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Spike
market situation when the next quote differs much from the preceding one.
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"Bull market"
professional slang meaning a market with up-directed tendency of currency rates.
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Pipser, scalper, surfer
trader earning on a small number of pips and setting a position for several minutes.
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Currency dealing
purchase and/or sale of currency assets in the world currency market with a purpose of deriving profit from rate fluctuations with the course of time.
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Market makers
big banks and financial companies cooperating with an exchange market and supporting the gap between Ask and Bid due to a substantial share in the total market turnover.
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"Bears"
professional slang meaning traders operating with a currency downtrend.
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Price gap
any of cases: Bid of the current quote is higher than Ask of the preceding one; Ask of the current quote is higher than Bid of the preceding one.
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Currency rate
currency rate text record; two currencies making an exchange rate come as trading operation object.
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Trend
clearly defined market direction; general price movement direction.
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Trader
stock dealer selling and buying currency pairs on Forex for the purpose of profit deriving.
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Advisor
trading account managing program in a specialized language, which sends requests and orders to the system using the client terminal.
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Margin Level
account balance calculated in the following way: (Equity / Margin)*100%.
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Dealing center
organization offering a prospect of making trading transactions in financial markets without accessing the external trade area
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Market opening
trade start after weekends/holidays/breaks between trading sessions.
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Swap
assets held or added to a trading account for prolongation (carrying over) of a position to the next day.
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"Bulls"
professional slang meaning traders playing for the currency rate upturn.
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Pip
minimal measuring unit of one currency change relatively another reflected in quotes released by a broker.
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Margin
required pledge amount for opened positions equaling 1% (with 1:100 leverage) of the opened position size.
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Forex (Foreign Exchange)
foreign currency exchange market; electronic stock exchange for conducting currency transactions.
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Ticker
unique identification number assigned to every open position or pending order in a trading platform.
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Trend line
chart direct lines coming through extremums of up-going and down-going trends determining the current tendency.
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Cross rate
a ratio between two currency pairs relatively the third one (USD); exchange rate between two currencies, except for USD.
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Equity
trading account balance reduced by a current loss of positions opened and increased by a current profit of positions opened.
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Range
lack of trend (flat trend) appearing after abrupt rate fluctuations; distance between support and resistance levels.
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Forex broker
organization granting access to the world financial markets for conducting speculative operations.
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Trading platform
program solution directed to transmit online information on trades, trading transactions execution and recording of mutual commitments between trader and broker.
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Quote
one currency unit cost (base currency) expressed in another currency (quoted currency).
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Order
trader’s command to a broker of buying or selling one currency for another at market price.
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Lot
standard contract measure unit for evaluating the currency volume traded by this contract on Forex.
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Margin trading
buy/sell operating method using monetary assets provided by a broker as a loan on security of stipulated amount.
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Client terminal
MetaTrader program product allowing to get trading session data online, carry out a technical analysis, run trading.
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Base currency
monetary unit of an account to be nominated in and that of balances, commissions and payments to be calculated.
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Accounting currency
monetary unit used for carrying out deposit and withdrawal transactions.
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Intraday trading
trading activity oriented to profit earning during the day; execution of short term trades.
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Nontrading operation
deposit/withdrawal of money from a trading account or credit allowance/ reimbursement.
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Ascending trend
is a tendency by which the price moves upwards and most of drops fix above the previous drop.
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Diversification
a form of capital aggregation; risk reduction strategy by spreading capital investments to different trading instruments.
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Free Margin
assets uncommitted to a pledge for opened positions.
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Open (currency) position
mismatch of requirements (assets) and commitments (liabilities) in foreign currency for a currency market participant (banks, companies).
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Spread
difference between Ask and Bid expressed in pips.
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Pending order
brokerage company command to buy or sell a currency pair in future at a set price.
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Transaction
aggregate of trading operations with funds switching from base currency into quoted one and vice versa.
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"Bear market"
professional slang meaning a market with down-directed rate tendency.
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Hedging
execution of buy or sell operations with different financial instruments simultaneously for the avoidance of huge losses in case of sharp price fluctuations.
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Leverage
rate of credit given to a trader by broker; a ratio of pledge amount and the given borrowed capital.
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Normal market conditions
lack of price gaps, sharp breakdowns of a quote flow in a trading platform, violent price dynamics.