Most Popular Forex Definitions

Most Popular Forex Definitions

Content

Forex Glossary – the most popular definitions of Forex:

accrual

Addition – The word “Accrual” means in our language “addition”. The “accrual” is, in fact, all that value coming from profits, however, which does not translate into immediate liquidity. It is as if it were the ratio of availabilities produced by profits. addition proportional or the collection of premiums on forward foreign exchange transactions (orders) that are directly related to deposit swap transactions (see “Interest Arbitration”), for the period of a specific trade.

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Adjustment

Adjustment – ​​Usually an official action that consists of adjusting the domestic economic policy in order to correct the imbalance of payments, or the official exchange rate, which has an effect on its value in the foreign exchange market.

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Appreciation Currency

Appreciation (Currency Appreciation) - They say that the currency “grows” when it gets stronger with the increase in market demand.

forex arbitrage

Arbitrage – It refers to a strategy of negociação used by traders in an attempt to make profits due to inefficiency in the price of currency pairs. It involves buying and selling the currency pair while having an equal and opposite position in the market related.

Ask Price

Selling price (Ask) – is the price at which market participants are willing to sell a particular currency. At the Ask price the investor can buy the base currency. In the quotation it is indicated on the right side. For example, in the quotation USD / CHF 1,4527/32, the purchase price of 1,4532 – which means you can buy one US dollar for 1.4532 Swiss francs. Same as offer price (offer).

at best

At Best (Best currency price on the market) – order to Dealer to buy or sell at the best possible price.

At or Better

At or Better – order to Dealer to negotiate for the specified price or better. (At or Better)

Aussie

Aussie – Slang used for the US dollar.

Bar Chart

Bar Chart – displays a graphic which portrays four fundamental values: the maximum and minimum prices, based on which the vertical bar shows, as well as the opening and closing prices, being marked by dashes respectively to the left and right of the vertical bar.

Base Currency

Base Currency – first currency in a currency pair. Shows the base currency value in units of the second currency. For example, the quote USD/CHF 1,6215 means that each USD costs 1,6215 CHF. In the forex market, the US dollar is the base currency for many quotes, that is, price quotes are one dollar, expressed in units of the second currency in the pair. The main exceptions to this rule – the pound sterling (GBP), Austrian dollar (AUD) and Euro (EUR).

Bear Market

Bear Market - a market where prices drop sharply in a context of widespread pessimism (as opposed to Bull market).

Pray Price

Bid Price – price at which the customer is ready to buy a certain currency in the Forex , or cross-currency contract. For the price (Bid) the trader sells the base currency. In the quotation it is indicated on the left side. For example, in the quotation USD/CHF 1,4527/32, the Bid Price – 1,4527, that is, you can sell one US dollar for 1,4527 fswiss ransoms.

Bid / Ask Spread

Bid/Ask Spread (Purchase/Sell Price Spread) – It's the difference between the purchase prices (Bid) and sale (Ask). For example, at EUR/USD quote 1.4527/29, the ask price is 1.4527, the buy price is 1.4529, so the spread on this currency (the difference between the sell price and the buy price) is equal to 2 points.

Broker

Broker (Broker) – An agent that handles investor orders to buy and sell foreign exchange. A commission is charged for this service which, depending on the broker and the amount of the transition, may or may not be traded.

Bretton Woods Agreement

Bretton Woods Agreement (Bretton Woods Agreement) – An agreement that established fixed exchange rates for the most important currencies enabled the intervention of central banks in the foreign exchange markets, and fixed the price of gold at 35 USD per ounce. The agreement was in force until 1971. See more in Bretton Woods.

bull market

Bull Market (Rising Market) – That's what he calls the market when prices are high. Market on the rise or in euphoria. A relatively prolonged generalized upward trend in prices, reflecting the optimistic sentiment of investors.

Cable FX

Cable FX – Slang for the exchange rate Pound sterling/US dollar (GBP/USD). This expression arose when the quotation of the pound began to be disseminated in the American Continent in the mid-nineteenth century through transatlantic cables.

Candlestick Chart

Candlestick Chart – a form of Japanese graphics that became popular in the west. A thin line shows the price range during the day. A longer body marks the area between opening and closing. If the close is above the opening, the body is green or blue. If the closure is below the opening, the body is red. Clandlestik charts were first used by the Japanese in the XNUMXth century and are currently one of the most popular and safest technical tools in Forex trading.

Forex Carry Trade

Carry Trade - It is a low-interest currency loan, made with the aim of converting the funds obtained into high-interest hard currency for later placement in the stock or financial market. For example, the Japanese Yen and its GBP/JPY or NZD/JPY cross currency pairs.

cash market

Cash Market (Sight Market) – The market for buying and selling foreign exchange in physical form.

Central Bank

Central Bank – Main bank that determines the country's monetary policy. For example: in the US – Federal Reserve Bank, and in Germany – Bundesbank. Generally, the main responsibility of the BC is the development and implementation of monetary policy.

chartist

Chartist (Chartist/Technical Analysis Specialist) – those who study chart patterns in order to make predictions of future prices. Those who use Technical Analysis.

CFD

CFD - Contract for Difference - about spot forex, stocks, indices, precious metals and any other commodity available to operate. A Contract for Difference (or CFD) is a contract between two parties, the buyer and the seller, in which it has been agreed that the seller will pay the buyer the difference between the current value of an asset and its value at the time of the contract. If the difference is positive, then the seller will pay the buyer and vice versa.

For example: when a CFD is applied to forex, the chosen instrument, (currency pair), allows investors to speculate on the movement, without the need to appropriate the underlying instrument. Contracts for Difference allows investors to open buy or sell positions, and orders will be opened by the volume known as the size of the lot of the contract.

Closed Position

Closed Position – The position, which is no longer subject to exchange rate fluctuations. Closing a position is reversing the sale or purchase of such currency, which offsets the open position.

Commodity - CFTC

Commodity Futures Trading Commission (CFTC) – A federal regulatory agency established in 1974 to administer the Commodity Exchange Act. This agency controls the futures and futures options markets through exchanges, futures commissioners and their agents, brokers and clients who use the markets for commercial or investment purposes.

Commission

Commission (broker commission) – In futures, it is the amount paid to the brokerage to cover each opening and closing of positions, it is usually paid at the closing of the position. In options, half on entry and half on exit of a position is paid. In short, it is nothing more than a fee that the broker charges clients for a service or negotiation that has been carried out.

Counter Currency

Counter Currency – The second currency of the pair.

cross courses

Cross courses – The currency pair in which a currency is valued in terms of a foreign currency, without the participation of the US dollar. For example: EUR/GBP.

Currency Symbols

currency symbols of Coins)

  • AUD - Australian Dollar
  • CAD - Canadian dollar
  • EUR - Euro
  • JPY – Japanese Yen
  • GBP – British Pound
  • CHF – Swiss Franc

currency pair

Currency Pair – The two currencies that make up the quote Forex quote. For example, EUR/USD.

Currency Basket

Currency Basket – method for determining the parity and for determining the weighted average rate of a currency against a specific set of foreign currencies. The coins in the Basket and the coin components are set arbitrarily depending on the purpose.

Currency Risk

Currency Risk – The risk of incurring losses resulting from an adverse change in exchange rates.

Day Trader

Day Trader – a market broker that opens and closes positions during the session, ending the day with no open positions.

Dealer

Dealer – Company or professional that acts as a counterparty or principle for foreign currency transactions. The Dealer can be a Legal Entity. A qualified employee of the financial company that performs (fulfills orders issued by customers), executes customer transactions, and issues quotes on behalf of the broker (broker).

forex delivery

Delivery (Placement of currency in trade) - The forex deal, where the parties agree on the adoption of actual placement of currencies in trade.

depreciation

Depreciation – reduction in the cost of foreign currency due to the impact on the market.

