Allows traders to speculate on asset price movements.
The price at which a trader can purchase a particular financial instrument, such as currency pairs. Also, called offer price, offer, asking price, or ask
A currency is said to appreciate when the price rises in response to market demand; an increase in the value of an asset.
Slang term for the Australian Dollar, abbreviated AUD.
The rate at which a country’s central bank lends money to its domestic banks.
Bank of Canada, the central bank of Canada.
Bank of England, the central bank of the UK.
Bank of Japan, the central bank of Japan.
The central bank of Germany, also nicknamed Bubba.
A name for a debt which is issued for a specified period of time on which interest is paid.
In a currency pair, the first currency in the pair is called the base currency. For example, in the GBP/USD pair, GBP is the base currency.
It is the market characterized by generally falling prices. The opposite of Bull Market.
It is a market characterized by generally rising prices. The opposite of Bear Market.
The price at which an asset is offered to traders who wish to sell. This is also known as the ‘bid price’ and ‘bid rate’.
A type of entry order used by traders to buy an asset below the current market price.
The authoritative bank that manages a country’s currency. For example, the US central bank is the Federal Reserve and the German central bank is the Bundesbank.
Opening and closing the same position or positions within the same trading session.
The rate at which one currency can be exchanged for another.
Abbreviation for the Foreign Exchange market in which global are exchanged/traded.
The impact economic and political events have on prices in financial markets (interest rate announcements, unemployment rate, etc.)
The total value of a country’s output, income or expenditure produced within the country’s physical borders.
A position or combination of positions that reduces the risk of your primary position.
The interest rate charged on short-term loans between banks.
Also known as margin, this is the percentage or fractional increase you can trade from the amount of capital you have available. It allows traders to trade notional values far higher than the capital they have.
Liquidity refers to how much an asset can be bought or sold without affecting its price. It also refers to the ability to exchange an asset for currency
The guarantee, which is required by the dealer from the trader, to maintain an open locked position or locked position that the client intends to open. Each tool, asset or market has its own margin requirements. The margin is the collateral on a leveraged trade.
An instruction to execute a trade at a specified rate.
An active trade with corresponding unrealized P&L, which has not been offset by an equal and opposite deal.
Pip stands for Percentage in Point and it is the smallest price change that can be seen in an exchange rate. In most cases currency pairs are priced to four decimal points and the smallest change can be seen in the last decimal.
A security price considered while buying and selling. It is expressed in Ask and Bid prices, and the quoted prices are always that of the counter currency (quote currency) to one unit of the base currency. A price quote is made up of the highest price that the trader is willing to pay for the asset as well as the lowest price that the dealer is willing to accept for the asset. A typical quote for the EURUSD is 1.2940/1.2943, where the first price is the Bid price and the second price is the Ask price. Both prices indicate how much of the counter currency (USD in this case) is used to buy 1 unit of the base currency (EUR in this case).
The price of one currency in terms of another, typically used for dealing purposes.
The difference between the Ask and Bid price of a currency pair.
A feature that allows traders to exit a profitable trade before the official time of expiry to ensure that profits are made.