Abandon literally means rejection (from the French. Abandon). As applied to the sphere of financial operations, abandon can be a waiver of any right or property, withdrawal from a transaction, waiver of using an option until its full expiration date. "Abandon"
The Accelerator/Decelerator technical indicator shows the acceleration or deceleration of the current market driving force.
This report is a record of all transactions made in a trading account over a specific period of time.
The account value is how much one’s account is worth.
The accumulation area represents a period of buying, typically by institutional buyers, while the price remains fairly stable.
When price doesn’t fall below a certain price level and moves in a sideways range for an extended period, this can indicate that the asset is being accumulated by institutional buyers and as a result will breakout to the upside soon.
The opposite of the accumulation area is the distribution area. The distribution area is where institutional traders begin selling.
The Accumulative Swing Index, or ASI, is a tool developed by J. Welles Wilder to measure the breakout potential of a given market.
The ASI takes the form of a number from 100 to -100, with positive values indicating an upward trend and negative values indicating a downward trend.
A secure identifier marked by a unique string of characters that enables payments to an individual or entity. It usually requires a private key to exclusively access the funds.
For example, Bitcoin addresses are alphanumeric strings that begin with a 1 or 3, while Ethereum addresses begin with ‘0x’.
Bitcoin addresses are usually 26-35 characters, Ethereum addresses are 40 characters.
This refers to a person’s cryptocurrency wallet public address (or key).
The ADP National Employment Report provides a monthly snapshot of U.S. nonfarm private sector employment based on actual transactional payroll data.
An agency model is a method for executing client orders without taking inventory risks.
Dealers running an agency model charge a commission for:
Placing a customer’s order with the market and Finding a counterparty willing to take the opposite side of the transaction.
Aggressors are traders who remove liquidity from the market by entering buy and sell orders at current market prices.
Rather than entering limit orders, aggressors buy the current market ask price or sell at the current bid price.
Because aggressors purchase available contracts at the current market price, their orders are executed immediately.
This immediate action means aggressors sell at lower and lower prices and buy at higher and higher prices, thereby pushing other traders out and taking liquidity out of the market.
In contrast, passive traders add liquidity to the market by placing trades with bids and offers, which may not be immediately filled or executed.
The currency code of Algeria.
Bill Williams created the Alligator indicator. This indicator is used to confirm current price trends and their primary direction. Aside from identifying existing trends, experienced traders also use the Alligator indicator to enter counter-trend moves.
“Altcoin” is a combination of two words: “alt” and “coin.” The word “alt” is short for alternative, and “coin” means currency. They are cryptocurrencies other than bitcoin. This terminology comes from the idea that bitcoin is the original cryptocurrency and that all others are considered “alternate” coins.
The American Stock Exchange (AMEX) was once the third-largest stock exchange in the United States, as measured by trading volume. The exchange, at its height, handled about 10% of all securities traded in the U.S.
Today, AMEX is known as the NYSE American. In 2008, NYSE Euronext acquired AMEX. In the subsequent years, it also became known as NYSE Amex Equities and NYSE MKT.
"Andrews’ Pitchfork is a channel-based analysis technique developed by Dr. Alan Andrews.
The channel drawing technique uses three parallel trend lines to show areas of support and resistance. The trend lines automatically generated by plotting three points on a chart, each marking an important pivot point.
The currency of Angola. Currency code (AOA)
Anti-Money Laundering (AML) is a term used in the financial industry to describe a set of procedures, laws and regulations that require financial institutions and other regulated entities to prevent, detect, and report money laundering activities.
ANZ Commodity Price Index was created in 1986 and is a monthly report that tracks the movement in the prices received for New Zealand's main export categories, in both world prices and New Zealand Dollars.
Commodity Price Index weights are based on contributions to merchandise exports.
Since commodity exports constitute an essential part of the New Zealand economy, readings above expectations can positively affect the New Zealand dollar (NZD).
The currency of Argentina. Currency code (ARS)
The currency of Armenia. Currency code (AMD)
The currency of Aruba. Currency code (AWG)
An ascending channel is a chart pattern formed from two upward trend lines drawn above and below a price representing resistance and support levels. The ascending channel is also known as a “rising channel” and “channel up. “
The lower line is identified first as running along the lows: it defines the trend line. The upper line is identified as parallel to the trendline, running along the highs.
In the channel, prices are expected to bounce off upper and lower boundaries; the more such reversals occur, the more reliable the pattern.
Although An ascending channel looks similar to the Rectangle pattern, the difference is that ascending channel slopes up.
It is a bullish pattern created by connecting two or more lows, with each successive low higher than the previous low.
This creates an upward sloping trend line.
The Ascending triangle is a chart pattern used in technical analysis.
The pattern involves price moving into a tighter range as time passes and provides a visual display of a battle between bulls and bears.
It is created by price moves that allow for a horizontal line to be drawn along the swing highs and a rising trendline to be drawn along the swing lows. The two lines form a triangle. Traders often watch for breakouts from triangle patterns, and the breakout can occur to the upside or downside.
Ascending triangles are often called continuation patterns since the price will typically break out in the same direction as the trend just before the triangle is formed.
An ascending triangle is tradable in providing a clear entry point, profit target, and stop-loss level. It may be contrasted with a descending triangle.
A triangle pattern is generally considered forming when it includes at least five touches of support and resistance.
The Asian Season (Asian Forex Season) time, also called Tokyo time, is the time to start trading in Asia (Tokyo). However, many other notable countries are present during this period, including China, Australia, New Zealand, and Russia.
Considering how scattered these markets are, it makes sense that the beginning and end of the Asian session are stretched beyond the standard Tokyo hours.
Asian hours often run between 11 p.m. and 8 a.m. GMT.
ASIC stands for Application-Specific Integrated Circuits. An ASIC mining rig is a computer specifically designed to perform one specific task over and over quickly. ASIC technology has made it faster to mine bitcoin while operating more efficiently than GPU mining rigs, and ASIC miners can only mine the cryptocurrency it was designed for.
The Asset Purchase Programme (APP) helps the European Central Bank in its task of keeping inflation below but close to 2% over the medium term.
Asset purchases can provide a stimulus to an economy if the traditional monetary policy measures of a central bank are not working as planned and it is lending to commercial banks at interest rates close to zero or even at negative rates for long-term refinancing operations.
Asset purchases let euro area central banks lower the bond yield, leading investors to put their money elsewhere, which should improve the financing options available to companies and households.
This should encourage investment and consumption in the euro area and help keep inflation in line with the target of the Governing Council of the European Central Bank.
asset purchases usually pertains to the purchasing of government bonds to lower interest rates, inject capital into the economy or both. It is an unconventional monetary policy used by a central bank to stimulate the economy.
There are two sides to an encrypted communication: the sender, who encrypts the data, and the recipient, who decrypts it. As the name implies, asymmetric encryption differs on each side; the sender and the recipient use two different keys. Asymmetric encryption, also known as public key encryption, uses a public key-private key pairing: data encrypted with the public key can only be decrypted with the private key.
Asymmetric encryption is an essential factor in sending and receiving Bitcoin transactions and transactions in other cryptocurrencies.
Asymmetric slippage is when the broker handles orders differently according to whether the market has moved in your favor or against you.
Slippage is the difference between the expected price of a trade and the price the trade is executed.
Markets can move in milliseconds, meaning the price you click to trade on may have changed by the time your order reaches your broker. Slippage can occur for different reasons and work for and against a trader.
Asymmetric slippage involves a broker passing negative price movements to you but seeking to capture positive slippage by only giving you the original quoted price where a positive movement for the broker has occurred in the intervening time between a quote being provided and the execution of the order.
Asymmetric price slippage is different because traders are prevented from taking advantage of price improvements, with slippage only occurring when it works against the trade. This practice is illegal, and firms that fail to pass on improvements in execution prices are in breach of both U.S. and European regulations.
At or better is an instruction given to a dealer to buy or sell at a specific price or better.
ATH is the acronym for “All Time High.”
The highest price that a financial asset experience in the market is called the price peak or ATH.
AUD/USD (sometimes written AUDUSD) is the abbreviation for the Australian dollar and U.S. dollar currency pair or cross. The AUD/USD is the fourth most traded currency but is not one of the six currencies that make up the U.S. dollar index (USDX).
Austerity refers to the government’s reduction of spending in order to lower their deficit. Austerity measures, which usually involve wage cuts and tax hikes, are implemented by the government to ensure their creditors that they will be able to pay back their loans.
The currency of Australia. Currency code (AUD)
Automated trading systems — also referred to as mechanical trading systems, algorithmic trading, automated trading, or system trading — allow traders to establish specific rules for both trade entries and exits that, once programmed, can be automatically executed via a computer. Various platforms report that 70% to 80% or more of shares traded on U.S. stock exchanges come from automatic trading systems.
The Autorité des Marchés Financiers (AMF) was established to improve the efficiency of France’s financial regulatory system and to give it greater visibility.
The organization makes sure that savings invested in financial products are protected. It provides retail investors with tools and services to help them invest. It also offers a mediation service to support investors involved in disputes with financial intermediaries.
Average Directional Index (ADX) is a technical indicator developed by Welles Wilder to determine the strength of a trend and the further price movement by analyzing the dynamics and the differences between the lowest and highest trading prices.
The average true range (ATR) is a technical analysis indicator introduced by market technician J. Welles Wilder Jr. that measures market volatility by decomposing the entire range of an asset price for that period.
The ATR is designed to measure volatility purely, and the indicator neither indicates trend direction nor momentum. By tracking the degree of volatility of an asset, volatility indicators help traders to determine when an underlying asset’s price is about to become more sporadic or less sporadic.
Awesome Oscillator is developed by famous technical analyst and charting enthusiast Bill Williams. Awesome Oscillator (AO) is an indicator that is a non-limiting oscillator, providing insight into the weakness or the strength of a stock. The Awesome Oscillator measures market momentum and affirms trends or anticipates possible reversals. It does this by effectively comparing the recent market momentum with the general momentum over a broader frame of reference.
AO is an indicator that reflects precise changes in the market driving force, which helps to identify the strength of a trend, including the points of its formation and reversal.
Sky Mavis, a Vietnamese developer, launched Axie Infinity in 2018.
Axie Infinity is a blockchain-based game inspired by Pokémon that’s built on Ethereum. The game revolves around players breeding, raising, and battling cute creatures called Axies. Players build a land-based kingdom for their Axies. If you don’t have any Axies, you can enter the game by purchasing Axies from other players on the Axie Infinity Marketplace. Axies and virtual real estate are sold via an in-game marketplace in the form of NFTs. The key difference between Axie Infinity and a traditional game is that players are rewarded with crypto tokens for their contributions to the ecosystem.
This new model of gaming has been dubbed “play to earn“.
As a “play to earn” game, players can sell items (including the Axies, in-game real estate, and accessories like lamps. barrels, and flowers) through the Axie Infinity Marketplace.
The currency of Azerbaijan. Currency code (AZM)
A non-deliverable forward (NDF) is a forward or futures contract in which the two parties settle the difference between the contracted NDF price and the prevailing spot market price at the end of the agreement.
A non-deliverable forward (NDF) is a two-party currency derivatives contract to exchange cash flows between the NDF and prevailing spot rates. One party will pay the other the difference resulting from this exchange.
Cash flow = (NDF rate – Spot rate) * Notional amount
The largest NDF markets are in the Chinese yuan, Indian rupee, South Korean won, Taiwan dollar, and Brazilian real.
Other popular markets are Chilean peso, Columbian peso, Indonesian rupiah, Malaysian ringgit, Philippine peso, and New Taiwan dollar.
In the digital currency market, this term is usually used for people who hold a commodity or currency with the belief that its price will increase, while the indicators do not show the possibility of such an increase.
This is a investor or trader who has been holding (or hodling) a particular cryptocurrency for too long and now has to face the consequences of that decision.
The currency of the Bahamas. Currency code (BSD)
The currency of Bahrain. Currency code (BHD)
A bail-in forces bondholders and other creditors of a company on the verge of failure to bear some burdens by writing off the debt they are owed or converting it into equity.
Bail-ins mandate creditors to take losses and accept part of the pressure.
The term bail-in was coined after the crisis by bankers who wanted to assure the public that the most prominent lenders could survive without taxpayer handouts.
A bailout is a financial term referring to an extraordinary act of lending, or outright giving, capital to an entity (a company, bank, individual, etc.) that is in danger of failure due to bankruptcy or insolvency. A bailout can also be given to a failing entity to allow it to exit gracefully without leading to a contagion. Bail-out is a opposite process of bail-in.
The difference in value between a country’s imports and its exports.
The total financial result of all the completed transactions and operations of the deposit/withdrawal of funds from a trading account.
The Baltic Dry Index (BDI) is a shipping and trade index that has been considered to be a leading indicator of the future trend of the economy.
It was created by the London-based Baltic Exchange and it measures changes in the cost of transporting various raw materials, such as coal and steel.
The BDI calculates the index by using multiple shipping rates across more than 20 routes which do tend to provide a broad perspective of the geographic shipping paths for the world economy.
Shipping costs vary according to the type of commodity being shipped, the amount (supply and demand).
A change in the Baltic Dry Index has been regarded as an indicator of the state of the global supply and demand trends.
When it rises, such as in early 2021, it reflects (1) a shortage in the supply chain, and (2) the Economic boom that was primarily confined to the United States.
A rising movement in the index reflects a robust economy.
A contracting index reflects slow Economic growth
A decline in the index reflects a recession.
The Bank for International Settlements (BIS) is an international financial institution owned by central banks that "fosters international monetary and financial cooperation and serves as a bank for central banks." BIS, Founded in 1930, is the oldest global financial institution. The BIS carries out its work through its meetings, programs, and the Basel Process – hosting international groups pursuing global financial stability and facilitating their interaction. It also provides banking services only to central banks and other international organizations. It is based in Basel, Switzerland, with representative offices in Hong Kong and Mexico City.
A bank levy is a type of taxation system on financial institutions of the United Kingdom in which banks are forced to pay government taxes over and above any normal corporate taxes that they may incur due to the risks they pose to the larger economy.
A bank levy also refers to a situation in which a bank account is frozen due to a creditor’s legal attempt to get a debtor to repay its debt.
Usually, it is government agencies (like the IRS) that make use of a bank levy, using it to collect unpaid taxes. They will freeze your account, and they take money equal to the amount that is owed. When your account is under a bank levy, you will not access your funds until the entire debt is paid back.
The Bank of Canada is the central bank of Canada.
The Bank of China is one of China's four largest state-owned commercial banks that is a subsidiary of the People’s Bank of China.
The Bank of Japan is the central bank of Japan.
A bank run occurs when a bank’s depositors try to withdraw all their money as they worry about its stability. This usually happens when depositors realize that their money is stored in a bank that is heavily exposed to bad debt, when credit rating agencies downgrade the bank’s standing, or when the bank is rumored to be close to bankruptcy.
Banking institutions cater to both the majority of commercial turnover and large amounts of speculative trading every day. The set of forex products offered by various banking institutions vary depending on their size.
Some banks offer only spot exchange and currency forwards while the larger institutions offer currency options, currency swaps, currency futures, and option-dated currency forwards.
The currency of Barbados. Currency code (BBD)
The term barrier level denotes a predefined rate that determines the outcome of a barrier option.
Different options make a deal with a certain price important. In the option of preventing the price from being seen, if the original price is not seen before the expiration of the contract, an amount defined by the seller is paid to the buyer of this option. This creates an incentive for the seller of the option contract to drive prices at a certain level and an incentive for the buyer of the option to support a certain stage of his trade.
The base rate, or base interest rate, is the interest rate that a central bank – like the Bank of England or Federal Reserve – will charge to lend money to commercial banks. Adjusting the base rate helps a central bank regulate the economy by encouraging or discouraging spending as required.
Basis is the difference in price between the futures price and the price of the underlying asset. The basis can be both positive and negative. By the time the contract expires, the basis will be zero, as futures and spot prices will be equal.
A Basis point is a unit of measurement which is equal to one hundredth of a percent. When interest rates are calculated it is necessary to remove all ambiguity: in this case the unit becomes the base point. For example, an increase of the base rate from 7% to 7.2% would imply a 20 base point change.
A bear flag is a bearish chart pattern formed by two declines separated by a brief consolidating retracement period.
The flagpole forms on an almost vertical panic price drop as bulls get blindsided by the sellers, then a bounce with parallel upper and lower trendlines, forming the flag.
During the consolidation, traders should be prepared to take action should the price break down through the lower range level and make a new low, as this indicates the bears are in control again to force another sell-off.
A bear market is any market that experiences a fall of around 20% or more from its recent high. Most commonly applied to stock markets, the term can also be used for anything traded, including currencies and commodities. A bear market is the opposite of a bull market.
A bear trap is when traders put on a short position when the price of a currency pair is falling, only for the price to reverse and move higher.
Bearish traders think the recent price action signals that an uptrend has ended when it actually has NOT.
Instead of declining further, the price stays flat, or the uptrend resumes.
A bear trap results in a false trend reversal when the price is in an uptrend.
A bearish engulfing pattern is a technical chart pattern that signals lower prices to come. The pattern consists of an up (white or green) candlestick followed by a large down (black or red) candlestick that eclipses or "engulfs" the smaller up candle. The pattern can be important because it shows sellers have overtaken the buyers and are pushing the price more aggressively down (down candle) than the buyers were able to push it up (up candle).
The bearish rectangle is formed in a downtrend and indicates high probability for the further decrease in the asset price.
This means a trader with a substantial amount of capital who is bearish (believes price will fall) on the price of a cryptocurrency.
The Beige Book is a summary of Economic conditions around the United States compiled for the Federal Reserve Board.
Each Federal Reserve Bank gathers anecdotal information on the current Economic condition in its district through reports from bank directors and interviews with key businessmen, economists, market experts, and other sources.
The Beige Book summarizes this information by district and sector.
It is released at 2:00 pm EST, two Wednesdays before each FOMC meeting.
This report lets outsiders know what the Fed governors are looking at as they prepare for their upcoming FOMC meeting.
The currency of Belarus. Currency code (BYR)
The currency of Belize. Currency code (BZD)
The currency of Bermuda. Currency code (BMD)
The currency of Bhutan. Currency code (BTN)
Biflation is a phenomenon where both inflation and deflation occur at the same time. This term was coined by Dr. Osborne Brown, a Senior Financial Analyst for the Phoenix Investment group.
During biflation, the prices of commodities and earnings-based assets rise while the prices of debt-based assets
Big Board is trader slang for the New York stock exchange. At this exchange the largest amount of stocks in the world are traded and over 3,000 corporations are quoted.
Refers normally to the first three digits of an exchange rate. For example, a quote of “50/60” on EUR/USD could indicate a price of 1.3050/1.3060.
The big figure is usually omitted when traders post quotations in fast-paced markets such as the interbank currency market. The assumption is that the full number is common knowledge and does not need to be specified.
The numbers to the left of the decimal point in an exchange rate.
The Economist invented the Big Mac index in 1986 as a lighthearted guide to whether currencies are at their “correct” level. It is based on the theory of purchasing-power parity (PPP), the notion that in the long run, exchange rates should move towards the rate that would equalize the prices of an identical basket of goods and services (in this case, a burger) in any two countries.
Bill Williams suggests that neither Economic al, technical, nor fundamental analysis provides an accurate market picture. The nonlinear nature of the market processes is proven by the fact that 90% of traders lose employing these types of analysis.
He developed his unique theory by combining trading psychology with the Chaos Theory and their effects on the markets. He suggested that rewards from trading and investing are determined by human psychology and that anyone can become a profitable trader/investor if they uncover hidden determinism in seemingly random market events. Williams says that fundamental or technical analyses cannot guarantee steady, profitable results because they do not see the real market. Moreover, he says that traders lose because they rely on different types of analysis, which are useless in nonlinear dynamic models, i.e., the real markets.
Trading is a psychological game, a way of self-realization and self-knowledge, so the best way to become successful is to find your trading self, get to know it better, and follow it no matter what.
Thus, there are two significant aspects: self-knowledge and understanding the market structure. Bill Williams believes making money can be easy if you know the market structure. To do this, you should be aware of the market's inherent parts called dimensions, each of which adds to the total picture.
A binary option is a type of options contract in which the payout depends entirely on the outcome of a yes/no proposition and typically relates to whether the price of a particular asset will rise above or fall below a specified amount. Once the option is acquired, there is no further decision for the holder to make regarding the exercise of the binary option because binary options exercise automatically. Unlike other options, a binary option does not give the holder the right to buy or sell the specified asset. When the binary option expires, the option holder receives either a pre-determined amount of cash or nothing.
The digital currency is referred to as simply BTC. BTC is a form of digital currency that runs on a distributed network of computers & created and held in digital form and relies on cryptography for security. also Bitcoin is a decentralized currency, meaning it is not controlled by a single entity (like a central bank). Nobody controls it.
It was the world’s first cryptocurrency with the first Bitcoin block, known as the genesis block (or block 0), being mined on January 3, 2009.
"Bitcoin Cash is peer-to-peer electronic cash for the internet. It is fully decentralized, with no central bank and requires no trusted third parties to operate.
The original Bitcoin uses 1 MB block sizes, but Bitcoin Cash supporters believed a larger block size could better serve the currency during its scaling process. So on August 1, 2017, the Bitcoin blockchain forked into two different chains. Bitcoin still uses 1 MB blocks, while the newly-formed Bitcoin Cash uses 8 MB block sizes."
People who predicted (or gambled on) bitcoin’s rise when it was still small. Their love for the cryptocurrency is so strong most or all of their portfolio comprised of bitcoins. Maximalists are typically so heavily invested into bitcoin, they refuse to see its many downsides even when laid out clearly.
The term used for systematic, model-based or technical traders.
A block refers to a collection of data related to transactions that are bundled together with a predetermined size and are processed for transaction verification which eventually becomes part of a blockchain.
An online browser where all the information of the blocks is displayed. It also shows the transaction history and address balance.
For example, the Bitcoin Block Explorer is a web tool that provides detailed information about Bitcoin blocks, addresses, and transactions.
The block header contains the necessary metadata for “chaining” blocks together to form the blockchain. This metadata differs between cryptocurrencies.
The block height is the quantity of blocks following the very first one on the blockchain. The very first block is referred to as the genesis block. A genesis block always has a height of zero when nothing follows it. The longer the blockchain is, the higher is the quantity of the block height.
The reward for each block created. This is an incentive reserved for solving the mathematical problem linked to the block. Different kinds of cryptocurrencies give out block rewards with different values. For example, the reward for mining a Bitcoin block is 12.5 bitcoins per block mined, which halves every 210,000 blocks.
A blue chip stock is that of a well-established company which is considered stable and which pays regular dividends. Typically, the term ‘blue chips’ is used to refer to the constituents of the major stock indices. The term derives from the high value of blue casino chips.
The currency of Bolivia. Currency code (BOB)
The Bollinger Bands indicator reflects the current market volatility changes, confirms direction, warns about the opportunities of trend continuation or trend end, consolidation periods, increasing volatility for breakouts, as well as indicates the local highs and lows.
A government bond auction is the process of selling short and long-term government bonds to investors in an attempt to minimize the cost of financing national debt.
A bond yield is an annual amount you receive in interest from a bond as a percentage of the bond’s initial cost, and it is the premium that investors are paid for holding on to government or corporate debt.
A bond is a loan, and they function the same way a local bank charges borrowers for interest on the loans it gives out.
Traders pay attention to bond yields because they reflect investor confidence.
If there is a weak demand for a bond, its yields rise to attract more buyers. On the other hand, lower bond yields typically imply a high demand from investors, either because they are confident that they will get paid back at maturity or because they feel it is a safe place to hold their assets.
The interest rate the bond issuer will pay is called the coupon, and it is fixed, but the yield varies because the formula depends on the bond's price in the market.
An overall summary of a trader’s positions.
The currency of Botswana. Currency code (BWP)
The currency of Brazil. Currency code (BRL)
A break is a general term for a sharp price move up or down, and a breakout is a more specific technical analysis term referring to when an asset moves above resistance or below support. If a break is large enough, the exchange will trigger safety measures to temporarily halt trading for a limited period or the rest of the trading session.
A breakdown is a downward move in a security's price, usually through an identified level of support, that portends further declines. A breakdown commonly occurs on heavy volume; the subsequent move lower tends to be quick in duration and severe in magnitude.
The break-even point in business is the point at which total cost and total revenue are equal, in other words, “even.” Break-even in forex means that your trading position neither makes nor loses money. For example, if you buy GBP/USD at 1.4050 and then you close the position at 1.4050 with zero profit and zero loss, you “breakeven”.
Brent Crude is one of three major oil benchmarks used by those trading oil contracts, futures, and derivatives. It is also called Brent oil, Brent blend, and London Brent. Brent crude is the most traded of all of the oil benchmarks.
In 1944 in Bretton Woods in the USA, members of the United Nations signed an agreement to establish a currency exchange rate system for economically developed nations. The US dollar became the reserve currency since, following the end of World War Two, the USA could guarantee the exchange of their currency for a fixed amount of gold. To support a system of international payments, the IMF (International Monetary Fund) was created. However, the Bretton Woods agreement did not take into account the fact that countries would seek to accumulate as big a dollar reserve as possible. This meant that the US could be put in a situation where it couldn’t cover the reserves using its gold. When Western Germany and France began to exchange their dollar reserves for gold in 1971 the US abandoned the obligations that they had assumed since 1944.
BRIC is an acronym for the economic bloc of countries consisting of Brazil, Russia, India, and China that was founded in 2001 and was changed to BRICS in 2010 after joining South Africa into this Group.
It is a price chart pattern identified by technical analysts. The increase in price volatility characterizes this feature in the form of two different trend lines; one is increasing, and the other is decreasing. This pattern occurs when the market has more disagreement among investors on the right price in a short period. Buyers are more willing to buy at higher prices, while sellers are more motivated to make a profit. This creates a series of temporary higher peaks in price and temporary lows. When connecting these highs and lows, trend lines form a broader pattern
A broker-dealer is a financial intermediary whose activities include acting as both broker and dealer in financial markets.
BTD is an acronym for “Buy the Dip“. It’s spoken between traders to suggest buying a specific cryptocurrency during a price dip.
BTD is an acronym for “Buy the Dip“.
It’s spoken between traders to suggest buying a specific cryptocurrency during a price dip.
The word buck is a slang term for one US dollar. The word’s use traces back to 1748, forty-four years before the first US dollar became minted.
In the Forex market: Bucket shops are brokerage firms with clear and unmitigated conflicts of interest with their customers.
Traditionally, they functioned as gambling houses where customers were encouraged to take substantial leverage to speculate on future stock prices. When customers occasionally profited on their trades, the gains would be advertised by the bucket shop to recruit new customers.
In most instances, however, the customers face significant or total losses. As with all gambling activities, the bucket shops benefited from their customer's losses.
The term bucket shop refers to an unlicensed tavern in 19th-century London that sold discarded alcohol.
The currency of Bulgaria. Currency code (BGN)
A bull flag is a bullish chart pattern formed by two rallies separated by a brief consolidating retracement period. The flagpole forms an almost vertical price spike.
During the consolidation, traders should be prepared to take action should the price break up through the upper range level and/or make a new high, as this indicates the bulls are in control again to push another rally.
A bull trap is a situation where traders enter a long position when the price of a currency pair rises, only for the price to reverse and fall.
The bull trap tricks some traders into thinking the market is falling and is an excellent buying time.
Bullish traders think the recent price action indicates a downtrend has ended when it really hasn't. Instead of increasing further, the price will remain stable or resume a downward trend.
A bull trap is the opposite of a "bear trap" that can trick traders into selling early in the middle of a bull market.
A Bullish Belt Hold, known as “yorikiri” in Japanese, is a single Japanese candlestick pattern that suggests a possible reversal of the current downtrend.
Occurring after a downtrend, the Bullish Belt Hold isn’t difficult to spot and it’s also quite common. To identify it, look for the following criteria:
- A downtrend must precede the candlestick.
- After the stretch of bearish candlesticks, a bullish (white) candlestick must appear.
- The pattern should be composed of a long white candlestick with a - short upper shadow (or no upper shadow).
- The candlestick should lack a lower shadow entirely
The Bearish Belt Hold pattern is the opposite of the Bullish Belt Hold, which is a single black candle that forms after an uptrend.
The rectangle graphical pattern serves to confirm the direction of an existing trend. The bullish rectangle is formed in an uptrend and indicates high probability of continuation of the asset price growth.
The Central Bank of Germany.
The currency of Burundi. Currency code (BIF)
Reports total U.S. business sales and inventories or Total current-dollar sales and inventories for the economy's manufacturing, wholesale, and retail sectors.
Traders look at how retail inventory numbers will influence interest rates. If inventories are rising at a faster pace than sales, this usually indicates that the economy is slowing down. A slowing economy means lower interest rates, which is dollar bearish.
Census Bureau, Department of Commerce
It is released at 8:30 am EST six weeks after the month ends. For example, data for June is reported in mid-August."
Taking a buy position .
‘Buy the dips’ is a phrase used in trading, referring to opening trade on the market as soon as it experiences a short-term price fall. ‘The dip’ is a dip shown on a market’s chart when its price falls after a bullish period.
A huge buy order that prevents the market price from going down until that entire buy order is complete.
The term buy-side includes all capital management companies - mutual funds, pension funds, hedge funds, etc. - that profit from buying and selling stocks. Opposite of the buy-side professional is the sell-side. Unlike the buy-side, sell-side efforts do not include making a direct investment. Instead, they assist the investing market with all activities related to the sale of securities to the buy-side, such as underwriting for initial public offerings (IPOs), providing clearing services, and generating research material and analysis.
These two sides (buy and sell) make up the main activities of financial markets.
Buying pressure occurs when the majority of traders are buying, indicating the majority think the market price will increase.
The bid–ask spread is the difference between the prices quoted for an immediate sale and an immediate purchase for stocks, futures contracts, options, or currency pairs in some auction scenario
One is the price at which you can buy (this rate is called Ask) and the other is the price at which you can sell (this price is called Bid).
Camarilla Pivot Points is a modified version of the classic Pivot Point.
Camarilla Pivot Points were introduced in 1989 by Nick Scott, a successful bond trader. The basic idea behind Camarilla Pivot Points is that price has a tendency to revert to its mean until it doesn’t.