Direct Quote

Direct Quote – presentation of the unit cost of foreign currency in national currency units.

discount rate

Discount Rate – rate at which the central bank lends to the country's financial institutions.

Double Bottom

Double Bottom/Top – graphic formation that signals a possible trend reversal. In a point and figure graph (point and figure chart) double tops or bottoms are used as buy or sell signals.

Doji

Doji (Doji) – a candlestick formation with non-existent body, as the opening and closing price are equal.

downtick

Downtick (or decrement) – a downward change in the price of the last transaction from the price of the previous transaction. It is said of the action in which a downtick occurs, that it is “in a downtick”.

European Monetary Union

European Monetary Union – its main objective is the complete liberalization of the capital market. Member states have adopted the Euro as its official currency, entering into circulation in January 2002. Current EMU members are Belgium, Germany, Estonia, Ireland, Greece, Spain, France, Italy, Cyprus, Luxembourg, Malta, Netherlands, Austria, Portugal, Slovakia, Slovenia and Finland.

EURO Currency

EURO currency (Euro/EUR) – European currency called EURO which officially replaced the national currency of members of the European Union.

European Central Bank

European Central Bank (ECB) ECB – Central Bank of the European Monetary Union.

European central bank

European Central Bank (ECB) ECB – Central Bank of the European Monetary Union.

Exchange Rate

Exchange rate – is the price of one country's currency expressed in currency units of another country.

Federal Reserve Bank

Federal Reserve (Fed) - Or central bank from United States.

FIFO

FIFO – Open positions are closed according to FIFO (first in first out) rules. All open positions in a given currency pair are settled in the order in which they were originally opened.

flat forex

Flat forex (Flat Forex) – dealer language would be neutral position when all positions are closed, for example, like buying 500.000 and then selling 500.000 dollars, thus creating a neutral position.

Floating profit / loss

Floating profit/loss – Unrecorded gains and losses (floating profit/loss) on open positions at current quotes.

Foreign Exchange

Foreign exchange (Forex) – initials of Foreign Exchange, the market where the main exchange collaterals (currency exchange) in the world are traded at a global level. It is an unorganized (off-the-stock) market, and it is not regulated. It is the most liquid market in the world, daily more than 1.5 trillion Dollars are traded on Forex, far surpassing any other financial market in the world.

Forex trades 24 hours a day. Transactions are carried out both in cash and forward. The fundamental currencies are the US Dollar, Euro, Swiss Franc, Japanese Yen and Pound Sterling, quoted in all their combinations. Every day, this market quotes different spot exchange rates in addition to deferred rates at 30.90 and 180 days. The relationship between spot and deferred rates is explained by the theories of interest rate parity. There are relationships that derive the deferred rates from the spot rate, in addition to the interest rates in the two respective currencies.

Forward Contract

Forward contract – established between two parties, for the purchase or sale of a future, or tangible asset. This contract has multiple differences with respect to futures contracts. First, participants trade directly with each other and not through a clearing house. The terms of a forward contract are not standard, but are negotiated directly between buyer and seller, unlike the standard terms set by exchanges for futures contracts.

Forex Fundamental Analysis

Fundamental Analysis – is an analysis of economic and political information with the objective of determining future movements in the financial market.

Futures Contract

Futures Contract – business unit for the future. Bilateral agreement between two parties (buyer and seller) for the purpose of exchanging a specified quantity of a specified product at a specified price and at a later date. The physical product only appears on the market exceptionally, sometimes in the form of a title deed. Operators do not exchange products plus contracts. The term “paper market” truly represents the reality of the transfer object.

A futures contract is a document designed by a technical committee that details the standard conditions under which product exchanges will be established. The fundamental specifications of the contracts are the nature of the product, and its quality, quantity, the months of the contract, the forms of delivery, the form of payment and the legal procedures in case of trials, lawsuits, etc.

However, the negotiation conditions are determined, particularly the tick which is the minimum authorized price variation, the maximum price variation limits during the stock exchange session, the authorized position limits, which indicate the maximum number of contracts that a single operator can have, depending on its professional status, etc. . O futures contract is traded on the floor through brokers of purse (or brokers), which represent buyers and sellers.

free margin

Free margin – account funds that can be used to open new positions. Free margin is defined as: checking account balance minus required margin.

forex gap

Gap (Forex Gap) – interval in the price that was not traded on the market from one day to the next.

G-7

G-7 (Group of Seven) – It is the name given to the periodic meeting (three times a year) of the seven richest countries in the world: Germany, France, United States, Japan and England, Italy and Canada, plus Russia. The purpose of discussing relevant issues and deciding, if any, action.

Gross Domestic Product

Gross Domestic Product – represents the sum (in monetary values) of all final goods and services produced in a given region (ie countries, states, cities) during a given period (month, quarter, year, etc.). O GDP it is one of the most used indicators in macroeconomics with the objective of measuring the economic activity of a region.

GNP

Gross National Product – Gross National Product (GNP) – Comprises the GDP plus the net income sent abroad (or received from) abroad.

Greenback Dollar

Greenback – Jargon used for the US dollar

Low Gap

Low Gap – A bearish gap is formed when the highest price of the day is lower than the lowest price of the previous day. A bullish gap is usually a sign of market strength, while a bearish gap is a sign of market weakness.

hard currency

Hard Currency – term used to refer to any of the major currencies with high trading volume and which are easily converted into other currencies.

Head and Shoulders Chart

Head and shoulders – A pattern in price trend where chart experts say is a price reversal trend. The price has gone up for some time, at the peak of the left shoulder profit taking causes the price to fall or level out.

Then the price abruptly rises to the head until profit-taking again causes the price to fall this time, to around the same level as the left shoulder. Further moderate growth or leveling out indicates an impending big decline. A break in the neckline is the indication to sell.

Hedge

Hedge – an instrument that seeks to protect financial transactions from the risk of large price changes in a given asset. A hedging strategy consists of making a specific investment with the specific objective of reducing or eliminating the risk of another investment or transaction.

selective hedge

selective hedger – person who hedges positions only when he realizes that prices will move against him.

hit the bid

Hit the bid – buy or sell at the proposed price.
Hong Kong Dollars

Hong Kong Dollars - HKD – (Hong Kong Dollars)

Indicative Quote

Indicative Quote – price of a market maker (“market-maker”) that is not signed.

Initial Margin

Initial Margin – For each contract, the operator, seller or buyer must make an initial deposit as a guarantee or “initial margin” in their account.

Indirect Quote

Indirect Quote – presentation of the value of national currencies in foreign currency units.

instant execution

Instant Execution – Instant Execution – a mechanism to provide quotes to the customer without asking. The customer sees, in real time, the dealer's quotes and he can always send a request to carry out a transaction.

Currency Intervention

Currency Intervention (Market Intervention) – a broker who provides prices, and is prepared to buy or sell at established prices.

Market Intervention

Market Intervention (Currency Intervention) – a broker who provides prices, and is prepared to buy or sell at established prices.

Japanese yen

Japanese Yen (Japanese Yen) – Currency of Japan.

Kiwi

Kiwi – slang for the New Zealand dollar.

Leading indicators

Leading indicators – composite index of the ten most important macroeconomic indicators that predicts the future (6-9 months) of economic activity (in 1992 = 100%).

future interest

future interest – These are contracts traded on the Commodities and Futures Exchange (BM&F) in which investors bet on future rate trends.

LIBOR Rates

LIBOR – abbreviation for London Interbank Rate. Banks use this rate when they have loans from other banks.

