A trader dealing on a price that can be obtained in the market. This is in opposition to a trader who is waiting for a price to be quoted that he is willing to buy or sell at.
An option that can be exercised at any time up until its expiry
A trading technique used by sophisticated investors to take advantage of differences for the same asset between different markets.
The price at which a trader can purchase a particular financial instrument, such as currency pairs. Also known as the offer.
An order to purchase a currency at the best currently available price.
An order to purchase a currency at a specific price, or a better price than the specified price.
An option whose exercise or strike price is equal to the current market price of the underlying asset.
The sale of an asset to the highest bidder.
Short for the Australian Dollar.
A measure of how much workers are being paid.
An option where the exercise price is based on the difference between the average spot market price and the strike price. Also called an Asian Option.
The price range within which the value of a specified currency is allowed to fluctuate. This does not apply to free floating currencies.
Credit granted by a bank to a customer.
Paper issued by a central or issuing bank which are considered legal tender.
The first currency stated in a currency pair.
One percent of one percent.
The price expressed in annual rate of return.
Trading to profit from the increase in the basis.
A group of currencies.
A market in which prices are declining.
The price a trader can sell a particular financial instrument, such as currency pairs.
The difference between the bid and ask price.
Often refers to the first two or three digits of a currency's price.
A summary of a traders total positions.
An individual or a firm that executes investment or trade orders for a fee.
The number of newly authorized construction projects.
An individual that believes price of a trading instrument will rise.
A market in which prices are increasing.
An order to execute a transaction to buy an asset at a specified price or lower.
A process to buy an underlying asset with cash for only a part of the total price.
A term referring to GBP/USD.
A measure of how much of the productive capacity a country is using.
A component of the Current Account that summarizes the flow of investments and loans in and out of a country.
The amount credited or debited from an account for holding a currency pair where the components have different underlying interest rates overnight. The magnitude of the carry charge is determined by the size of the interest rate differential. For example, if a trader is long USDJPY there will be a relatively small carry charge since both currencies have a low interest rate. If a trade is long USDZAR there will be a greater cost of carry since the interest rate of the ZAR is significantly higher than that of the USD.
An investment strategy whereby the investor borrows from a low-yielding or low-interest currency, and invest in high-yielding or high-interest currency.
Often refers to a transaction settled on the day the transaction is agreed upon.
The buying of an asset today and selling a future contract on the asset.
A range where prices seem to be contained within.
A trader who studies price charts to try and find profitable behavior in financial markets. A chartist is a specific type of practitioner of technical analysis.
A position that no longer exists. A long position would be closed by offsetting with a short position of the same size and a short position would be closed by offsetting with a long positions of the same size.
A fee whether fixed or variable that a broker or dealer charges per trade.
An option on an option usually with a fixed price and expiration date.
A document exchanged by counterparts to a transaction that states the terms of said transaction.
The period when prices are less volatile and are moving sideways.
The nature of economic crisis to often spread from one market to another market.
A term used to describe that a trend will extend course.
An agreement to buy or sell a fixed unit size.
A currency that can be freely traded for other currencies without central bank permission.
A term used to describe price action during a partial reversal of a trend.
The second currency in a stated currency pair.
To take out a forward foreign exchange contract
The risk that a debtor will not pay an obligation.
A currency pair that does not include the USD.
The exchange rate of currency pairs that do not include the USD.
A contract that gives either the right or the obligation to buy or sell a currency at a specified price by a specified date
The two currencies that comprise a currency pair
The risk that changes in the value of a currency may pose
Bond which consigns two counter-parties to switch over streams of interest payments in different currencies for an agreed period of time.
A component of Balance of Payments that measures net flow of trade, factor income, and transfer payments.
The total of all exports minus the total of all imports for a country for a specified period of time
A buy or sell order that if not executed is canceled at the end of the day.
A trade that is opened and closed in the same day.
A trader who's style of trading is characterized by opening and closing positions of the same pair within the day.
The date when a transaction is agreed upon.
An individual who acts as a counterparty to a transaction.
A "desk" where the transactions for buying and selling of securities occur. Also known as a trading desk.
The last date when a buyer of an option can notify the seller of that option of his intention to exercise the option.
A negative balance of trade.
The ratio comparing the change in the price of the underlying asset to the corresponding change in the price of a derivative.
A decrease in the value of an asset or currency.
A contract that changes in value in relation to the price movements of an underlying security, future or other physical instrument.
Term referring to a group dealing with a specific currency or currencies.
Diamond formations are chart patterns showing a top or bottom and signal a reversal of a trend.
Quoting in fixed units of foreign currency against variable amounts of the domestic currency.
When an asset is listed at a price that is less than the spot price.
An account in which the customer allows a trading institution to act on the customer's behalf in buying and selling currency exchange pairs.
A situation where the trend of an indicator fails to confirm the trend of the price movement.
A candlestick which represents a relatively large price range between the high and low, but very narrow range between open and closing price.
An attempt to summarize the effects on a country's trade balance of its currency's changes against other currencies.
In the Euro Interbank deposit market where both bid and offer rates for a particular period are the same.
The change in the price of an option associated with a 1% change in implied volatility (technically the first derivative of the option price with respect to volatility).
A price region, which suggests a balance between demand and supply for a currency pair in the marketplace.
The potential loss that could be incurred from an adverse movement in exchange rates.
The Process of finishing an order or deal.
The price at which an option can be exercised.
A less broadly traded currency.
The last date after which the option can no longer be exercised.
The potential for running a profit or loss from fluctuations in market prices.
A market with dramatic price movements in a short period of time caused by a lot of interest from sellers or buyers.
The rate the federal reserve bank charges to borrow its money.
The price at which a buy or sell order was executed.
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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