A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

A

• Aggressor: A trader (broker) who is dealing on an existing price on the Forex market.
• Appreciation: When the currency value increases. You can say that there is an appreciation at the currency.
• Arbitrage: the action of double profit. It's when you gain profit from the currencies differences, in a single trade at more than one market. The arbitrage means to single pair of currencies.
• Around: When a forwarded premium is near parity, you can use the slang word "around" ( Example: around 3-3 means that there is 3 points for each side on a present spot.
• Ask: As known as "Ask Price". This is the price which a currency pair is offered for sale. Some traders like to call it the "Ask rate".
• Asset: Some item with commercial value for the market.

B

• Back office: the places where the financial transactions are taking place.
• Balance of Trade: The calculation of a country's value. It’s the exports minus the imports.
• Base currency: The currency that the broker, in this case the investor buys or sells at the moment.
• Bear: Fallen market. The situation when the market went down and there is no raise at the near future. If the recovery of the market will take time you can say it’s a bear market.
• Bid: The offered price by the trader. The bid should be the highest price the buyer is ready to pay; otherwise the seller will loose profit. In contrary to Bid- the rate to sell, is Ask – the rate to buy.
• Bull: Optimistic trader called a "bull". You can find them in the Forex market, buying with over enthusiast terms. Bull market is a market with rising prices.

C

• Cable: the nick name used by traders to the royal trade pairs- Sterling and USD. The name came from the first transmitted trades used by cable, between US and England at the 1800's.
• Clearing: The process of which you settle a trade.
• Commission: The transaction fee, usually charged by a broker.
• Continuation trading: This kind of trading refers to the resumption of a certain trend. The resumption related to the point of trade, after a consolidating or pattern of indecision.
  
• Cross: a pair of currencies. If you trade USD with GBP, the cross of your actual trade is USDGBP
• Cross rate: the exchange rate that is being calculated from your currencies rates. The Cross rate from above example Is the rate of trade between the USD and the GBP.
• Currency: Form of money issued by government or some major bank. This currency is legal to trade and to use world wide.

D

• Day trading: The practice of which you open and close positions at the same trading day. At the end of the same day you keep no opened positions for the next trading day.
• Dealer: You, me and them. The people behind the trades, the bids and the money.
• Delivery: A Forex trade, where the two sides take actual delivery of the currencies that were traded.
• Depreciation: A fall of a currency's value. Also known as decline.
• Devaluation: A downward adjustment of some currency. Usually it published by official announcement.

E

• Economic Indicator: Common and known indicator that includes statistics about growth and stability.
• Exchange rate: The worth of one currency in terms of another. You measure the currency value by its exchange rate to another. ( example: the YEN worth 89 cents of a EUR, means the exchange rate is 1:0.89 )
• Euro: The European Monetary union currency. Used by al European countries except the GBP and the CHF.

F

• Federal Reserve: The central bank of the USA
• Foreign Exchange: FX, Forex and more names means the same- transaction of one currency for another currency.
• Forward: The pre specified exchange rate, for any future date. The Forward term related to one currency at a time.
• Fundamental Analysis: An analysis that focuses on the macroeconomic factors. On the market, Traders open positions based on how they believe changes in these factors are about to affect the economies.

• Future Contracts: Some online obligation to exchange something in the future, for a set price.

G

• GTC: Good until Cancelled- future order to buy or to sell at a specific price. The order remains open until it fills up or until the trader cancels it.

H

• Hedging: The act of opening several positions at once where one of the positions used to minimizes the risk of the others.

I

• Inflation: popular economic condition whereby good's prices erodes the power to purchase.
• Initial margin: Initial deposit to made n order to enter into a position for future performances.
• Inter bank: An action between banks where they borrow and lend for short term.

J
K

• Kiwi: the NZD/USD cross, used slang for online Forex trade. The base is the known nick name to the people on New Zealand – Kiwi's.