What makes it different than the classic pivot point formula is the use of Fibonacci numbers in its calculation of pivot levels.
Camarilla Pivot Points is a math-based price action analysis tool that generates potential intraday support and resistance levels.
Cambist is an antiquated term that refers to a financial professional who is considered an expert in the international currency exchange markets. It is also sometimes used to refer to a reference manual that lists currency exchange values and other information useful for conducting international trade. Today, the term is mostly a throwback to describe an earlier generation of professional currency traders.
The currency of Cambodia. Currency code (KHR)
The Canadian dollar is the currency of Canada that Managed and overseen by the Bank of Canada, it is frequently traded as part of pairs such as USD/CAD, GBP/CAD and EUR/CAD.
Although not as popular as its US counterpart, the Canadian dollar is still one of the most commonly traded currencies in forex and is often known as a ‘commodity currency’ due to the correlation between its value and commodity prices.
The loonie refers to the $1 Canadian coin and derives its nickname from the picture of a solitary loon on the reverse side of the coin.
The currency of Cape Verde. Currency code (CVE)
Capital Gains Tax is a tax on the profit when you sell something that’s increased in value.
The gain you make is taxed, not the amount of money you receive.
For example, if you bought a painting for £5,000 and sold it later for £25,000, you’ve made a gain of £20,000 (£25,000 minus £5,000).
Carbon credits pertain to the right to emit a specific volume of greenhouse gases. The current measure is that one ton of C02 (or C02 equivalent gases) is equal to one carbon credit. To encourage businesses and companies to minimize their emission of greenhouse gases, they can exchange, buy, and sell carbon credits in the international market.
Cardano is a public blockchain using proof-of-stake as its consenus mechanish. It is intended to be a flexible, sustainable, and scalable platform for running smart contracts.
Cardano’s native cryptocurrency is ADA, which can be used to store value, to send and receive payments, and for staking and paying transaction fees on the Cardano network.
Carry trading is one of the most straightforward currency trading strategies. A carry trade occurs when you buy a high-interest currency against a low-interest currency. For each day you hold that trade, your broker will pay you the interest difference between the two currencies if you are trading in the interest-positive direction.
For example, if the pound (GBP) has a 5% interest rate and the U.S. dollar (USD) has a 2% interest rate, and you buy or go long on the GBP/USD, you are making a carry trade. For every day you have that trade on the market, the broker will pay you the difference between the interest rates of those two currencies, which would be 3%.
In the financial media, a catalyst is anything that precipitates a drastic change in a stock's current price trend. It can be negative news that rattles investors and breaks upward momentum or good news that pushes the stock up.
The currency of the Cayman Islands. Currency code (KYD)
"The Cboe EuroCurrency Volatility Index tracks near-term projected volatility of the euro/U.S. dollar exchange rate.
Central Bank Digital Currency is the digital form of fiat money and common currency of countries; As such, it is considered a currency governed by government laws.
A central bank intervention occurs when a central bank buys (or sells) its currency in the foreign exchange market in order to raise (or lower) its value against another currency.
Why do central banks intervene?
Intervention usually happens when a nation’s currency is undergoing excessive downward or upward pressure from market players, usually speculators.
A significant decline in the value of a currency has the following drawbacks:
A central bank is a financial institution with special authority to issue government-backed currency. It is often responsible for formulating monetary policy and regulating member banks. Examples of central banks include the Bank of England in the UK and the Federal Reserve in the US.
Central counterparty clearing houses (CCPs) are financial organizations, often operated by central banks, created to ease trading in derivatives and equities and guarantee efficiency and stability in financial markets.
A central limit order book (“CLOB”) is a trade execution model based on a transparent system that matches customer orders (bids and offers) on a ‘price/time priority’ basis.
Outstanding offers to buy or sell are stored in a queue and filled in a priority sequence, by price and time of entry. Orders are first ranked according to their price. Then orders of the same price are then ranked depending on when they were entered.
The highest (“best”) bid order and the lowest (“cheapest”) offer order constitutes the best available market price.
The Chaikin Oscillator was developed by Marc Chaikin to compare volume and price levels for an asset. The Oscillator can be used to indicate when an asset is overbought or oversold.
The Channel is a sustainable corridor of fluctuations in the asset price with a constant width.
Charts are graphical reflections of price changes of a financial instrument over time.
This report is created by The National Association of Purchasing Management. Announced at the end of the month in The Chicago Report. Because it is released on the last day of the reporting month, it is used to predict the ISM Report. Any level higher is considered expansion. Naturally any level lower is a sign of contraction.
The Chilean peso is the official currency of Chile since 1975. Its ISO code is CLP, and its symbol is ($).
Renminbi is the official name of the Chinese currency. Currency code (CNY)
Yuan is the name of a unit of the renminbi currency, but it does not mean renminbi.
Renminbi is the official name of the currency introduced by the People's Republic of China when it was founded in 1949
An approximation of the number of coins or tokens that are circulating in the public market.
The procedure of settling orders between transacting parties.
"A clearing house is an organisation, institution or third party that settles a financial obligation between a buyer and seller. They make up an integral part of financial ecosystems and play a vital role in instilling financial stability. It’s the job of a clearing house to ensure that all parties in a financial transaction honour the agreements that they’ve committed to and settle them as such. Clearing houses ensure that transactions run efficiently. The buyer receives what they paid for, and the seller receives the amount of money agreed on for the sale.
The idea of a clearing house has been around for centuries. Various forms existed in Japan, Italy and France before the first modern-day clearing house as we know them was established in London in 1773.
The actual monetary value given to an asset. This value in a trade serves as a compromise at which a buyer agrees to buy and a seller agrees to sell.
A person that holds an account. A trader who goes to a broker to make transactions.
The process of stopping (closing) a live trade by executing a trade that is the exact opposite of the open trade.
Cloud mining is the process of mining cryptocurrency by using shared hardware output from remote data centers.
The process of moving your cryptocurrencies “offline”, to prevent them from being stolen by hackers. There are a variety of ways to do this, but most cold storage methods include using paper wallets, USB storage or hardware wallets.
The currency of Colombia. Currency code (COP)
The comdolls is short for commodity dollars and refers to currencies whose underlying economy is dependent on the price of a commodity. Major currencies associated with the term comdolls are the Australian, Canadian, and New Zealand dollar.
Australia is the second-largest gold producer in the world, while Canada is the fourth-largest of the world’s oil producers. New Zealand exports a lot of dairy and meat.
Importers often need to get their hands on comdolls if they want to buy these commodities. This is why the comdolls’ price action is usually correlated with commodity prices.
The Commitment of Traders (COT) report is a weekly publication that shows the aggregate holdings of different participants in the U.S. futures market.
The CFTC (U.S. Commodity Futures Trading Commission) reports the COT (Commitment of Traders) report each Friday.
This report shows the changes in open positions of futures traders, including commercials, small speculators, and large speculators.
Traders follow the COT report to identify extreme levels of long or short positions in a currency, which may signal a trend reversal. The report helps them determine whether they should take short or long positions in their trades.
A commodity is a raw or unprocessed material that can be bought or sold and is used to make something else that eventually is consumed.
Commodities are used as materials in the production of goods or services.
Typical commodities include:
"Energy" (crude oil, gasoline, heating oil, natural gas)
"Metals" (gold, silver, copper, platinum, palladium)
"Softs" (cocoa, coffee, cotton, orange juice, sugar)
"Grains and Oilseeds" (corn, soybeans, soybean meal, soybean oil, wheat)
"Livestock / Meats" (feeder cattle, live cattle, lean hogs)
"Other" (lumber, dairy products)
Crude oil is currently the world's most actively traded.
Commodities are traded on an exchange.
The main three global commodities markets are the following:
CME Group (formed from the merger of the Chicago Mercantile Exchange and the Chicago Board of Trade)
London Metal Exchange
Commodities trading is split into two types:
The spot market
The futures market
The spot market is used for commodities that will be delivered immediately, and the futures market is for commodities that will be delivered at some point in the future.
Most commodities traders are speculators and do not wish to take delivery of the commodities they are trading, so most futures contracts are closed before their delivery date.
Futures contracts are traded on futures exchanges, with most commodities associated with a specific local exchange."
The Commodity Channel Index is an indicator developed by Donald Lambert. Despite the original purpose of the indicator to identify new trends, nowadays it is widely used to measure the current price level in relation to its average value.
Commodity Futures Trading Commission (CFTC) is a US-based agency responsible for regulating the derivatives markets, which includes options, swaps, and futures contracts. It was founded in 1974 as an independent organization that took the responsibilities of its preceding regulatory agency, the Commodity Exchange Authority (CEA).
Without such regulations and regulators, market participants could be subjected to fraud by unscrupulous individuals and, in turn, lose faith in capital markets. This could make capital markets ineffective at efficiently allocating financial resources to the most deserving means of production and productive economic activities to the detriment of investors, consumers, and society.
The Commodity Research Bureau Index, or CRB Index, is an index of sensitive commodities designed to gauge the average direction of movement in the commodity sector.
The index is composed of the following:
Fats and Oils, Textiles and Fibers, Foodstuffs, Metals, Livestock
A commodity trading advisor (CTA) is an individual or firm that provides individualized advice regarding buying and selling futures contracts, options on futures, or specific foreign exchange contracts.
The currency of the Communaute Financiere Africaine. Currency code (XAF)
The currency of Comoros. Currency code (KMF)
In auditing, completeness deal with whether all transaction that should be in the financial statements are included. For instance, completeness asserts that the accounting of all sales of goods and services be included in the financial statements.
Compound is a decentralized, open-sourced, blockchain-based protocol that facilitates the borrowing and lending of crypto.
The system is built on the Ethereum network and is one of the largest decentralized lending protocols in the world with assets exceeding $10 billion in total value locked (TVL).
COMP is the ERC-20 token used for governing the Compound protocol.
Compound allows users to borrow against their assets and/or lend them to earn income. The platform is completely permissionless, meaning anyone in the world regardless of their wealth or credit score can use it.
The U.S. Consumer Confidence Index (CCI) measures the degree of optimism consumers feel about the overall state of a country’s economy and their personal financial situation.
The CCI survey is conducted monthly and contains about 50 questions that track different aspects of consumer attitudes toward current and future business conditions, current and future employment conditions, and total family income for the next six months.
The Fed highly regarded this report and can be a key factor in determining U.S. monetary policy.
Originally, the term confluence is used to describe a geographic point where two or more rivers come together to form a single body of water.
But following the same logic, it’s now used in the context of trading to describe the confluence of multiple trading signals. Confluence occurs when several technical analysis methods give the same trade signal.
A consensus mechanism is a technology used in distributed ledger systems like blockchain to arrive at a single, consistent, honest state of the ledger across all network participants.
According to Ethereum’s consensus mechanism definition: “Consensus mechanisms (also known as consensus protocols or consensus algorithms) allow distributed systems (networks of computers) to work together and stay secure.”
In technical analysis, a consolidating market is a market that is neither continuing nor countering a long-term trend. Instead, its price is only experiencing rangebound price activity.
This is also seen as market indecisiveness. A market’s price during consolidation will still fluctuate, but it won’t break out of a certain price range. As soon as the market breaks out and moves either above or below the stagnant trading pattern, the period of consolidation ends.
Many successful trading strategies involve identifying and capitalizing on consolidation periods. The aim is not necessarily to trade the consolidation itself but rather anticipate the market’s next move and benefit from entering it early before the next move comes. One way to do this is by identifying bullish or bearish flag formations.
Construction spending is the money the government or businesses have spent on construction, labor, and materials over a monthly period. This can refer to residential or non-residential construction and includes engineering costs.
Residential construction refers to the construction of housing and other forms of accommodation. This is significant to traders as the housing market can often reflect a country's economic health.
Non-residential construction refers to businesses and corporations spending money on infrastructures like new factories, offices, or branches. Non-residential construction has an even stronger correlation with economic performance as the gross domestic product (GDP) is derived from the output of these businesses, which is a direct measure of economic strength.
Although construction spending is not the strongest economic indicator, its relation to GDP makes it significant to traders. If construction spending is high, this implies economic growth as new infrastructure is being built – increasing the capacity of an economy.
A crush spread is an options trading strategy used in the soybean futures market, and the general term for this is a gross processing margin. Traders often use a soybean crush spread to manage risk by combining separate soybean, soybean oil, and soybean meal futures positions into a single position.
The crush spread position is used to hedge the margin between soybean futures and soybean oil and meal futures. A crush spread is similar to a crack spread in the crude oil market in that it combines multiple positions in a single category into one position.
The study of techniques by which communication is secured.
cTrader is an intuitive and easy-to-use trading platform with advanced trading capabilities such as fast entry, execution, and coding customization.
Created by Spotware with the mission to balance simple and complex functionality, cTrader can be used by both new and advanced traders.
Traders can place advanced order types and better understand the orders they’re placing in more detail.
The currency of Cuba. Currency code (CUP)
The cup and handle are a technical analysis pattern that got its name by resembling a teacup. It features candlesticks that resemble a shallow, rounded saucer with a downward-trending handle extending from the cup’s righthand side. The formation can occur over a timeframe as short as several weeks up to an entire year.
It is a method to determine the national currency by determining the rate of a currency against a special set of foreign currencies
In fact, the principle of a currency basket is when a weighted average of a certain set of foreign currencies is used to reveal the value of a national currency or the size of a government's debt.
Currency codes are three-letter abbreviations that identify a country’s currency.
The International Organization for Standardization publishes currency codes in a list referred to as ISO 4217.
The vast majority of these codes contain two characters referring to the country and a third character related to the currency unit.
For example, the ISO 4217 code for the pound sterling is “GBP” – the two first characters refer to Great Britain (GB) and the third one to the pound (P).
Those currency pairs that do not include the US dollar in foreign exchange market trade are referred to as cross currency pairs or crosses
Currency is the money underpinned by the legal tender system unique to a particular country or economic area. Currency gets used as a medium of exchange for goods and services.
Currency in the form of paper or coins gets issued by governments and central banks and is usually accepted at face value as a payment method.
Currency devaluation is a monetary policy tool used by governments to deliberately reduce the value of a country’s currency in relation to another currency, group of currencies, or standard. Currency devaluation is a deliberate downward adjustment of the value of a country’s currency against another currency. A devaluation is a monetary tool authorities use to improve the country’s trade balance by boosting exports when the trade deficit may become a problem for the economy. This means that the country’s products and services will likely be sold at lower prices in foreign markets, making them more competitive. Devaluation usually occurs when a government notices regular capital outflows (or capital flight) from a country or if there is a significant trade deficit (where the total value of imports outweighs the total value of exports).
Governments devalue their currencies to improve their trading position in the world. For example, in 2015, the People’s Bank of China (PBOC) devalued its currency by changing the market mechanism for fixing the yuan against the dollar. This made the yuan weaker and Chinese exports cheaper.
Currency exchange controls are government restrictions that limit citizens’ ability to purchase foreign currencies and limit purchases of the home currency from abroad. Also known as foreign exchange controls, these restrictions are generally applied to restrict capital flow in countries with a partially convertible currency. This tool is usually implemented to protect the economy by preventing capital flight.
Freely convertible currencies, including the U.S. dollar, euro, and Japanese yen, have no control.
However, almost all exotic currencies are subject to foreign exchange controls. For example:
China, the second-largest economy in the world, runs various controls over its currency, the yuan renminbi, despite now being part of the basket of reserve currencies.
In the context of free trade, the value of currencies fluctuates continuously according to the dynamics of demand and supply. Central banks may implement foreign exchange controls to limit the volatility of their exchange rate and provide more excellent economic stability to their countries.
In the case of weaker economies, the main objective of foreign exchange controls is to avoid speculation with their currencies. Such belief could otherwise cause significant variations in the exchange rate, potentially triggering capital flows with devastating economic consequences for the country.
These are the most common currency controls:
- Banning or limiting purchases of foreign currency within the country
- Banning or restricting the use of foreign currency within the country
- Setting exchange rates (instead of letting the value of the currency -fluctuate according to market forces)
- Restricting currency exchange to retailers approved by the government
- Limiting the amount of money that may be imported or exported
The currency of the Czech Republic. Currency code (CZK)
The currency of Cyprus. Currency code (CYP)
A three-letter symbol that represents a specific currency. For example, USD (US dollar).
The currency spot rate, or just spot rate, is the current exchange rate for any currency pair for immediate settlement on the spot. For most currencies, the spot rate is usually displayed to four decimal places, but for certain currencies, such as the Japanese yen, it is only shown to two decimal places.
The exchange rate between two currencies is determined by various factors that affect each currency’s value, including interest rates, national economic performance, and inflation. It is also affected by the price that buyers of the currency are prepared to pay and, in turn, how much sellers are ready to accept. These are called the bid and ask prices.
In trading in the highly liquid FX market, exchange rates tend to be unstable and prone to significant fluctuations. That volatility might be profitable for speculative investors but can be detrimental for international companies with business lines in foreign currencies.
Currency risk refers to the losses an international financial transaction may incur due to currency fluctuations. Also known as currency risk, FX risk, and exchange-rate risk, it describes the possibility that an investment’s value may decrease due to changes in the relative value of the involved currencies.
Trading forex itself can be risky, but it’s not just the forex markets that can be directly affected by currency risk. Due to the interconnectivity of the financial markets, a significant price change in one currency can impact several other currencies or even other markets, such as shares, indices, or gold. Imagine you’ve bought gold in USD. If a Federal Reserve interest rate decision causes a dollar depreciation, you will lose money on your position due to currency risk.
A currency peg is a policy in which a national government or central bank sets a fixed exchange rate for its currency with a foreign currency or a basket of currencies and stabilizes the exchange rate between countries.
The currency exchange rate is the value of one currency compared to another. While some currencies are free-floating and rates fluctuate based on supply and demand in the market, others are fixed and pegged to another currency.
Pegging provides long-term predictability of exchange rates for business planning and helps to promote economic stability.
A currency option (also known as a forex option) is a contract that gives the buyer the right, but not the obligation, to buy or sell a particular currency at a specified exchange rate on or before a specified date. For this right, a premium is paid to the seller.
Currency options are one of the most common ways for corporations, individuals, or financial institutions to hedge against adverse movements in exchange rates.
Currency manipulation is the act of changing its value against other currencies instead of leaving it free to fluctuate based on market dynamics. This can be done by fixing the exchange rate or deliberately increasing or decreasing its value.
This practice is usually frowned upon since it produces an artificial distortion in currency prices, and it is considered an illegal practice based on US laws and international agreements. This could also give way to unfair trade advantages since artificially devaluing a country's currency could make its exports relatively cheaper and more attractive. In the long run, this could eventually result in a global trade imbalance.
Hedging is a broad concept that refers to risk hedging in a general sense, but in the forex market and between traders, it means trading in two opposite directions on a symbol or a currency pair. Simply put, a hedge is when an individual or organization enters into a contract that protects them against interest rates or other unexpected changes in the forex market.
Therefore, a company that performs currency hedging is indifferent to the movement of market prices. Currency hedging is an essential element of a company's currency risk management. Depending on a company's competitive profile, the nature of the markets in which it operates, and the goals set by management, a company can choose from several possible currency hedging strategies, most of which can be implemented using software solutions, which automate the entire process.
A currency future is a contract that details the price at which a currency could be bought or sold, and sets a specific date for the exchange.
A currency future is known as an FX future or foreign exchange future.
This type of foreign exchange derivative sets the price at which one currency will be exchanged for another at a specified date in the future.
Currency futures are one of the instruments used to hedge against currency risk.
They are highly regulated, and any counterparty still holding the contract at the expiration date is legally bound to take delivery of the currency on the given date and at the given price.
A currency forward, known as a forward contract, is an agreement that allows the buyer to lock in an exchange rate on the day the deal is signed for a transaction that will be completed later. Forward contracts are one of the main methods used to hedge against exchange rate volatility, as they avoid the impact of currency fluctuation over the period covered by the contract. Currency forwards is a practical hedging resource and allow buyers to indicate the exact amount to be exchanged and the date to settle in the forward contract.
While a currency forward protects the buyer against any adverse movements in the exchange rate, it also means that should the exchange rate move in their favor, they will not receive the more favorable rate.
Currency exposure refers to the vulnerability of investment, cash flow, or financial position to variations in the exchange rate of two currencies.
Holders of a given currency are vulnerable to its depreciation against other currencies, and companies that work in multiple currencies are particularly exposed to this risk. The greater the number of currencies and the volumes of money involved, the greater the exposure or, in other words, the greater the potential threat to the company’s profit margins and bottom line.
Currency exposure can be quantified as the total amount of capital involved in all transactions divided by the total amount of capital involved in currency exchange transactions. The larger the volume, the greater the currency exposure and the greater the need to implement a robust currency exposure management strategy.
To protect their profit margins, companies implement strategies to manage currency exposure.
The amount of crude oil, gasoline, and distillate in a country.
Refers to CAD (Canadian dollar), Aussie (Australian dollar), Sterling (British pound) and Kiwi (New Zealand dollar) – countries off the Commonwealth.
The crossover is a point on the trading chart in which a security's price and a technical indicator line intersect or when two indicators cross.
Crossovers are used to estimate the performance of a financial instrument and to predict coming changes in trends, such as reversals or breakouts.
An exchange rate between two currencies derived from their corresponding rates with a third currency. As a rule, the term refers to a currency pair which does not contain the US dollar.
The currency of Croatia. Currency code (HRK)
It is interpreted as a risk based on which the borrower will not be able to pay the principal and sub-funds of her loan or debt according to the conditions stipulated in the contract.
Standard & Poor’s (S&P), Moody’s, and Fitch Ratings are currently the top dogs in the biz.
Credit rating agencies are companies that provide objective estimates on how capable a debt issuer (ex., banks, companies, governments) is in fulfilling its debt obligations. Today we usually see these valuations expressed in letters like AAA, BB+, or D.
A credit rating is a grade awarded by credit rating agencies to a sovereign state or large corporate borrower indicating their creditworthiness. The higher the rating, the lower the interest rate the borrower will face.
Credit ratings mainly refer to sovereign debt, or bonds, issued by governments to finance public projects and services in forex trading. We usually see credit ratings expressed in letters like AAA, BB+, or D.
Since sovereign debt is usually denominated in foreign currencies, countries with unstable exchange rates or low economic growth typically have low credit ratings as they present an additional risk of being unable to pay back their investors. As a result, countries with low credit ratings usually have to pay more than their high-rating counterparts to borrow the same amount of money from markets.
Since credit ratings factor significantly in investors’ analyses, any major announcement from major credit rating agencies can directly affect your currency trades.
The crack spread refers to the difference between the price of crude oil and refined products, and this is a unique method for calculating gross profit margins in industries. The word "cracking" is an industrial term that refers to the breakdown of crude oil into its components, including propane, thermal fuel, gasoline, light distillates such as jet fuel, medium distillates such as diesel fuel, and heavy distillates such as grease.
The action of closing out a profitable short position as the security reaches a certain level of support. This move is conservative in that a trader cuts profit at a point where they can still gain more profit.
Cover on a bounce is a stock trading term that covers a position by trading after the stock price has bounced off a support level. The strategy involves waiting for the stock to go low enough to hit a support level, then bounce briefly, then go slightly lower to correct for the bounce, and closing the short position at this low point.
Any attempt to close a position. In fact, coverage is a word used when buying contracts or stocks to compensate for a trade that has already been opened.
Risk associated with a cross-border transaction, including legal and political conditions & . . .
A counterparty is the other party that participates in a financial transaction, and every transaction must have a counterparty for the transaction to go through.
The currency of Costa Rica. Currency code (CRC)
In trading, correlation is a measurement of the relationship between two assets. A positive correlation suggests that Asset B will move in the same direction as Asset A, and a negative correlation indicates that Asset B will move opposite to Asset A.
For example, the German stock market (DAX) and EUR/JPY moved in the same direction from 2004 to 2010. EUR/JPY rose when DAX performed well and plummeted when the stock market dropped.
Refers to corporations in the market for hedging or financial management purposes. Corporates are not always as price sensitive as speculative funds, and their interest can be very long-term in nature, making corporate interest less valuable to short-term trading.
A U.S. report which states the average increase in prices for all domestic personal consumption items. The Core PCE Price Index is a less volatile report than the PCE Price Index in that it does not include more volatile food and energy prices.
A rate of a specified currency for converting all profits and losses into U.S. dollars.
A technical observation that describes moving averages of different periods moving towards each other, which generally forecasts a price consolidation.
Usually, the contract price of a futures contract is higher than the current price of the underlying asset (usually a commodity). As the expiration date nears, the spread between the spot price and the futures contracts price becomes smaller and smaller. On the contract's delivery date, the futures and spot prices should be equal.
This process of futures and spot prices approaching one another is called convergence.
A contract for difference (CFD) is a financial contract in which you agree to exchange the difference in the settlement price between the open and closing trades on a particular asset. CFDs enable traders and investors to speculate on whether a market will go up or down, and profit from the price movement without owning the underlying asset.
CLS, or Continuous Settlement, is a cross-border payment system for settling foreign exchange transactions that eliminates settlement risk. Since the exchange of the two currencies involved is not simultaneous, the party selling one currency before receiving the currency is at risk.
CLS eliminates settlement risk by using a payment-versus-payment ("PVP") mechanism. In this regard, on the settlement day, each trading party pays CLS the currency it sells. In effect, CLS acts as a trusted third party in the settlement process.
The CLS system is operated by CLS Bank International, which is solely dedicated to the settlement of foreign exchange transactions. CLS Bank was founded in 2002 and belongs to the largest banks in the world. It is regulated and supervised by the Board of Governors of the Federal Reserve System and the Federal Reserve Bank of New York.
A continuation pattern is a chart pattern that is described as a series of price movements that indicate a temporary stop in the current trend that should continue after the pattern breaks.
In general, chart patterns can be divided into two general categories: continuation and reversal patterns.
Continuation patterns show that after the completion of the pattern, the price will continue to move in the same direction (uptrend or downtrend) as before the chart pattern. But in the reversal pattern, after the pattern is completed, the chart is reversed and moves against the trend.
A Continuation Diamond chart pattern forms when the price has broken upward out of a consolidation period, suggesting a continuation of the prior uptrend.
The chart pattern begins during a downtrend as prices create higher highs and lower lows in a broadening pattern.
Then the trading range gradually narrows after the highs peak and the lows start trending upward.
When the price breaks upward out of the diamond’s boundary lines, it marks the resumption of the prior uptrend.
An index that measures the change in the price of a representative basket of goods and services such as food, energy, housing, clothing, transportation, medical care, entertainment, and education. It’s also known as the cost-of-living index.
DeFi is short for “decentralized finance” and refers to an ecosystem of protocols, digital assets, smart contracts, and decentralized apps (dApps). DeFi sets explicitly to decentralize traditional financial services using blockchain technology and provides users with open, accessible financial services such as getting a loan, lending, trading, insurance, and more.
With DeFi, you’ll be able to do the things that usually require the use of a financial services company, such as earn interest on your savings, borrow, lend, buy insurance, trade assets, and more.
A Deficit is a term used to describe an excess of liabilities over assets, losses over profits, or expenditures over income. In economics, it is commonly used to denote a negative trade balance or payments.
A trade deficit occurs when a country's imports exceed its exports during a given period. It is also referred to as a negative balance of trade (BOT). A Deficit is not to be confused with Debt, and an annual deficit is an amount that will necessitate an increase in the total amount of Debt.
Deflation is an economic phenomenon involving a generalized decline in the price of a basket of goods and services. in a country or region. Deflation happens when the annual inflation rate turns negative. Such an event is usually brought about by a reduction in the money supply and/or credit. It is the opposite of inflation and is therefore often referred to as “negative inflation”. It occurs once the rate of inflation falls below 0%.
Falling into a deflationary cycle tends to be extremely negative for an economy and is a development every country tries to avoid. Deflation prompts consumers to delay purchasing decisions because they expect prices will drop further. This reduces industrial production and economic activity, depresses business profits, drives down wages, and/or layoffs which increases unemployment. As prices continue to fall, profits are squeezed further and companies respond by cutting wages further, laying off more employees, which reduces demand for their products and worsens the problem.
Delivery in financial markets means the transfer of financial assets or goods from the seller to the buyer in case of immediate transactions. In the forex market, it means a transaction in which the currency is delivered from the seller to the buyer at a rate agreed upon by the parties.
The DeMarker (or DeMark) indicator promoted by technical analyst Thomas DeMark, also known by the abbreviation "DeM," is a technical analysis tool that compares the most recent maximum and minimum prices to the previous period's equivalent price to measure the demand for the underlying asset. This comparison aims to assess the directional trend of the market.
The currency of Denmark. Currency code (DKK)
A composite of tradable rates for lending and borrowing a currency over a specific time period (tenor), quoted as a yearly rate.
DYOR is an acronym for “Do Your Own Research.
DYOR is doing your damn research before putting your money at risk.
Saying “DYOR” is a more sophisticated and elegant way of saying, “Do your proper due diligence.
Symbol for the US Dollar Index.
Dust transactions are transactions for minuscule amounts of bitcoin. A transaction is considered “dust” when the value is lower than the cost of spending it. Dust transactions are uneconomic and considered “spammy” to the network.
Durable goods orders are a broad-based monthly survey conducted by the U.S. Census Bureau that measures current industrial activity and is used as an economic indicator by investors.
Durable goods orders reflect new orders placed with domestic manufacturers to deliver long-lasting manufactured goods (durable goods) in the near term or future. The change in the total value of new orders is measured and shared with the public in two monthly releases: the advance report on durable goods and the manufacturer's shipments, inventories, and orders.
When the index increases, it suggests demand is strengthening, which will probably result in rising production and employment.
A sharp drop in price in the shortest possible time is called a dump.
The term dry powder refers to the amount of cash reserve or liquid securities kept readily on hand by an investor to cover potential future costs and obligations. Dry powder includes any and all marketable securities that can be liquidated on short notice.
Drawdown is a measure of peak-to-trough decline, usually given in percentage form. In trading, drawdown refers to the reduction in your trading account from a trade or a series of trades.
For instance, your trading account is initially at $10,000 then you lost $2,500 today and $2,500 the next day. Your account would then be at $5,000 and you would
A Dragonfly Doji is a single Japanese candlestick pattern formed when the high, open, and close prices are the same. The candle ends up with a tall lower shadow and without a body.
