Forex Glossary
a
Altcoin
Altcoins can be simply defined as all cryptocurrencies that are not Bitcoin. Since its inception, Bitcoin has been innovative and very influential.
Analytics
analytics is applied in a predictive manner to enable more accurate price forecasting.
Arbitrage
Arbitrage trading is a technique that allows you to take advantage of fluctuations in a financial asset in one environment before they occur in another.
ASIC
The Australian Securities and Investments Commission (ASIC) represents the paramount regulatory authority in Australia for corporates, markets, financial services, and consumer credit, empowered under the financial service laws to facilitate, regulate, and enforce Australia's financial laws.
b
Back-Testing
Back-testing is a manual or systematic method of determining whether a trading strategy or concept has been profitable in the past.
Bank of England
The Bank of England (BoE) serves as the central bank of the United Kingdom and is a key driver of monetary policy in Europe.
Bar chart
A bar chart displays a large number of price bars in a given time frame. Each bar shows how the price moves in a given period.
Bear Market
A bear market in technical analysis refers to a market in which the price trend is downward for an extended period of time.
Bid/Ask
In the foreign exchange market, there are two different prices for each currency pair at a given time. One is the rate at which you can buy (this rate is called Ask) and the other is the rate at which you can sell (this rate is called Bid).
Bitcoin
Bitcoin is the first and most famous digital currency introduced in the world. This cryptocurrency has unique features that make it superior to other popular currencies.
Bollinger Band
A Bollinger Band is a technical analysis tool defined by a series of trend lines plotted two standard deviations away from an SMA of a security's price, but which can be adjusted to the user's preferences.
c
Call margin
A margin call is a message asking traders to add more money into their trading account or close some of their trading positions in order to have more margin for trading.
Candle Stick
Candlestick charts were established in Japan over a century before the bar and point-and-figure charts were invented in the West.
Carry Trade
Carry trading is a trading method in which investors can borrow at low-interest rates while concurrently investing in a higher-returning asset.
CFD
Contract For Difference (CFD) is a type of derivative contract in which the buyer and seller agree to pay each other the difference in price between the opening and closing prices of a trading contract based on a specified underlying asset.
Commodities
A commodity exchange is a market in which various commodities are bought and sold.
Compliance
Compliance is a key level of financial oversight and regulation in finance, banking, and investing.
Contract size
Contract size refers to the size of the contract in transactions and per lot. This rate may vary in Forex brokers.
Copy Trading
In copy trading, a beginner picks one of the professional traders on the market and imitates all his movements.
Crypto Broker
A crypto broker is defined as a dealer that facilitates the direct exchange of cryptocurrencies for other assets between two parties in over-the-counter trading.
Cryptocurrency
Digital currencies are currencies that are designed with cryptographic protocols and whose value does not depend on the money of a physical nature.
Currencies
Currencies are a common currency in the country that are circulated in the country's economy through buying and selling or providing various services.
d
Day Trading
Day trading is one of the trading strategies used in all financial markets.
Delisting
Delisting is the removal of listed security from the stock exchange.
Demo account
A demo account is an unrealistic, experimental account that brokers (financial brokers) use to instruct newcomers.
Deviation
In order for the trader not to receive the requote command, he can choose the deviation during the trade and set its amount.
Digit
the number of digits after the decimal value of each trading symbol is called a digit, which is given in the Specification section of each trading symbol.
Digital Wallet
A digital wallet (or e-wallet) is a type of software that allows buyers to make quick digital transactions on multiple platforms or websites by securely storing their payment and password information.
Dow Jones (DJIA)
The Dow Jones Industrial Average (DJIA) is a stock market index that tracks the 30 largest companies on the New York Stock Exchange (NYSE) and NASDAQ.
Drawdown
Drawdown is the difference between your highest and your lowest account balance. This difference represents the capital lost due to losing transactions.
e
Economic data
Economic data is information that shows the economic situation of a country in the past or present.
ESMA
The European Securities and Markets Authority (ESMA) is an independent European Union (EU) authority that helps ensure the stability of the EU financial system by enhancing investor protection and promoting stable and orderly financial markets.
ETF
An exchange-traded fund is a basket of securities (stocks, bonds, economic goods, or a combination of these) that can be bought and sold on the stock market.
Ethereum
Ethereum is the second generation of digital currencies and is a platform that enables digital and decentralized settlement of various contracts in addition to supporting digital money activities.
European Central Bank
By the European Central Bank, we mean the Central Bank of the Eurozone, because it is responsible for issuing the euro and approving and implementing monetary policy in the European region.