Limit Order

Limit order – a customer sets a limit on the price or the execution time of an operation, or both; for example, a limit buy order is placed below the market price. A sell limit order is placed above the market price.

A limit sell is only executed at the limit price or at a higher (better) price, while a limit buy is only executed at the limit price or at a lower (better) price. For example, if the current price is USD/YEN 117,00/05, the limit order to buy dollars can be set at a price below 117 (ie 116,50).

looney

looney – slang for the Canadian dollar.

Forex liquidity

Liquidity – the possibility that an investment has to be converted into cash more easily and at a lower cost. It can be said that the degree of liquidity of an asset is its ability to change into cash without losing its value, that is, the easier it is to convert into cash, the lesser the loss of value in this conversion.

Long position

Long Position – market position in which the Client purchased a currency that he did not have before.

Batch

Lot (Lot) – defined amount of units or amount of money accepted for operations (usually it is a multiple of 100).

Locked Positions

Locked positions – long and short positions of the same size opened on the same instrument in a trading account. For example, if a customer opens two lots and buys 3 lots for sale in the same instrument, the two buy lots and 2 sell lots are identified as a closed position, and an item for sale is not a blocking position.

Standard batch

Standard Lot – 100.000 units of the base currency, in the pair, that you are buying or selling.

manifest error

Manifest Error – error of the Dealer when opening/closing the client's position or executing his order at a price substantially different from the price for this instrument in the quote stream, at the time of this action, or any other act or omission of the Dealer related to its obvious error in determining the price level in the market at any given time.

Margin

Margin (Margin) – Clients must deposit funds as collateral to cover any potential losses resulting from adverse price movements.

NASDAQ

NASDAQ Composite Index – main index used in NASDAQ trades, expressing the daily average variation of trades.

NAFTA

North American Free Trade Agreement (NAFTA) – is the expansion of the existing free trade agreement between the United States and Canada since 1989, with the inclusion of Mexico in 1994. It provides for the elimination of customs duties between the three countries by 2009.

margin Call

Margin Call – It is the requirement of the broker protocols for trader to deposit additional funds in the trading account to guarantee current positions.

Margin Level

Margin Level – is expressed as a percentage of the capital (equity) for the required margin (warranty). The formula for calculating the margin: (equity / margin) * 100%.

Market Maker

Market Maker – an operator who provides prices and who is prepared to buy or sell at those bid and ask prices presented. A market maker manages a trading book.

market risk

Market Risk – when exposed to changes in market prices.

Market Opening

Market Opening – Resumption of trading after the weekend, holidays or after a break between trading sessions.

Required Margin

Necessary margin – Collateral required to support open positions.

Net Position

Net Position – The difference between the total of long and short open positions in any currency.

Nontrading Operation

Nontrading operation – operation to deposit/withdraw funds from the trading or grant/refund account.

Offer Price

Offer price (offer) – price at which the dealer is willing to sell the currency. Look Ask.

Offsetting Transaction

Offsetting transaction – A trade that serves to cancel or offset some or all of the market risk of an open position.

Open Order

Open order – an order that will be executed when a market moves to its designated price. Usually associated with “Good 'til Canceled Orders”.

Open Position

Open Position – Any trade that has not been settled by physical payment or reversed by an equal but opposite trade of the same value.

Overnight

Overnight– a trade that remains open until the next business day.

market order

Market order – order executed immediately at the best price available on the market.

Over the Counter

Over the Counter (OTC) – used to describe any transaction that is not conducted through an exchange.

Quotational period

Quotational period – validity period of a price quote.

Personal Area

Personal Area – Customer's personal page on the company's website for identification, administrative office of some non-commercial operations, as well as publication of useful information for business.

Pending Order

Pending order – is the client's commitment to the broker to buy or sell a security at a pre-defined price in the future. This type of order is used to open a position, as long as future quotes reach the predefined level.

Forex pip

Forex Pips (or Points) Pip (or Points) – term used in the foreign exchange market to represent the smallest possible increase in the variation of an exchange rate. Depending on the context, this is usually a basis point (0.0001 in the case of EUR/USD, GBD/USD, USD/CHF and 0.1 in the case of USD/JPY).

Point-and-Figure Chart

Point and figure chart: dot and figure chart – a graphical representation of price movement using vertical lines “x” to indicate significant bullish signals and “o” to show bearish signals. These charts do not reveal price fluctuations per minute, but only trends that have already been established.

Price Transparency

Price transparency – quotes that each individual investor can also access.

Profit Taking

Profit Taking – Profit Taking – the release of a position to take profit.

forex quote

forex quote – market indicative price which, depending on the market, can be either a non-negotiable price or a negotiable price. It is expressed in ASK e BID.

Base Quotes

Base Quotes (Quotation Base) – information about the quote flow.

Quote Currency

Quote currency – second coin in currency pair it is called quote currency. For example, in a USD/JPY currency pair, the hyenas Japanese is the quote currency. Also called secondary currency.

quotes flow

Quotes flow – the prices for each instrument entering the trading platform.

Range Market

Range market – the difference between the highest price and the lowest price recorded during a specified period of time. For example, the daily range equals the day's high minus the day's low.

Resistance

Resistance (line of; Resistance line) – price level above which prices are difficult to quote due to strong selling pressure.

forex rollover

Rollover forex (Transfer of Position) – When the liquidation of a business is renewed for a date value future based on the differential of interest rates of the two currencies.

forex security

Security forex (Forex Value Bond) – any action, Option Futures Contract, or forward contract, commodities, precious metals, interest rate, debt instrument or stock index.

Sell ​​Limit Order

Sell ​​Limit Order – is an order to execute a forex transaction at a specified price (the limit) or higher.

forex server

forex server – the product software MetaTrader Server 4.xx, through which customer requests and information requests are processed, providing the customer with information about the financial markets in real time (in the volume determined by the dealer), taking into account the mutual obligations between the customer and the dealer, as well as in compliance with the terms and restrictions.

Short Position

Short Position – “short” is having sold an instrument without having it in your possession, holding a short position in the expectation that the price will fall so that you can buy it again in the future at a lower price.

Spike

Spike – The comparatively large up or down movement of a price for a short period.

spot price

Spot price – the current market price. Settlement of spot transactions generally takes place within two business days.

forex spread

Forex Spread – the difference between the price of purchase e sale.

stop order

stop order – An order to sell at or below a specific price or to buy at or above a specific price.

square forex

Square Forex (No Position) – buys and sells are equal and therefore the trader has no open positions.

Sterling Currency

Sterling Currency (Pound Sterling) – slang that refers to the Pound Sterling.

uptrend

uptrend – Price trend characterized by higher highs and higher lows.

stop out

Stop out – determining the forced closure of the client's open position without his consent or any prior notice in case of insufficient funds necessary to maintain the open position.

Support Levels

Support Levels – Support levels for forex (Support Levels. Term of technical analysis that determines the level at which Forex market participants start buying.

Forex swap

Forex Swap – Simultaneous buying and selling of the same amount of a given currency at an exchange rate forward (the future).

Swissy

Swissy - Swissy – market slang for Swiss Franc.

Take profit order

Take Profit Order – Order to close a position when a particular price is reached in order to secure profit.

Technical Analysis

Technical Analysis – Technical analysis aims to predict future price trends for an asset. The methodology uses graphs of stock prices and traded volumes, based on the principle that prices move in persistent trends over time. Once the trend is determined, it is possible to know the best time to buy or sell a stock.

forex tick

Tick ​​Forex (Forex Spot) – the smallest unit of currency prices. Normally the forex tick (point) is the second or fourth decimal place, that is, 0,01 or 0,0001, respectively. See too: pip forex.

thin market

Thin Market – state of the market when quotes over a long period arrive on the platform less frequently than under normal market conditions. Normally this Forex Market condition is characteristic for Christmas holidays, national holidays in G7, in the period from 23:00 GMT to 3:00 GMT, etc.