L

• Leading indicator: The statistics that are being used in order to predict the economic activity in the near future. Brokers using leading indicators as a trading strategy.
• Leverage: a loan from some broker which allows you to trade with small capital. Leverage increases your potential to profit more and also your risks.
• Limit order: Restricted order on the maximum price to be paid in case of purchasing and the minimum price to sell in a case of selling.
• Liquidity: The capacity you can convert into cash, when you lose the minimum funds. Liquid market ensures that the buyers and the sellers are happy with the trade results.
• Long position: a position that appreciates in its value, in case the market value increases. When a trader open a position to buy currency and hopes it wil increase, he went long.
• Loonie: the slang for the cross- USDCAD (US Dollars and Canadian dollars).
• Lot: Lot is the standard unit of trading. One lot is 100,000 units of the base currency. Some terms like mini lot and micro lot are also in use.

M

• Margin: Margin is the deposit needed in order to hold an open position. If you want to enter into some cross position, you put your margin as well.
• Margin call: If the position has moved against the trader, he can call a margin in order to request the broker for additional funds.
• Market maker: The traders who are willing to trade on both sides at any market position called the market makers.
• Maturity: The date for expiration of some financial instrument is called maturity. It's actually the time when the market is mature for the act.

N

• NYSE: the New York Stocks Exchange market. Forex market is bigger.

O

• Offer: the rate of a currency, at the moment the dealer is willing to sell it.
• Offsetting transaction: the trade which serves to cancel some risks from the market when there is an open position.
• OCO: (One cancels other), when an order is being canceled and it’s a part of long term order, all the other following orders are canceled as well.
• Open order: An order to be executed when the market is up to his new prices limit.
• OTC: (Over the counter), any transaction that is not conducted on any pair exchange called OTC transaction.
• Over night: The trade that is open over night to the next business day.

P

• Pips: Pip is the smallest unit for cross price. Pip is 0.0001 unit of the trade. When a currency pips once, you can say it went from X value to X.0001 value.
• Position: Buying or selling currency cross is taking a position. You can say that the position is the netted total holdings for a known currency.
• Premium: When a spot price exceeds, the premium is what you had to pay for it. It describes the extra mount the price raised.
• Price trend: a consistent movement of a currency in terms of prices, in one direction. If the USD is getting lower daily for two weeks now, you can say that its trend is down.

R

• Rate: Rate (quote) the price of some currency in terms of another. Rate is the basic for any cross.
• Resistance: a term is use to describe the belief that at certain level, the broker will sell. Mainly in use by technical analytics.
• Revaluation: an increase in a currency value (and its exchange rate), because of a bank intervention.
• Reversal trading: Short term trading, refers to ones should confirm the reversal trade by using an online technical indicator
  
• Risk: Risk and risk management is the hart of the trade at Forex. It to trying to control the predictable range of gains and losses. All market's traders are expose to risks, the ones who can manage them to his best, earns more.
• Risk Capital: the amount of money the trader can expose to specific risk.

S

• Secondary currency: the second currency at any cross. When we are talking about Kiwi, the S.C is the USD.
• Short: slang term for "sell".
• Short position: The position that benefits the trader from decline market prices. Short position is mainly good to the traders.
• Speculative: Buying and selling currencies with the hope to gain profit. Usually it's based real business relations.
• Spot price: The current market price. The settlement of spot is usually taking place within two-three business days.
• Spread: The market difference between the bid, the offer and the asked rate.

T

• Trade profit: The trade order which closes the open position. The price is known and the trade was made. Now the profit is being received.
• Technical analysis: The effort to predict the market movements. Historical prices, strategies and open interested traders can use this form to gain profit.
• Transaction cost: the cost of buying or selling financial instruments.
• Turnover: the money value of all executed transactions at a specific moment.
• Two way price: the quoted price of a bid and an offer – for one Forex transaction.

U

• Uptick: A new price quote. Higher than the preceding original quote.
• US Prime rate: the interest rate for the US located bank to lend their own customers.

V

• Value date: A date when counterparts to a financial transaction agreed to settle an obligation. The value date known as the maturity date from the word "mature"
• Variation Margin: the fund that any broker must request from his client, to make the required margin actions. This amount variants the margin on the market.

W

• Whipsaw: Highly volatile market called in traders slang- whipsaw. It's when sharp movement is taking place fast during the exchange.

X
Y

• Yard: the known word in the market for one billion dollars.

Z