It signals a potential reversal & usually seen at the bottom of a downtrend. Also, the Dragonfly has a long lower shadow but no upper shadow and resembles the capital letter T.
A downtrend is a gradual reduction in the price or value of a stock or commodity or the activity of a financial market, which is created when bearish traders (sellers) take control of a market. The chief characteristic of a downtrend is a step-like descent of candlesticks or bars, making lower highs and lower lows.
The sale of a currency at a price lower than the previous sale.
Dow theory is widely considered one of the earliest forms of technical analysis, originating from a series of articles published by Charles Dow in the Wall Street Journal between 1900 and 1902. This theory states that all financial markets follow a particular set of rules, which are seen as repeating patterns in different cycles.
Dow's theory includes six important principles or laws:
Principle 1: The market is affected by the collection of news and external factors.
Principle 2: There are three types of trends in the market (main, corrective, partial)
Principle 3: Every main process consists of three steps.
Principle 4: Different indicators confirm each other.
Principle 5: Trends are confirmed by trading volume.
Principle 6: Trends are continuous until a reversal signal is seen.
The Dow Jones Industrial Average (DJIA), also known as the Dow 30, is a stock market index that tracks 30 large, publicly-owned blue-chip companies trading on the New York Stock Exchange (NYSE) and Nasdaq. The Dow Jones is named after Charles Dow, who created the index in 1896, and his business partner Edward Jones.
The chart is a valuable measure of US economic health.
A dove is an economic policy advisor who promotes monetary policies that usually involve low-interest rates. Doves tend to support low-interest rates and an expansionary monetary policy because they value indicators like low unemployment over keeping inflation low. If an economist suggests that inflation has few negative effects or calls for quantitative easing, they are called dove or dovish.
A Double Top is a chart pattern where the price reaches a high twice and fails to break out higher during the second attempt. The pattern comprises two peaks of nearly the same size and a bottom between them. The line running through the tops is the resistance line which should be nearly horizontal. The pattern forms an “M” shape and is considered a bearish reversal chart pattern.
Double Tops appear in an uptrend and reverse it to the downside as the price breaks through the support line (Neckline).
Double spending is to reuse of a cryptocurrency by creating duplicates. In other words, the risk that a digital currency can be spent twice (or more).
When a block is created, it receives a hash—or encrypted number—that includes a timestamp, information from the previous block, and transaction data. This information is encrypted using a security protocol like the SHA-256 algorithm used by Bitcoin.
Once that block's information is verified by miners (in proof-of-work consensus), it is closed, and a new one is created with the timestamp, transaction information, and previous block's hash. A Bitcoin is awarded to the miner whose machine verified the hash.
For someone to double spend, a secret block has to be mined that outpaces the creation of the real blockchain. They would then need to introduce that chain to the network before it caught up—if this happened, the network would recognize it as the latest set of blocks and add it to the chain. The person that did this could then give themselves back any cryptocurrency they had spent and use it again.
A double bottom pattern is a classic technical analysis charting formation that represents a significant change in trend and a momentum reversal from a prior down move in market trading. It describes the drop of a security or index, a rebound, another drop to the same or similar level as the initial drop, and finally, another rebound (that may become a new uptrend). The double bottom looks like the letter "W." The twice-touched low is now considered a significant support level. While those two lows hold, the upside has new potential.
The currency of the Dominican Republic. Currency code (DOP)
A Doji is a single candlestick pattern formed when the opening price and the closing price are almost equal. The lack of a real body conveys a sense of indecision or tug-of-war between buyers and sellers, and the balance of power may shift.
The length of the upper and lower shadows can vary, and the resulting candlestick looks like an inverted cross or a plus sign.
Dogecoin (DOGE) is an altcoin that first started as a joke in late 2013.
Dogecoin, which features a Japanese fighting dog as its mascot, gained a broad international following and quickly grew to have a multi-million-dollar market capitalization.
The currency of Djibouti. Currency code (DJF)
Distributed Ledger Technology (DLT) refers to the technological infrastructure and protocols that allows simultaneous access, validation, and record updating in an immutable manner across a network spread across multiple entities or locations.
DLT, more commonly known as blockchain technology, was introduced by Bitcoin and is now a buzzword in the technology world, given its potential across industries and sectors. In simple words, the DLT is about a "decentralized" network against the conventional "centralized" mechanism. It is deemed to have far-reaching implications on sectors and entities that have long relied upon a trusted third party.
A distributed system is a set of distinct processes (i.e., computers) that communicate messages to each other and coordinate to achieve a common goal (i.e., solving a computational problem).
A distributed system is a group of computers that work together to achieve a common goal. And although the processes are separate from each other, the system appears to the end user as a single computer.
The Disparity Index is a technical indicator that measures the relative position of an asset's most recent closing price to a specific moving average and reports the value as a percentage.
The Disparity Index can take either a positive or a negative value.
A positive value indicates that the asset's price is rapidly increasing.
A negative value indicates that the price is rapidly decreasing.
A value of zero means that the asset's current price is consistent with its moving average.
In discretionary trading, the trader decides which trades to make based on the information available at the time. A discretionary trader may (and should) still follow a plan with clearly defined trading rules, and they will use their discretion to take the trade and manage it.
For instance, a discretionary trader might review their charts and find that all of their criteria for a long trade have been met. Still, they may decline to make the trade because the volatility for the day is too low, and thus it is highly likely the price won't reach the profit target for the trade.
Because of their experience, discretionary traders tend to be flexible with their trading rules and more adaptable to market changes.
A discretionary account is an investment account that allows an authorized broker to buy and sell securities without the client's consent for each trade. The client must sign a discretionary disclosure with the broker as documentation of the client's consent.
A discretionary account is sometimes referred to as a managed account. حساب اختیاری، یک حساب سرمایهگذاری است که به یک کارگزار (بروکر) مجاز اجازه میدهد بدون رضایت مشتری برای انجام هر معامله، اقدام به خرید و فروش سهام نماید. برای ایجاد این شرایط نیاز است که بین معاملهگر و بروکر یک قرارداد رضایت امضا شود. به حساب اختیاری، گاهی اوقات حساب مدیریت شده نیز گفته میشود.
"Dirty float or managed float are two terms that refer to a foreign currency regime by which a central bank intervenes in the foreign exchange markets to manipulate the balance of supply and demand in order to curb the volatility of a specific currency.
Central bank interventions aim to avoid the consequences of economic shocks or speculative attacks that might cause wild fluctuations in the exchange rate with potentially disastrous implications for domestic economies.
J. Welles Wilder developed the Directional Movement Index (DMI) to determine the overall direction of an asset’s price. This technical indicator helps traders assess the trend direction by comparing prior highs and lows.
DMI is composed of two lines:
A positive directional movement line (+DI)
A negative directional movement line (-DI).
An optional third line, directional movement (DX), shows the difference between the lines.
If +DI is above -DI, there is more upward pressure than downward pressure in the price.
If -DI is above +DI, then there is more downward pressure on the price.
Crossovers between the lines are also sometimes used as trade signals to buy or sell.
The larger the spread between the two lines, the stronger the price trend.
If +DI is way above -DI, the price trend is strongly up.
If -DI is way above +DI, the price trend is strongly down.
The direct quote is a foreign exchange rate quoted in fixed units of foreign currency in variable amounts of domestic Currency. In other words, a natural currency quote asks what part of domestic currency is needed to buy one unit of foreign currency—most commonly the U.S. dollar (USD) in forex markets. In a direct quote, the foreign currency is the base currency, while the domestic currency is the counter currency or quote currency.
A direct price stream refers to when a liquidity provider streams prices at which trades can be executed directly with another party. also, both counterparties to the trade know with whom they are trading.
DMA, or Direct Market Access, is a type of trade execution where traders are offered direct access to the interbank, enabling them to place trading orders with liquidity providers (LPs).
Trading with a DMA account is ideal for forex traders looking for maximum transparency and control. While a DMA account has direct access to liquidity, orders are still sent in the broker’s (not the trader’s) name. DMA enables traders to submit buy or sell orders directly to the order book of the underlying market (OTC or exchange), bypassing all intermediaries. It’s a way of placing trades that offers more flexibility and transparency than traditional dealing (which is usually referred to as OTC, or over-the-counter).
DMA can be a good way for advanced traders to get a more comprehensive view of the market, and see the best possible prices available. The broker is basically acting as your “agent”, allowing you access to trade directly from LPs, but from the LP’s perspective, they’re still trading with your broker.
A dip is when a cryptocurrency experiences a decline in price. Dips are visually identified as a “valley” on a price chart.
The graphical price pattern “Diamond” is a sign of a subsequent reversal of an existing trend. Traditionally, the pattern is formed in an uptrend.
Detrended price oscillator (DPO), used in technical analysis, strips out price trends to estimate the length of price cycles from peak to peak or trough to trough.
Unlike other oscillators, such as the stochastic or moving average convergence divergence (MACD), the DPO is not a momentum indicator. It instead highlights peaks and troughs in price, which are used to estimate buy and sell points in line with the historical cycle.
The logic behind this is that detrended prices can help traders to understand the buying and selling pressure based on short-term fluctuations in the price of an asset without taking into account more extensive upswings or downswings in price.
Refers to a group that deals with a specific currency or currencies.
The Descending triangle graphical price pattern is a chart pattern of an existing trend continuation, which is usually formed in a downtrend and confirms its further direction.
A descending trend line is a chart pattern containing two or more lower highs that can be connected with a straight line that has a negative slope. Since technical analysis is built on the assumption that prices trend, the use of trend lines is important for both identifying and confirming trends. A descending trend line acts as resistance and indicates that supply (more sellers than buyers) is increasing even as the price falls.
A descending channel is a chart pattern formed from two downward trendlines drawn above and below a price representing resistance and support levels. The upper line is identified first as running along the highs and is called the trendline. The lower line (the “channel line”) is recognized as parallel to the trendline, running across the bottom. As long as prices remain within the descending channel, the downward trend in price can be expected to continue.
A descending channel looks similar to the Rectangle pattern, but the difference is that the descending channel slopes down.
Another way to trade this pattern is to wait for the price to break through either trendline. A breakout above the upper trendline generates a strong buy signal, while a breakdown below the lower trendline generates a strong sell signal.
Another strategy of using a descending channel is identifying where the price fails to reach the lower line. The failure to reach it often signifies trend exhaustion. This could be an early warning that the trend will reverse, and the breach of the trend line may be more likely to happen.
Derivatives are financial instruments whose rate depends on the actual or estimated rate of one or more underlying assets. These assets can be securities, options, stocks, futures contracts. Derivatives are often used for hedging operations and are also used for promissory purposes.
The simple definition of a depression is a large-scale recession that lasts an extended period of time. Some define a depression as a scenario where real GDP drops by over 10%. Another way to differentiate it from a recession is the period of time. Recessions are said to typically last one year while an economic depression lasts several years.
Action taken by a trader, or group of traders, to prevent a product from trading at a certain price or price zone, usually because they hold a vested interest in doing so, such as a barrier option.
Decentralized means not controlled by any single entity or institution. Blockchain is an example of something that is decentralized, all full nodes in the network own a copy of the blockchain. And not just a single entity (which would make it centralized). In a decentralized system, if one node goes down, the rest of the network continues to operate without hiccups.
The Debt-to-GDP ratio measures the amount of a country’s national debt with its GDP.
Often expressed as a percentage, this figure indicates a country’s ability to pay back its debts based on its output. The lower the debt-to-GDP ratio, the more capable the country is of paying back its debt.
A company or an individual which acts as a leading executor or a counterparty to the transaction.
Primary method of recording a transaction.
A list of all the transactions occurred in a specific time period.
A term that denotes a trade done at the current market price. It is a live trade as opposed to an order.
A dead cat bounce is a temporary, short-lived recovery of asset prices from a prolonged decline or a bear market followed by the continuation of the downtrend. This phrase originated on Wall Street and was popularly applied to situations where one can see a small comeback during a significant decline.
Dead Cat Bounce comes from the saying, “Even a dead cat will bounce if it falls from a great height.”
Day trading It is a popular trading strategy where you buy and sell over a single day’s trading, intending to profit from small price movements. It involves opening and closing positions within the trading day.
Day trading is another short-term trading style, but unlike scalping, you typically only take one trade a day and close it out when the day is over.
DASH is a cryptocurrency based on Bitcoin software but has anonymity features that make it impossible to trace transactions to an individual.
It was created by Evan Duffield in 2014 and was previously known as XCoin (XCO) and Darkcoin.
A dark pool is a privately organized financial forum or exchange for trading securities. Dark pools allow institutional investors to trade without exposure until after the trade has been executed and reported.
Dark pools are an alternative trading system (ATS) for institutional investors to buy or sell large amounts of stock without the details of the trade being released to the broader market and without publicly revealing their intentions while searching for a buyer or seller.
Dark Cloud Cover is a bearish reversal candlestick pattern where a down candle (typically black or red) opens above the close of the prior up candle (typically white or green), and then closes below the midpoint of the up candle.
The pattern is significant as it shows a shift in the momentum from the upside to the downside. The pattern is created by an up candle followed by a down candle. Traders look for the price to continue lower on the next (third) candle. This is called confirmation.
Decentralized applications (dApps) are digital applications or programs that exist and run on a blockchain or peer-to-peer (P2P) network of computers instead of a single computer.
DApps (also called "dapps") are outside the purview and control of a single authority. DApps—often built on the Ethereum platform—can be developed for various purposes, including gaming, finance, and social media.
A decentralized autonomous organization (DAO) is an emerging form of legal structure with no central governing body and whose members share a common goal to act in the entity's best interest. Popularized through cryptocurrency enthusiasts and blockchain technology, DAOs make decisions in a bottoms-up management approach.
In the Blockchain industry, DAOs operate entirely by encoded computer programs called smart contracts. All the transaction history and program instructions are managed within a blockchain.
The designated time of day chosen by a Dealer to delimit the end of a trading day and the beginning of the next.
This is done for administrative, logistical, and financial reasons, including accounting, data integrity, and interest credits or debits.
A daily chart is a graph consisting of a security's price action during a single day of trading. Commonly, these data points are depicted by the bar, candlestick, or line charts.
"Ethereum is a decentralized, open-source, and distributed computing platform that enables the creation of smart contracts and decentralized applications, also known as dapps.
Also rather than centralized hubs (or private companies) that control massive troves of personal data, Ethereum is designed to create more decentralized information networks enabled by a series of distributed nodes and Ethereum wallets.
Ethereum, or the Ethereum Virtual Machine (EVM), is an attempt to build a new version of the internet:
- An internet where money and payments are built-in.
- An internet where users can own their data and your apps don’t spy and steal from you.
- An internet where everyone has access to an open financial system.
- An internet built on neutral, open-access infrastructure, controlled by no company or person.
The idea for Ethereum was developed in 2013 by Vitalik Buterin, a computer programmer and contributor to Bitcoin Magazine.
The Euro Short-Term Rate (ESTR) is the interest rate benchmark for overnight borrowing costs throughout the euro area. It’s calculated and published by the European Central Bank (ECB) as a replacement for the Euro Overnight Index Average (EONIA) and the Euro Interbank Offered Rate (EURIBOR).
The currency of Estonia. Currency code (EEK)
EST stands for Eastern Standard Time. It is five hours behind Coordinated Universal Time (UTC) and Greenwich Mean Time (GMT). The EST time zone gets used during standard time in North America, Central America, and The Caribbean. EST is often called Eastern Time Zone.
The currency of Eritrea. Currency code (ERN)
A type of token standard for Ethereum which ensures the tokens perform in a predictable way. This allows the tokens to be easily exchangeable and able to work immediately with decentralized applications that also use the ERC20 standard. Most tokens released through ICOs are compliant with the ERC20 standard.
EOS is the native token of EOSIO network, which is a type of blockchain technology that is positioning itself as a decentralized operating system. also EOS.IO is a blockchain protocol powered by its native token, EOS. In practice, this means providing blockchain developers with a set of necessary tools and services to build and scale decentralized applications.
The protocol emulates most of the attributes of a real computer including hardware (CPU(s) & GPU(s) for processing, local/RAM memory, hard-disk storage) with the computing resources distributed equally among EOS cryptocurrency holders. also, EOSIO operates as a smart contract platform and decentralized operating system intended for the deployment of industrial-scale decentralized applications through a decentralized autonomous corporation model.
The Envelopes indicator reflects the overbought or the oversold state of the price, thus allowing to determine the entry and exit points from the market, as well as the moments of the possible trend break-down.
An entry order is used to enter a trade at a specified price level, and the entry order is not executed if the currency pair never reaches that price level.
There are three types of entry orders:
1. A market order allows the trader to buy or sell at the best current price.
2. A Limit Order is an order to buy at a market below the current market price or to sell at a market above the current price if the order price is reached. This is used when the trader thinks the price action will reverse upon hitting that specified price level.
3. A Stop order is an order to buy at the market above the current market price or to sell at the market below the current price if the order price is reached. This is used when the trader thinks the price action will continue upon reaching that specified price level.
The Engulfing pattern is formed by two candles, where the body of the first candle is “engulfed” by the body of the second candle. the first candle is characterized by a small body, followed by a taller candle whose body completely engulfs the previous candle’s body.
Engulfing patterns provide an approach for traders to enter the market in anticipation of a possible trend reversal.
An engulfing pattern is a reversal candlestick pattern that can be bearish or bullish depending upon whether it appears at the end of an uptrend or downtrend.
There are two types of engulfing candlestick e patterns:
Bullish Engulfing pattern
Bearish Engulfing pattern
The Bullish Engulfing pattern provides the strongest signal when appearing at the bottom of a downtrend and indicates a surge in buying pressure. The pattern involves two candles with the second candle completely engulfing the body of the first candle.
The Bearish Engulfing pattern often triggers a reversal of an existing trend as more sellers enter the market and drive prices down further. The pattern involves two candles with the second candle completely engulfing the body of the first candle.
The process of encoding messages or information in such a way that only authorized parties can read or access them.
The Employment Situation Report is released every month.
You’ve probably heard people call it by different names: the employment report, jobs numbers, and non-farm payrolls, but they all refer to the same colossal report: the Employment Situation.
It includes a basket of employment reports such as the Unemployment rate, Average Hourly Earnings, and Non-Farm Payrolls report.
The Non-Farm Payrolls report is arguably one of the biggest market movers in the Forex that creates a lot of volatility.
The Employment Cost Index (ECI) is generally considered to be one of the most comprehensive measurements of labor costs and their growth rate and as such, it is said to signal changes in wage inflation.
This report measures a country's employment conditions change from the previous month. In laypeople's terms, it counts the total number of people who lost their jobs or gained employment in the last month. A negative figure means that overall, more jobs were lost than gained in the previous month, while a positive figure means more jobs were created than lost.
The markets monitor employment because it is directly related to consumer spending. Naturally, people would be more willing to spend if employed and vice versa.
The Empire State Manufacturing Index (ESMI) is a survey given out by the Federal Reserve Bank of New York to manufacturing companies within the state of New York. It measures how the people who run these companies feel about the economy. The most watched statistic of the report is the business confidence index, which provides the general sentiment of the manufacturing industry.
Emerging markets, or EM, also known as emerging economies or developing countries, are nations that are investing in more productive capacity.
The economy of a developing country becomes more engaged with global markets as it grows. An emerging market economy is transitioning from a low income, less developed, often pre-industrial economy towards a modern, industrial economy with a higher standard of living.
The economies of China and India are considered to be the largest emerging markets. in this regard the 10 Big Emerging Markets (BEM) economies are (alphabetically ordered): Argentina, Brazil, China, India, Indonesia, Mexico, Poland, South Africa, South Korea, and Turkey. also Egypt, Iran, Nigeria, Pakistan, Russia, Saudi Arabia, Taiwan, and Thailand are other major emerging markets."
A public-key cryptography based on the algebraic structure of elliptic curves over a finite number of elements
The Elliott Wave Theory (“EWT”) is named after Ralph Nelson Elliott.
It is a method of technical analysis based on crowd psychology. Inspired by the Dow Theory and observations found throughout nature, Elliott concluded that the movement of the stock market could be predicted by observing and identifying a repetitive pattern of waves. Elliott believed that markets tended to follow a repeating pattern driven by crowd psychology.
Regardless of the changes in market conditions, Elliott’s research suggested that investors were ultimately repeating the same boom and bust cycle repeatedly. Elliott believed that all of man’s activities, not just the stock market, were influenced by these identifiable waves.
With the help of C. J. Collins, Elliott’s ideas received the attention of Wall Street in a series of articles published in the Financial World magazine in 1939. In 1978, Robert Prechter and A. J. Frost collaborated to write the book Elliott Wave Principle. Today, Robert Prechter has taken up Elliott’s mantle and leads a new generation of so-called “Ellioticians,” applying his theory to today’s financial markets.
An electronic market maker is a firm that provides prices on electronic trading venues and submits limit orders to buy or sell. It also provides liquidity to those traders requiring immediacy via marketable orders. Some electronic market-makers stream prices continuously, directly or indirectly (via electronic platforms).
Electronic indirect trading is a trade executed over an electronic matching system.
This could include trades conducted via multi-dealer platforms (MDPs), ECNs operating on a CLOB or dark pools
Electronic direct trading is a bilateral trade conducted electronically without the involvement of a third party.
Electronic Brokering Services is an organization created by some of the world’s biggest banks and financial institutions, whose goals are to provide an efficient, cost-friendly, and liquid interbank Forex trading platform. It was formed in 1990 to rival market leader Reuters and its trading system.
It is estimated that about $200 billion worth of spot Forex transactions take place on this platform, which takes up most of all spot transactions. The EBS is the major network where major pairs, like EUR/USD and USD/JPY, are traded.
The currency of El Salvador. Currency code (SVC)
The currency of Egypt. Currency code (EGP)
The efficient market hypothesis (EMH), alternatively known as the efficient market theory, is a hypothesis that states that share prices reflect all information and consistent alpha generation is impossible.
According to the EMH, stocks always trade at their fair value on exchanges, making it impossible for investors to purchase undervalued or sell stocks for inflated prices.
Therefore, it should be impossible to outperform the overall market through expert stock selection or market timing. An investor can only obtain higher returns by purchasing riskier investments.
A government-issued statistic that indicates current economic growth and stability. Common indicators include employment rates, gross domestic product (GDP), inflation, retail sales, etc.
An economic calendar is a Calendar of events provided by brokers and other financial companies through which traders track the events affecting the price movements of assets.
The European Economic and Monetary Union (EMU) combines several European Union (EU) member states into a cohesive economic system, and it is the successor to the European Monetary System (EMS). There is a difference between the 19-member European Economic and Monetary Union (EMU) and the larger European Union (EU), which has 27 member states as of 2022.
Also referred to as the Eurozone, the European Economic and Monetary Union (EMU) is quite a broad umbrella under which a group of policies has been enacted aimed at economic convergence and free trade among European Union member states. The EMU's development occurred through a three-phase process, with the third phase initiating the adoption of the common euro currency in place of former national currencies. All initial EU members have completed this except for the United Kingdom and Denmark, who have opted out of adopting the euro. The U.K. subsequently left the EMU in 2020 following the Brexit referendum.
ECDSA is an acronym for Elliptic Curve Digital Signature Algorithm. An elliptic curve digital signature algorithm generates a key pair in public key cryptography.
The currency of the East Caribbean. Currency code (XCD)
An electronic desk or e-trading desk is a trading desk that generates continuous algorithmic price quotes for clients via different types of electronic trading venues and protocols.
Exports refer to any good, commodity or service sold to a foreign country.
An exporter is a person, company, or country, that sends goods or services to a counterparty in another country. Exporting is a global trade function whereby goods produced in one country get moved to another country to trade or sell.
The Exponential Moving Average (EMA) is a type of moving average (MA) that places more weight and significance on the most recent prices. The Exponential Moving Average (EMA) is also known as the Exponential Weighted Moving Average (EWMA).
The Exponential Moving Average (EMA) is similar to the Simple Moving Average (SMA), where it measures trend direction over a period of time.
The last day on which the holder of an option can exercise his right to buy or sell the underlying security.
The last day, when the deal on a derivative contract (futures, option, etc.) may be either executed or cancelled.
Expectancy refers to the expected return per trade.
An exotic currency is a foreign exchange term for a thinly traded currency. Exotic currencies are illiquid, lack market depth, can be highly volatile, and trade at low volumes. Trading an exotic currency can be expensive, as the bid-ask spread is usually large to compensate for the lack of liquidity.
Some of the most commonly traded exotic currencies are the Mexican peso (MXN), Chinese yuan (CNY), Russian rouble (RUB), Hong Kong dollar (HKD), Singapore dollar (SGD), Turkish lira (TRY), South Korean won (KRW), South African rang (ZAR), Brazilian real (BRL) and Indian rupee (INR).
The number of residential buildings sold during the past month, excluding new construction, is a leading indicator of economic health. An uptrend in existing home sales also means more commissions to real estate agents and higher revenue for mortgage lenders and moving companies.
Existing home sales are used as an indicator of consumer spending and can influence interest rates. Generally, strong growth of existing home sales is dollar bullish. A decline in existing home sales over several months is dollar bearish since this would cause interest rates to fall, weakening demand for the dollar.
The Existing Home Sales Report is issued at around 10:00 am on or around the 25th of each month by The National Association of Realtors. It reflects the data gathered about the previous month’s figures. The report contains statistical data relating to the housing market and provides an accurate measure of the level of sales of existing home sales. The Existing Home Sales report is generally considered a fairly decent indicator of activity occurring within the housing sector.
The potential loss that could be incurred from an adverse movement in exchange rates.
An exchange rate is the amount of one currency that is needed to buy one unit of another currency.
For example, the GBP/USD exchange rate is 1.20. This means that it takes 1.20 U.S. dollars to buy 1 British pound.
An exchange is a website or mobile application where individuals can buy and sell cryptocurrencies using fiat money, bitcoins or altcoins.
A share bought in which the buyer forgoes the right to receive the next dividend and instead it is given to the seller.
EVM (Ethereum Virtual Machine) is a Turing complete runtime environment for Ethereum smart contracts.
An Evening Doji Star consists of a long bullish candle, followed by a Doji that gaps up, then a third bearish candle that gaps down and closes well within the body of the first candle.
To identify an Evening Doji Star pattern, look for the following criteria:
- The first candle should be a tall white candle in an upward price trend.
- The second candle should be a Doji whose body gaps above the first and third candles. Shadows are ignored.
- The third candle is a tall black candle that closes at or below the midpoint of the first candle
This Evening Doji Star acts as a bearish reversal of the upward price trend because price rises into the pattern and breaks out downward. A downward breakout occurs when price closes below the bottom of the three-candlestick pattern.
The most popular currency pair where Euro, is the base currency traded against the US dollar- the quoted currency.
Any member country of the European Union (EU) that has adopted the euro as their national currency form a geographical and economic region known as the eurozone.
The eurozone is a monetary union of 19 of the 27 EU members( Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain), states which have adopted the euro as their common currency. that zone forms one of the largest economic regions in the world.
The European Union (EU) is a political and economic union consisting of 27 member states. Established in 1993, the European Union’s headquarters are currently located in Brussels, Belgium.
It functions by a three-pronged governing system including a council, a parliament, and a commission, and uses a common currency. Its official currency is the euro.
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 American, also known as Tokyo, London and New York.
The European Securities and Markets Authority( ESMA) is an independent EU Authority that contributes to safeguarding the stability of the European Union’s financial system by enhancing the protection of investors and promoting stable and orderly financial markets. It achieves this by assessing risks to investors, markets and financial stability completing a single rulebook for EU financial markets promoting supervisory convergence and directly supervising credit rating agencies and trade repositories.
generally, the three main objectives are investor protection, orderly markets, and financial stability. in this regard It works closely with the other European Supervisory Authorities competent in the field of banking (EBA), and insurance and occupational pensions (EIOPA).
The European Parliament is the European Union’s law-making body & directly elected by EU voters every 5 year with legislative, supervisory, and budgetary responsibilities.
The European Parliament is made up of 705 MEPs (Members of the European Parliament) elected in the 27 Member States of the European Union.
The European Markets Infrastructure Regulation (EMIR) is an EU regulation implemented by the European Securities and Markets Authority (ESMA) that came into force on 16 August 2012. Its primary aim is to supervise all over-the-counter (OTC) derivatives through measures to improve transparency and reduce risk in the financial system.
EMIR established three key provisions:
Derivatives should be cleared through a central counterparty. Foreign exchange derivatives include forward contracts, options, and swaps. A competent authority authorized by ESMA must approve clearing.
2. Risk mitigation for non-cleared derivatives
This includes the exchange of collateral and ensuring mitigation procedures are in place. Risk-mitigation courses are designed to measure, monitor, and mitigate the operational and credit risk arising from such contracts.
3. Reporting to Trade Repositories (TR)
All derivative contracts (without exception) must be reported to a Trade Repository on a T+1 business day (transaction date + 1 business day) basis. These reports include a considerable amount of information, including derivative class and contract terms.
EFTA was founded by the Stockholm Convention in 1960. The European Free Trade Association (EFTA) is the intergovernmental organization of Iceland, Liechtenstein, Norway, and Switzerland.
EFTA was created for the promotion of free trade and economic integration to the benefit of its four Member States and the benefit of their trading partners around the globe.
The European Stability Mechanism (ESM) is part of the EU strategy designed to safeguard financial stability in the euro area. Like its predecessor, the temporary European Financial Stability Facility (EFSF), the ESM provides financial assistance to euro-area countries experiencing or threatened by financing difficulties.
The European Financial Stability Facility (EFSF) was created in 2010 as a temporary crisis resolution measure in the wake of the financial and sovereign debt crisis in the euro area (eurozone). It assisted Ireland, Portugal, and Greece. It no longer provides new financial assistance, with this task the European Stability Mechanism (ESM) responsibility as of 2012. Still, it continues to exist to fulfill obligations on previously agreed programs.
The European Economic Area, abbreviated as EEA, consists of the Member States of the European Union (EU) and three countries of the European Free Trade Association (EFTA).
It seeks to strengthen trade and economic relations between the contracting parties and is principally concerned with the four fundamental pillars of the internal market, which are the free movement of goods, people, services and capital.
Countries that belong to the EEA include Austria, Belgium, Bulgaria, Croatia, Republic of Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, and Sweden.