Tom-Next

Tom-Next – means simultaneous purchase and sale of foreign currency for the following day.

Trader

Trader (Dealer) – Individual who is on the other side of the negotiation with the dealer and who aims to profit from price movements.

trading account

Trading account (Trading Account or Real Account) – unique system of personified trade registration on the trading platform where it displays completed trades, open positions, non-commercial trades and orders.

forex transaction

forex transaction (Forex transaction) – is a purchase or sale transaction of a financial instrument.

Transaction Date

Transaction Date (Transaction date) – the date on which the forex trade takes place.

Transaction Size

Transaction Size (Transaction size) - Size of lot multiplied by the number of lots.

Forex Tool

Forex Tool - it is a currency pair or one contract for difference.

Forex Trend

Forex Trend – is a direction of movement of the forex trading market: up, down or sideways.

Turnover

Turnover (Forex Volume) – the total value of transactions over a given period of time. It can specifically refer to the volume of transactions.

Two-Way Quote

Two-Way Quotes (Bilateral Quote) – Simultaneous indication of the sale and purchase price of currency in the foreign exchange market.

Unrealized Gain / Loss

Unrealized Gain / Loss - the theoretical gain or loss of open positions revalued according to current market quotations, as determined by the broker at your discretion. When closing positions, unrealized gains or losses become a gain or loss.

Upstick

up tick – Transaction executed at a higher price than the previous one.

Uptick Rule

Uptick Rule – This rule establishes that a short sale ou short sale (Short selling) cannot be sold at a value lower than your last traded price.

US Prime Rate

US Prime Rate - American Preferred Rate – rate at which US banks lend money to their preferred business customers.

Value Date

Value Date – Settlement date of a spot (spot) or forward (forward) trade.

Variation Margin

Variation Margin – additional margin reinforcement that the broker requires from the client due to market fluctuations.

forex volatility

Volatility
1) Statistical measure of a market or security's price movement over time, and is calculated using the standard deviation. A high degree of risk is associated with high volatility.
2) A statistical representation of movements in market prices, shown over a specific time period. It is sometimes defined as a statistical measure of earnings dispersion for a given market index.

World Trade Organization WTO

World Trade Organization (WTO) The World Trade Organization (WTO) – an international organization dealing with the rules of international trade. In English it is called the “World Trade Organization” (WTO) and has 156 members as of December 2011;

ECN broker

Forex ECN broker provides access to an electronic trading network, supplied with streaming quotes from the top tier banks in the world. By trading through an ECN broker, a currency trader generally benefits from greater price transparency, faster processing, increased liquidity and more availability in the marketplace.

STP

Straight Through Processing STP (STP Transaction Processing System) – means the direct execution of an order. In this model, the broker acts as an intermediary between the client and the liquidity provider.

In the STP model, customer orders are automatically sent to the liquidity provider, while the broker receives a commission and part of the forex spread. In this model the broker is interested in the growth of traded volumes, as he earns profit as commission for the transaction. Between the forex broker, which applies STP, and the client, there is no conflict of interest.

zoom upward

zoom upward – Extremely fast ascent, of prices, costs, etc.

Asset – Active Asset – positive balance or, in the context of Foreign Exchange (international currency exchange), the right of the other by a transaction to receive a specific currency as a result of an extraordinary advance or an occasional transaction.

Analysis

Technical Analysis – The technical analysis aims to predict the tendencies futures of an asset's prices. The methodology uses graphs of stock prices and traded volumes, based on the principle that prices move in persistent trends over time. Once the trend is determined, it is possible to know the best time to buy or sell a stock.

Analysis

Fundamental Analysis – Study of specific factors, such as weather, wars, discoveries, and changes in government that may influence the laws of supply and demand and, consequently, the market. Fundamental analysis is based on the study of economics. One of the principles is that the evolution of supply and demand resulting from economic processes can be observed in practice, and that they can be predicted.

Fundamental analysis studies the relationship between the evolution of prices and economic indicators, relationships that are extrapolated for the purpose of making predictions. Until now, none of the most advanced theories can fulfill all the requirements required in forecasting quotations.

Leverage

Leverage (Financial Leverage) – means obtaining resources for investments and carrying out operations. This type of operation allows a company, investment fund or individual to strengthen a position through third-party capital. In practice, those who operate leveraged invest more than they actually have. In the market Forex is the relationship between the guarantee and the volume of the commercial operation: 1:33, 1:100, 1:200, 1:300, 1:400, 1:500. Leverage 1:100 means that to carry out a transaction it is necessary to have in the trading account the value 100 times smaller than the transaction amount.

ABAMEC

Brazilian Association of Capital Markets (ABAMEC), founded in 1970, is a non-profit association that brings together capital market analysts, seeking to collaborate in the development, improvement and strengthening of the Capital Market in Brazil.

Bretton Agreement

A1944 Bretton Woods cord – This agreement established fixed exchange rates for the major currencies. The price of gold was pegged at USD 35 per ounce. In 1971 President Nixon replaced the Bretton Woods agreement with a floating exchange rate for major currencies.

Around

Around - It refers to a situation where the future premium or discount is close to parity.

across the board

across the board – Every month of a futures or option contract, for example, if every month of a gold contract opens at the upper limit or “limit up”, it is said to have been limit up “across the board”.

Bundesbank

Bundesbank – Bundesbank Refers to the central bank of Germany.

BM&F;

Commodities and Futures Exchange - BM&F - They are associations exactly with the Exchange of Values, but instead of trading shares, the Commodities and Futures Exchanges they only trade assets on the futures market (for delivery on a certain date), with the exception of gold, with a spot quotation.

The São Paulo Commodities and Futures Exchange – BM&F is one of the largest futures exchanges in the world. Commodity brokers (or commodities), who trade gold, future Bovespa indexo, future commercial dollar, future DI (interest rate index), sugar, live cattle, calf, coffee, soybeans and cotton.

BOVESPA

BOVESPA - São Paulo Stock Exchange.

Bull

Bull (Bull) – Person who believes that prices will rise further.

reverse bullish key

Reverse Bullish Key – A graphic formation that occurs during a downtrend when the high of the day is higher than the previous one, the low is lower and the close is above the previous day. It may signal a trend reversal, leading to an uptrend.

Trade balance

Trade balance – relationship between a country's exports and imports. When the value of exports exceeds that of imports, the country has a surplus and becomes a foreign creditor when, on the contrary, imports exceed the exports, the country is in debt to the foreigner and has a deficit in its trade balance.

World Bank

World Bank - Created in 1944, the World Bank governs, alongside the Gatt (which gave rise to the World Trade Organization), the international financial system.

Corresponding bank

Correspondent Bank - Representatives of foreign banks who regularly perform services for a bank that does not have a branch in the relevant center. For example, to facilitate the transfer of funds.

bank rate

Bank rate - Discount rate.

commodity exchange

Commodity Exchange - Centralized market for transactions with goods, especially primary products of major importance in international and domestic trade, such as coffee, sugar, cotton, cereals, etc. By doing business with both existing stocks and futures markets, commodity exchanges play a stabilizing role in the market, minimizing price fluctuations caused by demand fluctuations and reducing traders' risks.

Futures contract

Futures contract - Business unit for a future. Bilateral agreement between two parties (buyer and seller) for the purpose of exchanging a specified quantity of a specified product at a specified price and at a later date. The physical product only appears on the market exceptionally, sometimes in the form of a title deed. Operators do not exchange products plus contracts. The term “paper market” truly represents the reality of the transfer object.

