruments, etc.
Forex quote
The fixed exchange rate of the currency or commodity at which  purchase and sales transactions are made
Forex tool
Currency pair or contracts for difference (CFD).
Fractal
An indicator of technical analysis, which is a collection of five or more candlesticks, the central of which is at the level of the largest or smallest price in a certain section of the chart. Fractals are used in conjunction with other technical analysis indicators to identify the most appropriate points for opening or closing trading positions.
Fundamental analysis
The method of predicting prices in the foreign exchange market, which is based on an analysis of economic indicators and political events affecting one or a group of countries.
g
Graphic figures
Figures expressed by trend lines that are used in technical analysis to predict subsequent movements of the exchange rate.
h
Hedging
Method of reducing the risk of trading in the foreign exchange market, which provides for the opening of opposite transactions in order to reduce the possible losses from sharp price drops.
i
Indicators
Addons for the Metatrader program designed to predict the exchange rate. Indicators give the user information about whether to trade, what deviations of a rate is possible, and also to predict a trend change.
Interest rate
The rate of return paid by the recipient for the use of funds.
j
Japanese Candles
An indicator of technical analysis, which illustrates the nature of changes in prices for a financial instrument for a certain period of time. It is a rectangle, the bottom edge of which corresponds to the minimum price, and the upper one - the maximum. If the opening price exceeds the price at which the position was closed, the candle acquires a black color. Otherwise - white. In Asian countries, green candles are used to increase prices and red for reducing.
l
Leverage
The ratio between the deposit of the trader and the amount that the broker is ready to provide for the execution of transactions with a large volume.
Lot
The standard quantity of goods to be sold. In the Forex market, for 1 lot is accepted 100 000 units of the base currency.
m
Margin
Financial resources that the client provides to the broker to secure an open position. Margin size is determined by the type of tool that is being traded.
Margin trading
Trade, which uses money provided by the broker as collateral (leverage). The use of margin trading is the basis for speculative currency trading.
n
Necessary margin
The amount of money that must be available to the trader so that he can open a trading position of a certain amount. The size of the margin depends on the leverage that the trader himself determines: the smaller the leverage, the greater the percentage will be the margin from the total amount of the trading position, and vice versa.
Net Position
The difference between the amount of bought and sold currency, which is not blocked by counter transactions.
o
Open Position
The position set up for sale, but for which the transaction between market participants has not yet been completed.
Order
The trader\'s requirement to open or close a trading position.
Overnight position
Open position, which was postponed on the next business day. In case the deal was opened on Friday, the transfer is made on Monday.
p
Partnership
The form of cooperation, in which the shares of the enterprise (business) belong to several individuals or legal entities.
Pending Order
The requirement of the trader for the purchase and sale of the tool when certain conditions are met. Thus, the trader notifies of his desire to trade only at the specified price level.
Pip, point
The minimum characteristic of the price of the currency. Most often, the item (pips) refers to the last figures in the quotation.
q
Quote currency
The currency that is the second in the currency pair and denotes the amount for which you can buy the unit of the base currency.
r
Rollover
Transferring an open position to the next date. For this transfer, the broker takes a swap.
s
Scalping
Trade, based on the expectation of a decline in the price of a commodity or currency.
Short position
Trade, based on the expectation of a decline in the price of a commodity or currency.
Slippage
The difference between the price at the Stop Order and the price when this order was used in the market. Usually, slippage occurs when the server is heavily loaded or if there are no offers for sale in the market.
Spike
Kind of a candle with a small body and large shadows, which are much higher (or lower) than the highs and lows of the previous days.
Spread
The difference between the prices of purchase, sale and the real value of a trading instrument. It is the basis of income of brokerage companies.
Stop-loss
A stop order, also referred to as a stop-loss order, is an order to buy or sell a stock once the price of the stock reaches a specified price, known as the stop price.
Stop-Out
The requirement for compulsory closing of the position without the client\'s consent in case of lack of funds to keep the position open.
Swap
The fee charged by the broker for the transfer of the position on the next trading day.
t
Take Profit
A trade order placed at a certain level of the price of a financial instrument, upon which the open position is automatically closed and profit is fixed.
Technical Analysis
The method of predicting the movement of prices, based on the principle that all processes in the currency market are subject to certain patterns. It is a study of price charts for the purpose of detecting figures that signal in which direction the price will move.
Tick
The minimum value of the change in the price of a financial instrument. Can contain one or more items.
Transaction
A trade transaction aimed at the acquisition or sale of a financial instrument.
u
Unprofitable option
The term used by traders who trade in binary options. It is used to designate a contract for the transfer of assets, the price of which when expiring to the side that is unprofitable for the trader, differs from the value of this asset at the time of the option purch
v
Value date
The day of delivery of financial funds and the completion of a financial transaction.
Volatility
The range of price fluctuations in the time interval, which characterizes its uncertainty.