The ECU was the precursor of the new single European Union currency, the euro, which was introduced on January 1, 1999.
the European Currency Unit (ECU) was an artificial “basket” currency that was used by the member states of the European Union (EU) as their internal accounting unit. the “basket” currency was weighted according to each country’s share of EU output. the currencies were the Belgian franc, the German mark, the Danish krone, the Spanish peseta, the French franc, the British Pound, the Greek drachma, the Irish pound, the Italian lira, the Luxembourgish franc, the Dutch guilder and the Portuguese escudo.
The ECU was created by the EEC with the aim of eventually making it the single currency of a unified western European economy. while it wasn’t used in normal everyday transactions, it was increasingly used in commercial banking transactions. because its relative stability made it more suitable than a national currency for fixing contractual terms.
The European Commission (“EC”) is the European Union’s politically independent executive arm. It is alone responsible for drawing up proposals for new European legislation, and it implements the decisions of the European Parliament and the Council of the EU.
The European Parliament is the EU’s law-making body & directly elected by EU voters every five years.
In the Council of the EU, each country's government ministers meet to discuss, amend, adopt laws, and coordinate policies. The ministers have the authority to commit their governments to the actions agreed on in the meetings.
Together with the European Parliament, the Council is the main decision-making body of the EU.
The Eurogroup is the recognized collective term for official, informal meetings of the finance ministers of the eurozone—those member states of the European Union (EU) which have adopted the euro as their official currency. The group has 19 members and exercises political control over the currency and related aspects of the EU's monetary union, such as the Stability and Growth Pact.
Eurodollars are U.S. dollars deposited in banks outside the United States. These Eurodollar deposits are transferred electronically from a bank located within the United States and are kept abroad in the form of dollars.
In general, “eurocurrencies” are time deposits in banks outside countries that have issued these currencies.
Based on EU leaders’ proposals, a Eurobond would be a collective bond issued by the 17 member nations of the euro zone.
The creation of Eurobonds is still up for debate as more stable economies such as Germany are strongly opposed to the idea. However, other debt-ridden nations are hopeful that Eurobonds could be a longer-term solution to the euro zone debt crisis.
Euro Interbank Offer Rate (Euribor) is a reference rate constructed from the average interest rate at which eurozone banks offer short-term unsecured lending on the interbank market.
The euro is the official single currency used by the current 19 members of the eurozone.
It came into being officially on January 1, 1999, as the common currency for an initial 11 countries: Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal, and Spain.
Poland, Denmark, and Sweden are European Union member countries that did not adopt the euro.
After the U.S. dollar, the euro is the world’s second-largest reserve currency and the second most traded in the world.
The eurozone, the group of countries that use the euro, represents the largest GDP zone in the world, with the United States in second place.
The currency pair, formed from Euro and the Japanese yen, shows how many Japanese yen are needed to purchase one Euro.
The currency of Ethiopia. Currency code (ETB)
Ethereum Classic (ETC) is a type of cryptocurrency that is a continuation of the original Ethereum blockchain following the DAO attack in June 2016.
Ethereum Classic is a decentralized blockchain platform that lets anyone build and use decentralized applications that run on blockchain technology.
Like Bitcoin, no one controls or owns Ethereum Classic – it is an open-source project built by people around the world.
The Governing Council is the main decision-making body of the European Central Bank. It consists of: the six members of the Executive Board, plus the governors of the national central banks of the 19 euro area countries.
The Gravestone Doji candlestick pattern is a bearish candlestick pattern that indicates a reversal in price. This type of Doji is often seen as an inverted "T" candle on charts. It actually has a long upper shadow but no lower shadow.
The term “Grexit” was created to refer to the risk of Greece leaving the euro zone during the European Debt crisis. It was derived from the combination of the words “Greece / Greek” and “exit.”
GDP stands for Gross Domestic Product. GDP is the total value of the goods and services produced in a country over a specified period. It is one of the most comprehensive and closely watched economic statistics since it is used as a gauge of our economy's overall size and health.
Compared with prior periods, GDP tells us whether the economy is expanding by producing more goods and services or contracting due to less output. It also tells us how one countrcountry'smy is performing relative to other countrcountries'ies worldwide.
A country’s GDP country's all the private and public spending and output. It includes government spending, business and consumer consumption, investments, and net exports (calculated as total exports minus total imports). GDP is typically calculated yearly but can be for any period.
The first fundamental concept of GDP was invented at the end of the 18th century. The American economist Simon Kuznets developed the modern concept in 1934 and adopted as the primary measure of a country’s economy at the Bretton country'sference in 1944.
Gross national product (GNP) estimates the total value of all the final products and services turned out in a given period by means of production owned by a country's residents. GNP is commonly calculated by taking the sum of personal consumption expenditures, private domestic investment, government expenditure, net exports, and any income earned by residents from overseas investments, then subtracting income earned by foreign residents. Net exports represent the difference between what a country exports minus any imports of goods and services.
A growth stock is what they call a company’s shares with good profit indicators (higher than average) over a certain period (generally a few years) or shares with a good potential for growth shortly. The central demarking aspect of this stock’s growth is its value often rises much faster than other stocks. However, a rapid decline in the value of the such stock is also possible. Furthermore, stockholders for such companies either receive no share dividend or only a small dividend since profit is invested in the company’s development, especially when the company is relatively new.
An order type that protects a trader against market gapping. It guarantees to fill your order at a price asked.
A guaranteed stop-loss order (GSLO) ensures your position is closed out at the price you specify, regardless of market volatility, slippage, or gapping. Guaranteed stops are often free to attach, but your brokerage will charge you a premium if the order is triggered, and this is due to the risks your broker is taking on for you.
The currency of Guatemala. Currency code (GTQ)
The currency of Guernsey. Currency code (GGP)
The currency of Guinea. Currency code (GNF)
Gunning/Gunned Refers to traders pushing to trigger known stops or technical levels in the market.
The currency of Guyana. Currency code (GYD)
GWei (Gigawei) is a denomination of ether that is used in reconciling gas cost.
The Group of Ten (G-10 or G10) refers to the group of countries that agreed to participate in the General Arrangements to Borrow (GAB), an agreement to provide the International Monetary Fund (IMF) with additional funds to increase its lending ability.
The GAB was established in 1962 via the governments of Belgium, Canada, France, Italy, Japan, the Netherlands, the United Kingdom, and the United States—and the central banks of Germany and Sweden. In 1964, Switzerland joined this group as the eleventh member, but the group's name remained the same.
G-15 was established at the Ninth Non-Aligned Movement Summit Meeting in Belgrade, Yugoslavia, in September 1989. It comprises countries from Latin America, Africa, and Asia with a common goal of enhanced growth and prosperity.
The G-15 focuses on cooperation among developing countries in investment, trade, and technology. The number of members is increased, but the group's name has not changed.
current G-15 members: Algeria, Egypt, Kenya, Nigeria, Senegal, Zimbabwe, India, Indonesia, Iran, Malaysia, Sri Lanka, Argentina, Brazil, Chile, Jamaica, Mexico, and Venezuela.
The G20 is an international forum for the governments and central bank governors from 19 countries and the European Union.
The Group of Twenty (G20), a collection of twenty of the world’s largest economies formed in 1999, was conceived as a bloc that would bring together the most important industrialized and developing economies to discuss international economic and financial stability.
While not an official regulatory body, the G20 has formidable power when it comes to international finance. Its agenda often leads to reform, defining the path of the global economic and monetary systems.
In times of prosperity or crisis, the G20 is viewed as a pillar of the world’s financial community and a premier decision-making body.
The Group of Five (G5) encompasses five nations that have joined together for an active role in the rapidly evolving international order. Individually and as a group, the G5 nations work to promote dialogue and understanding between developing and developed countries.
In the 21st century, the G5 was understood to be the five largest emerging economies, and these are:
The composition of the five and what is encompassed by the term is construed differently in different time frames. Initially, the term “Group of Five” or “G5” encompassed the five leading economies of the world, but the use of the term changed over time. today It came to be used to identify the next tier of nations whose economies had expanded so substantially as to be construed in the same category as the world’s eight.
The G8 plus the five largest emerging economies have come to be known as G8+5.
The Group of Seven is an international governmental organization which includes France, Germany, Italy, Japan, the United Kingdom, Canada, and the United States.
During recent decades, the G7 claimed to have ‘strengthened security policy, mainstreamed climate change and supported disarmament programmes’.
The Group of Seventy-Seven (G77) was established on June 15, 1964, by the “Joint Declaration of the Seventy-Seven Developing Countries” issued at the end of the first session of the United Nations Conference on Trade and Development (UNCTAD) in Geneva.
The Group of 77 is the largest intergovernmental organization of developing countries in the United Nations. It provides the means for governments to articulate and promote their collective economic interests and enhance their joint negotiating capacity on all major international economic issues within the United Nations system.
The membership of the G77 has since expanded to 134 member countries, but the original name has been retained because of its historical significance. Also, the Chairmanship rotates on a regional basis (between Africa, Asia, Latin America, and the Caribbean) and is held for one year.
The currency of Gambia. Currency code (GMD)
A Gann Fan a highly successful analytical tool designed by legendary stockbroker W.D. (William Delbert) Gann to indicate time and price movements from important highs and lows and identify price breakouts. The angled lines fan from the selected point. They indicate a time to price relationship that may be relatively fast or relatively slow, depending on the size of the Gann angle.
W.D. Gann believed that certain geometric patterns and angles held unique characteristics that could be used to correctly predict actions in both price and time, so indicating future instances of time and price movements from important highs and lows and so identify likely price breakouts.
A Gann Grid represents an intersecting series of Gann Lines overlaid on a price chart; Gann's teachings stress the importance of the 45-degree line representing a 1:1 relationship between time and price (1 unit of price to 1 unit of time). When the price trades above the 45-degree line, it indicates an up-trending market; when the price trades below the 45-degree line, it indicates a down-trending market.
For those prices below the ascending line, the Gann concept says this will predict a bull's direction. If the prices hold below the descending line, it is more likely to be a bear market. When there is an intersection of the Gann lines, this shows a breaking of the primary trend. When there is a further intersection of the Gann lines, this can show that there is a new trend happening. Still, it can show a fully balanced market when the prices go down to the line during the ascending trend.
A break between prices is when the asset is having a big move up or down without trades occurring.
The term gas limit refers to the maximum price a cryptocurrency user is willing to pay when sending a transaction, or performing a smart contract function, in the Ethereum blockchain. These fees are calculated in gas unit, and the gas limit defines the maximum value that the transaction or function can "charge" or take from the user. As such, the gas limit works as a security mechanism that prevents high fees from being incorrectly charged due to a bug or error in a smart contract.
A term used in the Ethereum platform that refers to the price you are willing to pay for a transaction. Setting a higher gas price will make miners more incentivized to prioritize and validate that particular transaction ahead of those set with a lower gas price. Gas prices are typically denominated in Gwei.
The Gator Oscillator (GO) is a supplement to the Alligator indicator and is used alongside with it, showing the degree of convergence/divergence of its three SMAs and pointing at the Alligator's hunger or sleep periods (i.e., trending or non-trending periods of price movement).
GBP stands for British Pound which in this currency pair is traded against US dollar. The currency pair shows how many US dollars are needed to purchase one British Pound.
The gearing ratio is a financial ratio comparing a business owner’s equity (or capital) to the company’s overall debt and borrowed funds. It’s a measurement of financial leverage, illustrating how much of a firm’s operations get funded by equity capital instead of debt financing.
The first block of data that is processed and validated to form a new blockchain, often referred to as block 0 or block 1.
The currency of Georgia. Currency code (GEL)
The premier German stock index, comprising a weighted average of the 30 largest companies on the Frankfurt Stock Exchange.
The currency of Ghana. Currency code (GHC)
The currency of Gibraltar. Currency code (GIP)
Refers to a bid being hit or selling interest.
GMT stands for Greenwich Mean Time. Due to its maritime connection, back in 1884 the village of Greenwich, London England, was chosen as the reference point for all time on Earth.
The term gold bullion describes a large quantity of physical gold that is at least 99.5% pure metal.
Investors often purchase gold bullion as an alternative physical investment to hedge their risk against other financial exposure to markets. Gold bullion is a tangible asset that is regarded as both an alternative and safe-haven asset.
A certificate of ownership that gold investors use to purchase and sell the commodity instead of dealing with transfer and storage of the physical gold itself.
The standard unit of trading gold is one contract which is equal to 10 troy ounces.
A good ‘til cancelled (GTC) order is an instruction to execute a trade that will remain active until the order is fulfilled or the trader cancels it. Brokerages typically limit the length a GTC order can remain open to 90 days.
A good ‘til date (GTD) order is an instruction to execute a trade that remains open until a future date specified by the trader. Once the date is reached, the order is cancelled if it has not been fulfilled or cancelled already.
An order that will expire at the end of the day if it is not filled.
“Halving” is an artificial, preprogrammed means to control the supply of a cryptocurrency by reducing the mining reward by half. For example, if miners are awarded 100 coins for validating a block, halving would cut the mining reward to 50 coins.
Halving does not happen just once; it occurs after a certain number of blocks have been mined.
A Hammer is a single Japanese candlestick pattern. It is black or a white candlestick that consists of a small body near the high with a little or no upper shadow and a long lower shadow (or tail). In summary, the Hammer candlestick appears during a downtrend, displays a long lower shadow with a small real body at the top of the range. a Hammer candlestick is considered a bullish pattern when formed during a downtrend.
A Hammer candlestick pattern should meet the following criteria:
- The candle must have either a very short upper shadow or no upper shadow at all.
- The candle’s lower shadow must be quite tall (at least two times as height of the body).
- The candle must form after a clear downtrend.
- The candle’s body should be located at the upper end of the trading range.
- The body’s color is unimportant (though a white candle hints at a more bullish bias).
The candle should be confirmed the following day, with the price trading above the Hammer’s body.
- Don’t confuse the Hammer with the Hanging Man.
A Hanging Man looks identical but only forms at the end of an uptrend, while the Hammer forms after a downtrend."
A Hanging Man is a Japanese candlestick described as having a small body, little or no upper shadow and a high lower shadow. In order for the Hanging Man candle to be valid, the lower shadow must be at least twice the size of the candle’s body and the body of the candle must be at the upper end of the trading range.
The Hanging Man is composed of only one candlestick, but it must be surrounded by candles that confirm its validity.
In summary, the Hanging Man appears during an uptrend, displaying a long lower shadow with a small real body at the top of the range.
To identify a Hanging Man candlestick pattern, look for the following criteria:
- The lower shadow should be tall, at least two times the length of the body.
- There should no upper shadow (though a very small upper shadow is okay).
- It should occur at the upper end of the trading range.
- The color of the body isn’t important, although a black body suggests more bearish results.
- Price should be in a definite uptrend before the Hanging Man occurs.
- The Hanging Man must be confirmed on the next candle either with a black candle or a gap down with a lower close.
- The Hanging Man candlestick can be used to identify a short trade (bearish view) as the long shadow indicates selling pressure.
The Harami pattern consists of two candlesticks with the first candlestick being a large candlestick and the second being a small candlestick whose body is contained within the first candle’s body.
Harami means “conception” or “pregnant” in Japanese. The first candlestick is seen as the “mother” with a large real body that completely enclosing or embodies the smaller second candlestick, creating the appearance of a pregnant mother.
The Harami candlestick pattern comes in two different forms:
Bullish Harami: a bullish reversal pattern (which occurs after a downtrend).
Bearish Harami: a bearish reversal pattern (which occurs after an uptrend).
A Harami Cross is a reversal candlestick pattern that consists of a long candle is followed by a Doji.
For the pattern to be a valid Harami Cross, the Doji should be located within the body of the first candle.
Harami means “conception” or “pregnant” in Japanese. The first candlestick is seen as the “mother” with a large real body that completely enclosing or embodies the smaller second candlestick, creating the appearance of a pregnant mother.
The Harami Cross pattern is more significant than the Harami pattern as it contains a Doji, which is a candlestick with no or very little real body.
A Doji is formed when the close price and the high price are the same or very close. This small body size indicates indecision and uncertainty in the market. also, a Doji with long shadows has a greater significance than a Doji with short shadows.
The maximum amount that an ICO will be raising. If an ICO reaches its hard cap, they will stop collecting any more funds.
The process of radically changing the protocols on a blockchain where the developers determine that changes must be made to a cryptocurrency that will create incompatibilities between the old and new coin. All the users or nodes must upgrade to the up-to-date version of the software.
Hardware wallets are a form of cryptocurrency cold storage. Resembling the appearance of a USB thumb drive, hardware wallets store your private keys offline from potential breaches. Not all cryptocurrencies are supported by hardware wallets.
A hash function is a mathematical process of taking a message (the input) of arbitrary length and turning it into a fixed length message digest (the output).
Hash per second (h/s) is the number of hash computations per second. It is a measurement of computing performance for mining rigs.
Hash rate (also referred to as hash power) in a PoW system is the collective measurement of computing power in a specific cryptocurrency ecosystem. Bitcoin and most PoW altcoins have their own hash rate. Hash rate is measured in a unit calls h/s (hash per second).
The head and shoulders graphical price pattern indicates the end of an existing trend and the further change in the direction of the price movement.
A hedge fund is an investment pool contributed by a limited number of partners (investors) and operated by a professional manager(s) who employ different strategies to earn an active return, or alpha, for their partners.
A hedge fund isn’t a specific type of investment. Instead, it is a pooled investment structure set up by a money manager or registered investment advisor and designed to make a return.
This pooled investment structure is often organized as either a limited partnership or a limited liability company.
Heikin Ashi is a charting technique used to display prices that, at a glance, looks similar to a traditional Japanese candlestick chart. The difference is the method used in how candlesticks are calculated and plotted on a chart.
The Heikin Ashi chart is plotted as a candlestick chart, where the down days are represented by red bars, while the up days are represented by green bars."
HFT, known as High-Frequency Trading, is the process of using computer programs running complex algorithms to make trades very quickly.
High-Quality Liquid Assets (HQLA) is a concept to be situated as part of the “liquidity coverage ratio”, which is part of the Basel III standards for deposit-taking regulated banking institutions. The aim of the requirement is to have sufficient liquidity at all times to meet short-term obligations and deposit withdrawals.
The high-quality liquid assets (HQLA) include only those with a high potential to be converted easily and quickly into cash (in times of distress). HQLA are cash or assets that can be converted into cash quickly through sales (or by being pledged as collateral) with no significant loss of value.
Historical volatility is the measure of a stock’s price movement based on historical prices that measures how active a stock price typically is over a certain period of time.
Usually, historical volatility is measured by taking the daily (percentage price changes in a stock and calculating the standard deviation over a given time period, then this standard deviation is then expressed as an annualized percentage.
Historical volatility is often referred to as actual volatility or realized volatility.
Short-term or more active traders tend to use shorter time periods for measuring historical volatility, the most common being five-day, 10-day, 20-day, and 30-day.
Intermediate-term and long-term investors tend to use longer time periods, most commonly 60-day, 90-day, 180-day, and 360-day.
HODL is a term commonly used by cryptocurrency investors that refuse to sell their cryptocurrency regardless of the price increasing or decreasing. It is more frequently used during a bear market when people refuse to sell their coins despite the price drop.
HODL was later retrofitted as an acronym (backronym) for “Hold on for Dear Life” and refers to not selling, even during strong market volatility and poor market performance.
“Hold time” is the commonly used name for discretionary latency, where the execution of an inbound order from a trader is deliberately delayed pending a decision to fill or reject by the liquidity provider’s systems.
Liquidity providers (LPs) may apply or vary hold time based on their assessment of a customer’s market impact, the current market conditions, or their appetite to trade in a given direction.
A holder is someone who uses a holding(Long-term purchase and maintenance) strategy.
The currency of Honduras. Currency code (HNL)
The currency of Hong Kong. Currency code (HKD)
A horizontal channel is a chart pattern formed from two parallel trend lines drawn above and below price representing resistance and support levels
Like ascending and descending channels, horizontal channels are formed by drawing trend lines for both high and low prices on a chart. If prices remain reasonably constant overall for some period of time, the slope of both trend lines used in the chart will appear horizontal, and a horizontal trend channel will be formed.
Hot potato trading is the quick passing of currency inventory imbalances (due to an exogenous shift in the demand and supply of currencies) around the inter-dealer market.
Hot storage refers to a cryptocurrency wallet that is connected to the internet. Some examples of hot storages include online wallets, software wallets, and storing your cryptocurrency within an online exchange account. The opposite of hot storage is cold storage.
A hot wallet is a cryptocurrency wallet that is connected to the internet.
Housing Starts tracks how many new single-family homes or buildings were constructed throughout the month.
Housing starts are considered to be a leading indicator, meaning it detects trends in the economy looking forward. declining housing starts show a slowing economy, while increases in housing activity can pull an economy out of a downturn.
The currency of Hungary. Currency code (HUF)
A cryptocurrency storage and management system that is a combination of a software wallet (stored on your own computer) and a web wallet (stored on a third-party server).
The bulk of your digital currency account information is stored on the wallet host’s server, except for one important thing…your private key (the code that uniquely identifies you). the private key is stored only on your own device.
When you make a transaction, your private key is encrypted on the way to the exchange’s server, so they never see it. This is an impressive security feature, but access to your private key also includes a password (that only you know).
If you lose or forget that password, access to your account could be denied, and you could potentially lose the money in your account forever.
The IFO Business Climate Index is a monthly survey that measures the current business conditions of German firms (manufacturing, construction, wholesale and retail industries) and their business expectations six months ahead.
An illiquid market is a market that is difficult to sell due to a lack of interested buyers' available assets or because the market is not viable as a financial asset. Investments in these markets are often difficult to convert to cash without losing a significant portion of their value because of their large bid-ask spreads. Illiquid markets can hold high-value assets, but if no willing buyers are found, sellers may be forced to lower their prices or hold on to their investments longer than preferred.
A Limit IOC order is an order to trade at a specified limit price or better. this order will be canceled, if not filled in full.
When placing a Limit IOC order, a trader may specify a tolerance. Tolerance can be specified either as a fixed price increment or as a percentage of the current market price.
If the client specifies a tolerance, the broker may fill the order at a worse price than the trader had seen on the screen, provided the price difference does not exceed the client’s specified tolerance.
You usually cannot cancel IOC orders after submission.
Immutable means that something is unchanging over time or unable to be changed after creation.
Regarding cryptocurrencies, it means once data has been written to a blockchain no one can change it. This provides benefits for audit. As a provider of data, you can prove that your data hasn’t been altered, and as a recipient of data you can be sure that the data hasn’t been altered. These benefits are useful for databases of financial transactions.
Implied volatility can be thought of as a reflection of the volatility in the market at a given time, rather than the actual historical volatility calculated over a certain past period.
The import prices index follows the increase or decrease in the prices paid for goods imported to a host country. The figure is important in relation to the trade balance. Trade balance indicates the difference between exports and imports. Trade balance is one of the major compositions of a country
The In Neck pattern is a rare two-candlestick pattern that is created by a tall down candle, followed by a much shorter up candle that gaps down on the open but then closes slightly higher than prior candle’s close.
Since the In Neck appears in a downtrend, the candlestick pattern is considered a bearish continuation pattern.
To identify the In Neck, look for the following criteria:
- A downtrend must be in progress.
- A tall black (bearish) candle must appear.
- A smaller white (bullish) candle must follow the black candle.
- The white candle should open below the prior candle but its close should occur at or slightly above the close of the previous candle.
The In Neck pattern is very similar to the On Neck pattern, which also occurs during a downtrend and signals continuation of the current trend.
The big difference though is that with the On Neck pattern, the second candle closes slightly lower than the previous candle’s LOW.
The currency of Indian. Currency code (INR)
An indicative quote is a price quote that is informative only. It is a type of quote provided to a trader from a market maker that may be changed prior to a transaction.
It is a reasonable estimate of a currency pair’s current market price that is provided by a market maker upon request. this means that the quoted price may not be available to trade on.
The opposite of an indicative quote is a firm quote, which is guaranteed by the market maker.
But their actual dealing price or “firm quote” might change to 1.1042/44 without any obligation to honor the original indicative quote.
An indicative quote is also called “price indication” or just “indication“.
An exchange rate quoted as the foreign currency per unit of domestic currency. The domestic currency is always denoted as 1 while the foreign currency is variable.
Industrial Production measures the total value of output produced by manufacturers, mines, and utilities.
This data tends to react quickly to the expansions and contractions of the business cycle and can act as a leading indicator of employment and personal income data.
An index designed to measure changes in the level of output in the industrial sector of the economy. The index is grouped by both products (consumer goods, business equipment, intermediate goods, and materials) and industry (manufacturing, mining, and utilities).
Industrial Production and Capacity Utilization (IPCU) is a measure of economic activity, released on a monthly basis by the United States Federal Reserve. The IPCU report for each month contains data for previous months (for example, June’s report releases information on May) about the total amount of US industrial production for that month, expressed as a percentage of the gross production for a previous baseline year. The report also gives information about percentage changes from month to month and year to year, as well as a detailed breakdown of production by industry grouping, most broadly for manufacturing, mining and utilities. The data in the report is based on employment records that detail the total hours worked by industrial-sector employees.
The report also includes a measure of capacity utilization, meaning the percentage ratio of actual production to potential production. The report presents data about average capacity over a number of years, a record of percentage change in capacity from month to month, and a breakdown of capacity measures by industry and by stage of completeness (from crude to finished materials.)
Traders consider the IPCU report important as a gauge for the future performance of assets in the marketplace. Because of this, the report can also function as a “trigger” to increase buying or selling pressure in certain industries.
IBOR stands for Interbank Offered Rate – a type of interest rate benchmark that represents an average of the rates that banks will offer each other for loans of various maturities.
The most well-known and widely used IBOR is LIBOR. However, you might also encounter EURIBOR, TIBOR and other rates.
The currency of Iceland. Currency code (ISK)
The Ichimoku indicator is a comprehensive technical analysis tool introduced in 1968 by Tokyo columnist Goichi Hosoda. The concept of the system was the opportunity to quickly understand the direction of the trend, its dynamics and strength by interpreting all the five components of the system combined with the price dynamics in terms of cyclical character of their interaction caused by the group dynamics of human behavior.
An initial coin offering or ICO is an unregulated means by which a cryptocurrency venture, typically early stage can raise money from supporters by issuing tokens.
It is often referred to as a “crowdsale” as ICO participants may potentially earn a return on their investments (as opposed to crowdfunding, where supporters donate money to a project or cause).
The Initial Jobless Claims is a U.S. report that measures the number of individuals who filed for state unemployment insurance for the first time during the past week. continuing Jobless Claims, on the other hand, measures the number of individuals who are unemployed and are currently receiving unemployment benefits.
The Initial Jobless Claims is provided by the Employment and Training Administration of the Department of Labor, and the report comes out for viewing on a weekly basis, each Thursday. The report provides information on the data from the previous week, ending on Saturday before.
The initial margin requirement is the amount of money required to open a position in a given market through a brokerage. It is usually represented as a percentage of the total amount you seek to open as a position. A trader looking to trade £100,000 in the forex market place may pay £10,000 to a brokerage as a 10% initial margin requirement and would still get the total £100,000 exposure through the brokerage.
Also, margin in simple language, means money that is deposited as collateral with a broker or exchange.
Inside Bar pattern consists of two candlesticks. In fact, an Inside Bar candlestick is formed inside the previous candlestick (taking shadows into account). Its shape is such that this candle has a ceiling lower than the ceiling of the candle before it, and its bottom is in a position higher than the bottom of the candle before it.
This indicates that the pressure between buyers and sellers is becoming more balanced.
An institutional investor is a long-term investor such as a mutual fund, a pension fund, an insurance company, a reinsurance company, or an endowment fund.
They are sometimes referred to as “real money” investors.
In the foreign exchange market, the interest rate differential (IRD) refers to the difference in interest rates between two similar interest-bearing currencies. In the spot foreign exchange market, this pertains to the difference in interest rates in a pair.
For example, if the Australian dollar has an interest rate of 4.50% and the Japanese yen has an interest rate of 0.10%, then the interest rate differential between the two is 4.40%.
The IRD is one of the most important factors to consider when engaging in carry trade.
According to the theory of interest rate parity (IRP) the difference in national interest rates for financial securities and derivatives of similar risk and maturities should be equal to the forward rate discount or premium for the foreign currency.
This means that when an investor is choosing between whether to invest in the domestic market or in a foreign market, the returns would be approximately equal, given that the risks and maturities of the securities are similar.
Interest rate risk is the risk of change in the value of an asset as a result of volatility in interest rates.
Internalization refers to the process whereby a dealer seeks to match staggered offsetting client trading flows on its own books instead of immediately trading the associated inventory imbalance in the inter-dealer market.
Flow internalization refers to the practice of dealers matching trades through their own internal books, rather than trading on the open market.
Internalization occurs when a transaction is handled by an entity itself rather than routing it out to someone else. This process may apply to business and investment transactions, or to the corporate world. In business, internalization is a transaction conducted within a corporation rather than in the open market. Internalization also occurs in the investment world, when a brokerage firm fills a buy order for shares from its own inventory of shares instead of executing the trade using outside inventory.
Internalization is beneficial to a company as it cuts down the costs of outsourcing certain process such as manufacturing or selling products and services. The process also provides benefits to brokers, who can make money on the spread, or on the difference between the purchase and sale price.
The IMFC advises and reports to the IMF Board of Governors on the supervision and management of the international monetary and financial system, including responses to unfolding events that may disrupt the system.
It also considers proposals by the Executive Board to amend the Articles of Agreement and advises on any other matters that may be referred to it by the Board of Governors.
Although the IMFC has no formal decision-making powers, in practice, it has become a key instrument for providing strategic direction to the work and policies of the Fund.
The IMFC usually meets twice a year, at the Bank-Fund Annual and Spring Meetings.
The IMFC has 24 members who are central bank governors, ministers, or others of comparable rank and who are usually drawn from the governors of the Fund’s 189 member countries.
The currency of the International Monetary Fund.(IMF) Currency code (XDR)
Action by a central bank to affect the value of its currency by entering the market. Concerted intervention refers to action by a number of central banks to control exchange rates.
An inverted yield curve is when the yields on bonds with a shorter duration are higher than the yields on bonds that have a longer duration.
It often signals a lead-up to a recession or economic slowdown. Because yield curve inversions are rare, they typically attract attention from the financial world when it happens.