A futures contract is a document designed by a technical committee that details the standard conditions under which product exchanges will be established. The fundamental specifications of contracts are the nature of the product, and its quality, quantity, contract months, delivery methods, payment method and legal procedures in case of judgments, lawsuits, etc.

However, the negotiation conditions are determined, particularly the tick which is the minimum authorized variation in prices, the maximum limits of price variations during the stock exchange session, the authorized position limits, which indicate the maximum number of contracts that a single operator can have, depending on its professional status, etc. . O futures contract is traded on trading floor through brokers of purse (or brokers).

Currency Swap

Currency Swap - A contract that commits two parties to exchange interest payment streams in different currencies for a contracted period of time, and to exchange at maturity the principal amounts in different currencies and at a previously contracted exchange rate.

GVC

CVM (Securities Commission) - official, governmental body, that is, an administrative agency attached to the Ministry of Finance. Its primary function is focused on overseeing the activities of the securities market.

Quotation (Quote)

Quotation (Quote) – The current price of a future, option or share at a given time. There are three types of quotes, Bid (search), Ask (sale) and Last (last transaction actually performed).

Brokerage (or broker)

Brokerage (stockbroker or broker) – Company that executes buy and sell orders for futures and options for clients. It can be a "full service", offering information and advice to the customer, or the so-called "discount broker", which only executes customer orders.

It refers to a company or an individual that acts as an intermediary between buyers and sellers at a price/commission. Brokers are not traders, as traders characteristically take a position on one side with the intention of gaining the spread when they subsequently close a position on another trade.

Cross quotation

CCross otation - Exchange rate between two currencies that do not involve the US Dollar.

currency intervention

Currency intervention – Participation of central banks in regulating prices in the foreign exchange market. Coordinated intervention – is the joint action of several central banks to adjust exchange rates.

Dollar Rate

Dollar Rate – when a variable amount of a currency is quoted against the US dollar, regardless of the operator's location or the currency for which he requests the quote. Exception for the British Pound US Dollar rate (cable) which is quoted as a variable amount of US dollars against the pound.

Dollar Exchange (Rate)

Dollar exchange rate (Dollar Rate) – when a variable amount of a currency is quoted against the US dollar, regardless of the trader's location or the currency for which he requests the quote. Exception for the British Pound US Dollar (cable) rate being quoted as a variable amount of US Dollars against the Pound.

Day Trading

Day Trading (Intra daily trading) – refers to the opening and closing of the same position or positions on the same trading day.
day-to-day trader

day-to-day trader – Speculator with open positions for several days. Due to a solid financial base, this type of speculator can absorb unfavorable short-term fluctuations (which implies complying with calls for margin) and hold a position until the contract expires.

Dealer operator

Dealer – Market Operator – A company or professional who is in the business of acting as the counterparty or principal for foreign currency transactions.

Deficit

Deficit – Negative balance of trade or payments.

European currency union

European Monetary Union – its main objective is the complete liberalization of the capital market. Member states have adopted the Euro as its official currency, entering into circulation in January 2002. Current EMU members are Belgium, Germany, Estonia, Ireland, Greece, Spain, France, Italy, Cyprus, Luxembourg, Malta, Netherlands, Austria, Portugal, Slovakia, Slovenia and Finland.

Exchange rate

Exchange rate – is the price of one country's currency expressed in currency units of another country.

ECN broker

ECN broker (ECN broker) (Electronic Communication Network) – are brokers that allow direct communication from clients to the market, without any interference in the data presented. To be ECN, a broker must be licensed to operate directly through a large bank or be the bank itself, so I do not know of cases of hacking in this case (relating to the risk of the broker operating against the client), as this type does not interfere with market, the customer's profit is her profit (because it keeps the customer operating).

speculation speculation

Speculation A person who buys and sells futures, stocks, land, etc., risking his capital in order to make a profit from changes in prices. In contrast to gamblers, speculators understand and assess the existing market risks based on their data and experience, while gamblers are those who look for man-made risks or “invest” like a craps game.

Elliot

Elliot (Waves) – Type of technical analysis that studies the sequences of ripples in prices.

elliot waves

elliot waves - Kind of technical analysis which studies the sequences of ripples in prices.

Equity

Equity – free account funds for doing business. It is the insured part of the Client's account taking into account the open positions, which links the Balance and Fluctuation (Gains/Losses): Balance + Fluctuation + swap.

economic indicator

Economic indicator – Government-issued statistics indicating current economic growth and stability. You indicators common include employment rates, Gross Domestic Product, inflation e retail sales.

Electronic Trading

electronic trading – Trade an automatic order processing system via computer.

limited order

Limited Order (Entry Limit) – order to buy or sell one currency against another for a specific price. As opposed to market order, limit orders may not be completed if the market deviates from the specified price.

Entry Limit

Entry Limit - Limited Order – order to buy or sell one currency against another for a specific price. As opposed to market order, limit orders may not be completed if the market deviates from the specified price.

Stop order

Stop Order (Entry Stop) – an instruction for the trader to buy or sell a currency pair when it trades above the specified price. A buy order is placed when the quote is higher than the current market and a sell order when the quote is below the current market. It serves both to protect profit and to limit losses.

Entry Stop

Entry Stop - Stop Order – an instruction for the market operatoro Buy or sell a currency pair when it trades above the specified price. A purchase order is placed when the price is higher than the current market and a sell order when the quote is below the current market. It serves both to protect profit and to limit losses.

Economic Indicator

Economic indicator – Government-issued statistics indicating current economic growth and stability. Common indicators include rates of employment, product gross intern, inflation e retail sales.

Fibonacci

Fibonacci number – numbers in the Fibonacci sequence (1, 2, 3, 5, 8, 13, 21, 23, 55, 89, 144,…) is formed by adding the previous two together to form the next one. The ratio of any number to the next is 61.8 percent, which is a famous Fibonacci retracement number. The inverse of 61.8 percent is 38.2 percent, also used as a Fibonacci retracement number. It is the reason the Fibonacci sequence is important and not the numbers themselves.

forex dealer

Forex Dealer – company or professional that is in the business of acting as the counterparty or principal for foreign currency transactions.

FX clearing

FX clearing (Settlement Box) – Clearing or settlement box is the system adopted to ensure the faithful fulfillment of all trades carried out.

Forex Broker

Forex broker or Forex broker – agent that handles investor orders to buy and sell foreign exchange. A commission is charged for this service which, depending on the broker and the amount of the transaction, may or may not be traded.

Forex broker

Forex Broker or Forex Broker – agent that handles investor orders to buy and sell foreign exchange. A commission is charged for this service which, depending on the broker and the amount of the transaction, may or may not be traded. A commission is charged for this service which, depending on the broker and the amount of the transaction, may or may not be traded.

Term Contract

Forward contract – established between two parties, for the purchase or sale of a future, or tangible asset. This contract presents multiple differences to futures contracts. First, participants trade directly with each other and not through a clearing house. The terms of a forward contract are not standard, but are negotiated directly between buyer and seller, unlike the standard terms set by exchanges for futures contracts.

Futures Contract

Futures Contract Futures contract – business unit for a future. Bilateral agreement between two parties (buyer and seller) for the purpose of exchanging a specified quantity of a specified product at a specified price and at a later date.

The physical product only appears on the market exceptionally, sometimes in the form of a title deed. Operators do not exchange products plus contracts. The term “paper market” truly represents the reality of the transfer object. A futures contract is a document designed by a technical committee that details the standard conditions under which product exchanges will be established.