Evening Star Pattern
An Evening Star is a candlestick pattern used by technical analysts to analyze when a trend is about to reverse.
Exotic pairs
Exotic currency pairs trading can be a way to diversify risk by trading currencies that have little to do with major currency pairs.
Expert Advisor
Expert Advisors (EAs) are programs installed on the Metatrader 4 (MT4) platform to monitor and trade the financial markets using algorithms.
f
FCA
The Financial Conduct Authority (FCA) is the agency responsible for regulating the financial services industry in the United Kingdom.
Fear of Missing Out
One of the strongest emotions of traders is fear. Managing fear and anxiety is a major challenge for many traders.
Federal Reserve
The Federal Reserve, also known as the Fed, is the Central Bank of the United States.
Fiat money
Fiat money is government-issued currency backed by the issuing government rather than a physical commodity such as gold or silver.
Fibonacci
The Fibonacci series and its ratios can be used in financial markets to predict price trends.
Fintech
Fintech (financial technology) is a comprehensive term that refers to software, mobile applications, and other technologies developed to improve and automate traditional forms of financing for businesses and consumers.
Flash Crash
A crash occurs when the market value in electronic trading drops significantly within a short period.
Foreign currency
Money that is traded in countries other than the main country is commonly referred to as a foreign currency.
Foreign exchange
Forex, derived from the two words Foreign_ Exchange, is a global market in which currency has a daily turnover of about $ 5 trillion.
Forex broker
A broker is an independent person/company that organizes and executes financial transactions on behalf of the other party and through trading platforms (MT4, MT5).
Forex Signal
Forex signal is a tool to simplify the complex decision-making process that traders constantly face in the Forex market.
Forex trading
The foreign exchange market abbreviated Forex or FX, is derived from the term Foreign Exchange Market.
Forward Testing
Forward Testing represents a practice environment or simulation of a live trading experience. In this technique, all entries, exits, profits, and losses are cataloged and tracked to ensure the sustainability of a trading strategy.
Fractals
The fractal indicator is based on a simple price pattern commonly observed in financial markets. Outside of trading, a fractal is a repeating geometric pattern that repeats itself in all time frames.
Futures contract
a futures contract, or Futures, is an agreement based on the purchase or sale of an asset at a specified time in the future at a specified price.
Futures in forex and cryptocurrencies
Currency futures are recognized as part of the Forex financial markets, which have the same mechanism as the futures market.
g
Grey label
The grey label allows the potential broker’s partner to promote their business using the direct name of the broker, instead of a branded, white label name.
h
Harmonic Trading
In financial trading, harmonic trading is a technique of technical analysis that involves studying price patterns in the form of geometric shapes.
Hedge fund
Hedge funds are very risky investment funds that can hold all types of assets in their investment portfolio, including stocks, real estate, gold or other assets.
Heikin ashi
In Japanese, Heikin means "average" and ashi means "speed." So taken together, Heikin ashi means "average price speed".
Historical data
Historical data is a collection of key statistics related to the pricing of a financial instrument over a given period of time.
HODL
HODL, or ’hold on for dear life’ is a term related to the Cryptocurrency community that supports holding an asset instead of selling it. In theory, the term can be applied to any asset and means the refusal to sell or dispose of any asset regardless of temptation, principles or performance.
i
Indices
A stock market index is a number that indicates the general situation of the stock market and the growth or decline of this market.
Inflation
The change in CPI over a given period is consumer price inflation, which is widely used.
Initial Coin Offering
An initial coin offering is a type of fundraising for digital currency projects in which cryptocurrency operators sell their network tokens to attract capital and receive Bitcoin or Ethereum from them in exchange for the initial delivery of their tokens to investors.
Initial public offering (IPO)
An initial public offering is a process by which shares of a private company are offered to the public through the issuance of new shares.
Insider Trading
Insider trading is one of the illegal transactions known as a clear threat to the stock market.
Instant execution
Instant Execution is a type of trade order where the broker is required to register the request at the exact price that the trader clicked.
Investor password
The investor password is another password to access your trading account in MetaTrader 4
j
Jobless Claims
This index refers to the number of unemployed people who visit unemployment insurance centers and fill out an unemployment form for the first time in the course of a week.
l
Leverage
By leverage, you try to increase your profit by borrowing a certain amount of money from the broker. This tool is an advantage that the broker offers to his clients so that they can use it.
Line Chart
A line chart is a type of chart that provides a visual representation of data in the form of points connected by a straight line.
Liquidity
In finance, liquidity is used to describe how easily an asset can be bought or sold on the market without affecting its price - it can also be referred to as market liquidity.