Investment management firms manage financial assets and funds of other institutions. They use the currency market to facilitate transactions in foreign securities.
Most investment management firms are able to manage the currency exposures of clients with the aim of generating profits as well as limiting risk. The actual number of these investment funds that exist is small (relative to banking institutions and commercial traders). Many investment firms have a large amount of assets under management and thus account for a huge share of daily currency trades.
Also known as IIROC, the Investment Industry Regulatory Organization of Canada is the regulatory body overseeing all trading activity on any debt and equity markets and investment dealers in Canada. IIROC came about from the merger between the Independent Dealers Association of Canada (IDA) and Market Regulation Services Inc (RS) in 2008.
Administration (CSA), which is made up of provincial securities commissions.
Symbol for S&P 500 index.
IOTA refers to the cryptocurrency and the name of an open source distributed ledger founded in 2015 that does not use a blockchain. It uses a new distributed ledger called the Tangle. It offers features such as zero fees, scalability, and fast and secure transactions. It is focused on the Internet of Things.
IOU is an acronym that stands for “I owe you”.
It refers to an informal document that acknowledges a debt one party owes to another. The debt usually involves a monetary value but can also be related to other goods, such as physical products or properties.
Owing to the informal quality of IOU, they tend to carry a certain degree of uncertainty and, unlike bonds and promissory notes, are not considered a legal negotiable instrument.
This means that the party in debt has no legal obligation to actually pay the debt just because they wrote down and signed an IOU. IOUs can be as simple as a piece of paper or even a verbal deal between members of the same family.
In some cases, businesses may also use IOUs as a method for informally recording how much they owe to another company or to their employees, for example. In essence, IOUs are nothing more than casual notes that people create in order to remind them they need to pay a debt in a future date.
The currency of Iran. Currency code (IRR)
The currency of Iraq. Currency code (IQD)
The currency of the Isle of Man. Currency code (IMP)
The ISM Manufacturing Survey is based on comments from purchasing managers in the manufacturing sector.
It’s the first piece of news on the economy every month and provides the earliest clues of how the economy has fared during the previous four weeks.
The ISM Non-Manufacturing Index (now called the Services PMI) is an index used to assess the performance of services companies in the United States. The reading, published monthly, is based on surveys of more than 400 purchasing and supply managers in non-manufacturing (services) firms.
Monitoring the ISM Services PMI helps traders and investors in US markets get a detailed snapshot and insight into the country’s economic conditions.
The ISM Services PMI (formerly the ISM Non-Manufacturing Index) provides for a detailed look at the economy from a non-manufacturing standpoint.
ISM stands for Institute of Supply Management, which is the non-profit organization responsible for measuring the Purchasing Managers’ Index or PMI for both the manufacturing and non-manufacturing industries in the United States.
The non-manufacturing PMI takes into account the business conditions in the services sector, such as employment, production, new orders, prices, and inventories, to determine whether the industry expanded or contracted during the month.
The ISM Services PMI comes out in the first week of each month.
A reading above 50.0 indicates industry expansion while a reading below 50.0 reflects a contraction.
ISO 4217 is the standard established in 1978 by the International Organization for Standardization which defines the rules to create the three-character codes representing each one of the global currencies in circulation.
ISO 4217 is the code used by banks and businesses internationally to designate the different currencies as well as in airline tickets or other international travel tickets to avoid confusion with the price.
The code is formed by three characters.
The first two representing the country, while the third one represents the name of the currency.
For example, the code for the New Zealand dollar combines the first two letters of the country (NZ) and the third letter, (D) for the dollar.
In the FX market, these codes eliminate potential confusion caused by common currency names shared like the dollar, peso, pound, or krona.
The currency of Israel. Currency code (ILS)
A measure of the change in purchases made by corporate executives. Generally used to determine economic growth and measure business optimism. If the optimal economic conditions are predicted, businesses will spend more in order to accommodate future demand for goods and services.
The ISM Non-Manufacturing Index is an economic index based on surveys of more than 400 non-manufacturing (or services) firms' purchasing and supply executives.
The index has five major components: business activity, new orders, inventories, employment trends and prices.
An index’s components are the individual companies that are listed on a stock index. For example, Apple is a component of the Nasdaq stock index. There is no set number of components an index must have.
Income tax is an annual charge levied either on earned income wages, salaries, commission) and unearned income (dividends, interest, rents, trading gains).
The currency of Kenya. Currency code (KES)
In public key cryptography, a key pair is a pair of private key(s) and public key(s) that are mathematically linked to each other. Public keys are used to encrypt data, and the private key of the key pair is used to decrypt that data. This is known as asymmetric encryption. Key pairs are used to control access to your cryptocurrency.
The currency of Kazakstan. Currency code (KZT)
To limit your trades due to inclement trading conditions. In either choppy or extremely narrow markets, it may be better to stay on the side lines until a clear opportunity arises.
The Keltner Channel or KC is a technical indicator that consists of volatility-based bands (or channels) set above and below a moving average.
The Keltner Channel is used to signal possible price breakouts and provide overbought and oversold readings.
The indicator is similar to Bollinger Bands (BB). But instead of using the Standard Deviation (SD) to set the distance of the bands from the moving average, Keltner Channels use the Average True Range (ATR.
The Keltner Channels (KC) indicator is categorized as an envelope, similar to Bollinger Bands(BB) and Moving Average Envelopes (MAE).
The basic idea behind the Keltner Channels indicator was introduced by Chester Keltner in his 1960 book, How to Make Money in Commodities.
His ideas have been expanded upon and simplified by Market Wizard and hedge fund trader, Linda Bradford Raschke. Raschke popularized the use of an exponential moving average (EMA for the Middle Line and using Average True Range (ATR) for the Upper and Lower Envelopes."
The “kimchi premium” is what’s known in the cryptocurrency world as the extra price margin over global bitcoin prices that occur on Korean cryptocurrency exchanges. It is a measure of how much more South Koreans pay for bitcoin.
The spread, the difference between the price of bitcoin on South Korean and non-Korean crypto exchanges, is called the “kimchi premium”.
It’s named after kimchi, a popular Korean pickled side dish.
The “kimchi premium” first appeared in early 2016, according to researchers at the University of Calgary.
The paper explains that the reason why bitcoin prices drop during Asia’s trading hours is due to traders selling bitcoin at higher prices on crypto exchanges based in South Korea.
How it works is cryptocurrency traders purchase large amounts of bitcoin outside the Korean market (because the price is lower) and sell it back on the Korean market to gain a profit. The phenomenon is referred to as “arbitrage trading.”
The kiwi is a common name for the New Zealand dollar, the official currency of New Zealand
A knock-in option is a type of contract that is not an option until a certain price is met. So if the price is never reached, it is as if the contract never existed. However, if the underlying asset reaches a specified barrier, the knock-in option comes into existence.
Knock-ins are a type of barrier option that are classified as either a down-and-in or an up-and-in. A barrier option is a type of contract in which the payoff depends on the underlying security's price and whether it hits a certain price within a specified period.
A knock-out option is a type of option that expires or “knocks out” if the asset surpasses or falls below a certain price. The knock-out options contract is active until the predetermined price is hit. Knock-out options are one example of barrier options: options contracts with earnings dependant on whether the underlying asset reaches a specific price level, referred to as the barrier price. Until the asset reaches the barrier price or expires, the knock-out options contract is active. If the barrier price is reached, the options contract expires prematurely. There are two types of knock-out options:
Down-and-out options are active until the asset dips to or below a predetermined barrier price.
Up-and-out options give the holder the right to buy or sell an asset at a specific price if the option does not rise to or past a specific barrier price.
Knock-out options are mainly used in commodity and currency markets and can be traded over-the-counter. Premiums on these options are usually cheaper than regular options, but buyers run the risk of not realising any profits if the price target is hit.
KYC is short for “know your customer” or “know your client”.
KYC is the process of a business, involved with financial transactions, to identify and verify the identity of customers.
When you set up an account with a crypto exchange, you’ll typically be asked to go through the KYC process.
This is a standard identity verification that crypto exchanges require for anyone who wants to trade crypto.
When you complete KYC, you’ll be able to deposit money to buy and sell crypto and make withdrawals.
The purpose of KYC is to confirm that a customer is who they claim to be and to prevent illegal activities, such as money laundering, evading taxes and funding terrorist groups.
If a crypto exchange doesn’t perform Know-Your-Customer (KYC), then it could be liable for those kinds of illegal activities.
Some crypto exchanges may allow you to create an account without the KYC process, but the account will have restrictions such as limitis on the amount of money you’re able to deposit or withdraw from the account.
The currency of Kuwait. Currency code (KWD)
The currency of Kyrgyzstan. Currency code (KGS)
The currency of Laos. Currency code (LAK)
The last time you may trade a particular product.
The last trading day is one day prior to the expiration date of a derivatives contract. The last trading day is the final day you can trade or close out your position before the commodity is delivered or settled in cash the following day. Once the last trading day passes, the derivative is no longer tradable, and the settlement process begins.
Latency is the delay between the transmission of information from a source and the reception of the information at its destination.
One specific example is the time that elapses between the placement of an order in an electronic trading system and the execution of that order.
The delay can be affected by factors such as geographical distance or bandwidth congestion.
Latency-driven trading describes a rading strategy that attempts to profit from latency differentials across traders or trading platforms.
The currency of Latvia. Currency code (LVL)
A leading indicator is any measurable or observable variable of interest that predicts a change or movement in another data series, process, trend, or other phenomenon of interest before it occurs.
Leading indicators are used by traders to predict imminent changes in a market. Since leading indicators change before an actual market changes, traders consider them important as guidelines for investing wisely to take advantage of price events before they occur.
In some cases, leading indicators are useful mainly as a guideline for potential change in a market, rather than assured change. For example, information about employment records, building permit applications and prominent changes in the executive lineup of a corporation can reflect coming changes in the production level of the corresponding asset, or in the buying or selling pressure on that asset. However, this kind of leading indicator should be used as a guideline to investment rather than as a sure-fire prediction of future events.
In other cases, leading indicators can actually change the behavior of a market. A number of leading indicators–among them unemployment insurance claims, the amount of money in the economy, and increases in the production workweek–are watched by the Federal Reserve in order to determine whether or not to change the interest rate. Thus some traders watch these leading indicators carefully, and if enough leading indicators seem to point to the fact that the Fed is preparing a change in interest rates, traders can take the appropriate actions.
Caused by an expected change in exchange rates. An expected increase in exchange rates may speed up transactions while an expected decrease may slow exchange rates.
The currency of Lebanon. Currency code (LBP)
In accounting, this is the book or computer file for recording and totaling transactions by account. It includes a beginning balance, debits, credits and an ending balance.
The currency of Lesotho. Currency code (LSL)
Liabilities are sums owed by a person or company, usually cash, that are settled through the transfer of cash, goods, or services. On balance sheets, liabilities are recorded on the right side against the figure’s assets. Liabilities include loans, accounts payable for goods or services, mortgages, deferred revenues, bonds, warranties, and accrued expenses. Liabilities may also refer to a legal or regulatory risk or obligation.
The currency of Liberia. Currency code (LRD)
LIBID stands for London Interbank Bid Rate. LIBOR stands for London Interbank Offered Rate.
The currency of Libya. Currency code (LYD)
he Lightning Network is a low latency, off chain P2P system for making micropayments of cryptocurrencies. It offers features such as instant payments, scalability, low cost and cross-chain functionality. Participants do not have to make individual transactions public on the blockchain and security is enforced by smart contracts.
The Linear Regression Channel is a three-line technical indicator used to analyze the upper and lower limits of an existing trend.
Linear regression is a statistical tool used to predict the future from past data. It is used to determine when prices may be overextended.
A Linear Regression Channel gives potential buy and sell signals based on price volatility.
Think of the trend line as the “equilibrium” price, where any move above or below the trendline indicates overzealous buyers or sellers.
When prices deviate above or below the line, you can expect the price to go back towards the Linear Regression Line.
When prices are below the Linear Regression Line, this is considered bullish.
When prices are above the Linear Regression Line, this is considered bearish"
A liquid market a one with many available buyers and sellers and comparatively low transaction costs. The details of what makes a market liquid may vary depending on the asset being exchanged. In a liquid market, it is easy to execute a trade quickly and at a desirable price because there are numerous buyers and sellers and the product being exchanged is standardized and in high demand. In a liquid market despite daily changes in supply and demand the spread between what the buyer wants to pay and what sellers will offer remains relatively small.
Liquidity aggregator refers to technology that allows participants to simultaneously obtain streamed prices from several liquidity providers/pools.
Computer algorithms allow customization of the price streams for both the liquidity provider and the receiving counterparty.
The liquidity coverage ratio (LCR) refers to the proportion of highly liquid assets held by financial institutions, to ensure their ongoing ability to meet short-term obligations. This ratio is essentially a generic stress test that aims to anticipate market-wide shocks and make sure that financial institutions possess suitable capital preservation to ride out any short-term liquidity disruptions that may plague the market.
A liquidity trap is an economic situation where people hoard money instead of investing or spending it. as a result, a nation’s central bank can’t use expansionary monetary policy to boost economic growth.
A liquidity trap causes a central bank’s monetary policy to become ineffective.
It often occurs when short-term interest rates are at zero (ZIRP) or negative (NIRP).
This list contains stocks which are approved for trading on the stock exchanges. Before you get to the stock in the list, the shares go through the admission procedure - listing. Only companies that have been checked for compliance with certain requirements, such as capitalization, volumes of products sold, the number of securities in circulation, and others, are admitted to trading.
The currency of Lithuania. Currency code (LTL)
The London session—also known as the European session—is one of three trading sessions responsible for keeping the forex market open 24 hours a day. The session opens as the Tokyo (Asian) session winds down and close several hours after the New York (North American) session begins. The London session runs during the city’s official business hours: from 7:30 a.m. to 3:30 p.m. The final four hours of the London session experience the highest volume of trades due to its overlap with the New York session.
A long candle represents a single Japanese candlestick where the length (or height) of the candlestick’s body is very long. The large body indicates a huge price move from open to close.
Long white/green candlesticks indicate there is strong buying pressure. This typically indicates the price is bullish. That said, a long candle should be looked at in the context of the overall price action as opposed to just as a standalone candle
For example, a long white candle is likely to have more significance if it forms at a major support level.
Long black/red candlesticks indicate there is significant selling pressure. This suggests the price is bearish.
Long term trading, otherwise known as position trading, refers to a trading style in which the trader will hold on to a position for an extended period of time. A position trade can last anywhere from a few weeks to a couple of years.
Most long term trading traders rely heavily on fundamental analysis, as they are mostly concerned with the future outlook of the market they are trading. They are not as concerned with the intraday ups and downs and instead focus on the fundamental factors driving the longer term trend. Because of their longer term outlook, long-term traders will normally look at daily, weekly and even monthly charts for their analysis
This candlestick has long upper and lower shadows with the Doji in the middle of the candle’s trading range, clearly reflecting the indecision of traders.
The currency of Libya. Currency code (LYD)
M2 is a measure of the money supply that includes cash, checking deposits, and easily convertible near money. Economists use M followed by a number to designate certain portions of the money supply.
There are two definitions of money: M1 and M2 money supply.
M2 is a broader measure of the money supply that M1, which just includes cash and checking deposits.
M2 is closely watched as an indicator of money supply and future inflation, and as a target of central bank monetary policy.
The exact use of this indicator of money supply varies between economies.
In the US, M1 is the total amount of cash and checking account balances. M1 money supply includes coins and currency in circulation—the coins and bills that circulate in an economy that the U.S. Treasury does not hold at the Federal Reserve Bank, or in bank vaults.
The currency of Macau. Currency code (MOP)
"The MACD or “Moving Average Convergence / Divergence” indicator is a momentum oscillator used to trade trends.
MACD plots the distance between moving averages and helps traders identify trend direction and whether the bullish or bearish momentum in the price is strengthening or weakening.
Although MACD is an oscillator, it is NOT typically used to identify overbought or oversold conditions.
Market contagion refers to the spread of disturbances (usually a sell-off) from one country and one market to another. Foreign exchange rates, stock market prices and sovereign bond prices can all be quickly affected by contagion.
Financial contagion can happen internationally and domestically. At a domestic level, the failure of a bank or financial intermediary can trigger a domino effect.
For example, the subprime mortgage securities crisis caused the temporary collapse of the Western Hemisphere banking system. Banks failed, cash rushed into haven currencies and assets, as many global stock markets crashed.
The Market Facilitation Index is created to evaluate the market willingness to move the price.
Market impact is the market reaction to a given set of trades.
Market impact characterizes the response of the market typically in terms of price changes to a given set of trades. The interpretation of market impact is highly subjective.
Market intervention is any action taken by a government or other political-action group to modify or adjust the market. Market intervention through monetary policy is a common tool used by governments to regulate markets. Governments mainly intervene in markets by setting interest rates, subsidies and tariffs, and industry regulations.
An order to buy or sell at the current price.
The Markets in Financial Instruments Directive, commonly known as MiFID, is a law that was created by the European Union for the purpose of regulating all investment services in member states of the European Economic Area (EEA).
The European Economic Area (EEA) combines the countries of the European Union (EU) and member countries of the European Free Trade Association (EFTA) to facilitate participation in the European Market trade and movement without having to apply to be one of the EU member countries.
The Markets in Financial Instruments Directive (MiFID) is a European regulation that increases the transparency across the European Union’s financial markets and standardizes the regulatory disclosures required for firms operating in the European Union.
The goal of the Markets in Financial Instruments Directive (MiFID) is to increase transparency across EU financial markets and to standardize regulatory disclosures for firms.
A Marubozu is a long or tall Japanese candlestick with no upper or lower shadow (or wick).
The candlestick pattern comes in both a bearish (red or black) and a bullish (green or white) form and is easy to spot due to its long body.
It basically looks like a vertical rectangle.
To identify a Marubozu candlestick pattern, look for the following criteria:
- The single candle involved in the signal should have a long body.
- There must not be an upper or a lower shadow (or wick).
- The candle can be white/green or black/red, and it can appear anywhere on the chart.
- A white/green Marubozu moves upward and is very bullish.
- A black/red Marubozu moves downward and is very bearish.
- The longer the candle is, the stronger the price move.
The maturity date is the date that a debt instrument—such as a note, draft, or acceptance bond—becomes due. These dates can vary depending on the instrument and contract received. Maturity date may also refer to the expiration date for futures and options contracts or the date an instalment loan must be fully paid back.
The currency of Mauritania. Currency code (MRO)
The currency of Mauritius. Currency code (MUR)
An approximation of the maximum number of coins or tokens that will ever exist for a cryptocurrency or digital token.
Can be found by multiplying the maximum leverage ratio by the account value.
The McClellan Oscillator is a technical indicator for determining the behavior of an overall market, rather than the behavior of a single asset.
It is essentially a look at the momentum of the underlying breadth of the market.
When it is above zero, momentum is positive; below zero, it is negative. It also works as an overbought/oversold indicator when it pushes above +100 or below -100, respectively.
Mean reversion is a trading strategy assuming that price will move back to its average price following a temporary price spike or extended price move.
A mechanical trading system is often touted as the end-all to Forex trading. Traders choose a system to follow and enter it into a program that will then pick starting and stopping points for trades as well as maintain a position, without requiring a trader be present to control those actions.
Medium-term traders hold positions for a few days, taking advantage of fundamental factors and technical setups. Compared to scalping and long-term trading, medium-term trading has the lowest capital requirements. However, there are fewer trade opportunities for this type of trading.
This type of trading involves looking at multiple time frames and the use of technical indicators, such as moving averages and stochastics. Aside from those, it also makes use of support and resistance levels, trend lines, Fibonacci retracements and extensions, and pivot points. Candlestick formations and chart patterns are also useful.
The Medley Report refers to the Medley Global Advisors, a market consultancy based in New York that’s focused on macro policy. It serves some of the world’s largest hedge funds, asset managers, banks, and institutional investors. The Medley Reports contain coverage of global economies, commodities, indices, and various markets.
MetaTrader 4 (MT4) is a trading platform developed by MetaQuotes in 2005.
Although it is most commonly associated with forex trading, MetaTrader 4 can be used to trade a range of markets, not just forex.
Like most online trading platforms, MT4 allows traders to view charts, stream live prices, and place orders with their broker
MetaTrader 5 (MT5) is a multi-asset trading platform by MetaQuotes. that allows trading forex, stocks, and futures.
Like most online trading platforms, MT5 allows traders to view charts, stream live prices, and place orders with their broker.
Trading on MT5 gives traders access to financial markets including foreign exchange, commodities, CFDs, stocks, futures, and indices.
Its diverse functionality includes fundamental and technical analysis tools, copy trading, and automated trading.
The currency of Mexico. Currency code (MXN)
Microstructure refers to price formation, price discovery, transaction and timing cost, information disclosure, and the associated behavior of rational participants in financial markets.
MiFID II is a legislative framework instituted by the European Union (EU) to regulate financial markets in the European Economic Area (EEA) and improve protections for investors.
Its aim is to standardize practices across the EU and restore confidence in the industry.
One of the most influential laws enacted by the European Union to regulate the investment sector is the Markets in Financial Instruments Directive. This directive, which is usually referred to as MiFID, has been in place since 2007 and has dramatically changed how the investment sector is run.
Mining is the process where transactions are verified and added to a blockchain. It is also the process where new bitcoins or certain altcoins are created.
In theory, anyone with a computer and access to the internet can be a miner and earn income, but nowadays, the cost of industrial hardware and electricity has limited mining for bitcoins and certain altcoins to large-scale operations.
Most cryptocurrencies will eventually stop being created when they reach a predetermined amount known as a mintage cap. This is the maximum supply of the coins and the level at which no more coins will be created.
Bitcoin’s theoretical limit is 21 million coins.
Synonymous with black box. Systems that automatically buy and sell based on technical analysis or other quantitative algorithms.
The currency of Moldova. Currency code (MDL)
Momentum indicators are technical analysis tools used to determine the strength or weakness of a stock's price. Momentum measures the rate of the rise or fall of stock prices. Common momentum indicators include the relative strength index (RSI) and moving average convergence divergence (MACD).
Traders who align themselves with an intra-day trend that attempts to grab 50-100 pips.
A momentum trade is a trading strategy where a trader buys currencies with high past excess returns (”winners”) and sells in currencies with low past excess returns (”losers”).
The portfolio of winner currencies might contain both high interest rate currencies, such as the New Zealand dollar, and low interest rate ones, such as the Japanese yen or the Swiss franc.
Monero (XMR) is a type of cryptocurrency created in 2014 that is focused on privacy and scalability, and runs on platforms like Windows, Mac, Linux and Android. Transactions on Monero are designed to be untraceable to any particular user or real world identity
Monetary easing is the policy in which a central bank lowers interest rates and deposit ratios to make credit more readily available. This makes borrowing easier for businesses, stimulating investment and operations expansion.
Monetary easing is part of an expansionary monetary policy. The immediate result of monetary easing is generally a boost in stock prices. In the medium term, it promotes economic growth. However, if this policy remains for too long, it can lead to a situation in which there is too much money chasing too few goods and services, leading to inflation. For this reason, most central banks alternate between monetary easing policies and monetary tightening to encourage growth while keeping inflation under control.
Monetary policy refers to the actions taken by a nation’s central bank to influence the availability and cost of money and credit to promote a healthy economy.
These are achieved by actions such as modifying the interest rate, buying or selling government bonds, regulating foreign exchange rates, and changing the amount of money banks are required to maintain as reserves.
Monetary policy can be broadly classified as either expansionary or contractionary.
Monetary policy tools include open market operations, direct lending to banks, bank reserve requirements, unconventional emergency lending programs, and managing market expectations (subject to the central bank’s credibility).
The currency of Macedonia. Currency code (MKD)
The currency of Madagascar. Currency code (MGA)
Maintenance margin is the amount that must be available in funds in order to keep a margin trade open.
It is also known as the variation margin or “free margin”.
Its purpose is to ensure you have enough money in your account to fund the present value of the position at all times and cover any running losses.
You need enough maintenance margin to “maintain” your open positions.
The maintenance margin is one of the two types of margin required to make a leveraged trade.
The other is the initial margin (or deposit margin), which is the amount needed to open a new position.
To keep a leveraged position open, a certain amount of funds must be paid and kept in your account.
If your position starts to make a loss, then your deposit may no longer be enough to keep the trade open.
In this case, your broker will ask you to increase the funding in your account. This is called a margin call.
The currency of Malawi. Currency code (MWK)
The currency of Malaysia. Currency code(MYR)
The currency of Maldives. Currency code (MVR)
The currency of Malta. Currency code (MTL)
Mark to market (MTM) is an accounting method that values an asset, portfolio or account at its current market price instead of an assumed book value. An asset’s mark to market value reveals how much a company gets if it sells it at that point in time.
In equities, it refers to the total market value of a company’s outstanding shares.
In cryptocurrency investing, it refers to either price multiplied by the circulating supply (free float market cap).
The Monetary Policy Committee (MPC) is the voting committee of the that decides the official benchmark interest rate of the U.K. They convene for two and a half days every month.
The committee has 9 voting members, including the Bank of England Governor
Monetary tightening is the policy in which a central bank raises interest rates and deposit ratios to make credit less readily available. This usually happens when the central bank seeks to slow down overheated economic growth.
Monetary tightening is considered a contractionary monetary policy.
Central banks engage in tight monetary policy when an economy is accelerating too quickly, or inflation is rising too fast.
Raising interest rates increases the cost of borrowing and effectively reduces its attractiveness. Tight monetary policy can also be implemented by selling assets on the central bank’s balance sheet to the market through open market operations.
Monetary tightening can negatively impact security prices and make receiving a loan for a house or business hard.
Money Flow Index (MFI) is a technical indicator developed to evaluate money inflow intensity into an asset by comparing price increases and decreases over a certain period, considering trading volumes.
The currency of Mongolia. Currency code (MNT)
Moody’s Corporation is one of the Big Three players in the credit rating industry.
Moody’s started around 1900 when John Moody and his colleagues published ” Moody’s Manual of Industrial and Miscellaneous Securities,” which contains essential information on a wide range of securities.
Today, Moody’s Investor Service offers information, research, risk analysis, and credit ratings of over 106,000 structured finance obligations.
This refers to a cryptocurrency’s extreme upward momentum as it keeps climbing in price.
The Morning Star is a bullish three-candlestick pattern & It warns of weakness in a downtrend that could potentially lead to a trend reversal.
The morning star consists of three candlesticks with the middle candlestick forming a star.
To identify a Morning Star, look for the following criteria:
- The price must be in a downtrend before the signal occurs.
- The first candle must confirm the downtrend with a long black (or red) body. This shows that the bears have firm control of the stock
- The second candle must convey a state of indecision through either a Star candlestick (of either color) or a Doji.
- This shows that supply and demand are equal, and the bears and the bulls are fighting for control.
- The third candle must be represented by a white (or green) candle that closes at least halfway up the first day’s black (or red) candle.
- This last candle confirms that a reversal will occur
The currency of Morocco. Currency code (MAD)
Mortgage Backed Securities (MBS)
A mortgage-backed security (MBS) provides investors with a monthly pro-rata distribution of any principal and interest payments made by homeowners.
A Moving Average (MA for short) is a technical indicator that averages a currency pair’s price over a period of time.
Moving averages are highly popular among forex traders mostly because of their simplicity.
In statistics, a moving average is simply a mean of a certain set of data. In the case of technical analysis, these data are in most cases represented by the closing prices of currency pairs for a certain time period.
The indicator is used to determine the overbought and the oversold situations.
Moving Average of Oscillator (OsMA) is a technical analysis tool which reflects the difference between the oscillator (like MACD) and its moving average (the signal line).
MACD indicator shows the convergence/divergence of moving averages and is designed to assess the strength and direction of a trend, as well as to identify the possible reversal points by receiving signals from the combination of three time series of moving averages (fast, slow and signal).
The currency of Mozambique. Currency code (MZM)
Multiple time frame analysis is the process of viewing the same currency asset across different time frames on a chart.
Multiple time frame analysis follows a top-down approach when trading and allows traders to gauge the longer-term trend while finding ideal entries on a chart with a shorter time frame.
Using multiple time frame analysis can improve the odds of success for a trade.
Multisignature (multisig) refers to requiring more than one key to authorize a transaction. It is generally used to divide up responsibility for possession of a cryptocurrency.
For example, standard transactions on the Bitcoin network could be called “single signature transactions” because transfers require only one signature….from the owner of the private key associated with the Bitcoin address.
However, the Bitcoin network supports much more complicated transactions that require the signatures of multiple people before the funds can be transferred.
The currency of Myanmar(Burma). Currency code (MMK)
Market capitalisation refers to the value of a company’s shares. The figure is reached by multiplying the number of shares that have been issued by the current share price. Investors find the MCAP figure useful for determining the size of a company.
An order that is executed at the best price available in the market, with no requotes.
A FUDster is an individual who is intentionally spreading FUD.
FUD stands for “fear, uncertainty, and doubt” and refers to a general mindset of pessimism about a particular asset or market, manipulating investor or consumer emotions so that they succumb to FUD.
While the term “fear, uncertainty, and doubt” has been in circulation for a century, it became famous as the FUD abbreviation in the 1970s — and is widely known more recently, thanks to the highly volatile crypto markets. FUD is also used throughout finance and can apply to any asset class.
The normal trading activities carried out by the dealer.
The fractal indicator is based on a simple price pattern frequently seen in financial markets. Outside trading, a fractal is a recurring geometric pattern repeated in all time frames. From this concept, the fractal indicator was devised. The indicator isolates potential turning points on a price chart. It then draws arrows to indicate the existence of a pattern.
The bullish fractal pattern signals the price could move higher. A bearish fractal signals the price could move lower. A down arrow marks bullish fractals, and an up-arrow mark bearish fractal.
Forward points are the number of basis points added to or subtracted from the current spot rate to determine the forward rate.
Forward guidance attempts to influence the financial decisions of households, businesses, and investors by providing a guidepost for the expected path of interest rates. The central bank's clear messages to the public are one tool for preventing surprises that might disrupt the markets and cause significant fluctuations in asset prices.
Forward guidance is a vital tool of the Federal Reserve (Fed) in the United States.
Other central banks, such as the Bank of England (BOE), the European Central Bank (ECB), and the Bank of Japan (BOJ), use it as well.