The fundamental specifications of contracts are the nature of the product, and its quality, quantity, contract months, delivery methods, payment method and legal procedures in case of judgments, proceedings, etc. However, the trading conditions are determined, particularly the tick which is the minimum authorized price variation, the maximum milites of price variations during the stock exchange session, the authorized position limits, which indicate the maximum number of contracts that a single operator may have, depending on their professional status, etc. The futures contract is traded on the floor through stock brokers (or brokers), who represent buyers and sellers.

Free Margin

Free margin – account funds that can be used to open new positions. Free margin is defined as: checking account balance minus required margin.

Fixed Exchange Rate

Fixed Exchange Rate - Fixed Exchange Rate – official rate established by monetary authorities for one or more currencies. In practice, even fixed rates can fluctuate between defined upper and lower bands, potentially leading to intervention.

Fixed exchange rate

Fixed exchange rate – official rate established by monetary authorities for one or more currencies. In practice, even fixed rates can fluctuate between defined upper and lower bands, potentially leading to intervention.

Floating Rate Interest

Floating Rate Interest - (Variable Interest Rate) – unlike a fixed rate, in this type of interest rate the business will fluctuate with market rates or reference rates. An example of a variable interest rate is a regular loan.

Variable Interest Rate

Floating Rate Interest – unlike a fixed rate, in this type of interest rate the business will fluctuate with market rates or reference rates. An example of a variable interest rate is a regular loan.

IMF

IMF - International Monetary Fund (IMF) – Established in 1946 to provide international liquidity in the short and medium term and encourage the liberalization of exchange rates. The IMF provides loans to countries with balance of payments problems.

GTC

GTC «Good Till Cancelled» (Valid until canceled) – an order left with a customer to buy or sell at a fixed price. THE Ordem remains until canceled by the customer.

Graph of Points and Figures

Dots and figures graph: Point and figure chart – A graphical representation of price movement using vertical lines «x» to indicate significant bullish signals and «o» to reflect bearish signals. These charts do not reveal minute price fluctuations, but only trends once established.

bar chart

Bar Chart – Price, volume and open interest chart for a specific period of time used by the technical analyst to forecast the market trend. A daily bar contemplates for each session its maximum, minimum and closing value, thus providing more information than the line graph.

Give up

Give-up: forfeit – "withdrawal" of a client is an operation executed by a broker for the client of another broker, who "gives up" after the same in favor of the broker customary, for example, a discreet enclosure broker must ask another broker to execute the trade.

Risk management

Risk management – art of using different trading strategies of analysis financial to minimize exposure to risk.

GATT

General Agreement on Tariffs and Trade (GATT) – multilateral international trade treaty signed in 1947. The GATT is governed by three basic principles: equal, non-discriminatory treatment for all trading nations, reduction of tariffs through negotiations and elimination of quotas for import.

High Gap

High Gap – An upside gap is formed when the lowest price on a trading day is higher than the previous day's high.

GDP

Gross Domestic Product – represents the sum (in monetary values) of all final goods and services produced in a given region (ie countries, states, cities) during a given period (month, quarter, year, etc.). GDP is one of the most used indicators in macroeconomics with the objective of measuring the economic activity of a region.

Home broker

home broker – electronic brokerage services accessible by computer via the Internet. They allow you to send stock buy and sell orders over the Internet and access quotes, monitor stock portfolios, among other features. The customer uses an access code to fulfill his orders and queries. Term related to São Paulo Stock Exchange, referring to a trading system over the Internet, which allows the user to place direct buy and sell orders through the network.

Holding

Holding (Company) Holding – a company whose main activity is the shareholding in one or more companies.

High / Low

High/Low (Maximum/Minimum) – generally refers to the maximum traded price and the minimum traded price of the respective instrument on the same trading day.

Hedging

Hedging - Coverage (of future risks) – technique or strategy of coverage of risk, used by managers, which aims to protect a certain position (current or future) in an asset (currency, bond, share, commodity), contract (futures or options) or index against the risk of loss of value. Hedges decrease potential risk, but they also decrease potential profit.

pure hedger

pure hedger – A person who carries out a hedging operation (market risk hedging) in order to offset the variation in the price of a particular commodity or financial asset. He or she cancels the hedge (forward trade) with a spot trade at a later date simultaneously.

Hedger

Hedger – A person or company that uses the futures market to hedge the risk of a shift in the purchase or sale prices of a commodity or financial asset.

long hedge

Long hedge (long hedge) – simultaneous purchase of futures contracts in order to anticipate an actual purchase of a specific product on the spot market. It is used by industries or exporters as a protection against price increases.

short hedge

Short hedge (short hedge) – simultaneous sale of a futures contract, anticipating a real cash sale. It is used to eliminate or reduce the risk of falling prices for the product being sold. The size of the contract is usually equal to or close to the value of the quantity of the product to be sold.

In-the-money

In-the-money – term used when the exercise price of an option is below (call) or above (put) the current price of the underlying asset.

Market Intervener

Market Intervener – a broker who provides prices, and is prepared to buy or sell at established prices.

Index

Index (of shares) – Statistical measure of variations in a set of stocks that represent part or all of a given market.

Interbank Rates

Interbank Rates – Exchange rates that large international banks use to quote quotes to other large international banks.

Interbank Fees

Interbank Rates – Exchange rates that large international banks use to quote quotes to other large international banks.

Inflation

Inflation – Economic condition through which the prices of consumer goods increase, decreasing purchasing power.

Economic Indicator

Economic Indicator – Statistics issued by the Government indicating current economic growth and stability. Common indicators include employment rates, gross domestic product (GDP), inflation, retail trade sales, etc.

IBV

IBV (Stock Exchange Index) – index that measures the daily variation in the prices of the most traded shares on the Stock Exchange. If it presents, on the day, higher than the previous one, it means that the investors had a profit and, if it presents lower, that it had a loss.

Ibx

IBX - Brazil Index – is calculated by Bovespa. It is a price index that measures the return of a theoretical portfolio composed of 100 stocks (first, second and third lines) selected from those with the highest number of trades and financial volume. They are weighted in the index by their respective number of shares available for trading. The IBX is considered an index that evaluates the total return of the component stocks of its portfolio. The portfolio composition review is carried out every four months.

IGP-DI

IGP-DI (General Price Index - Internal Availability) – is released monthly by Fundação Getúlio Vargas. This index measures the general evolution of prices in the economy, thus creating a measure of national inflation. The IGP-DI is composed of the Consumer Price Index (IPC – 30% weight), Wholesale Price Index (IPA – 60% weight) and the National Civil Construction Index (INCC – 10% weight). The price collection period for the index is the full month, that is, from the first to the last day of the month.

IMF

IMF - International Monetary Fund (IMF) – Established in 1946 to provide international liquidity in the short and medium term and encourage the liberalization of exchange rates. The IMF provides loans to countries with balance of payments problems. See IMF.

IMM

IMM - International Monetary Market (MMI) – part of the Chicago Mercantile Exchange that lists the implied volatility of some currencies and financial futures. This is a measure of the expected price range of future currencies based on the premium options traded.

Real Time Quotation

Real Time Quotation – Instant Execution – a mechanism to provide quotes to the customer without asking. The customer sees, in real time, the dealer's quotes and he can always send a request to carry out a transaction.

Japanese Yen

Japanese Yen (Japanese Yen) – Currency of Japan.

Know-how

Know how – technical experience; know how to do. It is generally used in non-patented manufacturing processes, but it requires great skill. It also applies to a set of operations that demand extensive experience in various specialties.

kilobar

kilobar – term used to denote a type of bullion gold bar weighing 1.000 grams.

