MARGIN CALL:
A margin call happens when your brokerage informs you that the balance
of your trading account has dropped below the required margin(%), and
there is not enough equity (floating profit- floating losses or unused
balance) to support your ope...
BID PRICE: In forex, bid price is a term used to express the highest
price a buyer is willing to pay.
ASK PRICE: In forex, ask price is a term used to express the lowest
price a seller is willing to pay.
According to these definitions the bid price is...
These two terms are used in forex to explain rising and falling in the
market prices.
It can be said that there are two markets: bullish and bearish. When
there is an upward-moving in the prices of the market, it is called
bullish. Whereas, when there i...
In forex, currencies are traded in pairs. A currency pair consists of
two particular currencies that are bought and sold. The first currency
is known as the base currency and the second one is known as the quote
currency. The value of a currency pair is d...
A
ACCOUNT
A record of all transactions or a special personal account opened with
the company by a client. This account is used to offset the
obligations of the client and dealer, resulting from the deals
concluded under the present agreement.
ACCOUN...
In forex, leverage is a loan provided by the brokers that lets
investors trade much more value of a currency. In other words, you can
trade more value of a currency with a limited capital. However,
leverage is a two-edged mode. As it can increase the prof...
Lot is a standard trading term referring to an order of 100,000 units.
There are also mini, micro, and nano lot sizes that are 10,000, 1,000,
and 100 units respectively.
Currency pairs are usually traded in units of 100,000 (standard lots),
10,000 units...
MARKET ORDER: The instruction you give to the broker on the purchase
or sale of any financial instrument. In the Forex market and other
financial markets, there are two types of orders.
MARKET ORDERS: What are these orders? These are orders when you let...
In finance, especially in Forex, a PERCENTAGE IN POINT (PIP) is a unit
of change in an exchange rate of a currency pair.
Put simply, a pip is the smallest unit of price for a currency. It is
the last decimal point in exchange rates or currency pairs.
...
LONG POSITION:
The buying of a security such as stock, commodity, or currency, with
the expectation that the asset will rise in value. If a trader is in a
trade on the basis that the market is going to force the price of a
currency pair upward this is k...
Forward deals are contracts for purchasing a given amount of foreign
currency on a predetermined future date, at a predetermined exchange
rate.
Delivery of the underlying currency is made on the deal's maturity
date. Contrary to spot transactions, the d...
A trailing stop order is a special kind of sell stop order.
Sell stop orders let you say, "If the bid price falls to my trigger
price, allow my sell order to execute on an exchange." The key
difference between a traditional stop order and a trailing sto...
A break between prices on a chart occurs when the price makes a sharp
move up or down with no occurred trading in between. Gaps can be
created by factors such as regular buying or selling pressure,
earnings announcements, and a change in an analyst's outl...