A - E | F - N | O - Z
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F
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Foreign Exchange / Forex / FX - The buying of one currency and selling of another
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Forward - A deal that will commence, on an agreed date, in the future
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Forward Points - The pips or points added or subtracted from the current exchange rate to calculate a forward price
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Fundamental Analysis - The analysis of economical or political information to determine future movements in the financial market
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G
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Gross Domestic Product (GDP) - The measure of a countrys economic growth
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Good Till Cancelled (GTC) - A trading order that remains with dealer until the trader cancels it
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H
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Hedging - An investment that reduces the volatility of your portfolio value by undertaking one investment activity to protect against loss in another
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High / Low - Highest traded price and lowest trading price for the current trading day
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I
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Inflation - Where there is a rise in consumer goods and services, thereby reducing purchasing power
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Initial margin - The deposit required by a broker for a trader to execute currency trades
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Interbank rates - The forex rates that international banks quote other large international banks
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K
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Kiwi - Market term for the New Zealand Dollar
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L
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Leverage - The ability to trade with borrowed funds. The trader can then gain more profit but also lose more
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Limit Order - An order to buy below a specified price (enter market) or to sell above a specified price (exit market)
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Long (position) - To buy a currency expecting to sell it at a higher price
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Lot - Standard trading contract, usually 100,000 units of base currency
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M
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Major Currency - A more frequently traded currency, for example, USD, GBP, EUR and JPY
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Margin - The amount of deposit that a broker requires a trader to keep in their account to cover losses
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Margin Call - This happens when a broker needs you to put additional funds into your account to bring the margin up to the required minimum level
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Market maker - A dealer or broker who is prepared to buy or sell at stated prices
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Market Order - An order from the trader to buy or sell at the best price available
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Market timing - Using technical tools to time exit and entry moves
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Market trend - The direction in which currency prices are moving at the time
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Minor Currency - A lesser traded currency, for example, PLN, SGD and THB
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A - E | F - N | O - Z
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