Law of Demand

Law of Demand: Law of Demand – demand reveals a direct relationship with price. If all other factors remain constant, an increase in demand leads to an increase in price, while a decrease in demand leads to a decrease in price.

Law of Supply

Law of Supply: Law of Supply – the offer reveals an inverse relationship with the price. If all other factors remain constant, an increase in supply causes a decrease in price, while a decrease in supply causes an increase in price.

Position limits

Position limits – exchanges set limit positions on transactions. These rules apply only to operators administratively classified in the speculators category. The number of contracts owned by the same operator is tried in order to avoid that it takes a dominant position and it is not possible to manipulate prices. Operators who have a considerable position (long or short) are obliged to declare their positions on the Exchange.

Position Limits

Position limits – exchanges set limit positions on transactions. These rules apply only to operators administratively classified in the speculators category. The number of contracts owned by the same operator is tried in order to avoid that it takes a dominant position and it is not possible to manipulate prices. Operators who have a considerable position (long or short) are obliged to declare their positions on the Exchange.

Limit Order

Limit order – a customer sets a limit on the price or the execution time of an operation, or both; for example, a limit buy order is placed below the market price. A sell limit order is placed above the market price.

A limit sell is only executed at the limit price or at a higher (better) price, while a limit buy is only executed at the limit price or at a lower (better) price. For example, if the current price is USD/YEN 117,00/05, the limit order to buy dollars can be set at a price below 117 (ie 116,50).

Line Chart

Line Chart - Line Chart – price charts that connect periodic prices of a given market over time, which forms a curved line on the chart. This type of chart is a great help in overlay or comparison charts that are commonly used in market analysis.

line graph

Line Chart – Line Graph – price graphs that connect periodic prices for a given market over time, which form a curved line on the graph. This type of chart is a great help in overlay or comparison charts that are commonly used in market analysis.

Trend Lines

Trendlines – continuous line drawn on a graph below bearish reactions (Upward trend) or above rally peaks (Downward trend) that determine the slope of the current trend. A break in a trendline usually signals a reversal in the trend.

trend lines

Trendlines – continuous line drawn on a graph below bearish reactions (Upward trend) or above rally peaks (Downward trend) that determine the slope of the current trend. A break in a trendline usually signals a reversal in the trend.

Clearance

Liquidation – any transaction that causes the closing of long or short positions.

Interest on Own Capital

Interest on Equity – one of the forms of remuneration that a company can give to its shareholders, the other being the payment of dividends. Unlike dividends, which are distributed based on the current year's earnings, interest on equity is paid based on the company's retained earnings in previous years.

Interest

Interest (Interest) – remuneration paid to those who lend money. This is what happens, for example, when a saver puts his money into a bank. In effect, he is lending your money in exchange for interest. On the contrary, when he borrows, it is the bank that charges interest. Basically, there are two types of interest on the market: fixed (set before an investment or loan is made) and post-fixed (known at the end of the investment).

Joint venture

Joint venture – term that comes from English and means union of companies. Denotes a form of inter-company alliance with the objective of creating a new business, to operate in combined markets in the commercialization of products or in the complementation of product development projects. It can be established between a company with the necessary capital to finance the project, and another that dominates technical skills, commercial contacts, or both.

futures market

Futures market or Futures market (engl.) – evolution of the spot and deferred delivery market, which consists of multiplying operators by standardizing contracts and establishing simplified exchange rules.

Everyone is able to take a position in the market, as a buyer or seller. Trading is done on futures exchanges for products whose price fluctuates over time. Some make money while others lose. Speculators and investors, large or small, as well as product professionals are interested in this type of market, which is well organized.

Down market

Bear market – used to describe a market with a constant drop in prices over a given period of time. It is often accompanied by pessimism. Investors anticipate losses and sell. This feeds negative feelings in the market.

Bull Market

Bull Market – refers to a confident and optimistic market. Investors buy in anticipation of an increase in prices and capital gains.

Foreign Exchange Market

Foreign Exchange/Forex or FX Market – the simultaneous purchase of one currency and the sale of another currency in an over-the-counter market. The main FX is quoted against the US Dollar.

Microeconomics

Microeconomics (Microeconomics) – study of economic activity applied to individuals, firms and small groups and well-defined economic sectors.

Base Currency

Base Currency – the first currency in a currency pair. Shows the base currency value in units of the second currency. For example, the quote USD/CHF 1,6215 means that each USD costs 1,6215 CHF. In the forex market, the US dollar is the base currency for many quotes, that is, price quotes are one dollar, expressed in units of the second currency in the pair. The main exceptions to this rule – the pound sterling (GBP), Austrian dollar (AUD) and Euro (EUR).

Reciprocal Currency

Reciprocal Currency – a currency that is normally quoted in Dollars per Currency Unit instead of the normal Dollar Currency Units method. Euro is the most common example.

Maintenance Margin

Maintenance Margin or Minimum Margin (Maintenance Margin) – The minimum level at which the futures account must be maintained. If the account value falls below this level a hedge request will be issued and funds have to be added to bring the account to the initial margin level. The maintenance margin level typically represents 75% of the required initial margin.

IntraDaily Trading

Intra-Daily Trading (Day Trading) – buying and selling one-day stocks and commodities.

Net Position

Net Position – The difference between the total of long and short open positions in any currency.

NYSE

New York Stock Exchange (NYSE) – New York Stock Exchange – the largest and most important stock exchange in the world, also known as the Big Board. Composed of a 20-member board that monitors and regulates the commercial activities of more than 3000 US and foreign companies.

Resistance Level

resistance level – price level at which the sale is expected to take place.

Support Levels

Support Levels – In technical analysis it is the level that determines a maximum price. It is extremely rare for prices to fall below support levels, so more buyers tend to enter the market. The support level is opposite the resistance level.

NBC

NBC (Bank Notes) – Credit securities with post-fixed rates, issued by the Central Bank.

order-cancels-other

Order-cancels-other (OCO) – Order Cancels Other – order that includes two orders. One that cancels the other when it is satisfied.

Stop limit order

Stop limit order – Order that becomes Limit order when the market trades at a certain price.

forex order

forex order (Order)
1) Instruction given by a client to the brokerage firm to carry out a purchase or sale of shares.
2) Instruction given by a client to a brokerage company to carry out the purchase or sale of securities.

Spread order

Spread order – an order that indicates the simultaneous purchase and sale of futures.

Closing Order

Closing order – an order to sell at or below a specific price or to buy at or above a specific price.

Overnight Limit

Overnight Limit (Open position for the following day) – net long or short position in one or more currencies that the trader carries for the next trading day. Moving the portfolio to other trading rooms at the next trading zone time reduces the need for dealers to keep these exposures unmonitored.

Offer

Offer (Ask) – Indicates willingness to sell a future at a certain price; price offered by seller; sale price.

net position

Net Position (Net Position) – the difference between the total of long and short open positions in any currency.

Auction

Auction – session during which trades are carried out with securities registered on a stock exchange, directly in the trading room and/or via the BOVESPA electronic trading system.

Monetary policy

Monetary policy – is the set of measures adopted by the Government aimed at adapting the means of payment available to the needs of the country's economy, as well as controlling the amount of money in circulation in the market, which allows the definition of interest rates.

Market price

Market price – the price at which the currency is traded on the market.

GDP

GDP (Gross Domestic Product) – the sum of all wealth produced in the country divided by the number of inhabitants. It is important to relate production growth (GDP) with that of the country's inhabitants, as it is this relationship that determines whether, on average, the population is “getting rich” or not. GDP can go up while GDP per capita goes down. This occurs if the population grows more than production in a given year, showing that, on average, the population has become impoverished.