Lot
The standard volume for opening a Forex trade is called Lot. Each lot in Forex is equal to 100,000 units of the base currency.
m
MACD indicator
The MACD indicator (Moving Average Convergence Divergence) transforms trend following indicators - moving averages - into a momentum oscillator.
Major Currencies
Major currency pairs are those that generally have the largest transaction volume. These major currency pairs have very high liquidity and you can trade them at any time.
Margin
The money that the trader deposits as collateral with the broker or exchange is called margin.
Margin
Margin is the amount of money you need to deposit on your trading platform to place orders and maintain your position on the Forex market.
Margin level
Margin level is a percentage value (%) derived from the number of assets used for margin. Margin level indicates how much you have available to open new trades.
Market risk aversion
In risk management, people are divided into two categories: risk-averse and risk-taking.
Market sentiment
Market sentiment is actually the general behavior and attitude of investors towards the financial market or a particular stock and security.
Master password
The main trading account password in Metatrader 4 and 5 gives you full access to your trading account.
Minor currency pairs
A currency pair in which neither currency represents the U.S. dollar (USD) is called a minor currency pair or cross-currency pair.
MQL5 website
MQL5.community offers unique services for users of MetaTrader 5 and MetaTrader 4 trading platforms.
My fx book
The goal of this website is to create a professional community for traders, where trading performance becomes transparent and verifiable, and the process of learning to trade becomes relatively easy, with the motivation of helping both beginners and experienced traders.
n
Nasdaq Stock Exchange (NASDAQ)
NASDAQ is the largest electronic market in the world located in America. NASDAQ’s headquarters are located in Times Square in New York City.
Negative balance protection
Negative balance protection is a feature of some brokerage firms that protects traders from losing more money than was deposited into their trading accounts.
News Trading
. In this strategy, traders try to take advantage of extreme market fluctuations following the release of data and economic news
NFP
NFP stands for Non-Farm Payroll, which is the employment report for the non-agricultural sector.
o
Online trading
Online trading refers to transactions that take place in a non-physical way. This type of trading is very different from trading in the traditional style.
Overbought/Oversold indicators
Overbought/oversold indicators are a class of visual technical analysis tools that allow financial market traders to identify potential peaks and lows of a particular asset.
p
Parabolic SAR
Parabolic SAR is a technical indicator developed by J. Welles Wilder to determine the direction of movement of an asset.
Pending order
Orders that are not determined on the basis of the current market price, but on the basis of changes in the price of the order to enter the market, are called pending orders.
Phishing
Phishing is a cyberattack that uses fake websites, emails, and text messages to obtain personal information. The most common targets of this attack are passwords, private cryptographic keys, and credit card information.
Pip
The term Pip, which is actually an abbreviation for Point in Percentage, refers to the smallest unit of the exchange rate in large financial markets such as the Forex market, which is used to calculate profit and loss in these markets.
Pivot points
The history of Pivot Point actually goes back to the physical rooms of the stock market called floors. They calculated the previous day's high, low, and close to determine the current day's price.
Pump and Dump Scheme
A pump and dump scheme is a manipulative scheme that attempts to inflate the price of stocks or securities through fake offers. These offers are based on false, misleading, or grossly exaggerated information.
q
Quantitative Easing
Quantitative easing is an action carried out by central banks that increases liquidity and inflation.
r
Real account
Real account is the space where you enter the world of trading with real money. In Forex trading it is also called Live Account.
Relative Strength Index (RSI) Indicator
This indicator predicts the strength of the trend and calculates the average price increase in a given period and divides it by the average price decrease in the same period.
Requote
Requote means that the broker is not able to execute this transaction at the price at which you sent a request.
Resistance levels
Support and resistance levels are important points in time when supply and demand meet. These levels are very important in determining market psychology and supply and demand.
Retail trade
Retail trading can be classified as trading entrusted to individuals through a brokerage service or platform.
Risk Appetite, Risk Aversion
When investors are optimistic about the economic future in the global market, their risk tolerance increases and they tend to turn to risky assets.
Risk-reward ratio
The risk-reward ratio or profit-loss ratio is a kind of index to measure the extent of the loss limit against the profit limit.
s
S&P 500 Index
The S&P 500 Index stands for Standard & Poor's 500, which is calculated based on the valuation of 500 large and active companies in the U.S. stock market.
Scalping
Scalping is a trading strategy that seeks to profit from relatively small price movements. Scalpers are not looking for big profits. Rather, their goal is to profit repeatedly from small price changes.
