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Account |
A record of goods and services which is used for transaction by the owner. |
Agent |
A third-party who is paid to represent another person to implement the transactions. |
Anonymous trading |
Visible bids and offers without the identity of the bidder and seller being revealed on the market. |
Balance Account |
The net value of an account |
Balance Trade |
Net flow of goods between two countries |
Basis |
The difference between the cash price and future price |
Bear market |
A long term downtrend (a downtrend lasting months to years) in any market, characterized by lower intermediate lows (those established in a time frame of weeks to months) interrupted by lower intermediate highs. During Bearish time, economic production slows down, country unemployment rises, inflation rise, less consumer spending |
Bull market |
A long term uptrend (months to years) price movement in any market, characterized by a series of higher intermediate highs (those established within weeks to months) interrupted by higher consecutive intermediate lows. During bullish time, economic production goes high, average jobs are plenteous , inflation is low, consumer spend lot |
Bid |
The purchase price for an asset |
Bid/ Ask Spread |
The Difference between the bid and the ask price |
Buy a bounce |
A recommendation to instigate a long trade if the price bounces from a certain level |
Buy a break |
A recommendation to buy the currency pair if it breaks the current level specified. |
Buy a break |
A recommendation to enter a market when the exchange rate breaks through a specific level. The client placing a stop entry order believes that when the market's momentum breaks through a specified level, the rate will continue in that direction |
Close a position |
Buying back a short position or selling a long position |
Counter party |
A participant who is involved in one side of transaction which will be having the counterparty risk during contract outlined. |
Currency pairs |
Currency relationship between two countries only. |
Depreciation |
The decline in the value of an asset/currency |
European Central Bank |
The central bank of EMU, responsible for the monetary policy of all member countries. |
Fixed Interest Rate |
An interest rate for no matter loans, bonds, mortagages or savings, at the same rate thoughout the period. |
Foreign Exchange |
The buying and selling of curriences among countries |
Fundamental Analysis |
The analysis about the effects of politics on currency value and the change in price of Natural resources |
Hedge/Hedging |
Strategy to reduce the risk of adverse price movements on one's portfolio and to protect against the volatility of the market. |
Leading Indicators |
Such Statistics as unemployment rates, CPI, Federal Funds Rate, retail sales, personal income, discount rate and the prime rate that are used to forecast economic activity |
Long (position) |
Price will rise thus no intent to sell |
Management Expenses |
Management expense is the inherent costs of operating a unit trust fund; it includes management fees, trustee fees and expenses incurred for fund administrative services. |
Net Investment Income |
Net Investment Income is the income of th fund less trustee fee and all permitted or allowable expenses under the Deed. |
Offer |
The price that the seller sells at. |
Open position |
Create an order/transaction which initiates the trade with rise or fall risk. |
Open order |
An buy or sell order that is executed or canceled by the customer in a predetermined price. |
Pip |
price interest point, Smallest amount an exchange rate can move, typically .0001. |
Position |
The amount of currency or security owned or owend by an investor |
Resistance |
A price level at which most investors expect prices to cannot rise above. There is sufficient supply to turn a previously uptrend downward. |
Stop loss |
hedge against the loss in which a position is closing at a specific, prearranged price |
Spread |
Difference between ask price and bid price |
Volatility |
The tendency of prices to flucutate over time. It can be measured using the coefficient of variation(standard deviation divided by the mean). The higher the volatility, the higher the risk involed but higher possibility to get profit. |
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