Glossary Trading Terms

Glossary
Trading Terms
Trading Glossary

Glossary Trading
Terminologies & Definitions

If you have come across a forex term that you are unfamiliar with then you have come to the right place. The FP Markets trading glossary includes a comprehensive list of definitions that will help you understand even the most complex forex trading terms.

'Bears' and 'bulls' may be wild animals in the wild but they mean something completely different in the world of forex. The glossary includes common day trading terms such as 'bid' and 'ask' along with in-depth explanations on a range of forex strategies, tools and indicators.

The benefits of expanding your vocabulary should not be underestimated. Forex analysts and industry experts constantly use jargon when presenting educational materials such as eBooks and video tutorials. An example is the nickname given to major currency pairs. The AUD/USD currency pair is nicknamed the 'Aussie' while the USD/CAD pair is commonly referred to as the 'Loonie'. When in need of an explanation, look no further than the FP Markets trading glossary.

Trading Vocabulary

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Account with FP Markets established under the Account Terms, including all Trading Accounts and all Transactions recorded in them.

Bid

The highest buyer in the market at the time

A type of price chart used to display the high, low, open, and closing prices of an instrument for a specific period.

Currency
Pairs

A security with a price that is dependent upon or derived from one or more underlying assets.

Model of execution where an order is placed at a price sourced from a number of liquidity counterparties. In practice, there are many variations to the general model and brokers always retain the right to filter orders for regulatory or compliance reasons.

Cost associated to products and services of the broker, but not the trade.

Going long refers to opening a buy CFD position to profit from a price increase..

An investment to reduce the risk of adverse price movement in another investment or an asset, normally consisting of taking an offsetting position in a related security

An aggregate statistical measure of a particular market. E.g., the ASX S&P200 seeks to measure the value of the top 200 stocks on the ASX.

The Yen is the Japanese currency unit. It comes third in place after United States dollar and the Euro as the most-traded currencies in the foreign exchange market .

It’s a stable currency, one that doesn’t fluctuate too wildly and provides the foundation for exchange rates for international transactions. Because of their global use, key currencies tend to set the value of other currencies.

When trading with borrowed capital, you are trading with leverage

When your free equity drops below 0. Your position can be liquidated at any point when you are in margin call.

Is a global electronic marketplace for buying and selling securities in the U.S.

Contract for a financial product, including options and contracts in respect of foreign exchange or metals. OTC contracts are not traded or settled with any Exchange.

Profit and Loss

An indicative market price quoted for information purposes but not to deal.

A system that identifies, measures, seeks to reduce and reports/monitors risk to avoid losses.

Another term for a financial instrument

A strategy on what, and how, you will place a trade.

Trading
Platforms

The asset which a derivative’s price is based on. E.g., an equity CFD on BHP has an underlying asset of a of share of BHP.

Refers to the payment of profits or losses following revaluation of a CFD contract. For this purpose, open positions are revalued (or marked-to-market) daily.

A day on which the banks in a currency’s principal financial centre are open for business. For FX transactions, a working day only occurs if the bank in both (all relevant currency centres in the case of a cross) are open.

X

It is a NASDAQ stock symbol. It gives a representation of a mutual fund.

A traders’ term for a billion as in a billion dollars.

ZAR

The currency symbol of the South African Rand.

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