Glossario

A
  • ACCRUAL Edit

    Official action normally occasioned by a change either in the internal economic policies to correct a payment imbalance or in the official currency rate

  • ADJUSTMENT Edit

    The apportionment of premiums and discounts on forward exchange transactions that relate directly to deposit swap (interest arbitrage) deals, over the period of each deal.

  • AGGRESSIVE Edit

    Traders and/or price action are acting with conviction.

  • ANALYST Edit

    TA financial professional who has expertise in evaluating investments and puts together buy, sell and hold recommendations for clients.

  • APPRECIATION Edit

    A product is said to ‘appreciate’ when it strengthens in price in response to market demand.

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B
  • BALANCE OF TRADE Edit

    The value of a country’s exports minus its imports.

  • BAR CHART Edit

    A type of chart which consists of four significant points: the high and the low prices, which form the vertical bar; the opening price, which is marked with a horizontal line to the left of the bar; and the closing price, which is marked with a horizontal line to the right of the bar.

  • BARRIER LEVEL Edit

    A certain price of great importance included in the structure of a Barrier Option. If a Barrier Level price is reached, the terms of a specific Barrier Option call for a series of events to occur.

  • BARRIER OPTION Edit

    Any number of different option structures (such as knock-in, knock-out, no touch, double-no-touch-DNT) that attaches great importance to a specific price trading. In a no-touch barrier, a large defined payout is awarded to the buyer of the option by the seller if the strike price is not ‘touched’ before expiry. This creates an incentive for the option seller to drive prices through the strike level and creates an incentive for the option buyer to defend the strike level.

  • BASE CURRENCY Edit

    The first currency in a currency pair. It shows how much the base currency is worth as measured against the second currency. For example, if the USD/CHF (U.S. Dollar/Swiss Franc) rate equals 1.6215, then one USD is worth CHF 1.6215. In the forex market, the US dollar is normally considered the base currency for quotes, meaning that quotes are expressed as a unit of $1 USD per the other currency quoted in the pair. The primary exceptions to this rule are the British pound, the euro and the Australian dollar.

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C
  • CABLE Edit

    The GBP/USD (Great British Pound/U.S. Dollar) pair. Cable earned its nickname because the rate was originally transmitted to the US via a transatlantic cable beginning in the mid 1800s when the GBP was the currency of international trade.

  • CAD Edit

    The Canadian dollar, also known as Loonie or Funds.

  • CALL OPTION Edit

    A currency trade which exploits the interest rate difference between two countries. By selling a currency with a low rate of interest and buying a currency with a high rate of interest, the trader will receive the interest difference between the two countries while this trade is open.

  • CANADIAN IVEY PURCHASING MANAGERS (CIPM) INDEX Edit

    A monthly gauge of Canadian business sentiment issued by the Richard Ivey Business School.

  • CANDLESTICK CHART Edit

    A chart that indicates the trading range for the day as well as the opening and closing price. If the open price is higher than the close price, the rectangle between the open and close price is shaded. If the close price is higher than the open price, that area of the chart is not shaded.

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D
  • DAY TRADER Edit

    Speculators who take positions in commodities and then liquidate those positions prior to the close of the same trading day.

  • DAY TRADING Edit

    Making an open and close trade in the same product in one day.

  • DEAL Edit

    A term that denotes a trade done at the current market price. It is a live trade as opposed to an order.

  • DEALER Edit

    An individual or firm that acts as a principal or counterpart to a transaction. Principals take one side of a position, hoping to earn a spread (profit) by closing out the position in a subsequent trade with another party. In contrast, a broker is an individual or firm that acts as an intermediary, putting together buyers and sellers for a fee or commission.

  • DEALING SPREAD Edit

    The difference between the buying and selling price of a contract.

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E
  • ECD Edit

    European Central Bank, the central bank for the countries using the euro.

  • ECONOMIC INDICATOR Edit

    A government-issued statistic that indicates current economic growth and stability. Common indicators include employment rates, Gross Domestic Product (GDP), inflation, retail sales, etc.

  • END OF DAY ORDER (EOD) Edit

    An order to buy or sell at a specified price that remains open until the end of the trading day, typically at 5pm/17:00 New York time.

  • EST/EDT Edit

    The time zone of New York City, which stands for United States Eastern Standard Time/Eastern Daylight time.

  • ESTX50 Edit

    A name for the Euronext 50 index.

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F
  • FACTORY ORDERS Edit

    The dollar level of new orders for both durable and nondurable goods. This report is more in depth than the durable goods report which is released earlier in the month.

  • FED OFFICIALS Edit

    Refers to members of the Board of Governors of the Federal Reserve or regional Federal Reserve Bank Presidents.

  • FED Edit

    The Federal Reserve Bank, the central bank of the United States, or the FOMC (Federal Open Market Committee), the policy-setting committee of the Federal Reserve.

  • FIGURE/THE FIGURE Edit

    Refers to the price quotation of ‘00’ in a price such as 00-03 (1.2600-03) and would be read as ‘figure-three.’ If someone sells at 1.2600, traders would say ‘the figure was given’ or ‘the figure was hit.

