A
A negative balance of trade or payment
The practice of profiting from price differences in assets by buying low in one market and selling high in another. It helps align prices for similar assets across different markets, promoting market efficiency.
Asian Central Banks are the monetary authorities in Asian countries. This institution have become increasingly active in major currency markets. They manage expanding foreign currency reserves resulting from trade surpluses, and their significant participation can exert influence on short-term currency trends.
23.00 - 08.00 GMT
B
The base interest rate, also known as the policy rate or benchmark interest rate, is the rate at which central banks like the Bank of England or the Federal Reserve lend money to commercial banks. By adjusting this rate, central banks can effectively control and steer the economy, either encouraging or discouraging spending, borrowing, and investment as necessary. It's a key tool they use to manage monetary policy and maintain economic stability.
The bid-ask spread is the price difference between the highest price a buyer will offer (the bid price) and the lowest price a seller will accept (the ask price).
A negative or pessimistic view on the market or a specific financial instrument, anticipating that prices will decline.
Taking a long position on trade.
Buy the dips is a trading strategy where trader opens a trade when a market experiences a short-term price drop. This approach capitalizes on price declines that follow bullish periods, aiming to buy assets at a lower price point.
Bonds are debt securities that represent loans to corporations, governments, or other entities. They pay periodic interest and return the principal at maturity. They are used for raising capital and providing investors with steady income and relatively lower risk compared to stocks.
C
Contract size in trading is the fixed amount or quantity of an underlying asset specified in a financial contract. It's a key factor in determining your trade's size, risk, and potential profit or loss.
A closed position is a trade that is no longer active and has been closed by a trader.
The closing price is the last price of the day before a market closes. It's the number used in standard line charts to represent a market's daily performance. A market's price can fluctuate during the day, but close price is a fixed number than can not only be comparet with previous close prices, but also compared with close prices of other markets.
A consolidating market is when an asset's price stays within a narrow trading range for a while. It's like a temporary pause in price movement, where it moves within a defined upper and lower limit. This phase is marked by indecision in the market. Traders watch for consolidations as they may lead to breakouts, where the price either strongly goes up or down, indicating a potential change in trend.
Controlled risk means limiting the potential loss on a trade to a specific level, often achieved by using a guaranteed stop-loss order. This allows traders to establish the maximum amount traders can lose on a trade, providing them with complete control over their risk.
CPI is the most popular reference for day-to-day inflation. CPI gets calculated as a measurement of price change using a weight average basket of consumer good and service purchased by the households.
The market is ready to sell-off hard.
Cup and Handle is a pattern in technical analysis named for its resemblance to a teacup. It's characterized by candlestick shapes that create a shallow, rounded structure like a saucer, with a downward sloping handle on the right side of the cup. This pattern can develop over various timeframes, ranging from just a few weeks to a full year.
D
To defend a level' describes the actions of a trader or a group of traders aiming to block a product from reaching a specific price or price range. This is typically done when they have a vested interest in maintaining that price, often associated with a financial instrument like a barrier option.
A deficit occurs when more money is spent than received.
Delisting refers to the removal of a publicly traded instrument from an exchange, often due to financial issues, violations, mergers, or going private.
A dividend is a payment to shareholders from a company's profits. It can be in the form of cash or additional shares and is a way for investors to earn a return on their investment.
Dovish refers to a central bank's inclination to use policies like lowering interest rates to stimulate economic growth. It's associated with a less strict approach to inflation control.
Dow Jones Industrial Average is an equity index. It tracks the performance of thirty large public firms quoted on the NYSE and NASDAQ in the USA. The Index also gets called the DJIA and DJIA 30. Many financial brokers refer to the index as the US30 on trading platforms.
A downtrend is when an asset's price keeps falling, with lower highs and lower lows, indicating a bearish market sentiment.
E
It is the central bank responsible for monetary policy and the euro currency within the Eurozone, which includes 19 of the 27 European Union member states.
The European session in forex runs from 2:30 am to 10:30 pm EST. The European session is the second session of the forex trading day. While the FX market is open 24 hours a day, it's split into three major sessions - Asian, European, and North America, also known as Tokyo, London, and New York.
F
The Federal Reserve, often referred to as the Fed, is the United States' central banking system, created by the Federal Reserve Act on December 23, 1913, in response to financial crises, with the aim of centralizing control over monetary policy to prevent future economic disasters.
A financial analyst is a professional who helps individuals and businesses make informed financial decisions by analyzing financial data to identify opportunities or evaluate outcomes for trading/investment recommendations or business decisions.
A flat market, also known as a sideways market, occurs when the price of a certain security remains relatively stable over a significant period. This can occur due to low trading volume or when the price movements of different securities offset each other within an index. In forex, it means a currency pair isn't making significant gains or losses.
Forex, also known as Foreign Exchange or FX, involves the conversion of one country's currency into another and serves as the foundation for forex trading, which is one of the most heavily traded asset classes worldwide.
FOMC minutes are a detailed record of the Federal Open Market Committee (FOMC) meetings and are released three weeks after every meeting. FOMC minutes reveal committee members' monetary policy positions and views on the USD and other securities. Analysts use them to detect hawkish or dovish tones from individual members, regardless of the tone of the previous statement.
A futures contract is a standardized legal agreement to buy or sell a product at a set price at a specified time in the future. These contracts are standardized for both quantity and quality and are traded through exchanges.
G
An order that remains active until a future date specified by the trader. Once the date is reached, the order is cancelled.