Securities and Exchange Commission (SEC)
The primary functions of this federal agency are to enforce the U.S. federal securities laws, oversee the U.S. securities industry, oversee U.S. national securities exchanges and trading options, and supervise other electronic securities markets in the United States.
Sessions time for symbols/ quotes/trade
Buying and selling in the forex market are not done in a central location, but between participants via telephone and electronic communication networks (ECN) in different markets around the world. This market is open and active 24 hours a day in different regions of the world.
Shareholders
A shareholder is a person or institution that legally owns one or more shares of a public or private company.
Shares
Stocks can be introduced in the form of bonds that investors can buy or sell.
Silver
Silver is still one of the most valuable metals in the world and one of the most traded commodities, although it is not as rare and popular as gold.
Slippage
Slippage is the difference between the expected price of a transaction and the price at which the transaction is executed.
Social trading
Social trading is one of the growing trends in the foreign exchange market, stock market, and other markets.
Solvency
This term may refer to the ability of a person, business, or entity to pay long-term debts, including accrued interest. Thus, solvency reflects a company's ability to continue operating for the foreseeable future.
Spot trading
Spot trading or cash trading is one of the types of stock trading. It is used for buying and selling various types of foreign exchange, commodities or financial instruments, and digital currencies on a specific date.
Spread
The spread is the difference between the ask price and the bid price. As you know, many brokers do not charge fees for your transactions; rather, brokers cover their costs by receiving spreads instead of fees.
Stablecoin
A stablecoin is a cryptocurrency designed to reduce price volatility and serve as a store of value for the main coin and it is used as a means of exchange.
Stochastic Oscillator
The stochastic oscillator or stochastic indicator is a movement indicator that shows the position of the closing price in relation to the upper- lower ranges in a given number of periods.
Stock Dividends
A stock dividend is an amount paid to shareholders, i.e., the investors' share of a company's profits.
Stock Exchange
On the stock market, you can buy and sell securities or valuable financial documents. The reason for establishing this stock exchange was to prevent heavy losses for investors.
Stockbroker
A stockbroker is a company or legal entity that buys and sells securities and stocks on behalf of clients.
Stop Loss Order
Stop loss or loss limit is actually considered as a safety valve to prevent losses and damages on traders' accounts.
Support level
A support level is a price level at which the price does not decrease for some time.
SWAP
Swap (SWAP) in Forex is something similar to bank interest, but the story of the two is slightly different.
Symbols
Symbols are abbreviations that can be used for easy access to Forex trading tools. These abbreviations were created by the International Organization for Standardization (ISO) to make it easier for users to access and avoid the possibility of errors.
t
Take Profit
Take Profit means profit taking on the financial and forex markets, which we also call profit limit, and is also indicated by two letters (tp).
Technical analysis
Technical analysis is a method used to predict the future in financial markets by studying the past of the market using mathematical tools.
TermEnglish
DescriptionEnglish
The Accelerator Oscillator (AO)
The Accelerator Oscillator (AO) is a technical analysis indicator used in financial trading and measures the acceleration and deceleration of the current driving force.
The capital market
The capital market, also known as the stock market, is one of the financial markets for buying and selling bonds and equity securities.
Tokenization
Tokenization involves replacing a sensitive data item, such as a bank account number, with non-sensitive data that contains all the important details of the original data.
Trading platforms
In order to make transactions in the forex market, you must first choose a broker and open a trading account. After completing these steps, the most important thing is to choose a trading platform or trading software that will allow you to access the forex market.
Trend line
A trend is the general direction of the market over a while. Trends by drawing lines are known as trend lines.
u
UK Forex Market
The UK forex market is one of the most developed markets in the world and is supported by leading regulators.
US Dollar (DXY)
The American Dollar Index, also known as the Dollar Index and denoted by the symbols USDX and DXY, is an important component of technical analysis of the capital markets that few are aware of.
US Stimulus Package
The U.S. Economic Stimulus Package 2020, also known as the Coronavirus Pandemic Aid, Relief, and Economic Security (CARES) Act, represents a historic $2.2 trillion economic stimulus program for the United States.
US Treasuries
U.S. bonds are debt instruments issued by the U.S. government to finance its projects.
v
Volatility
Currency volatility is the number of changes and the intensity of fluctuations in the value of a currency
w
Wall Street
Wall Street is located in Manhattan, between Broadway and the East River in New York State. The New York Stock Exchange, the largest stock exchange in the world, is located on this street.
Whale
The term "whales" refers to individuals or entities that own significant amounts of certain assets and can manipulate markets.
White paper
A white paper is a formal and persuasive document that demonstrates the credibility and depth of a particular issue. This document discusses problems, solutions, and implementation methods.