A forward contract is a non-standardized contract between two parties, who enter into an agreement to complete a transaction sometime in the future. The two parties agree today to buy (sell) an asset at a specific date in the future at a specific price.
The price that the buyer and the seller agree upon is called the delivery price.
Forex trading is the simultaneous buying of one currency and selling another. When you trade in the forex market, you buy or sell in currency pairs. As the value of one currency rises or falls relative to another, traders decide to buy or sell currencies to make profits. Retail forex traders participate in the forex market as speculators who are hoping to profit from fluctuations in currency rates. Each currency in the pair is listed as a three-letter code. The first two letters stand for the country (or region), and the third letter standing for the currency itself. For example, USD stands for the US dollar and CAD for the Canadian dollar.
The forex spot rate is the current exchange rate at which a currency pair can be bought or sold. It is the prevailing quote from a forex broker for any currency pair. Forex currency trading is the rate most traders use when trading with an online retail forex broker.
The foreign exchange market is a global decentralized or over-the-counter market for the trading of currencies. This market determines foreign exchange rates for every currency. It includes all aspects of buying, selling and exchanging currencies at current or determined prices.
Foreign currency effects are gains or losses on foreign investments due to changes in the relative value of assets denominated in a foreign currency. A rising domestic currency means foreign investments will have lower returns when converted back to the local currency. On the other hand, a declining home country currency will increase the domestic currency returns of foreign investments. Various strategies exist to deal with or reduce this type of currency risk.
The Force Index indicator was created by Dr. Alexander Elder, who first described the indicator in his 1993 book Trading for a Living. He said the Force Index is an oscillator that measures the bullish force behind rallies and the bearish force behind declines.
The Force Index indicator is an oscillator that attempts to gauge the strength behind price movements. It does this by combining three critical pieces of market data. These are:
The direction of price change;
The magnitude of price change;
FOMO stands for "fear of missing out." This concept means that a person performs impulsive and emotional behavior simply because he fears losing the benefit of the situation.
This is the fear of missing out on the profits you might make if you don't buy a digital currency as soon as possible, regardless of its current price. The cryptocurrency market is based more on emotion than logic, so FOMO is a huge factor when trading cryptocurrencies.
FOMC minutes are a detailed record of the Federal Open Market Committee (FOMC) meetings and are released three weeks after every meeting. The minutes offer more concise insights on the monetary policy stances of all members of the committee and how individual members see the value of the USD and other securities. Analysts comb through these minutes to determine if individual committee members are striking hawkish or dovish tones in their remarks, regardless of what tone the statement took weeks prior.
Federal Open Market Committee(FOMC ) meeting refers to the 12 members of the FOMC who meet eight times a year to discuss monetary policy. During the FOMC meeting, members discuss developments in the local and global financial markets and economic and financial forecasts.
FOMC meetings are key events in the financial markets and, for traders, are considered one of the most important events on the economic calendar.
The (FOMC ) meetings are important to forex traders because this is when the Federal Reserve, the U.S.'s central bank, announces its interest rate decision. This announcement has a significant impact on the U.S. dollar.
A floating exchange rate refers to currencies that are allowed to change freely as influenced by an open market rather than being fixed to the value of another currency. Unlike fixed exchange rates, these currencies are in continuous fluctuation and float freely. They are unrestrained by government controls or trade limits. Changes in factors such as interest rates, inflation, political stability, capital flows, trade flows, employment, tourism, and speculation, maintain free-floating currencies in continuous movement.
The point in which a trader switches from having more long positions to more short positions.
A flat market describes when the price for a certain security neither rises nor falls for a significant time period. Flat markets can occur when there is low trading volume or when increasing price movements on some securities are offset by declining price movements of other securities in the same index. In forex, a flat market occurs when a currency pair fails to move significantly up or down and does not contribute a significant loss or gain to the forex trading position.
A slang term used to describe a situation that has created a neutral position. In fact, visually, it seems that the graph does not have an upward or downward price trend and is moving in a straight line, in the so-called neutral trend.
The flag pattern, according to its name, consists of a rod and the flag itself, which is a rectangle, and this rectangle is formed sometimes in an ascending state, sometimes in a gentle downward slope, or in a horizontal state. The flag is one of the continuing patterns.
A fixed exchange rate is a system in which one currency is pegged to another currency, and most of these currencies are pegged to the U.S. dollar or the euro.
In these cases, the monetary authorities aim to keep their currency’s value stable and avoid wild exchange rate fluctuations.
There are several advantages to a fixed exchange rate:
1. Stable value
When one currency is pegged to another, the dangers of fluctuation are significantly reduced. This is particularly important for countries with weaker economies for whom sudden exchange rate fluctuations could have devastating consequences. Pegging their currency to a stronger currency protects against such volatility.
2. Promotes foreign investment
More excellent currency stability attracts investors as it guarantees that the value of their assets will not be suddenly wiped out due to exchange rate fluctuation.
3. Helps governments to contain inflation
A fixed exchange rate provides excellent stability for import/export prices and protects against the risk of currency devaluation.
4. Promotes exports
Fixing the exchange rate helps governments keep the value of their currency at a level appropriate to support the export sector. This ensures that the price of products and services remains competitive in overseas markets.
FIX API is a messaging protocol that is widely used in the electronic trading industry.
It is by no means exclusive to forex trading. In fact, FIX API is used by stock, metals, futures, and options exchanges.
Fitch Ratings is an international credit rating agency based out of New York City and London. Investors use the company's ratings as a guide for which investments will not default and yield a solid return. Fitch bases the ratings on factors such as what kind of debt a company holds and how sensitive it is to systemic changes like interest rates.
The Fisher effect describes the relationship between interest rates and inflation. According to Irving Fisher, the brains behind this amazing theory, the real interest rate is equal to the nominal interest rate minus the expected inflation.
With the real interest rate held constant, a rise in expected inflation should be accompanied by an increase in the nominal interest rate. In other words, if a central bank expects a considerable rise in price levels, they could hike rates accordingly.
Fiscal policy is how governments adjust their spending and taxation levels to influence the economy directly. Fiscal policy goes hand in hand with monetary policy (how central banks control the money supply) to achieve various economic goals.
Fiscal policy gained popularity during the 1930s after British economist John Maynard Keynes had advocated it. He suggested that whenever a nation is in recession, putting more money in the hands of consumers could lead to economic growth. This could be done by reducing taxes or increasing government spending.
Rule in which positions are closed in the order they were originally opened. Also known as FIFO.
A firm quote is a quote displayed at which the market maker is obligated to buy or sell at the quoted price.
The Financial Stability Board (FSB) is an international body that monitors and makes recommendations about the global financial system. It was established after the G20 London summit in April 2009 as a successor to the Financial Stability Forum (FSF). The Board includes all G20 major economies, FSF members, and the European Commission.
A financial instrument is an asset, but refers specifically to contracts that can be traded, transferred, or exchanged.
Financial instruments involve one party owing another party something: cash, part ownership of a company, interest, or future delivery of another asset. They include equities (shares), loans, bonds, currency, futures contracts, options, and U.S. Treasury bills and notes.
There are other kinds of assets besides instruments. An asset can be anything of value that has a price. All of these are assets:
Barrels of oil
Bushels of corn
Shares of company stock
Stock index futures contracts
While corn, gold, and oil are not financial instruments., a contract for immediate or future delivery of corn, gold, or oil is a financial instrument.
also there are two types of financial instruments:
Financial Institution (FI) is an umbrella term that refers to the collection of institutions that are active in the (private and/ or public) financial markets. A financial institution typically provides a wide variety of deposit, lending, and investment products to individuals, businesses, or both.
A possible classification would be: central banks, retail and commercial banks, internet banks, credit unions, savings and loan associations, investment banks, investment companies &. .
The Financial Conduct Authority (FCA) is responsible for functioning the U.K.'s financial markets. The organization's goal is to ensure honest and fair markets for individuals, businesses, and the economy as a whole. The Authority protects consumers, protects the financial markets, and promotes competition. The FCA falls under the purview of the U.K.'s Treasury and Parliament.
A filled order, of fill for short, is simply an executed order in the markets. It is an order that has had its parameters filled, whether it was an order to buy or sell an asset, to open or close a position. For example, if you were to create an order to buy a stock at $45, and your order is accepted, it would be said to have been ‘filled’ and $45 would be the ‘fill price’.
Fill ratio measures the number of successfully filled orders as a fraction of the total number of orders placed, normally stated as a percentage.
The price at which an order was executed.
The currency of The Philippines. Currency code (PHP)
The currency of Fiji. Currency code (FJD)
Traders with Fibonacci time zones in this trading tool break a time frame into smaller chunks to extract useful information from it. The end of each cycle will (probably!) indicate a significant change in asset prices. These time zones focus on the speed of price swings, and Fibonacci time zones are basically points that predict important market events such as a reversal of a price pattern or a significant price change in the direction of a trend. also, Unlike the other charting techniques Time Zones focus on the timing rather than the price movements.
In practice, Fibonacci time zones do have a large measure of predictive power (something like 70%), but on occasion, large price events can occur between Fibonacci time zones, even though the time zones usually still correspond with price events of some size. Because of this occasional inaccuracy, Fibonacci time zones and Fibonacci time projection should only be used as guidelines, and should also only be used in conjunction with other technical analysis tools.
Fibonacci time projections are a combination of Fibonacci extensions and Fibonacci time ratios. While being plotted much like the Fibonacci extensions, they feature vertical lines like Fibonacci time ratios do. Although this only describes 30% of cases, Fibonacci time projection should only be used in conjunction with other technical analysis tools, and as a guideline for trading rather than a sure-fire method of divining the future."
Fibonacci studies encompass a series of technical analysis tools based on Fibonacci numbers and ratios representing geometric laws of nature and human behavior, applied to financial markets.
The Fibonacci series was introduced by an Italian mathematician, Leonardo Pisano Bogollo who was also known as Fibonacci (son of Bonacci), in his 1202 manuscript Liber Abaci.
The series is derived by finding the sum of the two preceding numbers in the series, with 0 and 1 being the seed numbers, or starting point, in the series. With 0 and 1 being the first two seed numbers, the third number in the series is the sum of 0 and 1 (0 + 1), which is 1. The fourth number in the series is the sum of the second and third numbers in the series, namely, 1 + 1, and so forth. The first few numbers in the series thus are:
0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377, 610, 987, … ∞
As the numbers in the series increase towards infinity, mathematical relationships, expressed as ratios, appear between the numbers.
For example, the ratio between consecutive numbers tends to oscillate closer and closer towards 1.618034, which is known as the golden ratio or the golden section or the golden mean and is denoted by the upper-case Greek letter Phi Φ in mathematics. This ratio is reached by dividing a number in the summation series by the number that precedes it: 233 ÷ 144 = 1.618055
The inverse of this ratio is 0.618034, which is denoted by the lower-case Greek letter phi φ in mathematics. This ratio is reached by dividing a number in the summation series by the number that succeeds it: 144 ÷ 233 = 0.618025
In general, these ratios are used to predict levels of support and resistance through relationships between Fibonacci numbers.
The Fibonacci spiral is one of the many Fibonacci Studies for analyzing markets in terms of support and resistance levels for the price of a given asse. the principle of using the Fibonacci spiral in technical analysis is setting the first radius as the distance between two significant extremum points of the chart. If this distance is chosen properly, intersections of the spiral and the price plot are said to mark important price and time targets.
Fibonacci spirals provide the optimal link between price and time analysis and are the answer to a long search for a solution to forecasting both time and price. Each point on a spiral manifest an optimal combination of price and time.
Fibonacci fans are a combination of trendlines plotted from a single point and distant from each other based on Fibonacci ratios.
On an uptrend period, it is suggested that the main trendline be plotted from the bottom to top so that retracement lines are placed below it; these lines might predict potential support levels. conversely, on a downtrend section, the fan is plotted from the top to bottom, the retracement lines appear above the main trendline, serving as potential resistance levels.
Fibonacci fans name derives from the fanlike appearance of the three trend lines shown. Fibonacci fans are among the four most popular Fibonacci studies, used to predict levels of support and resistance in a market. in this regard three Fibonacci fan lines predict strong levels of support and resistance for the market in the near future.
Fibonacci extensions used to determine possible support and resistance levels. usually, upward or downward trends are accompanied by corrections in the middle of the main trend, so that after the initial increase or decrease, prices are corrected for a short period of time and then follow the main trend. By using the Fibonacci Extension tool, possible price targets can be identified after the price correction period. In addition, Fibonacci expansion can also be used to estimate the third Elliott wave
"Fibonacci ellipses identify underlying structure of price moves. Fibonacci ellipses circumvent price patterns. When a price pattern changes, the shape of the ellipse circumventing the respective market price pattern changes too.
The strength of Fibonacci ellipses is that no matter how many waves or sub waves we find in a price pattern, we receive a solid overall picture of the total price pattern as long as it can be circumvented by a Fibonacci ellipse.
Fibonacci ellipses, also known as phi-ellipses, are a lesser-known member of the general category of Fibonacci studies in technical analysis. An important difference between Fibonacci ellipses and standard Fibonacci tools is that Fibonacci ellipses are used to determine overall market trends, rather than merely levels of support and resistance.
Fibonacci channels are a method of predicting levels of support and resistance for a given market. Although Fibonacci channels fall under the general category of Fibonacci studies for technical analysis, the channels aren’t among the most popular tools used by traders today. Fibonacci channels make use of peak and valley formations in the market and lead to conclusions on how to safely forecast major changes in trend directions.
The secret of Fibonacci channels is to identify the correct valleys and peaks to work with. Support and resistance lines can be drawn weeks and months into the future, once the appropriate tops and bottoms in the market have been detected.
Fibonacci arcs are concentrical circles plotted at the end point of the trendline & their radii are based on Fibonacci ratios. After the uptrend, these circles might signify support zones, while after the downtrend, they might indicate the resistance zones. Fibonacci arcs are one of the four most commonly used Fibonacci studies for analyzing markets in terms of support and resistance levels. They are used to draw circular arcs that are probable values of support and resistance based on a market range.
Fibonacci arcs are created by first drawing an invisible trendline between two points (usually the high and low in a given period), and then by drawing three curves that intersect this trendline at the key Fibonacci levels of 38.2%, 50%, and 61.8%.
Fiat money is a government or central bank-issued currency that is not backed by the value of a physical asset (like gold). Fiat money refers to currencies that have minimal or no intrinsic value themselves but are defined as legal tender by the government, such as banknotes and coins.
Most modern currencies, including the U.S. dollar, are fiat money.
The FOMC, or Federal Open Market Committee, is a committee within the Federal Reserve System that makes critical decisions about interest rates and the growth of the U.S. money supply.
The Federal Reserve System controls the three tools of monetary policy:
- Open market operations
- Discount rate
- Reserve requirements
The Board of Governors of the Federal Reserve System is responsible for the discount rate and reserve requirements, and the Federal Open Market Committee (FOMC) is responsible for open market operations.
Using the three tools, the Federal Reserve influences the demand for and supply of balances that depository institutions hold at Federal Reserve Banks and, in this way, alters the federal funds rate.
The federal funds rate refers to the target interest rate set by the Federal Open Market Committee (FOMC). This target is the rate at which commercial banks borrow and lend their excess reserves to each other overnight. The FOMC, the policymaking body of the Federal Reserve System, meets eight times a year to set the target federal funds rate, which is part of its monetary policy. This is used to help promote economic growth.
The Federal Deposit Insurance Corporation (FDIC) is an independent federal agency insuring deposits in U.S. banks and thrifts in the event of bank failures.
The FDIC was created in 1933 to maintain public confidence and encourage stability in the financial system by promoting sound banking practices. As of 2020, the FDIC insures deposits up to $250,000 per depositor as long as the institution is a member firm.
The Falling Wedge pattern is a type of chart pattern that is formed in a downward trend with two trend lines, one above the downward trend and the other below the downward trend. These two lines move in the same direction and downward; This is while the slope of the lower line is lower than the slope of the upper line. At least five reversals (two for one trendline and three for the other) are required to form a good bearish pattern.
The apparent bearish trend invites bearish traders to continue selling while bullish traders continue to buy, which maintains a strong lower support line. Further, since the price cannot break the low support level, the selling pressure gradually decreases and as a result, the high resistance level is broken and a strong upward trend begins.
The Falling Three Methods pattern is a bearish continuation pattern that appears in a downtrend. This Japanese candlestick pattern consists of at least five candlesticks but may include more.
in this regard, a long black body is followed by three small body candles, each fully contained within the range of the high and low of the first candle. The fifth candle closes at a new low.
The currency of the Falkland Islands. Currency code (FKP)
A fakeout is a false breakout that occurs when the price moves outside of a chart pattern but then moves back inside it.
A fade is a contrarian investment strategy that involves trading against the prevailing trend. "Fading the market" is typically a high-risk strategy and is usually deployed by seasoned traders aware of the inherent risk involved in an approach that goes against conventional market wisdom.
A trader who fades would sell when a price rises and buy when it falls. The premise behind a fade strategy is that the market has already factored in all information, and the later stages of a trend are powered mainly by those traders who have been slower to react, thus increasing the probability of a reversal of the initial thrust.
Full nodes are internet-connected computers that store a complete copy of the blockchain within a network. Full nodes also verify that the blockchain is valid and consensus rules are enforced.
A standardized, transferable, exchange-traded contract that expires on a specified future date.
A futures commission merchant (FCM) enables customers to participate in the futures markets. An FCM is an individual or organization involved in soliciting or accepting buy or sell orders for futures or options on futures in exchange for payment of money (commission) or other assets from customers.
The currency of the Falkland Islands. Currency code (FKP)
The currency of Jamaica. Currency code (JMD)
Measures the mood of businesses that directly service consumers such as waiters, drivers and beauticians. Readings above 50 generally signal improvements in sentiment.
Measures the total value of new orders placed with machine tool manufacturers. Machine tool orders are a measure of the demand for companies that make machines, a leading indicator of future industrial production. Strong data generally signals that manufacturing is improving and that the economy is in an expansion phase.
The currency of Japan. One of the major currencies traded. Currency code (JPY)
The currency of Jordan. Currency code (JOD)
Commonly referred to as “The Nikkei,” the JPN 225 is a Japanese index based on the market capitalization of the top 225 companies traded on the Tokyo Stock Exchange (TSE). The Nikkei is a price-weighted index calculated daily since 1950 by the Nihon Keizai Shimbun, Japan’s largest financial newspaper. The Nikkei operates in Japanese Yen and positively correlates to the currency's value. When the Yen depreciates, the prices of Japanese stocks on the index rise. Overall the Nikkei is popular for its day-to-day volatility.
Japanese candlestick charts are similar to bar charts in that each ‘candle’ shows the opening price, closing price, high price and low price for the period. The candles are either green or red, depending on whether the closing price is higher than the opening price (green) or below it (red).
The North American Free Trade Agreement, or NAFTA, is a three-country accord negotiated by the governments of Canada, Mexico, and the United States that entered into force in January 1994.
NAFTA's terms, implemented gradually through January 2008, provided for eliminating most tariffs on products traded among the three countries.
NAFTA fundamentally reshaped North American economic relations, driving an unprecedented integration between the developed economies of Canada and the United States and Mexico, a developing country.
The currency of Namibia. Currency code (NAD)
Nasdaq is a global electronic marketplace for buying and selling securities. Its name was originally an acronym for "National Association of Securities Dealers Automated Quotations"—Nasdaq started as a subsidiary of the National Association of Securities Dealers (NASD), now known as the Financial Industry Regulatory Authority (FINRA). Nasdaq was launched after the Securities and Exchange Commission (SEC) urged NASD to automate the market for securities not listed on an exchange. The result was the first electronic trading system. Nasdaq opened for business on Feb. 8, 1971.
The National Futures Association (NFA) is an independent self-regulatory organization for the U.S. futures and derivatives markets. Designated by the Commodity Futures Trading Commission (CFTC) as a registered futures association, the NFA's mandate is to safeguard the integrity of the derivatives markets, protect investors, and ensure that members fulfill their regulatory obligations.
"NIRP stands for “negative interest rate policy”.
NIRP is a macroeconomic concept that describes conditions characterized by negative nominal interest rates. It’s when central banks resort to unconventional monetary policies and set target interest rates below 0%. So under NIRP, the price of money isn’t zero. It’s less than zero. This usually happens once a central bank has hit the zero lower bound (ZLB) in its benchmark interest rate.
A negative interest rate means that the central bank will charge negative interest.
The idea is to charge the banks that park their money with their central bank.
Instead of receiving money on deposits, depositors must pay regularly to keep their money with the bank.
In recent years, central banks in Sweden, Denmark, Japan, and the European Union have all adopted NIRP.
The economic theory behind NIRP is that negative interest rates will encourage banks to push money out the door rather than pay a fee to hold it.
Corporations will start investing again, and consumers will spend sooner rather than pay a negative interest rate for holding cash in their banks. As a result, the overall aggregate demand will rise.
NEM (XEM) refers to the cryptocurrency and the name of a platform for management of a variety of assets, including currencies, supply chains, ownership records, etc.
NEO refers to the cryptocurrency and the name of a China’s first open source blockchain that was founded in 2014 by Da Hongfei. It is similar to Ethereum in its ability to execute smart contracts or Dapps but has some technical differences such as coding language compatibility.
The currency of Nepal. Currency code (NPR)
Net position is the difference between total open long (bought) and open short (sold) positions in a given asset.
The currency of the Netherlands Antilles. Currency code (ANG)
The New Development Bank (NDB), formerly the BRICS Development Bank, is a multilateral development bank established by the BRICS states (Brazil, Russia, India, China, and South Africa).
According to the Agreement on the NDB, "the Bank shall support public or private projects through loans, guarantees, equity participation, and other financial instruments." Moreover, the NDB "shall cooperate with international organizations and other financial entities and provide technical assistance for projects supported by the Bank.
New Home Sales, or New Residential Sales, is an economic indicator released by the US Census Bureau in report form on a monthly basis. The New Home Sales report offers data on new homes sold, expressed in thousands of homes and broken down by geographic region of the country. The report also tracks the percentage change of homes sold from month to month, as well as details about sales prices, the stage of construction at which new homes are sold, and some other factors.
The New Home Sales report is a lagging indicator of mortgage rates, as well as of the general affluence of the country. The median sales price section of the report is also frequently taken as a measure of currency inflation in housing-sector industries.
Because the report is released at the end of each month, and because monthly fluctuations in new home sales data isn’t considered statistically meaningful in most market situations, the New Home Sales report tends not to trigger much market activity on its release.
8:00am – 5:00pm (EST).
The currency of New Zealand. Currency code (NZD)
The currency of Nicaragua. Currency code (NIO)
The currency of Nigeria. Currency code (NGN)
Noise trading occurs when a trader decides to buy or sell without using fundamental data (such as economic, financial, and other qualitative or quantitative data that can affect the asset's value).
Noise traders generally have poor timing, follow trends, and overreact to good and bad news in the market. They are also known as uninformed traders.
A non-convertible currency, also known as a “blocked currency”, is the legal tender of a country that is not traded at all on the international foreign exchange market, usually because of government restrictions.
It is normally a method of protection as a non-convertible currency’s economy is usually particularly vulnerable to market movements. If the non-convertible currency decreases or increases sharply in value, its potential adverse effects could be devastating for a country.
A flight of capital is one of the principal fears of governments that leads to the blocking of currency convertibility. The only way to trade a non-convertible currency is on the black market.
The Brazilian real and Chilean peso are two examples of non-convertibles which represent considerable challenges for businesses operating in Brazil and Chile.
In order to conduct business within such countries, companies use a financial product known as a “non-deliverable forward contract” (NDF).
NDFs are the principal way to hedge local currency risks in emerging markets that operate with a non-convertible currency.
The nonfarm payroll (NFP) report is a crucial economic indicator for the United States. It represents the total number of paid workers in the U.S., excluding those employed by farms, the federal government, private households, and nonprofit organizations.
The nonfarm payroll report consistently causes one of the most significant rate movements of any news announcement in the foreign exchange (forex) market. As a result, many analysts, traders, funds, investors, and speculators anticipate the NFP number and the impact that it will have on forex.
The NFP report is typically released on the first Friday of each month, providing the total monthly increase or decrease in paid U.S. workers across most businesses.
Increasing numbers may show economic expansion but may also give investors reason to be concerned about inflation, and decreasing numbers suggest a broader financial concern.
“N00b” is an abbreviation for the term “new blood”. The term is also expressed as “newb” or “newbie.”
It applies to anyone who is a newcomer to a given community.
N00bs can be easy prey due to their lack of knowledge.
The currency of North Korea. Currency code (KPW)
The currency of Norway. Currency code (NOK)
A price-weighted index of the top 225 shares listed on the Tokyo stock exchange.
An execution model that allows you to trade directly with numerous market liquidity providers in order to get the most competitive bid and ask prices.
A one-cancels-the-other (OCO) order is a pair of conditional orders stipulating that if one order executes, the other is automatically canceled. An OCO order often combines a stop order with a limit order on an automated trading platform. When the stop or limit price is reached, and the order is executed, the other order is automatically canceled. Experienced traders use OCO orders to mitigate risk and enter the market.
Offer is the term used when one trader expresses an intention to buy an asset or financial instrument from another trader or institution. The “offer” price is also known as the “ask” price.
The bid (the price at which you can sell an asset) is quoted as lower than the offer (or ask), and the difference between the two is known as the spread.
Situation in which offers are greater than bids.
A trade that cancels or offsets some or all of the market risk of an open position.
Slang for the Bank of England
The currency of Oman. Currency code (OMR)
Attempting to sell at the current market order price.
On-Balance Volume is a cumulative indicator, based on the index of trade volumes, and reflecting the relation between the volume of deals and asset price movements.
An option that pays a fixed amount to the holder if the market touches the predetermined barrier level.
An order that will be executed when a specified market price is reached.
The precise date and time when an option will expire. The two most common option expiries are 10:00am ET (also referred to as 10:00 NY time or NY cut) and 3:00pm Tokyo time (also referred to as 15:00 Tokyo time or Tokyo cut). These time periods frequently see an increase in activity as option hedges unwind in the spot market.
The Organization of the Petroleum Exporting Countries, also known as “OPEC,” is an intergovernmental organization of 13 oil-exporting countries that coordinates the petroleum policies of its members.
Its mission is also to ensure the stabilization of the oil markets to secure a regular and efficient supply of petroleum to consumers, income to producers, and a fair return on capital to industry investors.
It was founded in 1960 by Saudi Arabia, Venezuela, Iraq, Iran, and Kuwait.
The other countries that have joined OPEC since are Libya, the United Arab Emirates, Algeria, Nigeria, Ecuador, Gabon, Angola, Equatorial Guinea and the Republic of the Congo.
As of January 2020, OPEC has 13 member countries: five in the Middle East, seven in Africa, and one in South America.
An oscillator is a technical indicator that gravitates between two levels on a price chart.
Oscillators measure momentum and are designed to show when an asset is potentially overbought or oversold.
Oscillators work under the theory that as momentum begins to slow, fewer active buyers and sellers are willing to trade at the current price.
Oscillators can help distinguish between reversals and fluctuations.
Over-the-counter derivatives (OTC derivatives) are securities that are normally traded through a dealer network rather than a centralized exchange, such as the New York Stock Exchange.
These securities are referred to as “over-the-counter” as they are traded directly between two parties rather than being listed on a central exchange.
A financial instrument, which shows the value of one currency unit in terms of another.
The currency of Pakistan. Currency code (PKR)
The currency of Panama. Currency code (PAB)
The Pandemic Emergency Purchase Programme (PEPP) is a new temporary asset purchase program of private and public sector securities. As a response to the COVID-19 (coronavirus) crisis, the European Central Bank (ECB) has launched a €750 billion Pandemic Emergency Purchase Programme (PEPP).
It’s basically a massive stimulus package from the ECB to help mitigate the economic shock caused by the coronavirus crisis.
It is an expansion of the ECB’s Asset Purchase Programme (APP), a package of asset-purchase measures that the ECB initiated in 2014 to support monetary policy.
The currency of Papua New Guinea. Currency code (PGK)
The Parabolic SAR, or Parabolic Stop and Reverse, is a trailing stop-based trading system and is often used as a technical indicator used to identify potential trend reversals when the price is in a strong uptrend or downtrend.
Being able to properly utilize the Parabolic SAR allows a trader to determine the direction of the trend, provide suitable entry and exit points, and where to place trailing stops.
The currency of Paraguay. Currency code (PYG)
Parity occurs in the Forex market when two currencies are of equal value. The exchange rate is equal to 1.
When only part of an order has been executed.
A passive order is a trading order in which the order price differs from the market price.
Passive order occurs when a trader sets a price different from the bid or ask price. A passive order establishes a new price, creating a new level in the order book and waiting for other participants to hit it.
There is a time limit for the passive order. If the transaction is not executed at the specified price within the given period, then the order expires, and the trader will have to place a new one.
The further the price is from the market price, the more passive the order is. In contrast, aggressive orders are when a trader executes the order to buy or sell straightaway.
A passive order waits for the price, which is the opposite of an aggressive order, which chases the price.
Personal Consumption Expenditure, or PCE, is an inflation index similar to the Consumer Price Index. In the United States, it is released by the Bureau of Economic Analysis of the Department of Commerce and it is the preferred gauge of inflation by the Federal Reserve
Pennant refers to short-term graphical price patterns of trend continuation, indicating that its direction will be unchanged shortly.
A pennant is a price pattern where the price starts to range. The difference between the peaks and troughs begins to decrease horizontally and show similar features to a symmetrical triangle. When the price breaks out of the pattern, it usually continues in the same direction, showing no signs of confusion about where it should be.
The People’s Bank of China (PBOC or PBC) is the central bank of China. It is responsible for carrying out monetary policy and regulation of financial institutions in China, officially called the People’s Republic of China.
The People’s Bank of China (PBC) was established on December 1, 1948, based on the consolidation of the Huabei Bank, the Beihai Bank, and the Xibei Farmer Bank.
In September 1983, the State Council decided to have the PBC function as a central bank.
Money spent for products and services meant for individual consumption.
Personal Income and Spending is a report generated by the Department of Commerce’s Bureau of Economic Analysis on consumer spending habits and income levels in the US. The report is released at the first of the month and includes data for two months previous to the release (for example, June’s report features data for April.)
