A currency which is considered "safe" during a geopolitical turmoil.
An order to execute a transaction only at a specified price (the limit) or higher.
Rate at which a bank or other counterparty is willing to sell a foreign currency.
A market position where the trader has sold a currency he does not already own.
The process by which a trade is entered into the books and records of the counterparts to a transaction.
The date when forex deals are settled.
A market position where the trader has sold a currency he does not already own.
Action taken by the trader to sell a currency.
Standard International Trade Classification. A system for reporting trade statistics in a standardized way.
Slippage is the experience of not getting filled at your expected price when you place a market order or stop loss. Slippage can work for or against the trader.
Swiss Options and Financial Futures Exchange.
A soft market exists when there are more potential sellers than buyers, which creates an atmosphere where a rapid decrease in price is likely.
A spot market is where people buy and sell actual financial instruments, such as currencies, for two-day delivery. In many cases, such as retail forex, a spot market has built in mechanisms to automatically rollover the spot contracts since most participants in the spot forex market have no intention of receiving or delivering the physical currency they are trading.
Spot next is the overnight swap from the spot date, 2 days after the purchase or sale, to the next business day. This is the mechanism which allows speculators to actively trade in the spot market without having to worry about deliver or receipt of the physical asset.
The price at which the currency is currently trading in the spot market.
The difference between the ask and bid price.
Low or stagnant growth in conjunction with high inflation rates. Inflation with growth is less of a concern for central banks than inflation with low or stagnant growth.
An operation used by the Federal Open Market Committee to intervene foreign currency changes.
Shorthand term for the British Pound (GBP), also known as cable.
Stochastic Indicator is a popular oscillating technical indicator used by traders to show strength of trends.
A risk management tool to set a pre-determined level to close a position in order to prevent further loss
The strike price can also be called the exercise price. The price at which an option holder can buy or sell the underlying instrument. For example, a trader would pay a premium to buy an option to sell the EURUSD at a strike or exercise price of 1.3500. Since the trader wants to sell high and buy low, if the market is trading at 1.3400 he would likely exercise his option, and sell EURUSD at the strike price of 1.3500 and have a position already 100 pips in profit.
Structural Unemployment refers to levels of unemployment ingrained in an economic structure. An economy that does not have the industry to employ its population may suffer from structural unemployment.
A technical price level which a currency pair has a hard time falling under.
Society for Worldwide Inter-bank Financial Telecommunication is a clearing system for international trading.
The Central Bank of Switzerland.
Shorthand for Swiss Franc, CHF.
Risk Disclaimer: Online forex trading carries a high degree of risk to your capital and it is possible to lose your entire investment. Only speculate with money you can afford to lose. Forex trading may not be suitable for all investors, therefore ensure you fully understand the risks involved, and seek independent advice if necessary.
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