Wednesday, May 27, 2009

Mostly using terms in Forex

Did you know each and every words meaning, we are using presently.....
Here it is those words and its Definitions

Support — Price level for which intensive buying can lead to the price decreasing.

Ask (Offer) — Price of the offer, the price you buy for.

Commission — Broker commissions for operation handling.

Aussie — A Forex slang name for the Australian dollar.

Bank Rate — The percentage rate at which central bank of a country lends money to the country's commercial banks.

ECN Broker — It’s a type of Forex brokerage firm that provide its clients direct access to other Forex market participants. ECN brokers don't discourage scalping, don't trade against the client, don't charge spread (low spread is defined by current market prices) but charge commissions for every order.

Flat (Square) — Neutral state when all your positions are closed.

Bid — Price of the demand, the price you sell for.

Jobber — A slang word for a trader which is aimed toward fast but small and short-term profit from an intra-day trading. Jobber rarely leaves open positions overnight.

Broker — The market participating body which serves as the middleman between retail traders and larger commercial institutions.

Cable — A Forex traders slang word GBP/USD currency pair.

ECB (European Central Bank) — The main regulatory body of the European Union financial system.

Carry Trade — In Forex, holding a position with a positive overnight interest return in hope of gaining profits, without closing the position, just for the central banks interest rates difference.

CFD — A Contract for Difference — Special trading instrument that allows financial speculation on stocks, commodities and other instruments without actually buying.

CPI — Consumer price index the statistical measure of inflation based upon changes of prices of a specified set of goods.

EA (Expert Advisor) — An automated script which is used by the trading platform software to manage positions and orders automatically without (or with little) manual control.

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