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Forex Directory - Listing of forex terms and abbreviations

    A - E | F - N | O - Z
    F
    Foreign Exchange / Forex / FX - The buying of one currency and
         selling of another
    Forward - A deal that will commence, on an agreed date, in the future
    Forward Points - The pips or points added or subtracted from the
         current exchange rate to calculate a forward price
    Fundamental Analysis - The analysis of economical or political
         information to determine future movements in the financial market

    G
    Gross Domestic Product (GDP) - The measure of a countrys economic
         growth
    Good Till Cancelled (GTC) - A trading order that remains with dealer
         until the trader cancels it

    H
    Hedging - An investment that reduces the volatility of your portfolio
         value by undertaking one investment activity to protect against
         loss in another
    High / Low - Highest traded price and lowest trading price for the
         current trading day

    I
    Inflation - Where there is a rise in consumer goods and services,
         thereby reducing purchasing power
    Initial margin - The deposit required by a broker for a trader to
         execute currency trades
    Interbank rates - The forex rates that international banks quote
         other large international banks

    K
    Kiwi - Market term for the New Zealand Dollar

    L
    Leverage - The ability to trade with borrowed funds. The trader can
         then gain more profit but also lose more
    Limit Order - An order to buy below a specified price (enter market)
         or to sell above a specified price (exit market)
    Long (position) - To buy a currency expecting to sell it at a higher
         price
    Lot - Standard trading contract, usually 100,000 units of base
         currency

    M
    Major Currency - A more frequently traded currency, for example,
         USD, GBP, EUR and JPY
    Margin - The amount of deposit that a broker requires a trader to
         keep in their account to cover losses
    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
    Market maker - A dealer or broker who is prepared to buy or sell at
         stated prices
    Market Order - An order from the trader to buy or sell at the best
         price available
    Market timing - Using technical tools to time exit and entry moves
    Market trend - The direction in which currency prices are moving at
         the time
    Minor Currency - A lesser traded currency, for example, PLN, SGD
         and THB

    A - E | F - N | O - Z

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