It is necessary to remember that GDP per capita is only an indicative average: the distribution of this gain or loss is uneven, and this effect cannot be registered in this indicator.

Runaway Gap

Runaway gap (Discontinuity) – in prices after a trend is established and indicates the midpoint of the displacement.

Rate

Rate - Quotation – the price of one currency in relation to another.

Rating

Rating (Index) – Analysis carried out on bonds issued by a company/government, which assesses the credit quality of the issuer. The best known international companies that carry out this analysis are: Standard&Poor's, Moody's, Duff&Phelps and Fitch Investors Services.

RSI

Relative Strength Index (RSI) – Relative Strength Index – a popular oscillator developed by Welles Wilder Jr. and described in his own published book called «New Concepts in Technical Trading Systems». It is plotted on a vertical scale from 0 to 100. Values ​​above 70 are considered overbought and under 30 oversold. When prices are above 70 or below 30 and diverge from the price action, a target is given for a possible reverse trend.

foreign exchange reserves

foreign exchange reserves – foreign exchange reserves reflect the amount of foreign currency (and gold) accumulated by country. The result of Balance of Payments, which reflects the monetary result of transactions of goods and services carried out by Brazilians abroad (balance in current transactions), as well as the flow of capital between the country and abroad (either loans, financing, investments in the financial market, direct investment in industrial plants, etc), will express whether there was an accumulation or loss of foreign currency in the period, thus reflecting the variation in foreign exchange reserves.

It is worth remembering that the Balance of Payments records only one cash flow within a certain period (in general, the results are presented in quarters or annuals), while the foreign exchange reserves reveal the stock of foreign currencies at a given time. Thus, we can say that Brazil, in December 1995, had a stock of 52 billion dollars in foreign currency (Exchange Reserves), and that, throughout 1995, there was an accumulation of 13.5 billion dollars in the country.

risk capital

Risk Capital (Risk Capital) – the amount of capital that an individual can invest which, if lost, will not affect their normal life.

Settlement

Settlement – the effective physical exchange of one currency for another.

Short Position

Short Position – investment position that benefits from a decline in market price.
Soft Market

Soft Market – Weak Market – more potential sellers than buyers. This creates an environment where prices can drop quickly.

Split

split or shareholding division – is an increase in the number of shares representing a company's capital, through the split. As the number of shares increases, the price per share falls proportionately, so that each shareholder's equity remains the same. What's most interesting about shareholdings is that they make a stock with a high price, more accessible to individual investors. A division can only be made with the approval of the company's board of directors and its shareholders.

Stop loss

Stop loss (Ordek Stop Loss) – an order to close a position when a particular price is reached in order to minimize losses.

support level

Support level – Price level at which you expect the purchase to take place.

Stochastic Oscillator

Stochastic Oscillator – Stochastic Oscillator – Technical momentum indicator developed by George Lane which measures the price of a security relative to the high/low range over an established period of time. O indicator it fluctuates between 0 and 100, with readings below 20 considered to be oversold and above 80 to overbought.

A reading of 30 for 14 periods from the Stochastic Oscillator would indicate that the current price would be 30% above the lowest price of the last 14 periods and 70% below the highest. The Stochastic Oscillator can be used like any other oscillator by looking at the overbought/oversold readings, positive-negative divergences and the centerline crosses.

STP

Straight Through Processing STP (STP Transaction Processing System) – means the direct execution of an order. In this model, the broker acts as an intermediary between the client and the liquidity provider. In the STP model, customer orders are automatically sent to the liquidity provider, while the broker receives a commission and part of the forex spread. In this model the broker is interested in the growth of traded volumes, as he earns profit as commission for the transaction. Between the forex broker, which applies STP, and the client, there is no conflict of interest.

Fixed Exchange Rate

Fixed Exchange Rate – Official rate set by the monetary authorities for one or more currencies. In practice, even fixed exchange rates can fluctuate between defined upper and lower limits, leading to interventions.

Variable Interest Rate

Floating Rate Interest – Unlike a fixed rate, this type of interest rate in this type of business will fluctuate with market rates or reference rates. An example of a variable interest rate is a regular loan.

Unemployment rate

Unemployment rate - In employment/unemployment surveys, several subdivisions of the population are considered: the total population residing in the survey site the total number of people who are working - either as employees, self-employed or as employers - which is called the "occupied" population and, also, the portion of the population that is unemployed – that is, that is looking for some type of occupation, whether formal or not.

All surveys in this area establish criteria to limit the population they deem qualified to take on some type of occupation – generally a minimum age. Thus, under this criterion, the combination of the employed and unemployed population composes the so-called “Economically Active Population” (PEA). The open unemployment rate is the one that relates the number of unemployed people looking for work at the time of the survey, and the PEA.

Take Over

Take over – Expression that indicates the shareholding control of one company by another, through an operation carried out on the stock exchange.

Downward trend

Downtrend (Downtrend) – Trend characterized by a series of lower highs and lower lows.

Downtrend

Downtrend – Trend characterized by a series of lower highs and lower lows.

double top

Double Top (Double Top) – A chart reversal pattern that shows two prominent peaks. The reversal is complete when the curve support is broken. The double base is a mirror image of the top.

trend lines

Trendlines – Continuous line drawn on a graph below bearish reactions (Upward trend) or above rally peaks (Downward trend) that determine the slope of the current trend. A break in a trendline usually signals a trend reversal.

Symmetrical triangle

Symmetrical Triangle – One-sided chart pattern between two converging trendlines, in which the upper trendline is declining and the lower trendline is rising. This pattern represents an equality between the total buyers and sellers although the previous trend is summarized. The breaking of both trend lines signals the direction of the price trend.

Two-Way Price

Two-Way Price – Quotes in which the two prices, purchase and sale, are presented.

Uncovered

Uncovered - Open Position – Another term for an open position.

underwriter

underwriter – Financial institutions specializing in share launch operations on the primary market. In Brazil, such institutions are, in general, multiple banks or investment banks, distribution companies and brokers that maintain teams formed by analysts and technicians able to guide entrepreneurs, indicating the conditions and the best opportunity for a company to open its capital to the investing public, through launch operations.

Appreciation

Appreciation – the increase in the exchange rate due to government or government intervention. central bank.

write-off

write-off – Bookkeeping of a loss arising from an unpaid debt. In international finance, write-off implies the elimination or devaluation of a country's external debt.
Yard

Yard - Yard – Slang for billion.

working day

Working Day - Business Day – Day on which the banks of a currency's main financial center are open. In FX transactions, it is only a business day if the bank in both financial centers is open for business.

world trade

world trade – International Trade.

World Market

world market – World market for goods, services and values.

Wall street

Wall street – term that means the New York Stock Exchange, and also the area of ​​NY where the city's banking and financial activities are concentrated.

Warrant

Warrant – It is a credit instrument that gives its owner a real right to guarantee the merchandise. The endorsement of the warrant gives the endorsee the right to pledge the merchandise to guarantee an obligation, created when the first endorsement was made.

Wash Trade

Wash Trade – an equal trade that produces no profit or loss.

Weighted Average

Weighted Average - Weighted Average – Moving average that uses a selected length of time but has given more weight to the most recent data.

whipsaw

whipsaw – Slang used to refer to a market with high volatility where a sharp price movement is quickly followed by an unexpected reverse. Selling price (Ask) – is the price at which market participants are willing to sell a particular currency. At the Ask price the investor can buy the base currency. In the quotation it is indicated on the right side. For example, at the quote USD/CHF 1,4527/32, the purchase price is 1,4532 – which means you can buy one US dollar for 1.4532 Swiss francs. Same as offer price (offer).

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