Forex Vocabulary

The top of the diagram shows the high price for the period. Similarly, the bottom of the diagram shows the low price for the period. The width of the diagram reflects the volume for the same period. It consists of three white candles each closing higher than the previous one. The last candlestick is a Doji or spinning top that gaps above the previous candlestick.

Consumer Confidence is a survey conducted and released by the Conference Board and it reflects consumer attitudes and confidence. It measures the degree of optimism or pessimism consumers feel about a country’s economic activity and their own personal financial situation. The Fed highly regards this report which could be a determining factor in shaping the US monetary policy.

Stock analysis definition

It is anticipated that import bills rise before export orders and receipts increase. An agreement to swap interest rate exposures from floating to fixed or vice-versa. It is the interest cash flows be they payments or receipts that are exchanged. An agreement permitting a party to obtain a particular interest rate, issued both OTC and by exchanges. A currency whose value is expected to remain stable or increase in terms of other currencies.

For example, an OCO may be placed to https://forexhistory.info/ an existing position either with a limit , or with a protective stop . A way of smoothing a set of price/rate data by taking the average price of the data range of values. The minimum margin that an investor must keep at USG to maintain an open position. A situation where an opportunity exists for clients to lose more than the margin that they initially pledged to open and maintain a position. Any transaction that offsets or closes out a previously established position. The market condition where there is ample volume to buy or sell.

The 9-period Simple Moving Average of the Moving Average Convergence/Divergence . It may also refer to a moving average of any other oscillator. A pending order that combines the Sell Stop and Sell Limit Orders.

Moving Average Convergence Divergence (MACD)

In the UK they are normally for 91 days, and are offered at weekly tenders. The buying or selling of securities resulting from the execution of an order. A measure of the sensitivity of the price of an option to a change in its time to expiry. The simultaneous purchase/sale of both call and put options for the same share, exercise/strike price and expiry date.

• An intersection of two consecutive moving averages which move in the same direction and suggest that the currency will move in the same direction.
• A system which gives out signals to traders to help them decide whether a specific time is suitable to buy or sell a currency pair.
• If a resistance level is ‘broken’, the technician will conclude that the price movement of the instrument will continue to rise.
• Above the descending line, imply a possible change in trend direction.

Fibonacci extensions or fib extensions are a type of technical analysis tool based on the Fibonacci number ratios. Traders use Fibonacci extensions to determine profit targets or how far the next price wave could go after the end of a pullback. The Fibonacci channel is a tool used in technical analysis that uses the Fibonacci numbers to identify support and resistance levels. Fibonacci channels are variants of the Fibonacci retracement tool, but with the channels the lines run diagonally instead of horizontally. Failure Swing is a type of reversal pattern that traders can use as a buy or sell signal.

Spread- refers to the difference between the offer and bid prices. When the spreads are narrower, this is an indication of high liquidity. Margin- in order to cover any likely losses due to unfavorable currency prices movements, the clients are required to deposit funds as collateral. Lot – refers to the target volume transaction financial instrument.

foreign exchange

ECN or electronic communication network refers to a section of automated https://forexanalytics.info/ that connects traders to liquidity providers directly. This allows traders with various account types and balance sizes to enter the markets. A daily chart is a graph that shows the price movement of a security within a day of trading.

However, in the investment community, investors tend to have a different attitude to investing than traders. Firstly it refers to the charge levied against a party for borrowing money, which can be either a cost or a means of making profit for a trader. Secondly, it can mean the portion of a company’s stocks held by a particular shareholder. High frequency trading is a form of advanced trading platform that processes a high numbers of trades very quickly using powerful computing technology. It can be used to either find the best price for a single large order, or to find opportunities for profit in the market in real time.

Trending shares definition

It measures the difference between High and Low prices in order to identify reversals. Trading signals are triggered when a “reversal bulge” is identified. That is, a reading above 27.0 and then a decline of the indicator below 26.5.

In 1944, representatives from 44 allied nations met in the town of Bretton Woods, New Hampshire USA, to discuss monetary policies in order to rebuild the international economic system. The delegates agreed to tie their currencies to gold and the US Dollar and maintain an exchange rate within a parity band of 1%. The rate at which a country’s central bank lends money to its domestic banks. It is drawn by selecting 3 major consecutive tops and bottoms. The result is a line study of 3 parallel lines acting just like support and resistance. It consists of three long white candles with short or non-existent shadows.

It is used to gauge stock market activity and the country’s economic health. A technical Indicator developed by Patrick Mulloy in an attempt to produce less lag than the traditional moving average calculations and hence more sensitive to market changes. A technical analysis tool that draws vertical lines at equal intervals on the price chart to forecast future cycles. Currency policy to fix a country’s currency exchange rate to that of another currency. A buy order of a financial instrument to close an existing short position. A market where delivery takes place immediately after the trade of financial instruments.

The client can be an individual, money manager, corporate entity, trust account, co-owner or any legal entity that has an interest in the value of the account. A bank that is responsible for controlling a country’s or region’s monetary policy. Cash on deposit equals the amount of funds deposited in the account, plus or minus the realised closed position P/L and other debits or credits, such as rollovers and commission . An investor who believes that prices of particular investment products are going to rise. A prolonged period of generally rising prices for a particular investment product. An agent who executes orders to buy and sell currencies and related instruments either for commission or on a spread.

• Base Currency – this is the currency that is used to quote all the trades in Foreign Exchange Market.
• Volatility is an indicator used to measure the frequency and extent of changes in a currency’s value.
• The saucer bottom shows a very slow and very gradual turn from down to sideways to up.
• The amount of securities sold at that price will usually be specified alongside.
• An ‘Instrument’ , Securities, currencies, commodities, derivatives, indices or any other trading/investment resource whose value may change.

An https://day-trading.info/ report presenting the US total retail sales as well as the percentage change of the last month. It shows demand in consumer goods which constitutes about 70% of the GDP. A potential buy signal is triggered when there is a positive divergence between the oscillator and price, especially when RVI is in extreme oversold territory. Conversely, a potential sell signal is in place when there is a negative divergence and RVI is in extreme overbought territory. A market governed by legislative rules and regulations which are in place to protect investors.

A USG window that summarises the transactions that have taken place in a client’s account over the course of a working day. An individual or firm acting as a principal, rather than as an agent, in the purchase and/or sale of Foreign Exchange. The risk attached to a transaction by virtue of its association with a particular country. This involves examination of the economic, political and geographical factors of a particular country. The foreign bank representative who regularly performs services for a bank that has no branch in the relevant centre, e.g. to facilitate the transfer of funds. A transaction that is opposite in direction and magnitude to an existing position and that has the effect of realising a gain or loss.

Business NZ Manufacturing Index

They are also known as sprint markets, and are only available with IG. A rights issue is when a company offers its existing shareholders the chance to buy additional shares for a reduced price. Usually the discounted price will stand for a specified time frame, after which it is returned to normal. A purchasing managers index is an economic indicator comprised of monthly reports and surveys from private sector manufacturing firms. The index surveys product managers, who are the individuals that buy the materials needed for a company to manufacture its products. Power of attorney gives another person the ability to act on your behalf.

Trendlines are used to open long positions during an uptrend and short positions during a downtrend. On the other hand, violation of the trendline is an early warning for a reversal. In the course of a rally a long white candle reaffirms the positive sentiment in the market. The last candlestick is a long black body, signaling a reversal. During the course of an uptrend, the recording of a higher high followed by a lower close suggests a reversal.