  • FILL Edit

    When an order has been fully executed.

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G
  • G7 Edit

    Group of 7 Nations - United States, Japan, Germany, United Kingdom, France, Italy and Canada.

  • G8 Edit

    Group of 8 - G7 nations plus Russia.

  • GAP/GAPPING Edit

    A quick market move in which prices skip several levels without any trades occurring. Gaps usually follow economic data or news announcements.

  • GEARING (ALSO KNIWN AS LEVERAGE) Edit

    Gearing refers to trading a notional value that is greater than the amount of capital a trader is required to hold in his or her trading account. It is expressed as a percentage or a fraction.

  • GER30 Edit

    An index of the top 30 companies (by market capitalization) listed on the German stock exchange – another name for the DAX.

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H
  • HANDLE Edit

    Every 100 pips in the FX market starting with 000.

  • HAWK/HAWKISH Edit

    A country’s monetary policymakers are referred to as hawkish when they believe that higher interest rates are needed, usually to combat inflation or restrain rapid economic growth or both.

  • HEDGE Edit

    A position or combination of positions that reduces the risk of your primary position.

  • HIT THE BID Edit

    To sell at the current market bid.

  • HK50/HKHI Edit

    Names for the Hong Kong Hang Seng index.

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I
  • ILLIQUID Edit

    Little volume being traded in the market; a lack of liquidity often creates choppy market conditions.

  • IMM_FUTURES Edit

    A traditional futures contract based on major currencies against the US dollar. IMM futures are traded on the floor of the Chicago Mercantile Exchange.

  • IMM SESSION Edit

    8:00am - 3:00pm New York.

  • IMM Edit

    International Monetary Market, the Chicago-based currency futures market, that is part of the Chicago Mercantile Exchange.

  • INDU Edit

    Abbreviation for the Dow Jones Industrial Average.

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J
  • JAPANESE ECONOMY WATCHERS SURVEY Edit

    Measures the mood of businesses that directly service consumers such as waiters, drivers and beauticians. Readings above 50 generally signal improvements in sentiment.

  • JAPANESE MACHINE TOOL ORDERS Edit

    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.

  • JPN225 Edit

    A name for the NEKKEI index.

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K
  • KEEP THE POWDER DRY Edit

    To limit your trades due to inclement trading conditions. In either choppy or extremely narrow markets, it may be better to stay on the sidelines until a clear opportunity arises.

  • KIWI Edit

    Nickname for NZD/USD (New Zealand Dollar/U.S. Dollar).

  • KNOCK-INS Edit

    Option strategy that requires the underlying product to trade at a certain price before a previously bought option becomes active. Knock-ins are used to reduce premium costs of the underlying option and can trigger hedging activities once an option is activated.

  • KNOCK-OUTS Edit

    Option that nullifies a previously bought option if the underlying product trades a certain level. When a knock-out level is traded, the underlying option ceases to exist and any hedging may have to be unwound.

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L
  • LAST DEALING DAY Edit

    The last day you may trade a particular product.

  • LAST DEALING TIME Edit

    The last time you may trade a particular product.

  • LAVERAGE Edit

    Also known as margin, this is the percentage or fractional increase you can trade from the amount of capital you have available. It allows traders to trade notional values far higher than the capital they have. For example, leverage of 100:1 means you can trade a notional value 100 times greater than the capital in your trading account.*

  • LEADING INDICATORS Edit

    Statistics that are considered to predict future economic activity.

  • LEVEL Edit

    A price zone or particular price that is significant from a technical standpoint or based on reported orders/option interest.

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M
  • MACRO Edit

    The longest-term trader who bases their trade decisions on fundamental analysis. A macro trade’s holding period can last anywhere from around six months to multiple years.

  • MANUFACTURING PRODUCTION Edit

    Measures the total output of the manufacturing aspect of the Industrial Production figures. This data only measures the 13 sub-sectors that relate directly to manufacturing. Manufacturing makes up approximately 80% of total Industrial Production.

  • MARGIN CALL Edit

    A request from a broker or dealer for additional funds or other collateral on a position that has moved against the customer.

  • MARKET MAKER Edit

    A dealer who regularly quotes both bid and ask prices and is ready to make a two-sided market for any financial product.

  • MARKET ORDER Edit

    An order to buy or sell at the current price.

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N
  • NAS100 Edit

    An abbreviation for the NASDAQ 100 index.

  • NET POSITION Edit

    The amount of currency bought or sold which has not yet been offset by opposite transactions.

  • NEW YORK SESSION Edit

    8:00am – 5:00pm (New York time).

  • NO_TOUCH Edit

    An option that pays a fixed amount to the holder if the market never touches the predetermined Barrier Level.

  • NYA.X Edit

    Symbol for NYSE Composite index.

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O
  • OFFER/ASK PRICE Edit

    The price at which the market is prepared to sell a product. Prices are quoted two-way as Bid/Offer. The Offer price is also known as the Ask. The Ask represents the price at which a trader can buy the base currency, which is shown to the right in a currency pair. For example, in the quote USD/CHF 1.4527/32, the base currency is USD, and the ask price is 1.4532, meaning you can buy one US dollar for 1.4532 Swiss francs. In CFD trading, the Ask represents the price a trader can buy the product. For example, in the quote for UK OIL 111.13/111.16, the product quoted is UK OIL and the ask price is £111.16 for one unit of the underlying market.*

  • OFFERED Edit

    If a market is said to be trading offered, it means a pair is attracting heavy selling interest, or offers.

