Forex buy stop limit forex cable definition

Glossary of trading terms

Get the Forexlive newsletter. Unemployment rate Measures the total workforce that is unemployed and actively seeking employment, measured as a percentage of the labor force. Political risk Exposure to changes in governmental in metatrader last tester opens in middle of screen custom rsi indicator mt4 which may have an adverse effect on an investor's position. Brokerage systems also provide for advanced order types that allow a trader to specify prices for buying or selling in the market. Forex Live Premium. When the base currency in the pair is bought, the position is said to be long. Range When a price is trading between a defined high and low, moving within these two boundaries without breaking out from. We advise you to carefully consider whether trading is appropriate for you based on your personal circumstances. It shows how much the base currency forex buy stop limit forex cable definition worth as measured against the second currency. Fed Meetings. For example, a sell order placed below the market price to protect against accelerating losses. Delivery A trade where both sides make and take actual delivery of the product traded. Future An agreement between two parties to execute a transaction at a specified time in the future when the price is agreed in the present. Q Back to the top. Margin call definition. Want to know how to trade the order board? A market maker keeps a trading book. Definition of: Sell Stop in Forex Trading A trade order to sell at the best possible price, once the price has dropped below a specified price. Counterparty One of the participants in a financial transaction. Commodity definition.

Acquisition definition

The Offer price is also known as the Ask. View more search results. Y Yard A billion units. Definition of: Stop Loss Order in Forex Trading A trade order to sell a currency when the price reaches or falls below the specified price. R Rally A recovery in price after a period of decline. Short position An investment position that benefits from a decline in market price. Interbank Market. Guaranteed order An order type that protects a trader against the market gapping. Political risk Exposure to changes in governmental policy which may have an adverse effect on an investor's position. They can be either physical, like the New York Stock Exchange, or purely digital. Often non-measurable and subjective assessments, as well as quantifiable measurements, are made in fundamental analysis. Durable Goods Order. Manufacturing production Measures the total output of the manufacturing aspect of the Industrial Production figures. High frequency trading definition. Terms have ranged from 3 months up to 3-years.

Clearing The process of settling a trade. Standard lots areunits. Durable Goods Order. Trade balance Measures the difference in value between imported and exported goods and services. The brokerage's amount is normally proportionate to the value grayscale bitcoin cash distribution educ stock dividend the deal. It is generally traded on an exchange such as the Chicago Board Options Exchange. Buy stops are usually used to close out a short stock position while sell stops are usually used to stop losses. Net positions on the exchange are compiled each week and reported in the Commitments of Traders report on Friday afternoons. When the spreads are narrower, this is an indication of high liquidity. It all depends on how much price is fluctuating when the market price reaches the stop price. Industrial Production. The base rate, or base interest rate, is the interest rate that a central bank — like the Bank of England or Federal Reserve — will charge to lend money to commercial banks. It can also be a knock-in, meaning it has no value until the underlying reaches a certain price. Pip - refers to the smallest move that an exchange rate is capable of making. Carry trade A trading strategy that captures the difference in the interest rates earned from being long a currency that pays a relatively high interest rate and short another currency that pays a lower interest rate. Futures contract definition.

Forex Jargon

Cable is one of a few slang terms for different currency pairs; in this case referring to British pound sterling against the US dollar. Brent crude definition. As a service to customers, all open forex positions at the end of the day PM New York time are automatically rolled over to the next settlement date. Authorized participant definition. This index only looks at price changes in goods purchased in retail outlets. Voice broking persists, but electronic, screen-based trading has taken much of the volume. Ten 10 yr US government-issued debt which is repayable in ten years. They can also often be referred to as trend reversals. If the price moves by 1. Limit - refers to an order to sell or buy currency at a price that is specified or even better. UK producers price index output Measures the rate of inflation experienced by manufacturers when selling goods and services. Portfolio A collection of investments owned by an entity.

Initial Margin Requirement. Cash on Deposit. Producer Price Index. The claimant count figures tend to be lower than the unemployment data since not all of the unemployed are eligible for benefits. When the base currency in the pair is sold, the position is said to be short. US Treasury. Reciprocal Currency. Trading plan definition. For example, leverage of means you can noble services forex fxcm uk mt4 a notional value times greater than the capital in your trading account. Carry trade A trading strategy that captures the difference in the interest rates earned from being long corporate dividend exclusion preferred stock knight capital stock trading disruption currency that pays a relatively high interest rate and short another currency that pays a lower interest rate.

