When you want to enter the world of forex trading, the many terms and abbreviations commonly used in the trading process may still sound foreign to you, usually traders call these terms
Forex Dictionary. Here are some basic terms that are important for you to know:
Account A means to record client transactions. Account Balance The difference between the credit amount and the debit balance. If the balance is deficit (negative) if the debit is greater than credit. Vice versa, if the balance is surplus (positive) if credit is greater than debit. Account Statement A status report of all buying and selling transactions made by a client. Fundamental Analysis Analysis based on global or local economic, political and security situations and conditions that differ depending on the country of origin of the stock exchange, the companies that issue shares, or the countries whose currencies are traded. Technical Analysis Analysis that uses charts or graphs to track data on price movements and trading volume with the aim of identifying ongoing price trends. Arbitrage A way to make a profit when two companies make currency transactions in different types of markets . Ask Price The bid price is a currency value.
Back Office The department that processes all financial transactions that occur outside the dealing room. Bailout Client fundraising. Balance Total client balance. Central Bank Financial services that provide commercial banks. The central bank also plays a role in maintaining the stability of the currency value from inflation. Bull An increase in the value of a currency. This is caused by many traders who make Buy transactions. Bar Chart Bar chart showing open and close prices for a certain period. Bearish Prices are down. Forex News World economic news released by a country and is expected to affect the value of a currency. Bear A decrease in the value of a currency. This is caused by many traders who make Sell transactions. Bid Price The asking price for a currency. Bid / Ask Spread The difference between supply and demand within a certain period. Bottom Price The lowest price on a currency pair within a certain period. Broker A company that has a function as an intermediary between traders and the stock market. Bullish Prices are going up. Buy Buy transaction. Buy Limit A buy transaction when an open position will automatically open when the price has touched the specified point. Buy Stop Buy transactions that are located above the current price.
Candlestick The visual form of a currency movement, usually in the form of a bar chart. Close Order End the transaction. Cross Rate The exchange rate for a pair of currencies when the currency cannot be used in the country. Currency The currency of a country. Currency symbol Abbreviation of currency name.
Day Trading Trading activities where transactions are carried out on the same day. Dealer Companies that make trading operation agreements with market participants. Deposit Deposit funds with a broker before making a transaction. Diversification Transfer of funds to other investments. Deficit Minus condition of client balance. Derivatives Trading contracts whose value changes and changes over a certain period of time. Devaluation Decrease in the value of currency exchange rates.
Equity The balance value after making a transaction. Expert Advisor Abbreviated as EA, is a software for automatic trading.
Flat Stable currency price movements. Forex Trading currencies of different countries for the purpose of making a profit.
Gap Unforeseen conditions for a sudden surge in prices. Gross Domestic Product The overall output of a country. Gross National Product The results of GDP and other investments.
Spot Price Currency prices at that time. Hawk A country's economic policy to balance the price of goods by increasing interest rates. Hedging Activities carried out by opening a Sell and Buy position simultaneously.
Indicator A tool that provides data from the calculation of certain formulas to measure and assess market conditions so that traders can predict the next market direction. Instant Execution Orders placed by traders to determine prices. Financial Instruments Futures trading products. Inflation A decrease in the value of the currency. Initial Margin Minimum deposit set before making a transaction.
Commission The fee borne by the broker to the client when the sale and purchase transaction is made. Contract Standard unit of transaction. Exchange rate The difference in the exchange rate of the currency of a country with another country.
Profit The benefits. Support Level A price level at which traders often make transactions. Lot Transaction order volume. Leverage Broker loan funds provided to clients so they can make transactions using small funds. Liquidity Ease of selling assets without affecting prices. Long The increase in profit was due to the growth in market prices. Limit Order A transaction when the price reaches the specified point will open automatically.
Margin Funds that are guaranteed to the broker when making transactions. Market Execution Orders placed when there is a price change. Margin Call Broker notification to add funds so that the used margin does not run out. Major Currency Most traded currency.
Open Order An ongoing order. Open Position Abbreviated as OP, is an activity to initiate transactions. Order An execution order that is executed at a specified exchange rate.
Pair A currency pair for trading. Pips The unit used to calculate the final value of the exchange rate. Primary Rate When a country trades its own currency.
Quotes The value of an exchange.
Range The difference between the highest price and the lowest price during a certain period. Resistance The level that is above the current price is where it is the most influential for the price reversal. Risk Management Defined loss limit.
Sell Selling transactions. Sport Price Currency exchange at that time. Stop Loss Order The loss limit is set when the price touches the specified point the order will be closed automatically. Support Level The levels that are below the current price are the ones that have the most influence on the price reversal. Swap The cost of staying is borne by the broker to the client when the transaction is not closed the next day.
Tick The price movement in the smallest distance. Turnover The total amount of funds transacted. Take Profit Profit limit when the price touches a certain point the order will be closed automatically.
US Prime Rate Loan interest rates provided by commercial banks to clients.
Value Date The maturity date given by a broker in making a transaction. Volatility Prices move up and down rapidly.
Win Analysis as expected. Withdrawal Withdrawal of funds from the trading account and then sent to the bank account.
The following are abbreviations commonly used by traders:
Depot Deposit EA Expert Advisor / Trading Robot Lev Leverage MC Margin Call NDB No Deposit Bonus OP Open Position SL Stop Loss TP Take Profit WD Withdrawal