The Personal Income and Spending report uses employment reports to track income from payroll files. Additionally, rental income, interest payments and dividend income as well as income from other non-payroll sources, are factored into the report.
Traders tend to use the first half of the report as an indicator of potential demand for and spending in various industries. This can be a viable tool for market analysis, although it has one major drawback in the fact that the report doesn’t reflect whether or not people intend to spend or save increased income. The second half of the report can be more useful for determining which sectors of the market show the most potential for growth due to increased spending but traders widely consider this section of the report to be less important than the Census Bureau’s Retail Sales report for predicting industry growth.
The currency of Peru. Currency code (PEN)
A petrocurrency is a currency of an oil producing country whose oil exports as a share of total exports are sufficiently large enough that the currency’s value rises and falls along with the price of oil. In other words, a petrocurrency appreciates when the oil price rises and depreciates when the oil price falls.
Given such a large share of exports, the currency will rise and fall in correlation with the price of oil. If the share of oil and gas exports increases further, the link between oil prices and the exchange rate may become even stronger.
Petrodollars are oil revenues denominated in U.S. dollars. They are the primary source of revenue for many oil-exporting members of OPEC, as well as other oil exporters in the Middle East, Norway, and Russia. All oil purchases from OPEC must be paid in U.S. dollars. If Mexico wants to buy oil, it has to sell its local currency and buy U.S. dollars, then use those dollars to buy oil from OPEC.
Any country that buys oil from OPEC must do so using petrodollars. Petrodollars are U.S. dollars paid to an oil-exporting country for the sale of the commodity. Put simply, the petrodollar system is an exchange of oil for U.S. dollars between countries that buy oil and those that produce it.
Under the physical settlement method, the seller has to deliver the actual underlying asset (stocks) and cannot settle the contract by transferring cash based on the price difference between the contract's strike price and the asset's current market price.
The Piercing Line pattern consists of two candlesticks, that suggests a potential bullish reversal. The candlestick pattern is likely named piercing because of the way the white candle’s close “pierces” through the midpoint of the previous black candle.
The Piercing Line pattern involves two candlesticks with the second candlestick opening lower (or gapping down) than the previous candle. This is followed by buyers driving prices up to close above 50% of the body of the first candle.This pattern is a warning sign for sellers since a reversal to the upside might be imminent
PIIGS is an acronym made popular during the European debt crisis. The European debt crisis (often also referred to as the eurozone crisis or the European sovereign debt crisis) is a multi-year debt crisis that has been taking place in the European Union since 2009.
PIIGS stood for the five countries that had high debt and deficit and poor prospects of repaying their loans. These financially weak countries were Portugal, Ireland, Italy, Greece, and Spain. The term was used in reference to the growing debt and economic vulnerability of the Southern European EU countries. Ireland was added during the economic crisis as that country’s debt and deficit rose sharply.
"Pivot points, or simply pivots, establish areas of support and resistance by examining the highs, lows, and closing values of an asset.
They are useful for identifying trading ranges, trend reversals, and market sentiment.
In practice, there are many ways to calculate pivot points.A popular method begins with taking the simple average of a periodic high, low, and closing price, then applying it to a periodic trading range.
The pivot value is calculated via the following formula:"
The smallest possible change of quotation. As a rule, pip is equal to 0.0001 or 0.00001 for the majority of currency pairs, which are quoted to the fourth or fifth decimal point after the comma, but for JPY pairs it is 0.01 or 0.001 and is quoted to the second or third decimal point. For other financial instruments, the pip is usually equal from 0.1 to 0.001.
The currency of Poland. Currency code (PLN)
Pennant refers to short-term graphical price patterns of trend continuation, indicating that its direction will be unchanged shortly.
Pre-mining is when the founders of a cryptocurrency “self-mine” and keep a portion of the newly created cryptocurrency for themselves before launching publicly.
The founders, usually developers, claim that premining offers them the financial independence they need to focus on building and scaling their decentralized system. However, if a few people hold vast reserves at the outset, new users are effectively beholden to the founders’ economic power. These large holders can sell their holdings at a moment’s notice, causing significant price volatility.
Price action refers to a financial asset’s price movement that is part of technical analysis.
Rather than using chart pattern recognition or applying technical indicators, which are derived from moves in price and have a natural lag, price action is about getting to the bare bones of trading. By studying the movement in price over a set period, you get all the information you need to trade trends, breakouts, and swings effectively.
Price reacts to all known news, which means that moves in price tell you what the collective view of breaking news is rather than any single individual. The fundamental belief of price action analysis is that price is never wrong. Either way, price action looks at all global capital flows at any one time and provides a holistic picture of what the market thinks of the currency pair that’s on your chart.
Japanese candlestick charts perhaps the most commonly used form of price action analysis.
Price discrimination is selling identical goods or services from the same provider at different prices.
In pure price discrimination, the seller will charge the buyer the maximum price he is willing to pay. The goal of price discrimination is for the seller to make the most profit possible.
Although the cost of producing the products is the same, the seller can increase the price based on location, consumer financial status, product demand, etc.
An example of price discrimination would be the cost of movie tickets, and prices at one theater are different for children, adults, and seniors. The prices of each key can also vary based on the day and chosen show time.
Ticket prices also vary depending on the portion of the country as well.
Industries use price discrimination as a way to increase revenue.
Some industries can offer retailers different prices based solely on product volume. Price discrimination can also be found in age, location, desire for the product, and customer wage.
Price transparency reflects the extent to which price and market information, such as bid-ask spread and depth, exist for a security. In standard economic theory, market participants all have perfect information and therefore price transparency is complete.
Price variation is a trader’s view of the difference between a desired or expected price and the actual execution price achieved by an order.
Price variation measures the difference between the price the trader expected and the price at which they were filled, arising from movements in the underlying market prices.
A prime broker is an institution (usually a large commercial bank) that facilitates trading for its clients (often institutional funds, hedge funds, and other proprietary trading firms).
Prime brokers enable their clients to conduct trades, subject to credit limits, with a group of predetermined third-party banks in the prime broker’s name.
A principal model is a mode of trading whereby a dealer commits its balance sheet, which means it uses its own inventory to meet client orders and to make gains or losses from trades.
The purpose behind principal trading is for firms (also referred to as dealers) to create profits for their own trading book through price appreciation.
In the principal model, the FX operators are counterparties to client transactions. They are essentially taking the other side of the trade. They can decide to not hedge the resulting risk, or hedge on an as-needed basis once certain overall risk limits have been reached.
A dealer will charge a bid-offer spread as compensation for the inventory risk it incurs.
A principal trading firm (PTF) is a firm that invests, hedges, or speculates for its own account.
This category may include specialized high frequency trading firms (HTFs) as well as electronic nonbank market-making firms.
Original amount invested by an individual.
The Producer Price Index, or PPI, is a monthly report released by the Bureau of Labor and Statistics that measures the change in the selling prices, or wholesale prices, received by domestic producers for their output.
The PPI is not as widely used as the CPI(customer price index), but it is still considered to be a good indicator of inflation. This indicator reflects the change in manufacturers’ cost of inputs (such as raw materials).
Formerly known as the “Wholesale Price Index”, the PPI is a basket of various indexes covering a wide range of areas affecting domestic producers.
It is not as strong as the CPI in detecting inflation, but because it includes goods being produced it is often a forecast of future CPI releases.
The report is released in the second week of every month and includes data on the previous month.
For example, June’s report includes data on May.
Proof of Stake (PoS) is an algorithm by which a cryptocurrency’s blockchain aims to achieve distributed consensus.
Unlike Proof of Work or PoW, a person can validate transactions and create new blocks based on their individual wealth (stake) such as the total number of coins owned. One of the key advantages that PoS has over PoW is lower energy consumption.
Proof of Work (PoW) is an algorithm that rewards the first person that solves a computational problem (mining) to achieve distributed consensus.
Miners compete to solve difficult cryptographic puzzles in order to add the next block on the blockchain.
A set of rules governing the exchange or transmission of data between devices, agreed upon by the network participants.
Pseudonymous refers to when your details are not revealed for a given cryptocurrency transaction. However, the transactions are traceable and auditable. In other words, transactions can be traced, but not the identity of the parties involved.
The public key is a cryptographic key which is used to encrypt a message. Unlike a private key, which is kept entirely secret, a public key is known to everyone.
If someone wants to send a secure to another person, then the sender needs to encrypt the message with the public key of the receiver. The receiver uses the private key to decrypt the message.
Pump-and-dump is a manipulative scheme that attempts to boost the price of a stock or security through fake recommendations. These recommendations are based on false, misleading, or greatly exaggerated statements. The perpetrators of a pump-and-dump scheme already have an established position in the company's stock and will sell their positions after the hype has led to a higher share price.
This practice is illegal based on securities law and can lead to heavy fines. The burgeoning popularity of cryptocurrencies has resulted in the proliferation of pump-and-dump schemes within the industry.
Purchasing Power Parity (PPP) is a theory that states that the foreign exchange rate between two countries should be equal to the ratio between their respective prices of a fixed basket of goods. When this holds, the exchange rate is in equilibrium.
This theory is based on the Law of One Price, which says an item should have the same price (expressed in the same currency) in different countries. Of course, this doesn’t take transportation and transaction costs into account.
Put options are financial contracts that give the owner the right, but not the obligation, to sell an underlying asset at a specified price within a specific time. A buyer of a put can profit when the underlying asset falls in price.
Abbreviation of profit and loss; an account compiled at the end of an accounting period to show gross and net profit or loss. In spread betting and CFD trading, it shows money gained or loss incurred on a position.
The currency of Qatar. Currency code (QAR)
Essentially, the trading concept of Quantitative Analysis involves the process of applying a business or financial technique that seeks to understand behavior within the currency market by applying a complex system of mathematical and statistical modeling, along with measuring of market values and research.
Generally this is made possible through the method of applying a series of numerical values to certain variables, with which quantitative analysts try to replicate reality mathematically and so predict changes and moves with the markets.
Quantitative easing (QE) is a monetary policy action whereby a central bank purchases government bonds or other financial assets to inject monetary reserves into the economy to stimulate economic activity. Quantitative easing is a novel form of monetary policy that came into the wide application after the financial crisis of 2007-2008. It is intended to stabilize an economic contraction when inflation is very low or negative and when standard monetary policy instruments have become ineffective.
QE aims to raise the price of government bonds while simultaneously driving down their yields. This method pushes banks to invest in riskier assets and lend more to businesses and individuals.
Quantitative tightening (QT) refers to monetary policies that contract or reduce the Federal Reserve System (Fed) balance sheet. This process is also known as balance sheet normalization. In other words, the Fed (or any central bank) shrinks its monetary reserves by selling Treasurys (government bonds) or letting them mature and removing them from its cash balances. This removes liquidity, or money, from financial markets.
The second currency in a currency pair is called a quoted currency.
The value of one currency in terms of another.
The Rate-of-Change (ROC) is a technical indicator that measures the percentage change between the current price and the price from x –days ago.
The technical indicator is plotted below the price chart and forms an oscillator that fluctuates above and below the zero line as the Rate-of-Change moves from positive to negative.
Traders of significant size including pension funds, asset managers, insurance companies, etc. They are viewed as indicators of major long-term market interest, as opposed to shorter-term, intra-day speculators.
A realised profit or loss occurs when an investment is sold for a higher or lower price than purchased for, and it is only recognised once the transaction has been made. A realised profit is also known as a realised gain and only becomes liable for capital gains tax at this point. For example, if an investor buys 1000 shares at $5 each and sells when the shares reach a market value of $8, they will have a realised profit of $3,000 ($8,000 -$5,000). Conversely, if the shares dropped to $2 each and sold, they would have a realised loss of $3,000 ($2,000 - $5,000).
Broadly speaking, a recession is popularly defined as two consecutive quarters of negative GDP growth.
Technically speaking, a recession is determined by the National Bureau of Economic Research (NBER), a private non-profit organization that conducts economic research and is most famously known for deciding when recessions start and end.
A rectangle pattern occurs when the price of a security stays within a bounded range, creating horizontal trend lines that show well-defined support and resistance levels. Rectangle patterns show market indecision and indicate that the supply and demand of a security is in a stalemate. Traders often watch for a breakout to occur either upwards or downwards. When price consolidates to a rectangle pattern during a downtrend, it is considered a bearish rectangle. A bullish rectangle is when the price consolidates during an upward trend.
The Regional Comprehensive Economic Partnership (RCEP) agreement is a 15-nation trade agreement covering China, Japan, South Korea, the 10 members of ASEAN (Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam), Australia, and New Zealand.
RCEP covers trade in goods and services, e-commerce, and protection of intellectual property.
The trade agreement eliminates tariffs and quotas on over 65% of goods traded and replaces a patchwork of regional agreements with common rules of origin and unified regulations.
The term rekt derives from the word "wrecked." In general, rekt is a slang used to define something that got completely destroyed or a person that experienced a catastrophic failure. However, the term may carry different meanings depending on the context.
In the world of blockchain and cryptocurrencies, rekt is used to describe a severe financial loss, caused by a bad trade or investment.
The acronym RSI stands for Relative Strength Index, which is, in essence, a technical analysis (TA) indicator that measures the strength and velocity of price oscillations. As such, the RSI is a momentum oscillator that examines the magnitude and speed of the market movements.
J. Welles Wilder designed the RSI indicator in the late 1970s. His goal was to create a charting tool that could help traders examine the performance of a stock.
Relative Vigor Index (RVI) is a technical indicator used to establish the level of energy, or vigor within the current market.
It s an oscillator based on the concept that prices tend to close higher than they open in uptrends and close lower than they open in downtrends.
When the market is up (bull), the closing price is generally of a higher level than the opening price of the market, with the opposite being true for a down (bear) market.
By using the Relative Vigor Index to analyze the movements in price level between the open and close of the market and by comparing this to results gained during subsequent and preceding days, we are able to ascertain the overall vigor of the market as so to better predict the outcome of certain trends.
A repurchase agreement (“repo”) is a short-term secured loan: one party sells securities to another and agrees to repurchase those securities later at a higher price.
The securities serve as collateral. The difference between the securities’ initial price and their repurchase price is the interest paid on the loan, known as the repo rate.
These short-term agreements provide temporary lending opportunities that help to fund ongoing operations.
The repo market underpins much of the U.S. financial system, helping to make sure that banks have the liquidity to meet their daily operational needs and maintain enough reserves.
In a repo trade Wall Street firms and banks offer U.S Treasuries and other high-quality securities as collateral to raise cash often overnight to finance their trading and lending activities.
The next day, borrowers repay their loans plus what is typically a nominal rate of interest and get their bonds back.
In other words, they repurchase, or repo, the bonds.
Request for market (RFM) is a request for a quote where the client does not reveal the direction of the desired trade (buy or sell).
An Request for market (RFM)is a request to see a two-sided or “market” quote rather than a one-sided quote.
RFM, also known as “two-way pricing”.
A reserve currency is a currency that central banks hold as part of their foreign exchange reserves. This currency is often used for international transactions.
Reserve currencies are always strong currencies with a major role in international trade.
The ”reserve requirement ratio” (RRR) or cash reserve ratio (CRR) is the percentage of customer deposits and other liquid assets that commercial banks must store, within it’s own institution or with the central bank.
The RRR is set by the central bank to ensure that commercial banks have enough assets to pay its depositors in case of unusually high withdrawals.
Some central banks use RRRs for monetary policy. Decreasing the RRR tends to stimulate economic activity as banks have more assets to loan out to borrowers.
Alternatively, increasing the RRR decreases the money available to potential borrowers, which could lead to a decline in economic activity and higher purchasing power of the money circulating in markets.
A retail aggregator is a term used for online broker-dealers who stream quotes from the top FX dealers to retail customers (individuals and smaller institutions) and aggregate their trades.
Any party to a forex trade who is not an eligible contract participant as defined under the Commodity Exchange Act. This includes individuals with assets of less than $10 million and most small businesses.
A retail investor is an individual and non-professional investor who buys and sells securities or funds through brokers or other investment accounts. Retail investors purchase securities for their personal accounts and invest smaller amounts than institutional investors.
Retail investment has been growing significantly because of access to financial information and trading tools, and in 2021 the retail investment market in the US made up 32% of total equity volume.
A retail trader is an individual trader who trades with money from personal wealth, rather than on behalf of an institution.
A retail trader is someone who trades their own money, but not for a living. They buy or sell securities for personal accounts (PA).
A professional trader is someone who gets paid to trade other people’s money and usually for an institution.
Institutional traders buy and sell securities for accounts they manage for a group or institution.
Pension funds, mutual fund families, insurance companies, and exchange-traded funds (ETFs) are common institutional traders.
Institutional traders have the ability to invest in securities that generally are not available to retail traders, such as forwards and swaps.
Return on Investment ("ROI") is a ratio or percentage value that reflects a particular trade or investment's profitability or efficiency.
As such, ROI can also be used when comparing different types of investments or multiple trading operations. Specifically, ROI evaluates the return on Investment of its purchasing cost.
This means that the calculation of ROI is the return (net profit) divided by the total acquisition costs (net cost). The result may then be multiplied by 100 to get the percentage value.
A revaluation is an upward adjustment on a country's currency relative to a baseline such as gold, wages, or a different currency. In a fixed exchange rate economy, a decision to revaluate a currency can only be made by the central bank. In a free-floating exchange rate, a revaluation is spurred by market forces. Revaluation is the opposite of devaluation, in which a country's currency experiences a downward value adjustment.
A reversal shows that the price direction of an asset has changed, from going up to going down, or from going down to going up.
A reverse repurchase agreement (RRP), or “reverse repo“, involves the purchase of securities with the promise to sell them at a higher price at a future date.
For the party selling the security (and agreeing to repurchase it in the future), it is a repurchase agreement (RP) or repo; for the party on the other end of the transaction (buying the security and agreeing to sell in the future) it is a reverse repurchase agreement (RRP) or reverse repo.
Repurchase agreements, or repos, are a form of short-term borrowing used in the money markets, involving the purchase of securities with the agreement to sell them back at a specific date, usually for a higher price. For the buyer of the securities, it is a way to lend money and get paid with interest in the future.
The reward-to-risk ratio (RRR) measures a trade’s potential returns against its predetermined risk of loss.
The ratio is computed by dividing the profit that a trade is expected to yield by the loss that the trade may incur.
For example, let’s say that you expect to make $100 by buying EUR/USD. If you place your stop-loss in such a way that you stand to lose just $25, your trade’s reward-to-risk ratio is 4:1 (100 / 25).
A rights issue is a way for a company to raise cash by inviting its shareholders to buy new shares at a discounted price for a defined period. Invited shareholders are not obliged to purchase the shares but have the right to do so. Rights issues are often issued by a company to pay down debt or quickly raise capital for increased investment.
Ripple is the name of the company that created the Ripple payments platform as well as the XRP token.
Ripple’s goal is to build a global, enterprise blockchain solution for handling payments in a faster way. The vision for the platform is to enable real-time global payments anywhere around the world.
The Ripple payment protocol was built by OpenCoin which was founded in 2012.
The Rising Three Methods pattern is a bullish continuation pattern that appears in an uptrend.
This Japanese candlestick pattern consists of at least five candlesticks but may include more.
A long white body is followed by three small body candles, each fully contained within the range of the high and low of the first candle. The fifth candle closes at a new high.
A rising wedge is a chart pattern formed by drawing two ascending trend lines, one representing highs and one representing lows. The upper line also moves up to the right and its slope is less than that of the lower trend line.
A rising wedge typically has at least five reversals: three for one trend line and two for the opposite trend line.
It is categorized as a bearish reversal chart pattern.
Risk appetite Is the general level of risk that a trader can handle. It is a gauge of how “risk hungry” traders are.
Risk aversion refers to when traders unload their positions in higher-yielding assets and move their capital in favor of safe-haven currencies. This normally happens in times of uncertainty and high volatility.
In the forex market, currencies that have relatively higher interest rates are regarded as higher-yielding currencies. These currencies are seen as “riskier” assets. In times of risk aversion, traders tend to sell their positions in these currencies.and buy “safe-haven” currencies.
Amount of money a person is willing to lose.
The term “risk off” is used to describe the risk sentiment where traders and investors in the financial market reduce their exposure to risk and focus on protecting their capital.
The term “risk on” refers to the market sentiment where traders and investors in the financial market are taking on risk.
Risk sentiment is a term used to describe how financial market participants (traders and investors) are behaving and feeling. What traders choose to buy or sell means balancing how much they are prepared to lose with how much they hope to earn.
You can look at risk sentiment as the expression of traders’ and investors’ willingness to take on risk.
Riskless principal is a party who, upon receipt of an order to buy or sell a security, buys or sells that security themselves as they fill the order.
A rollover fee, also known as “swap”, is charged when you keep a position open overnight.
A forex swap is the interest rate differential between the two currencies of the pair you are trading.
The currency of Romania. Currency code (ROL)
"RORO stands for "Risk On, Risk Off."
RORO describes a market environment where price behavior responds to and is driven by changes in risk tolerance by investors and traders.
The change in risk tolerance is usually due to a sudden shift in the global economic outlook.
Traditionally, financial assets were evaluated independently according to their unique characteristics. So, for the most part, assets moved independently of each other. But In the RORO era, times have changed. Financial assets are now split into two camps:
A rug pull in the crypto industry is when a development team suddenly abandons a project and sells or removes all its liquidity. The name comes from the phrase to pull the rug out from under (someone), meaning to withdraw support unexpectedly.
A trade that has been opened and subsequently closed by an equal and opposite deal.
An indicator of the status of your open positions; that is, unrealised money that you would gain or lose should you close all your open positions at that point in time.
The currency of Russia. Currency code (RUR)
Symbol for Russell 2000 index.
The currency of Rwanda. Currency code (RWF)
Safe haven currencies are currencies that are expected to retain or increase in value when it seems like the world is coming to an end (geopolitical stress).
The U.S. dollar (USD), along with the Japanese yen (JPY) and Swiss franc (CHF) are considered safe-haven currencies.
When there’s a lot of uncertainty in the world. there is usually a “flight to safety” to one or all of these currencies. A safe haven currency tends to strengthen when risk assets sell-off.
The currency of Saint Helena. Currency code (SHP)
A transaction in which the transaction matures in the same trading day.
The currency of Samoa. Currency code (WST)
The currency of Sao Tome, Principe. Currency code (STD)
A satoshi is the smallest unit of a bitcoin, which equals one-hundred-millionth of a bitcoin or 0.00000001 BTC. As such, one bitcoin equals 100 million satoshi. The satoshi was named as an homage to the anonymous creator or creators behind Bitcoin, Satoshi Nakamoto. The satoshi is often abbreviated as sat.
The saucer is a long-term figure of technical analysis, signifying a slow change in the tendency of price to fall on a growth trend. Usually the saucer has an arcuate bottom, which is clearly seen on the weekly charts. The period of formation of this figure can last more than a year.
The currency of Saudi Arabia. Currency code (SAR)
Scalping or short-term trading involves making dozens or hundreds of trades a day, trying to scalp a small profit from each trade by exploiting the bid-ask spread.
Schengen Area signifies a zone where 26 European countries abolished their internal borders for the free and unrestricted movement of people.
It consists of 22 European Union (“EU“) member states and four other countries that are part of the European Free Trade Association (“EFTA“), which are Norway, Iceland, Switzerland, and Lichtenstein.
The Schiff Pitchfork is a drawing tool used in technical analysis that is derived from the standard pitchfork, known as Andrew’s Pitchfork.
Scrypt is a type of mining algorithm used by major cryptocurrencies such as litecoin and novacoin. It has one major advantage over other algorithms such as SHA-256 in that it’s quicker and easier to use. It doesn’t use up as much computer processing, so individual miners can more readily process blocks of data with it.
Special Drawing Right is a standard basket of five major currencies in fixed amounts as defined by the IMF.
The currency of Seborga. Currency code (SPL)
The Secure Asset Fund for Users (SAFU) is an emergency insurance fund established by Binance in July 2018 to protect users' funds. When the fund was established, Binance committed a percentage of trading fees to grow it to a sizable level to safeguard users.
The Secured Overnight Financing Rate (SOFR) is USD's secured overnight funding rate.
It is a rate published by the New York federal reserve based upon secured overnight transactions in the repo market.
It is of increasing importance since many market participants have regarded it as the basis for the likely successor to the U.S. dollar LIBOR.
The SEC stands for the US Securities and Exchange Commission.
The U.S. Securities and Exchange Commission (SEC) is an independent federal government regulatory agency responsible for protecting investors, maintaining fair and orderly functioning of the securities markets, and facilitating capital formation.
Set up in 1934, the SEC’s mandate is to enforce US laws on the trading of securities (financial assets), maintain fair and efficient markets, ensure investors aren’t subject to abuse and help maintain a well-functioning economy.
Securities financing transactions (SFTs) are broadly defined as any transaction where securities are used as collateral to borrow cash or vice versa.
Practically, this mostly includes repurchase agreements (repos), securities lending activities, and sell/ buy-back transactions.
Securitization is the process of creating securities by pooling together various cash-flow producing financial assets.
Securitization, in its most basic form, is a method of financing assets. Any asset may be securitized as long as it produces cash flows.
Securitization provides funding and liquidity for a wide range of consumer and business credit needs.
The amount of money needed to open or maintain a position. Also known as 'margin.'
A seed phrase is a collection of words that can be used to access your cryptocurrency wallet.
Segregated Witness (SegWit) is the process where the block size limit on a blockchain is increased by removing digital signature data and moving it to the end of a transaction to free up capacity.
Taking a short position in expectation that the market is going to go down.
A sell wall is a huge sell order that prevents the market price from going up until the entire sell volume is complete.
A sell-off is a situation in which many traders sell their holdings of an asset suddenly, often (but not always) due to bad or unexpected news.
This surge in selling volume cause prices to plummet even more sharply.
Selling pressure occurs when the majority of the traders are selling, indicating that the majority think the market price will decrease.
Sentiment or market sentiment, refers to the highly subjective feeling about the state of a market.
Market sentiment represents the mood of financial markets and the general feeling among traders, whether they trade the forex market, the stock market, the bond market, the crypto market, or other markets.
If you are a short-term trader, it’s definitely a good idea to be in tune with how the market is feeling. because Market sentiment, which is often in reaction to the news, can play a major role in driving currency prices.
Sentiment Analysis is the art of not following the bandwagon and effectively focuses on identifying the patterns of movement investors take on a subjective basis.
The theory goes that when a crowd is leaning too far in one direction, it is a sign that a change is about to occur.
Traders who utilize sentiment analysis look to investors to see what they are talking about and how they react to the market. To see what investors are talking about, those who research investor sentiment survey what they believe the current market outlook is. They then act contrary to the results. For example, suppose less than 5% of the investors surveyed are confident in the future profitability of a market. In that case, sentimental analysts will often increase a bet in the market with the expectation that a buying opportunity might be near.
Actual physical exchange of one currency for another.
Time allotted in which it takes the two parties of a transaction to satisfy the transaction’s obligations.
The chance that one of the two parties of a transaction cannot fulfill the terms of the transaction. May lead to principal risk.
The currency of Seychelles. Currency code (SCR)
SHA (Secure Hash Algorithm) is a cryptographic hash function programmed by the National Security Agency of United States.
When referring to Japanese candlesticks, shadows represent price action that occurs outside the open and close prices of a candlestick.
More specifically, the thin lines poking above and below the body display the high/low range and are called shadows.
The shadow banking system refers to the segment of the financial markets where transactions take place and entities engage in activities not covered by traditional banking supervision and not buffered by capital regulations and adequate balance sheets.
the Sharpe ratio measures the performance of an investment such as a security or portfolio compared to a risk-free asset, after adjusting for its risk.
A coin without a future. It can still be used for flipping and turning a profit. Just don’t fool yourself into thinking it’s anything more than a piece of sh*t
A Shooting Star is a single candlestick pattern that is found in an uptrend.
The candlestick can mark a top (but is often retested).
A Shooting Star is formed when price opens higher, trades much higher, then closes near its open.
This bearish reversal candle looks like the Inverted Hammer except that it is bearish.
The Shooting Star pattern is formed by a single candle with a short body, little or no lower shadow, and a very long upper shadow.
A short position refers to a trading technique in which an investor sells a security with plans to buy it later. Shorting is a strategy used when an investor anticipates the price of a security will fall in the short term.
A short squeeze occurs when an event or condition causes the price of an asset that has been heavily shorted to rise rapidly. Traders with short positions are then forced to increase the equity in their account to maintain the rising margin of the trade. Otherwise, they are forced to close the business and buy back the asset at a loss. The combination of new traders entering long positions and short sellers attempting to buy back the security to close their work contributes to the skyrocketing price effect characteristic of a short squeeze.
The process of using tokens from one blockchain in another blockchain securely. The process allows for bidirectional movement of tokens between the blockchain when necessary. The original blockchain is the “main chain” and the secondary blockchain is termed the “side chain”.
Sidelines is a phrase used to describe when traders are staying out of the markets due to directionless, choppy, or unclear market conditions.
Traders are said to be “on the sidelines” or “sitting on their hands
A sideways market is a term used to describe price movement where the price fluctuates within a tight range for an extended period of time without trending one way or the other.
The currency of Sierra Leone. Currency code (SLL)
Simple moving averages (SMAs) allow you to identify if a market is trending up, down or ranging sideways and are utilized in many technical indicators. SMAs calculate a market’s average price over a given time by adding the closing prices for all periods in the timeframe and dividing the total by the number of periods tallied.
The currency of Singapore. Currency code (SGD)
To sit on hands, or sit on the sidelines, refers to traders staying out of the markets due to directionless, choppy or unclear conditions. This allows traders time to analyse the market and use technical principles to enter at optimal moments rather than just entering a position at will and holding it in hopes its price rises.
A term used when the market feels like it is ready for a quick move in any direction.
Sloppy is slang to describe choppy trading conditions that lack any meaningful trend and/or follow-through.
A sloppy market describes a market with seemingly random trading patterns that lack meaningful trends or behaviours. Often sloppy markets are neither bear nor bull but oscillate between the two. During sloppy markets, traders typically wait for a breakout or a consolidation into a range before entering any trades.
The currency of Slovakia. Currency code (SKK)
The currency of Slovenia. Currency code (SIT)
Smart order routing (SOR) is the automatic process in online trading, which follows a set of rules that look for and assess trading liquidity.
The goal of SOR is to find the best way of executing a trade.
