Forex Glossary Definitions
Eventually, the bulls take over the control and manage to pull the session higher at the upper area of the candle. This forms a small real body, whose length is 2-3 times shorter than the lower shadow.
FOMC minutes Written record of FOMC policy-setting meetings are released three weeks following a meeting. The minutes provide more insight into the FOMC’s deliberations and can generate significant market reactions. Foreign exchange/forex/FX The simultaneous buying of one currency and selling of another.
Get 50% Off Nial Fuller’s Price Action Forex Trading Course, Daily Trade Ideas Newsletter & Live Trade Setups Forum – Click Here For More Info. Ask Price – The ask price is the price at which the market (or your broker) will sell a specific currency pair to you. Thus, at the ask price you can buy the base currency from your broker. The basic point of Forex trading is to buy a currency pair if you think its base currency will appreciate (increase in value) relative to the quote currency.
They can be either physical, like the New York Stock Exchange, or purely digital. When trading, DMA stands for direct market access. It’s a way of placing trades that offers more flexibility and transparency than traditional dealing (which is usually referred to as OTC, or over-the-counter). It’s suitable for advanced traders. Bears are traders who believe that a market, asset or financial instrument is going to head in a downward trajectory.
The currency of Taiwan (Province of China). The currency of Trinidad and Tobago. Trading software (i.e. MT4, MT5) is provided by the broker for traders to place, manage and close positions electronically. The platform provides account management, live market prices, news feeds and charting tools. It forms at the end of a downtrend or near a support area.
ForexTime UK Limited (/uk) is authorised and regulated by the Financial Conduct Authority with license Bitcoin Trading number . The company is also registered with the Financial Conduct Authority of the UK with number .
So as a currency climbs or declines, it’s said that it gained or declined by x number of pips. Let’s say the Euro rate (EUR/USD) is quoted at $1.3090 and it rallies (goes up) to $1.3150.
Gross national product Gross domestic product plus income earned from investment or work abroad. forex Guaranteed order An order type that protects a trader against the market gapping.
It is subdivided into 100 groszy. It is subdivided into 100 paisa. A point in price, or pip for short, is the measure of change in a currency pair in the forex market.
The ask is the best possible price at which the trader can sell the instrument being traded at the current time. In the forex market, the ask price is the lowest price that the broker will sell the instrument to you.
- Therefore, it becomes the moving average.
- The basic line is drawn through the bottoms, whereas the return line is drawn through the tops.
- It is subdivided into 100 centimes.
- It is used to identify extreme price movements i.e. overbought and oversold levels.
- A positive signal is generated when price closes above the upper band.
- A moving average type where more weight is assigned to the middle of the period (time span).
GBP/USD hits new 2020 lows, reversing UK data-related gains
It consists of three bottoms and their corresponding tops. The lowest bottom is known as the Head, where the bottom to the left is known as the Left Shoulder and the bottom to the right is known as the Right Shoulder. The line connecting the two tops is known as the neckline.
Second Doji gaps below the first and the third candlesticks. During a prolonged rally, a formation of three consecutive Doji candlesticks, signals that the uptrend may be coming to an end. Second Doji gaps above the first and the third candles.
It has long upper and lower shadows. The open forex price and the close price are equal.
Real money Traders of significant size including pension funds, asset managers, insurance companies, etc. They are viewed as indicators of major long-term market interest, as opposed to shorter-term, intra-day speculators.
Cross rate – The currency exchange rate between two currencies, both of which are not the official currencies of the country in which the exchange rate quote is given in. This phrase is also sometimes used to refer to currency quotes which do not involve the U.S. dollar, regardless of which country the quote is provided in. asserts that crowd behavior moves in waves.
Retail sales Measures the monthly retail sales of all goods and services sold by retailers based on a sampling of different types and sizes. This data provides a look into consumer spending behavior, which is a key determinant of growth in all major economies. Revaluation When a pegged currency is allowed to strengthen or rise as a result of official actions; the opposite of a devaluation. Rights issue A form of corporate action where shareholders are given rights to purchase more stock.