Glossary

Assets

A financial tool that is qualified of being traded between investors.

Ask Price

It is the set price that the seller accepts as the final price to complete the trade.

Analysis

A complete check of the market’s segments or system. Commonly, it is performed by fundamental and technical analysis.

Bid Price

It is the set price that the market players accept as the final price to purchase the assets.

Bond

It is the name of a certain financial tool that is operated by state and private entities to borrow funds from the public to refund them over a certain term with interest.

Candlestick Chart

It is a specific type of chart the main goal of which is to depict the starting and closing prices, as well as the highs and lows of the price range for a particular period.

Contracts

They are trade volumes in the financial market. The contract may be set differently relying on the market and the type of asset. For instance, currency contracts are created in lots, but gold is traded in ounces.

Currency Pairs

It is the specific rate at which two currencies trade. Currency pairings are categorised into three classes: Major, Minor, and Exotic.

CFDs

It is an acronym for Contract for Difference. It is the tradable financial derivatives that permit investors to assume on the market without actually holding the underlying asset. Commonly, such derivatives are traded utilizing leverage.

Day Trading

It is a practice in which trades are opened and closed on the same trading day. Bypassing exchange fees is one of the bonuses of day trading.

Decentralized

It is a special provision when the central bank, central exchange, or any other organization cannot take control of the market or asset. Commonly, currencies are built on blockchain technology and therefore represent a decentralized market, as a result of which each investor has a copy of the blockchain.

Fundamental Analysis

It is an approach to market analysis that is centred on deciding how financial info and possibilities affect the supply and demand for an asset and the price.

Futures

They are specific derivative tools, which indicates that traders speculate on price change without holding the underlying asset.

Hammer Candlestick

Concerning a candlestick with a small high body and a long tail or shadow.

Initial Margin

It is the bare minimum capital required to open a trading position in the market. Commonly, it is associated with leveraged commodities.

Interbank Market

It is a global network mainly operated by financial establishments to trade currencies and other currency derivatives.

Japanese Candlesticks

Concerning a candlestick that authorises the opening, closing, high, and low prices.

KYC

A process for officially identifying your client in compliance with local regulations, either before or coincident they begin accomplishing business with you. Commonly, it is often performed via the presentation of identification and proof of current address.

Lot

It is the provision when a lot refers to the magnitude of the trade in the case of exchanging foreign currency. Its equivalent is 100,000.

Leverage

It ensues when a broker increases your purchasing capacity, permitting you to deal with bigger shares with a fraction of the cash required. It increases both the possibility and the risk.

Margin Call

It is a notification that traders reach when their account drops below the demanded minimum capital. It supplies traders with an option to act before the minimum is met. The platform will start closing the trade automatically if the minimum is met.

Mutual Funds

They are pooled investments in which the fund aims to diversify its danger direction across several assets and markets.

Options

It is a derivative product in which you may trade and speculate on the cost movement of an object without actually owning it.

OTC

It is an acronym for Over the Counter. It refers to investment interests that are often traded via a broker or other sort of intermediate.

Pip

It is the rule under which the following decimal point comes the fourth digit. It is also known as the pivotal point of movement in a currency trade.

Pair

The value of one currency concerning another one.

Pivot Point

It is the specific point at which the price of an asset switches direction, which might be a support or resistance level.

Slippage

It is the state in which a contract is opened at a price that varies from the specified price, usually due to very high volatility.

Swap

It is a per-trade overnight charge.

Swing Trading

It is a short-term trading technique in which the trader aims to benefit from market changes lasting more than a day but less than a week.

Scalping

It is a trading approach concentrated on very short-term investments.

Take Profit

It is the stop-loss order which is set when the market moves in your favour and gets a specified price. Commonly, it is operated to guarantee earnings.

Trend

It is the state where the asset’s price moves in a single broad tendency.

Technical Analysis

It is the state where the asset’s price moves in a single broad tendency which consists of analysing price movements, charts and technical indicators.

Technical Indicators

It is a provision that is used to provide the user with additional trading signals in case an indication is added to the chart using mathematical calculations based on price movement, momentum and historical patterns.

Volatility

It is the amount by which the price of the currency or an asset changes.