A - E | F - N | O - Z
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O
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Order Cancels the Other (OCO) - When executed, an order that
cancels another
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Offer (Ask) - The price at ehich a dealer/trader is willing to sell a
currency
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Open Order - An order that is executed when a certain price is
reached
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Open position (trade) - A deal that has not yet been settled or
reversed by payment
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Over The Counter (OTC) - Transaction that is carried out over the
counter and not over an exchange
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Overnight - A trade that remains open until the next trading day
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P
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Pegging - Technique to stabilize a countrys currency by making it
fixed to the exchange rate of another country
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Pip (point) - The smallest move an exchange can make. Normally
0.0001 but in a few cases it is 0.1
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Position - Referes to the amount of currency owned or owed by a
trader
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Pound - Market term for the British Pound Sterling
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Pricing currency - The second currency in a currency pair
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Q
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Quote - A price quote that shows the bid price and ask (offer) price
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Quoting currency - The second currency in a currency pair
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R
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Rate - Price of one currency in terms of another
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Revaluation - Opposite of devaluation. Ussually involves the central
bank increasing the exchange rate for a currency
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Risk Capital - The amount of money a trader has in their account
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Risk Management - Technique to monitor and control risk
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Roll-over - Where a deal is rolled over to another date. The cost
involves the difference of interest rates between the two
currencies
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S
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Sell - Selling a base currency in terms of the pricing
(quoting) currency
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Sell Order - An order to sell a base currency in terms of the pricing
(quoting) currency
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Sell Limit Order - An order placed above the current market price,
where the sell limit attempts to sell at a higher price
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Short (position) - To sell a currency expecting to buy at a lower price
(appreciates in value if market price declines)
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Spot Price - Current exchange rate of a currency
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Spread - The difference between the bid and offer (ask) price
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Sterling - Market term for the British Pound Sterling
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Stop Order - Used to buy or sell when a particular price is reached
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Stop loss Order - An order to buy or sell when a particular price is
reached often used to minimize losses
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Swap - When one currency is temporarily swapped for another, then
the currency is held and exchanged later. The swap is calculated
by the difference in interest rates
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Swissy - Market term for the Swiss Franc
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T
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Technical Analysis - Technical study of currency price behaviour
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Tick - Market term for a Pip or a Point
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Ticker - Scrolling graph or scrolling quotes
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Tomorrow to Next - The simultaneous buying and selling of currency
for delivery the following day and selling the next
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Trading platform - Online software used for currency trading
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Trend - When the price moves consistently in one direction
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U
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Uptrend - When the price moves consistently upwards
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V
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Value date - The settlement date of a spot or forward deal (usually
two business days forward)
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Volatility - Measure of market movement over time
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W
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Whipsaw - Market term used to describe a very volatile market where
a sharp price movement in one direction is followed by a sharp
reversal
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Y
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Yard - Market term for a billion
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A - E | F - N | O - Z
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