by Frances Burns on Monday 30 October 2017, 4:44 PM | Category: Loans & Investment| View: 439 views
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 Here we can find a list of the most common terms in the forex world, a fundamental support for the beginner trader. Please refer to a more on the analytical site such as, where you can find an even wider number of information.

MARGIN: The amount of money that must be available on the forex account in order to ensure the implemented leverage operations. Obviously the margin guarantees the broker from any losses and must be there before starting a trade. It can be obtained from an integration of the margin if a trade that is already in place exceeds a certain level of loss, called MARGIN CALL. In the absence of an integration of funds by the trader, the broker can provide for the automatic closure of the trade .

OVERNIGHT: an operation that remains open until the next day.

PIP: Percentage in Point which is the smallest unit of measurement used to measure the value of a currency.

PRICE ACTION: the behavior of the price of an asset in a certain period of time.

PUT: the right to sell at a certain price, mainly used in the options world.

RESISTANCE: a market level where sellers show their strength preventing higher prices rises.

ROLLOVER: displacement of the closing of a position at a later date undergoing a cost that is based on the differential interest rate between the two currencies in the rollover.

SHORT: short position on a certain asset. The equivalent word is sell .

SLIPPAGE: price difference between the real price of the market and the order that has been placed on the market.

SPOT: immediate change, applicable to a transaction currency.

SPREAD: the difference in price between the bid price and ask.

STOP LOSS: price level which is activated when the market moves in the opposite direction to that of the trade. The stop loss is essential to lock to a reasonable amount the level of losses by preventing the entire loss of capital.

TAKE PROFIT: price level that is activated when the target profit set by the trader is reached.

SUPPORT: market level where buyers show their strength preventing the prices go lower.

TARGET: price level which is ideally set by the trader as the target of its operation. There are several techniques that can be used to secure the target price, but often the graphics configurations assumed by the same prices to determine these target levels are quite helpful.

TICK: minimum price movement of the underlying asset.

TIMEFRAME : temporal range considered in the analysis of an asset. The timeframe is used in technical analysis with the definition of graphs from the 1-minute time frame to the 1-year time, etc…

TRADING NEWS: important news that may have an impact on the performance of currencies; this term is often replaced by the words MARKET MOVERS.

TREND: market direction.

WITHDRAW: term used by the broker to indicate the operation of withdrawals from the forex account.

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