The standard unit of trading gold is one contract which is equal to 10 troy ounces.
GDP is a crucial economic indicator, representing the total value of goods and services produced within a country, used to assess and compare economic performance and a nation's economic health and growth.
A guaranteed order is a type of order that protects a trader against market gaps. It ensures that your order is filled at the requested price.
A guaranteed stop-loss order (GSLO) is a type of order that ensures your position is closed out at the price you specify, regardless of market volatility, slippage, or gapping.
H
Hawkish refers to a central bank's inclination to use policies such as raising interest rates to combat inflation and maintain economic stability. It's associated with a more stringent approach to inflation control and a focus on price stability.
Names for the Hong Kong Hang Seng Index, which is the primary stock market index of Hong Kong.
I
An illiquid market is a market that is difficult to sell assets in due to a lack of interested buyers, available assets, or because the market itself isn't conducive to trading financial assets.
J
JPN225, commonly known as Nikkei 225, is the most widely followed stock market index for the Tokyo Stock Exchange (TSE). It's often used as a benchmark for the Japanese economy and is important in both domestic and international financial markets.
K
In trading, 'keep your powder dry' means holding onto resources and being patient for better opportunities, especially in challenging market conditions. It's about limiting trades in choppy or narrow markets and waiting for clearer opportunities.
L
A level is a price zone or a particular price that is significant from a technical standpoint or based on reported orders/option interest.
A liquid market is a financial market where assets can be easily bought or sold without causing significant price movements. In a liquid market, there are many buyers and sellers, and transactions can occur quickly with minimal impact on the asset's price.
Liquidation in trading refers to the process of closing or selling a trading position to convert assets back into cash or its equivalent. This is often done to realize gains or losses and exit a trade.
The London session runs during the city's official business hours which is from 7:30 am - 3:30 pm GMT
M
MoM is an abbreviation for month-over-month, representing the change in a data series relative to the previous month's level.
N
The New York session is a trading session that opens at 8:00 am - 5:00 pm EST. Typically, the first 45 minutes of the session are characterized by high volatility.
Net position refers to the total value of all open positions or the balance of long positions and short positions. It represents the overall position or exposure a trader or investor has in a particular market or asset.
O
The offer/ask price represents the lowest price at which a seller is willing to sell an asset at a given moment. It is the price at which trader can buy an asset in the market.
An order book is a list of buy and sell orders for a specific market, recorded by an exchange to measure market depth and interest from buyers and sellers. Order books are often used by traders to identify market sentiment. The main components of an order book are Buy Orders and Sell Orders. Executed orders are usually recorded separately in the Order History.
P
Profit refers to the financial gain or positive result obtained when the revenue or income generated from an activity or investment exceeds the total costs or expenses incurred.
In trading and investing, a pullback is a temporary reversal or decline in the price of an asset from its recent high or peak. It's often seen as a brief retreat within a larger trend and can present opportunities for traders to enter positions at more favorable prices.
R
A rally is a sustained increase in prices in financial markets, often following a period of flat or declining values. It's driven by increased demand and positive investor sentiment. When a rally occurs during a prolonged period of declining prices, it's referred to as a bear market rally.
In Forex, a 'rate' is the value of one currency compared to another. For example, an EUR/USD rate of 1.20 means that 1 Euro is worth 1.20 US Dollars. It shows how much of one currency you need to buy the other.
A retail investor, also known as an individual or small investor, is someone who invests their personal funds in financial markets. Retail investors typically invest smaller amounts of money compared to institutional investors or professional traders. They buy and sell stocks, currencies, and other financial instruments through brokerage accounts.
Running profit or loss represents the current financial outcome you could realize if you were to close your open trades. In most trading platforms, a running profit will be shown in green, while a running loss is shown in red.
S
SEC stands for the Security and Exchange Commission, a US government oversight agency that regulates markets and protect investors.
A name for the S&P index which tracks 500 of the largest companies on the NYSE and Nasdaq stock exchanges.
Stop loss hunting is when larger players in financial markets intentionally trigger stop-loss orders of other traders, aiming to profit from the resulting rapid price movements.
In trading, a 'swap' refers to the interest or financing rate that traders may pay for holding a position overnight. It's a cost associated with keeping a trade open beyond the trading day.
T
Take profit (T/P) is a price level in trading where a trader decides to close a position to secure a profit. It's a predetermined price used to lock in gains.
A trailing stop is like a safety net set at a certain distance from the current market price. It moves up when the market goes in your favor but steps in to close your trade if the market goes the other way. This way, you can capture more profit as the market works in your favor, all without needing to keep changing your safety net manually.
U
The unemployment rate is a measure used to determine the number of people in a country or sector who are without a job but are actively seeking employment. It is an economic indicator used to gauge the labor market's health and the number of people seeking employment.
Unrealized gain/loss refers to the profit or loss you would make if you closed your trading position or sold an investment at the present moment, considering its current market value. This profit or loss remains theoretical until you actually close your trading position or sell the investment.
US Oil is another name for Crude Oil, specifically referring to the Crude Oil produced in the United States. Crude oil, regardless of its origin, is a primary source of energy and a key commodity in the global energy markets.
X
XAU/USD represents the price of one troy ounce of gold in US dollars.
XAG/USD represents the price of one troy ounce of silver in US dollars.
Y
YoY is an abbreviation for year-over-year, representing the change in a data series relative to the previous year's level.
