In the following list you will find the terms with the most relevant meaning used in trading:
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A
ASSET: Instrument use to determine a contract. That is currencies, indices, stocks and commodities
ASK PRICE: It is the sell price of an asset
AT THE MONEY: It’s the outcome of a trade. That is when the value of an asset, at expiry time, is the same as it was at the beginning-
B
BID PRICE: It is the buy price of an asset
AT BEST: It’s used to indicate to the broker to buy or sell the asset at the best market price
BASE CURRENCY: It’s the first currency in a pair of currencies
BEAR MARKET: It’s a market with falling prices
BULL MARKET: It’s a market with rising prices
BREAK EVEN POINT: Amount of money needed to cover losses
BROKER: It’s an intermediary between traders and the financial market-
C
CABLE: It’s another name for the currencies couple of GBPUSD
CALL: The value of an asset will be higher at expiry time than it was at the beginning
CANDLESTICK CHART: It’s a type of display data in a chart, which provides more information as the opening price and closing price and also the maximum price and minimum price too
COMMODITY: Raw materials such as oil, gold, corn, wheat, etc
COUNTER CURRENCY: It’s the second currency in a pair of currencies
CURRENT PRICE: The price of something in real time
CYSEC: Cyprus Securities and Exchange Commission-
D
DEPRECIATION: It’s a fall of currency value
DRAWDOWN: Continues maximum loss in a period, between maximum and minimum relatives-
E
ECONOMIC CALENDAR: It contains macroeconomic daily news
EXPIRED POSITION: Deadline of a position
EXPIRY TIME: The time when a position expires-
F
FOREX: Foreign Exchange Market, it’s the currency market
FUNDAMENTAL ANALYSIS: It’s used to analysis macroeconomic data for a trading strategy-
G
GAIN: The real payout
GROSS DOMESTIC PRODUCT: The total value production and income of a country-
H
HIGH/LOW: The asset will expire at a price higher than the target price or will expire at a lower price than the target price
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I
INDEX: Represents a basket of stocks
INFLATION: Rising of consumer goods price
INSIDE/OUTSIDE: The position chosen by a trader for a Boundary Option Binary
IN THE MONEY: A trade that ends in the way chosen by a trader
INVESTMENT AMOUNT: The money invested for a position-
K
KIWI: It’s another name for the New Zealand dollar
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M
MARGIN: Starting deposit used to open an account
MARKET PRICE: A quoted price of an asset-
N
NO TOUCH: An option doesn’t get over of the target level
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O
ONE TOUCH: An option get over of the target level
OUT OF THE MONEY: A trade that doesn’t end in the way chosen by a trader
OVER THE COUNTER: Markets in which trading takes place outside the official stock exchange circuits-
P
PAYOUT: It’s the gain obtain from a trade
PIP: The minimum change of a price that a given exchange rate can make
PIVOT POINT: It’s support or resistance, calculate through mathematical calculations. The necessary data are the maximum price, the minimum price, the closing price
PUT: The value of an asset will be lower at the expiry time than it was at the beginning-
Q
QUOTE: An indicative market price
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R
RANGE: Difference between the higher price and the lower price
RATE: The price of a currency relative to another
RESISTANCE: Pricing zone that stops uptrend movement
RETURN: That is the amount gains by trader if the option expires “in the money”
REVALUATION: An increase of the cross rate of a currency
ROLL OVER: It’s to extend the expiration of an investment-
S
SUPPORT: Pricing zone that stops downtrend movement
SPREAD: The different between the ask price and the bid price
STOCK: Shares of a specific company
STRIKE PRICE/ TARGET PRICE: The price of an asset at the time of buying and selling it
STRIKE RATE: The same thing of strike price
SWAP: Simultaneous buy and sell of the same amount of a currency-
T
TECHNICAL ANALYSIS: It’s used to examine historical data to predict a trend
TICK: Minimum change in price
TURNOVER: The total value of money of all transactions in a period of time-
V
VOLATILITY: It’s the percentage change in the price of a financial asset over time
WITHDRAWAL: Means to take out money from the account-
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