  • OFFSETTING TRANSACTION Edit

    A trade that cancels or offsets some or all of the market risk of an open position.

  • ON TOP Edit

    Attempting to sell at the current market order price.

  • ONE CANCELS THE OTHER ORDER (OCC) Edit

    A designation for two orders whereby if one part of the two orders is executed, then the other is automatically cancelled.

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P
  • PAID Edit

    Refers to the offer side of the market dealing.

  • PAIR Edit

    The forex quoting convention of matching one currency against the other.

  • PANELED Edit

    A very heavy round of selling.

  • PARABOLIC Edit

    A market that moves a great distance in a very short period of time, frequently moving in an accelerating fashion that resembles one half of a parabola. Parabolic moves can be either up or down.

  • PARTIAL FILL Edit

    When only part of an order has been executed.

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Q
  • QUANTITATIVE EASING Edit

    When a central bank injects money into an economy with the aim of stimulating growth.

  • QUARTERLY CFDS Edit

    A type of future with expiry dates every three months (once per quarter).*

  • QUOTE Edit

    An indicative market price, normally used for information purposes only.

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R
  • RALLY Edit

    A recovery in price after a period of decline.

  • RANGE Edit

    When a price is trading between a defined high and low, moving within these two boundaries without breaking out from them.

  • RATE Edit

    The price of one currency in terms of another, typically used for dealing purposes.

  • RBA Edit

    Reserve Bank of Australia, the central bank of Australia.

  • RBNZ Edit

    Reserve Bank of New Zealand, the central bank of New Zealand.

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S
  • SEC Edit

    The Securities and Exchange Commission.

  • SECTOR Edit

    A group of securities that operate in a similar industry.

  • SELL Edit

    Taking a short position in expectation that the market is going to go down.

  • SETTLEMENT Edit

    The process by which a trade is entered into the books, recording the counterparts to a transaction. The settlement of currency trades may or may not involve the actual physical exchange of one currency for another.

  • SHGA.X Edit

    Symbol for the Shanghai A index.

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T
  • TAKEOVER Edit

    Assuming control of a company by buying its stock.

  • TECHNICAL ANALYSIS Edit

    The process by which charts of past price patterns are studied for clues as to the direction of future price movements.

  • TECHNICIANS/TECHS Edit

    Traders who base their trading decisions on technical or charts analysis.

  • TEN (10) YR Edit

    US government-issued debt which is repayable in ten years. For example, a US 10-year note.

  • THIN Edit

    A illiquid, slippery or choppy market environment. A light-volume market that produces erratic trading conditions.

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U
  • UGLY Edit

    Describing unforgiving market conditions that can be violent and quick.

  • UK AVERAGE EARNINGS INCLUDING BONUS EXCLUDING BONUS Edit

    Measures the average wage including/excluding bonuses paid to employees. This is measured quarter-on-quarter (QoQ) from the previous year.

  • UK CLAIMANT COUNT RATE Edit

    Measures the number of people claiming unemployment benefits. The claimant count figures tend to be lower than the unemployment data since not all of the unemployed are eligible for benefits.

  • UK HBOS HOUSE PRICE INDEX Edit

    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).

  • UK JOBLESS CLAIMS CHANGE Edit

    Measures the change in the number of people claiming unemployment benefits over the previous month.

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V
  • VALUE DATE Edit

    Also known as the maturity date, it is the date on which counterparts to a financial transaction agree to settle their respective obligations, i.e., exchanging payments. For spot currency transactions, the value date is normally two business days forward.

  • VARIATION MARGIN Edit

    Funds traders must hold in their accounts to have the required margin necessary to cope with market fluctuations.

  • VIX OR VOLATILITY INDEX Edit

    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.”

  • VOLATILITY Edit

    Referring to active markets that often present trade opportunities.

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W
  • WEDGE CHART PATTERN Edit

    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.

  • WHIPSAW Edit

    Slang for a highly volatile market where a sharp price movement is quickly followed by a sharp reversal.

  • WHOLESALE PRICES Edit

    Measures the changes in prices paid by retailers for finished goods. Inflationary pressures typically show earlier than the headline retail.

  • WORKING ORDER Edit

    Where a limit order has been requested but not yet filled.

  • WSJ Edit

    Acronym for The Wall Street Journal.

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X
  • XAG/USD Edit

    Symbol for Silver Index.

  • XAU/USD Edit

    Symbol for Gold Index.

  • XAX.X Edit

    Symbol for AMEX Composite Index.

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Y
  • YARD Edit

    A billion units.

  • YIELD Edit

    The percentage return from an investment.

  • YOY Edit

    Abbreviation for year over year.

  • YUAN Edit

    The yuan is the base unit of currency in China. The renminbi is the name of the currency in China, where the Yuan is the base unit.

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