Forex Glossary 1 – 2

93172ee5b64d7cc505557c3cb0e0852f_1498322564_3796
Cable

Trader’s slang for the British Pound.

Candle

A graphical representation of price movement on a chart for a specific period of time. A filled candle for a specific time period represents that the closing price was lower than the opening price while a hollow candle represents that the closing price was higher than the opening. Extensions on the candles also known as the wicks represent the high and low for the specific time period.

Carry Cost

The cost of holding an open position past the end of the trading day. The cost is usually assessed at 5pm New York time.

CFTC

Commodities Futures Trading Commission. The US regularatory agency that oversees commodity, futures and options markets. The CFTC has recently taken a leading role in regulating Forex markets.

Chart

A graph representing the movements of one currency pair over a specified period of time. Charts provide bars showing movements over periods as short as 1 minute or as long as 1 month. The bars displayed on charts can be set to display as points on a graph, hi/low bars, or candles depending on how the trader wishes to view the data.

Clearing

The process a broker dealer’s back office uses to settle a trade.

Commission

A fee that is charged for a broker/dealer for facilitating a transaction between two parties.

Country Risk

Changes in the policies or structure of the government that may adversely affect the value of the country’s currency and thus the value of an investor’s position.

Cross Pair

A currency pair that does not include the US Dollar. By dealing with a cross pair a trader does not have to convert funds into US Dollars at any point in the transaction.

Counterparty

The party on the opposite side of a trade.

Counterparty Risk

The risk that the party on the other side of the trade will not be able to pay for a position sold to them or, conversely, will not be able to deliver a position purchased from them.

Currency Option

A contract in which one party agrees to give a second party the option (but not the obligation) to buy or sell a currency at a predetermined price at some point in the future.

Currency Pair

A currency pair is a trading unit that allows you to take a position in one currency relative to another currency with the expectation that the currency you bought will appreciate in value relative to the currency you sold. The first currency in the pair is called the “Base” currency; the second currency is called the cross currency.

Suppose the Euro is trading at 1.2200 US Dollars and you believe the Euro is going to appreciate against the Dollar. You would buy (or go “long”) on the EURUSD pair. You have just simultaneously bought Euros and sold US Dollars.

If you are correct and the Euro appreciates to 1.2700 you would sell Euros you bought at 1.2200 at the new rate of 1.2700.

All Forex trading is done in terms of currency pairs. The following pairs are commonly traded:

Currency Pairs

Symbol Currencies Traders Term

EURUSD Euro / US Dollar EuroDollar

GPBUSD British Pound/US Dollar Cable

USDJPY US Dollar / Japanese Yen DollarYen

USDCHF US Dollar / Swiss Franc DollarSwiss or “Swissie”

USDCAD US Dollar / Canadian Dollar DollarCanada

AUDUSD Australian Dollar / US Dollar AussieDollar

EURGBP Euro / British Pound EuroSterling

EURJPY Euro / Japanese Yen EuroYen

EURCHF Euro / Swiss Franc EuroSwiss

GBPCHF British Pound / Swiss Franc SterlingSwiss

GBPJPY British Pound / Japanese Yen SterlingYen

CHFJPY Swiss Franc / Japanese Yen SwissYen

NZDUSD New Zealand Dollar / US Dollar NewZealandDollar or “Kiwi”

USDZAR New Zealand Dollar / US Dollar DollarZar

Commodities

GLDUSD Spot Gold Gold

SLVUSD Spot Silver Silver

Currency Risk

A form of risk that international businesses face because they deal in different currencies. Because the value of currencies can fluctuate a business’ financial results can be affected if they are not properly hedged.

Latest Comment

  1. Commented by: высоковольтные разъемы для кабелей

    Набор для магнитно-порошкового контроля ndt.su

    По вопросу пенетрант инспектор prn канистра 5л Вы пришли по правильному адресу. Также рассмотрите наши спецпредложения по акции на сегодняшний день: ультрафиолетовый маркер Invisible, магнитная флуоресцентная суспензия Инспектор, ЭЧК Канавочный эталон чувствительности и другие. Полный каталог делится на: капиллярный контроль, магнитно-порошковый, вакуумный, экзаменационные образцы и другие. Переходите в нужный Вам раздел, отправляйте товары в заказ или к сравнению с похожими для Вашего комфорта выбора.

    Мы расположены по адресу: РФ, Удмуртская республика, г. Ижевск, ул. Красногвардейская, д. 60, оф. 13. По любому вопросу звоните по контактному телефону 8(800)555-45-19 или пишите на электронную почту. Режим работы пн-пт с 9:00 до 18:00, суббота и воскресенье нерабочие дни.

  2. Commented by: bono_daKi

    ?Gana dinero sin invertir! Bono casino sin deposito
    bono gratis para casino sin deposito casino en linea con bono de bienvenida sin deposito .

  3. Commented by: ANTIBAN-PRO

    Locked out of your Instagram profile and itching to get back in the game? Antiban Pro is here to lend a hand. Whether you accidentally locked yourself out or encountered a glitch, we’ve got the tools and tricks to help you unlock your Instagram profile hassle-free.

    Here’s the scoop: our platform offers simple solutions to unlock your Instagram profile with ease. No need to stress – we’ll walk you through the process step by step, so you can get back to posting, liking, and sharing in no time.

    Why choose Antiban Pro? Because we’re all about giving you the freedom to connect with your friends and followers without any hiccups. Our team is dedicated to providing top-notch support and guidance to help you unlock your Instagram profile quickly and securely.

    So, what are you waiting for? Let Antiban Pro help you unlock your Instagram profile and get back to sharing your favorite moments with the world. Your next post awaits!

    Antiban.pro – instagram support for locked accounts

  4. Commented by: Zaim-Fin: ваша дверь к финансовым возможностям

    Друзья, недавно я столкнулся с ситуацией, которая заставила меня задуматься о важности доступности медицинской помощи. В семье у нас возникла необходимость приобрести дорогостоящие медицинские препараты для лечения близкого человека, но финансовые возможности были ограничены. В такие моменты портал zaim-fin.ru становится вашим верным спутником! Здесь я обнаружил не только ряд МФО, готовых предоставить займы даже людям с плохой кредитной историей, но и получил ценные советы о том, как правильно оформить заявку на микрокредит и какие требования у МФО к заемщику. Благодаря этому ресурсу, мы смогли обеспечить нашего близкого человека всем необходимым для его выздоровления. Не забывайте, что здоровье – это самое ценное, и портал zaim-fin.ru готов помочь вам в трудные моменты!

1 2 3 103

Latest Comment

Your email address will not be published. Required fields are marked *