Buy Limit vs. Sell Stop Order: What’s the Difference?

Forex Glossary

Conversion Rate. Contract The standard unit of forex trading. A support level is the price at which jforex download etoro vs interactive brokers asset may find difficulty falling below as traders look to buy around that level. Sell Limit Order. Related Terms Stop-Loss Order Definition Stop-loss orders specify that a security is to be bought or sold when it reaches a predetermined price known as the spot price. A limit order is an instruction to your broker to execute a trade at a particular level that is more sign up for robinhood crypto averaging down on penny stocks than the current market price. Corporates Refers to corporations in the market for hedging or financial management purposes. Spot definition. Placing contingent orders may not necessarily limit your losses. Initial Margin Requirement. Open Positions Definition.

Cleared funds Funds that are freely available, sent in to settle a trade. A currency future is a contract that details the price at which a currency could be bought or sold, and sets a specific date for the exchange. Once the price reaches 1. GTC Good Till Cancelled - this implies that an order is left with the dealer to sell or buy at a price that has been pre-established by the trader. You would use a stop order when you want to buy only after price rises to the stop price or sell only after the price falls to the stop price. There are a variety of advanced orders available to traders for setting trades with specific parameters. Book In a professional trading environment, a book is the summary of a trader's or desk's total positions. Bull definition. YoY Abbreviation for year over year. G Back to the top. Fundamental analysis The assessment of all information available on a tradable product to determine its future outlook and therefore predict where the price is heading. Just kidding. Momentum A series of technical studies e. This warrant is normally exposed so as to capture profits. Trend Price movement that produces a net change in value.

Definition of "Stop Loss Order" in Forex Trading

Buy Taking a long position on a product. Monetary authorities a central bank will want easy monetary policies lower interest rates and even perhaps a program like quantitative easing, in order to encourage economic growth. Fed Meetings. Also know as custodians. Slippage The difference between the price that was how to check settled funds etrade dynex stock dividend and the price obtained typically due to changing market conditions. Buy and sell orders at the intraday trading strategies jeff cooper pdf best technical indicators for day trading stocks price will usually ensure your trade occurs but it may also include slippage which is the amount you give up to market supply and demand directions when making a basic buy or sell market order. A pip is a measurement forex buy stop limit forex cable definition movement in forex trading, defined as the smallest move that a currency can make. If you ever shop on Amazon. By continuing to browse our site you agree to our use of cookiesrevised Privacy Notice and Terms of Service. Open order An order that will be executed when a market moves to its designated price. Also, always check with your broker for specific order information and to see if any rollover fees will be applied if a position is held longer than one day. From beginners getting acquainted with the world of investing to experts with decades of experience, all traders need to clearly understand a huge number of terms. Notice how the red line is below the current price. Firstly it refers to the charge levied against a party for borrowing money, which can be either a cost or a means of making profit for a trader. Rollover A rollover is the simultaneous closing of an how much to invest in a growth stock is swing trading profitable quora position for today's value date and the opening of the same position for the next day's value date at a price reflecting the interest rate differential between the two currencies. The BIS has become increasingly active as central banks have increased their currency reserve management. Principal Value. When shorts throw in the towel and cover any remaining short positions.

A limit order is an order placed to either buy below the market or sell above the market at a certain price. H Back to the top. Divergence of MAs A technical observation that describes moving averages of different periods moving away from each other, which generally forecasts a price trend. It indicates how many times the margin required is less than the price of the contract. Bar chart A type of chart which consists of four significant points: the high and the low prices, which form the vertical bar; the opening price, which is marked with a horizontal line to the left of the bar; and the closing price, which is marked with a horizontal line to the right of the bar. Stop Loss Order - this is an order to sell or buy when a certain price is reached either below or above the price that was prevailing when the order was being given. Investopedia uses cookies to provide you with a great user experience. Future An agreement between two parties to execute a transaction at a specified time in the future when the price is agreed in the present. Adjustment Official action normally occasioned by a change either in the internal economic policies to correct a payment imbalance or in the official currency rate. Factory Orders. Voice broking persists, but electronic, screen-based trading has taken much of the volume. We advise you to carefully consider whether trading is appropriate for you based on your personal circumstances. Carry Trade.