SNB stands for the Swiss National Bank, Switzerland’s central bank, and the sole issuer of Swiss francs. The SNB’s monetary policy focuses on price stability while keeping in mind economic developments. Its chairman is Swiss economist Thomas Jordan.
The Swiss National Bank has a reputation of neutrality due to Switzerland not participating in either World War and the country’s exclusion from the European Union; it has long been a stable banking environment for overseas investors because of the low financial risks and high privacy protected by Swiss law.
The bank also manages Switzerland’s gold reserves, one of the largest of any nation, stored mainly in vaults underneath the Federal Square in the capital city of Bern.
Social trading is a form of dealing that enables traders or investors to copy and execute the strategies of their peers or more experienced traders. While most traders perform their own fundamental and technical analysis, a class of traders prefers to observe and replicate the research of others.
Belgian-based company that provides the global electronic network for settlement of most forex transactions. Also known as SWIFT.
A technical term of the process of changing protocols to invalidate previously valid blocks or transactions.
A soft peg is the name for an exchange rate policy where the government usually allows the exchange rate to be set by the market but in some cases especially if the exchange rate seems to be moving rapidly in one direction the central bank will intervene in the market.
Solidity is the programming language used in the Ethereum network. This language is used to write smart contracts.
The currency of the Solomon Islands. Currency code (SBD)
The currency of Somalia. Currency code (SOS)
The Sterling Overnight Index Average (SONIA) is the effective overnight interest rate that banks pay to borrow sterling overnight from other financial institutions. It’s used for overnight funding of trades that occur in off-hours and indicates the depth of business in the marketplace in these hours.
The currency of South Africa. Currency code (ZAR)
The currency of South Korea. Currency code (KRW)
A sovereign wealth fund is a state-owned investment fund that is used to benefit the country’s economy and citizens. Lots of countries, and even some U.S. states have one.
A sovereign wealth fund is essentially an investment portfolio owned by the government. It’s simply a mechanism through which countries make investments.
Rather than let capital sit in the nation’s central bank, the SWF invests it in the global financial markets to return a profit and benefit the economy.
A special purpose acquisition company (SPAC) is a company without commercial operations and is formed strictly to raise capital through an initial public offering (IPO) or the purpose of acquiring or merging with an existing company.
It’s also called a “blank-check company” or “shell company.”
In the financial world, speculating can be described as the act of buying a financial asset, hoping to make a profit when the asset’s price appreciates (or depreciate, when short selling) over time.
In layman’s terms, a speculator will aim to “buy low and sell high (or sell high and buy back at a lower price when shorting!).
In the forex markets, retails traders are speculating when they try to make a profit when one currency appreciates versus another currency.
A Spinning Top is a Japanese candlestick with a small real body and long upper and lower shadows.
The short body of the candle suggests that there was a lot of indecision in the market regarding the direction of the price, while the long shadows indicate that both buyers and sellers were active during the session.
Children’s spinning tops are the inspiration for the naming of the Spinning Top candlestick pattern.
Similar in shape to its toy counterpart, a Spinning Top has a short body (black or white) and two long shadows. The size of shadows can vary.
Spinning Tops signal indecision. The smaller the body, the less direction the market has.
A name for the S&P index which tracks 500 of the largest companies on the NYSE and Nasdaq stock exchanges.
A speaker connected to a phone on a broker’s desk.
Airing before the stock markets even open, "Squawk Box" is a morning news and talk program on which the biggest names in business and politics discuss the day's stories.
The currency of Sri Lanka. Currency code (LKR)
Stablecoins are cryptocurrencies where the price is designed to be pegged to a cryptocurrency, fiat money, or to exchange-traded commodities. in result Owing to their peg stablecoins are not subject to extreme price volatility.
The most commonly collateralized stablecoins are linked to fiat currencies such as the U.S. dollar (USD), euro (EUR), or British pound (GBP). Prominent coins include Tether and USDC.
Stagflation is a macroeconomic environment in which the inflation rate is high, the economic growth rate is negative, and the unemployment rate is high.
Stagflation is a term used to describe an economy that is stagnant and experiences little to no economic growth but is experiencing high inflation. Such an environment is bad for both bonds and stocks.
Signs of stagflation include high rises in the price of consumer goods and services through high inflation, a reduction in Gross Domestic Product (GDP), and high unemployment. In essence, it is characterized by rising unemployment and declining business production while the prices of goods and services get higher.
Slang term for the British pound (GBP).
A Stick Sandwich is a three-candlestick pattern that’s formed when the middle candlestick is oppositely colored of the candlesticks on either side of it.
The first and third candlesticks will have a larger trading range than the middle candlestick, and as a result, the pattern looks like an upright sandwich.
Stick Sandwich patterns can be both bullish and bearish.
The Stochastic indicator determines the position of the current closing price in the price range of the last few periods, based on the idea that the price tends to the upper bound of fluctuations in an uptrend and to the lower bound- in a downtrend.
Investments can be attracted in different ways. One of them is the issue of share , which allows investors to become shareholders of the company and have the right, thereby, to receive dividends from the company's profit. Shares are not only a tool for receiving dividends, but on the stock market, investors can earn money due to periodic fluctuations in the price of these share.
A market on which securities are traded.
The combined price of a group of stocks - expressed against a base number - to allow assessment of how the group of companies is performing relative to the past.
Slang for Swedish Krona.
This is an order placed to buy above the current price, or to sell below the current price. These orders are useful if you believe the market is heading in one direction and you have a target entry price.
A stop order is an order to buy or sell once a pre-defined price is reached. When the price is reached, the stop order becomes a market order and is executed at the best available price. It is important to remember that stop orders can be affected by market gaps and slippage and will not necessarily be executed at the stop level if the market does not trade at this price. A stop order will be filled at the next available price once the stop level has been reached. Placing contingent orders may not necessarily limit your losses.
A “Stop Out” is an expression with two different meanings in different financial markets.
In the forex market, it is the level at which all of a trader’s positions are automatically liquidated because their margin has decreased to the point where it can’t support a continuing open position.
In other markets, it describes the fact that an open trading position has reached the stop-loss level at which the trader ordered that it be sold.
Stop-loss hunting occurs when market participants aim to buy into a token at a price where many stop-loss levels have been set and triggered. It is likely that more experienced or institutional traders are hunting stops on retail traders. There are many ways for stop hunters to see you losses.
Refers to stop-loss orders building up; the accumulation of stop-loss orders to buy above the market in an up move, or to sell below the market in a down move.
Strategists are traders who anticipate upcoming reports and their impact on price action. They usually trade the news and come up with trade setups based on whether they think the actual figures will come in worse or better than expected. Because of that, strategists are a good source of trade ideas, especially for short-term trades.
The strike price is the fixed price mentioned in the contracts. At this price, the trader can buy or sell the option.
The currency of Sudan. Currency code (SDD)
A price that acts as a floor for past or future price movements.
Support is a price level that acts as a “floor,” preventing prices from dropping below that level.
Resistance is the opposite: a price level that acts as a “ceiling;” a barrier that prevents prices from rising higher.
Support and resistance levels are a natural outgrowth of the interaction of supply and demand in any market.
The currency of Suriname. Currency code (SRG)
The currency of Swaziland. Currency code (SZL)
The currency of Sweden. Currency code (SEK)
The process of converting Profits and Losses in another currency into U.S. dollars at the end of each trading day.
Traders who can react quickly to market changes, including at-home and day traders, benefit from swing trading, which is a trade strategy that involves holding a position for longer than a day.
Swing traders usually maintain a position for 3-10 days, taking advantage of any positive swings in the market. In fact, swing trading sits squarely in the middle between day trading and trend trading in terms of the length of time invested in a position. These traders stick around just long enough to see how the wind will blow before deciding to stay and see a trend through or go on to more profitable pastures.
The currency of Switzerland. One of the major currencies traded. Currency code (CHF)
The Symmetric triangle graphical price pattern is a chart pattern of an existing trend continuation, which may be formed both in an uptrend and in a downtrend, and serves to confirm its further directions.
The currency of Syria. Currency code (SYP)
The currency of Tajikistan. Currency code (TJS)
A take-profit order (T/P) is a type of limit order that specifies the exact price at which to close out an open position for a profit. If the price of the security does not reach the limit price, the take-profit order does not get filled.
Take Profit is designed to close a position once the targeted profit level has been reached by setting it at a price better than the price of position opening or the price of pending order execution.
Assuming control of a company by buying its stock.
The Tankan Survey is an economic survey of Japanese business issued by the Bank of Japan, which it then uses to formulate monetary policy.
The survey covers thousands of Japanese companies with a specified minimum amount of capital, although firms deemed sufficiently influential may also be included.
The companies are asked about current trends and conditions in the business place and their respective industries as well as their expected business activities for the next quarter and year.
The currency of Tanzania. Currency code (TZS)
Technical analysis is used to forecast future changes in financial and commodity markets based on the history of price changes, i.e., past price movements.
The process by which charts of past price patterns are studied for clues as to the direction of future price movements.
Technical indicators are the inseparable part of technical analysis. Their aim is to predict the direction of the market to help a trader. There is a great number of indicators used by traders for determining the market movement. Some traders prefer to use those indicators which have proved to be efficient in trading in the past, while others try using new indicators.
Traders who base their trading decisions on technical or charts analysis.
Spread trading is a strategy of gauging how the price difference between two securities or contracts—the spread—will change. A spread trader is focused more on the price difference and less on the prices themselves.
The currency of Thailand. Currency code (THB)
The Three Black Crows pattern is a bearish reversal pattern that consists of three consecutive bearish long candlesticks that trend downward like a staircase.
The candlestick pattern that requires that each of the three candlesticks should be relatively long bearish candlesticks with each candlestick opening lower than the previous candle’s open.
This is a trend reversal pattern that should only be considered when it appears in an established uptrend.
The Three Black Crows usually indicate a weakness in an established uptrend and the potential emergence of a downtrend.
The Three White Soldiers is a bullish Japanese candlestick reversal pattern consisting of three consecutive white bodies, each with a higher close.
The Three White Soldiers candlestick pattern marches upward, creating a staircase-like structure as the price climbs higher and higher.
The pattern usually indicates a weakness in an established downtrend and the potential emergence of an uptrend.
Each candle should open within the previous body and the close should be near the high of the candle.
Tokyo Interbank Offered Rate.
The TIC or Treasury International Capital data is a set of reports that shows all flows of money into and out of the country for stocks and bonds.
It is computed by getting the difference in value between foreign purchases of stocks and bonds and the value of stocks and bonds sold by a country.
If the TIC balance is positive, it means that more securities were sold than purchased by the nation.
Another name for the report is Net Foreign Purchases.
The minimum change in price, up or down.
The time remaining until a contract expires.
Time-Weighted Average Price (TWAP) is a trading algorithm based on the weighted average price used for the execution of bigger orders without excessive impact on the market price.
“TINA” which means “There is no alternative” is a popular phrase used in financial media.
TINA is a phrase that originated with the Victorian philosopher Herbert Spencer.
But the phrase is forever associated with Margaret Thatcher, former prime minister of the United Kingdom, in the 1980s.
The phrase was used to signify Thatcher’s claim that the market economy is the only system that works, and that debate about this is over.
Today, it is often used by the financial media to explain a less-than-ideal portfolio allocation, usually of overvalued bonds and/or stocks, because other asset classes offer even worse returns.
Tom-Next is short for ‘Tomorrow-Next Day”, which is a short-term forex transaction that enables traders to simultaneously buy and sell a currency over two separate business days.
The intention of Tom-Next is to prevent traders from having to take physical delivery of currency, while still being able to keep their forex positions open overnight.
Tom-Next trades arise because most currency traders have no intention of taking delivery of the currency so require their positions to be “rolled over” on a daily basis.
In forex, the expected delivery day is two days after any transaction, known as the spot date, but tom-next can be used to extend the trade beyond this date.
This simultaneous transaction is an FX swap, and depending on what currency the trader holds, they will either be charged or earn a premium.
The Tokyo Overnight Average Rate (TONAR) is the risk-free unsecured interbank overnight interest rate for the Japanese Yen that it’s also known as TONA.
It was created in 2016 in the move to risk-free reference rates. TONAR is the replacement for LIBOR which is expected to be completely phased out by June 2023.
The currency of Tonga. Currency code (TOP)
Total supply is the total number of cryptocurrencies or digital tokens that are in existence, including those circulating in the public market and those that are locked or reserved.
Measures the difference in value between imported and exported goods and services. Nations with trade surpluses (exports greater than imports), such as Japan, tend to see their currencies appreciate, while countries with trade deficits (imports greater than exports), such as the US, tend to see their currencies weaken.
A trade confirmation is a receipt of an executed order sent to you by your broker. Trade confirmations are sent to verify that the transaction has taken place and you will receive one after every trade you make.
The number of units of product in a contract or lot.
“Trading heavy” is a phrase used to describe a market that feels like it wants to move lower, usually associated with an offered market that will not rally despite buying attempts.
A trading model is a rule-based structure created to govern trading activities. Trading models help take some guesswork out of the markets while encouraging investors and traders to set risk parameters.
Models based on proven rules can remove human emotions from decision making.
The range between the highest and lowest price of a stock usually expressed with reference to a period of time. For example: 52-week trading range.
Trading styles can be molded to fit a trader’s time restrictions, profit goals, and personal strengths.
While most traders share the same goals, they achieve these goals using a variety of different trading styles.
There is not one trading style that is better than any of the others.
What typically separates the trading styles is the length of time you intend to be in a trade, the timing of your entry, and in some cases, the frequency of the trades.
There are four main styles of trading:
- Day trading
- Swing trading
- Position trading
The total amount of a cryptocurrency that was traded during a certain period of time.
Trailing Stop mode maintains the mechanism of automatic shift of a linked Stop Loss order according to the following rule: if the profit of a position becomes higher than the set fixed distance, the Stop Loss order moves to the level on which the difference between the current market price and order price is equal to this distance.
The costs, incurred by a trader when buying or selling currencies or commodities, which include the commission fee of a broker.
Transaction risk refers to the adverse effect that foreign exchange rate fluctuations can have on a completed transaction prior to settlement.
Transparency refers to disclosure of information about activities. Transparent procedures include releases of meeting minutes, financial disclosure statements, budgetary reviews, and audits.
Short-term obligations of a government issued for periods of one year or less. Treasury bills do not carry a rate of interest, but are issued at a discount on the par value. Treasury bills are repaid at par on the due date.
Treasury bonds (T-bonds) are government debt securities issued by the U.S. Federal government that have maturities greater than 20 years.
Government obligations with maturities more than one year, but less than ten years.
A trend channel is a set of parallel trend lines defined by the highs and lows of an asset’s price action.
A trend channel, also sometimes called a price channel occurs when the price is moving between two parallel trendlines.
Trend continuation patterns (graphical models, patterns) are formed during the pause in the current market trends, and mark the movement continuation rather than its reversal.
trend following or trend trading is a trading strategy according to which one should buy an asset when its price trend goes up, and sell when its trend goes down, expecting price movements to continue
The lines connecting a series of extreme upper or extreme lower points on a price chart.
The Trend Reversal patterns are graphical models (patterns), which are formed after the price level reaches its high in the current trend and indicate high probability of trend reversal.
TRIN is a short-term trading tool that measures volatility in the stock market. TRIN represents the relationship between advancing and declining issues by measuring their volume flow. A rising TRIN depicts a weak market and a falling TRIN depicts a strong market.
The currency of Trinidad, Tobago. Currency code (TTD)
The Triple bottom graphical price pattern is usually formed in a downtrend and serves as a sign of its further reversal. This pattern is considered to be more significant than the “double bottom”.
A triple moving average crossover is a bullish signal that indicates that the price may rise.
The Triple top graphical price pattern is usually formed in an uptrend anticipating its further reversal and decrease in prices. This pattern is considered to be more significant than the “double top”.
Triple witching is the simultaneous expiration of stock options, stock index futures, and stock index options contracts all on the same trading day. This happens four times a year: on the third Friday of March, June, September, and December.
It is an oscillator that is used to show overbought and oversold areas in the price and momentum chart.
It is an oscillator that is used to show overbought and oversold areas in the price and momentum chart.
The True Strength Index (TSI) is a momentum oscillator that ranges between limits of -100 and +100 and has a base value of 0.
Momentum is positive when the oscillator is positive (pointing to a bullish market bias).
Momentum is negative when the oscillator is negative (pointing to a bearish market bias).
The currency of Tunisia. Currency code (TND)
The currency of Turkey. Currency code (TRY)
The currency of Turkmenistan. Currency code (TMM)
The total money value or volume of all executed transactions in a given time period.
A trading band created by plotting the highest and lowest prices of an asset over a certain time period around the price of that asset
The currency of Tuvalu. Currency code (TVD)
A Tweezer Bottom is a bullish reversal pattern seen at the bottom of downtrends and consists of two Japanese candlesticks with matching bottoms.
The matching bottoms are usually composed of shadows (or wicks) but can be the candle’s bodies as well.
A Tweezer Top is a bearish reversal pattern seen at the top of uptrends and consists of two Japanese candlesticks with matching tops.
The matching tops are usually composed of shadows (or wicks) but can be the candle’s bodies as well.
When both a bid and offer rate is quoted for a forex transaction.
The interest rate at which U.S. banks will lend to their main corporate customers.
Formally established as an executive department by the 1789 Act of Congress, the Department of the Treasury serves as the treasury of the federal government and is the agency responsible for managing the money resources of the United States.
The currency of Uganda. Currency code (UGX)
Describing unforgiving market conditions that can be violent and quick.
Measures the relative level of UK house prices for an indication of trends in the UK real estate sector and their implication for the overall economic outlook. This index is the longest monthly data series of any UK housing index, published by the largest UK mortgage lender (Halifax Building Society/Bank of Scotland - HBOS ).
Measures the change in the number of people claiming unemployment benefits over the previous month.
Measures the change in total labour cost expended in the production of one unit of output.
Measures the rate of inflation experienced by manufacturers when selling goods and services.
The currency of Ukraine. Currency code (UAH)
The Ulcer Index (UI) is a technical indicator that measures downside risk in terms of both the depth and duration of price declines. The index increases in value as the price moves farther away from a recent high and falls as the price rises to new highs. The indicator is usually calculated over a 14-day period, with the Ulcer Index showing the percentage drawdown a trader can expect from the high over that period.
The greater the value of the Ulcer Index, the longer it takes for a stock to get back to the former high. Simply stated, it is designed as one measure of volatility only on the downside.
An underlying market is the market on which a derivative is based. This might also be called an underlying asset. You can trade derivatives contracts based on many underlying markets, from commodities such as oil and gold, to stock indices, to spot forex.
Derivatives are financial instruments where the value is based on an underlying asset.
Uniswap (UNI) is a crypto token that powers Uniswap, the largest decentralized exchange on the Ethereum blockchain.
According to Uniswap, the UNI token was created to “officially enshrine Uniswap as publicly-owned and self-sustainable infrastructure while continuing to carefully protect its indestructible and autonomous qualities.
The currency of the United Arab Emirates. Currency code (AED)
The currency of the United Kingdom. One of the major currencies traded. Currency code (GBP)
The University of Michigan Consumer Sentiment Index is a consumer confidence index published monthly by the University of Michigan. The index is normalized to have a value of 100 in the first quarter of 1966. Each month at least 500 telephone interviews are conducted of a contiguous United States sample.
The theoretical gain or loss on open positions valued at current market rates, as determined by the broker in its sole discretion. Unrealised gains/losses become profits/losses when the position is closed.
in altre parolle, Theoretical profit or loss of an open position determined by current market prices.
An attempt by a country’s monetary authorities to influence exchange rates and its money supply by not buying or selling domestic or foreign currencies or assets.
This is a passive approach to exchange rate fluctuations and allows for fluctuations in the monetary base.
A new price quote at a price higher than the preceding quote.
The currency of Uruguay. Currency code (UYU)
A primary US stock index. The US Tech 100 is a weighted average of 100 of the largest non-financial companies traded on the US Tech 100.
A name for the Dow Jones index.
The currency pair, formed from the US dollar and the Canadian dollar, indicates how many Canadian dollars are needed to purchase one US dollar.
The US dollar and the Swiss franc currency pair, where the US dollar is the base currency and the Swiss franc is the quoted currency.
The US dollar and the Japanese yen currency pair. In this currency pair the US dollar is the base currency while the Japanese yen is the quoted one.
A measure of the value of the U.S. dollar relative to majority of its most significant trading partners. This index is similar to other trade-weighted indexes, which also use exchange rates from the same major currencies.
The currency of Uzbekistan. Currency code (UZS)
The currency of Vanuatu. Currency code (VUV)
Funds traders must hold in their accounts to have the required margin necessary to cope with market fluctuations.
The currency of Venezuela. Currency code (VEB)
The currency of Vietnam. Currency code (VND)
Shows the market's expectation of 30-day volatility. It is constructed using the implied volatilities of a wide range of S&P 500 index options. The VIX is a widely used measure of market risk and is often referred to as the ‘investor fear gauge.’
Voice direct trading is a trade originated personally by phone, fax, e-mail, or other messaging systems.
Voice indirect trading is a trade agreed by a voice-based method but intermediated by a third party (voice broker).
The Volume of deals characterizes the activity of market participants involved in asset trading, its strength and intensity.
A way of storing your cryptocurrency.
Wash trading is a process whereby a trader buys and sells a security to feed misleading information to the market. In some situations, wash trades are executed by a trader and a broker colluding. Other times, wash trades are executed by investors acting as both the security's buyer and seller.
Wash trading misleads investors into believing that trading volumes for security are higher than they are, potentially increasing legitimate trading activity on the security in the process. Wash trading is illegal under U.S. law, and the Internal Revenue Service (IRS) bars taxpayers from deducting losses resulting from their taxable income.
Refers to the group of investors who hold a short position and are quick to exit their positions at the first sign of strength in the underlying asset. This group of investors look to capture the gain on a move lower, but they are usually unwilling to take on as much as rick as other investors.
The wedge refers to short-term graphical price patterns of trend continuation indicating that its direction will remain unchanged in the near future. For example, on the daily chart the pattern is often formed within a week or two.
Chart formation that shows a narrowing price range over time, where price highs in an ascending wedge decrease incrementally, or in a descending wedge, price declines are incrementally smaller. Ascending wedges typically conclude with a downside breakout and descending wedges typically terminate with upside breakouts.
A Weighted Moving Average (WMA) is a type of moving average that puts more weight on recent data and less on past data.
A moving average is a technical indicator that shows you how the price has moved, on average, over a certain period of time.
Because of its unique calculation, WMA will follow prices more closely than a Simple Moving Average (SMA).
A Weighted Moving Average (WMA) also puts greater importance on recent data than the Exponential Moving Average (EMA) by assigning values that are linearly weighted to ensure that the most recent prices have a greater impact on the average than older
WTI is a specific grade of crude oil and is one of three major oil benchmarks used by those trading oil contracts, futures, and derivatives.
WTI stands for West Texas Intermediate, and also called Texas Light Sweet.
It is one of the three major oil benchmarks used in trading, the others being Brent Crude and Dubai/Oman.
West Texas Intermediate (WTI) is slightly lower in price than Brent
It is also considered slightly “sweeter” and “lighter” than Brent.
This is because WTI contains 0.24% sulfur, making it “sweet,” and has a low density, making it “light.”
In the United States, West Texas Intermediate is the preferred measure and pricing model.
West Texas Intermediate is sourced from U.S. oil fields, primarily in Texas, Louisiana, and North Dakota.
WTI is the underlying commodity for the NYMEX’s oil futures contract.
The Westpac Leading Index measures the growth of a composite index which includes nine (9) different economic barometers of Australia.
The term “whale” describes an individual or organization holding a large amount of a particular cryptocurrency. There is no exact cutoff threshold for this definition, but some say a Bitcoin whale should have at least 1,000 BTC. A whale may also be defined as a person with enough coins or tokens to cause a significant impact on the market prices, either by buying or selling large amounts.
Although we often call a wealthy individual a whale, the term can also describe an institution or organization that holds a significant number of cryptocurrencies and, thus, have the power to move the markets up and down. In the crypto space, examples of such whales include investment groups like Pantera Capital, Fortress Investment Group, and Falcon Global Capital.
Whitelist is a list of registered and approved participants that are given exclusive access to contribute to an initial coin offering (ICO) or a presale.
A whitepaper is an informational document that generally informs readers on the philosophy, objectives and technology of a project or initiative. Whitepapers are often provided before the launch of a new coin or token. It tends to be considered as a technical document and marketing material for a crowdsale campaign.
Wholesale price is the price charged for a product as sold in bulk to large trade or distributor groups as opposed to what is charged to consumers. The wholesale price is the sum of a given product's cost price plus the manufacturer's profit margin.
Williams %R, also known as the Williams Percent Range, is categorized as a momentum oscillator.
The Williams %R indicator was created by Larry Williams., the famed author, and stock and commodity trader. Aside from Williams %R, Williams also created many other indicators, such as the Ultimate Oscillator, COT indices, accumulation/distribution indicators, cycle forecasts, market sentiment, and value measurements for commodity prices.
Williams Alligator is an indicator created to identify the trends and their directions.
The objective of the indicator is to determine the overbought or oversold conditions of the asset and the possible reversal points.
WM/Reuters benchmark rates are spot and forward foreign exchange rates used as standard rates for portfolio valuation and performance measurement.
The World Bank is a group of international financial organizations around the globe aimed to provide assistance to its 187 member countries.
The World Bank was formed after World War II to help devastated Western European countries and provide them with capital.
Acronym for The Wall Street Journal.
XAG/USD is the abbreviation for the Silver and US Dollar pair. It shows how much the XAG (base currency) is worth as measured against the USD (counter currency).
A currency that trades in markets outside of its domestic borders. “Xeno” is a prefix meaning strange or foreign.
XD is a symbol that is used to signify that a security or stock has gone ex-dividend.
The currency of Yemen. Currency code (YER)
Yield chasing refers to the situation where a central bank is suppressing interest rates at low or negative levels.
The yield curve is used as a benchmark for debt in the bond market, most commonly correlating with bank lending and mortgage rates.
It is also used to predict any upcoming changes in GDP in which the three-month, two-year, five-year, 10-year and 30-year U.S. Treasuries are compared.
The yield curve can either be upward sloping, downward-sloping or flat and each of these “slopes” usually correlates directly with the state of the economy.
Yield curve control (“YCC”), also sometimes called interest rate pegs, is where bond yields are set by the central bank.
It is considered a type of unconventional monetary policy.
Under yield curve control, a central bank targets an interest rate at a specific maturity.
It buys whatever quantity of government debt securities is needed to hit that.
Yield curve control would require the central bank to announce that it will not allow interest rates across a portion of the curve to rise above a certain rate.
For example, the Fed would announce a rate, say 50 basis points (0.50%), and state that it stands ready to purchase all Treasury bonds of a certain maturity that trade above this level.
Yield Farming is a process that allows crypto asset holders to lock up their holdings, which in turn provides them with rewards.
More specifically, it is the practice of staking or lending crypto assets in the DeFi market in order to earn either fixed or variable interest.
The term got popularized by the DeFi community in the summer of 2020 (“DeFi Summer 2020”), through the launch of various different projects such as Uniswap, Sushiswap, Yearn and Yam Finance
Yield Guild Games, or YGG, is a “play-to-earn” gaming guild and decentralized autonomous organization (DAO) that helps players quickly gain exposure to a wide range of blockchain game NFTs.
YGG’s mission is to create the biggest virtual world economy, optimizing its community-owned assets for maximum utility and sharing its profits with its token holders.
The platform aims to maximize the value and utility of NFTs used in blockchain games and helps reduce the barriers to entry for earning a return from blockchain games like Axie Infinity.
The team behind Yield Guild Games continuously coordinates research and development strategies for participants in the DAO to arbitrage on yield generation by being competitive in metaverse-related games.
YGG’s main activities center around establishing a vibrant and dynamic international community of play-to-earn gamers who primarily compete to gain in-game prices and rewards.
Abbreviation for year over year.
The currency of Zambia. Currency code (ZMW).
Zero coupon bonds are bonds that do not pay interest during the life of the bonds. Instead, investors buy zero coupon bonds at a deep discount from their face value, which is the amount the investor will receive when the bond "matures" or comes due.
ZIRP stands for “zero interest rate policy”.
ZIRP is a macroeconomic concept that describes conditions characterized by extremely low nominal interest rates.
It’s when a nation’s central bank pushes nominal interest rates to 0% for its short-term benchmark.
ZIRP is considered to be an unconventional monetary policy instrument and can be associated with slow economic growth, deflation, and deleveraging.
The goal of ZRIP is to spur economic activity by encouraging low-cost borrowing and greater access to cheap credit by firms and individuals.
e Zero Lower Bound (ZLB) is a macroeconomic problem that occurs when the short-term nominal interest rate is at or near zero, causing a liquidity trap and limiting the central bank's capacity to stimulate economic growth.
A leading indicator of economic health based on surveyed institutional investors and analysts. The survey asks respondents to rate the 6-month economic outlook for the nation. A reading above 0.0 indicates optimism while a reading below 0.0 implies pessimism.
The ZEW Financial Market Survey measures the institutional investor sentiment, reflecting the difference between the share of investors that are optimistic and the share of analysts that are pessimistic.
Participants are asked about their six-months expectations concerning the economy, inflation rates, interest rates, stock markets, and exchange rates in the Eurozone, Germany, Japan, United States, United Kingdom, France, and Italy as well as their expectations concerning the oil price.
Generally speaking, an optimistic view is considered as positive (or bullish) for the EUR, whereas a pessimistic view is considered as negative (or bearish).
ZEW stands for Zentrum für Europäische Wirtschaftsforschung, which translates to the Center for European Economic Research.
The ZEW Indicator of Economic Sentiment is a simple sentiment indicator created out of the monthly ZEW Financial Market Survey.
the currency of Zimbabwe. Currency code (ZWD).
A zombie or zombie company is a business that is barely profitable now and their outlook for future profitability is bleak.
These companies thrive in an environment of low interest rates and a financial system that rolls over loans to loss‐making companies.
Zombie companies earn just enough money to continue operating and service their debt.
They have no excess capital to spur growth and are considered close to insolvency.
Even more loose monetary policy by central banks encourages this “zombification” process.
The number of zombie companies increased rapidly in the wake of the Great Financial Crisis.