Fed (Federal Reserve) — The main regulatory body of the United States of America financial system, which division — FOMC (Federal Open Market Committee) — regulates, among other things, federal interest rates.
Fibonacci Retracements — The levels with a high probability of trend break or bounce, calculated as the 23.6%, 32.8%, 50% and 61.8% of the trend range.
Fundamental Analysis — The analysis based only on news, economic indicators and global events.
GDP (Gross Domestic Product) — Is a measure of the national income and output for the country's economy; it's one of the most important Forex indicators.
GTC (Good Till Cancelled) — Order to buy or sell of a currency with a fixed price or worse. The order is alive (good) until execution or cancellation.
Hedging — Maintaining a market position which secures the existing open positions in the opposite direction.
Kiwi — A Forex slang name for the New Zealand currency — New Zealand dollar.
Leading Indicators — A composite index (year 1992 = 100%) of ten most important macroeconomic indicators that predicts future (6-9 months) economic activity.
Limit Order — Order for a broker to buy the lot for fixed or lesser price or sell the lot for fixed or better price. Such price is called limit price.
Liquidity — The measure of markets which describes relationship between the trading volume and the price change.
Long — The position which is in a Buy direction. In Forex, the primary currency when bought is long and another is short.
Loss — The loss from closing long position at lower rate than opening or short position with higher rate than opening, or if the profit from a position closing was lower than broker commission on it.
Lot — Definite amount of units or amount of money accepted for operations handling.
Margin — Money, the investor needs to keep at broker account to execute trades. It supplies the possible losses which may occur in margin trading.
Margin Account — Account which is used to hold investor's deposited money for FOREX trading.
Margin Call — Demand of a broker to deposit more margin money to the margin account when the amount in it falls below certain minimum.
Market Order — Order to buy or sell a lot for a current market price.
Market Price — The current price for which the currency is traded for on the market.
Momentum — The measure of the currency's ability to move in the given direction.
Moving Average (MA) — One of the most basic technical indicators. It shows the average rate calculated over a series of time periods. Exponential Moving Average (EMA), Weighted Moving Average (WMA) etc. are just the ways of weighing the rates and the periods.
Offer (Ask) — Price of the offer, the price you buy for.
Open Position (Trade) — Position on buying (long) or selling (short) for a currency pair.
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