FOREX trader's dictionary. Trading for beginners - basic concepts and terms The most popular terms for a trader

Analysis- a research method consisting in decomposing the object under study into its component parts and studying the properties of these parts.

Shareholder- person (individual or legal) who owns shares joint stock company.

Outsiders- poorly informed market participants who do not have exclusive information that can influence the price shares. Broker - a specialist who executes orders (applications) of clients on the exchange for purchase/sale valuable papers.

Blue chip(blue chips) - one of the most expensive shares. A measure of the value of shares is the concept of capitalization. The name "blue chip" comes from the card game "poker", where the blue chip has the highest value.

Diversification represents the distribution of capital between securities with different risks, returns and correlations, in order to minimize investment risks. This means that the investor distributes shares in his portfolio so that losses in one asset are offset by profits in another.

Investor- one who has temporarily free funds and is interested in making a profit, for which he acquires securities. Investors can be individuals, organizations, companies and various funds.

Investment or investing- investment process capital into any project, enterprise, real estate, including securities. The purpose of investment is to obtain a return on invested capital.

Insiders- the most informed market participants who have access to information that can influence the price of shares on the stock exchange. With this information they have an economic advantage in the market.

Study- scientific study, consideration of something.

Index- this is the average price of all financial instruments, which are included in its calculation base. The index reflects the dynamics of the market (stock market, bond market, etc.).

Capital- it can include both tangible assets: cash, real estate, vehicles and other movable and immovable property, and intangible assets: licenses, patents, contracts, trademarks, etc. The main feature of capital is the ability to receive income from its ownership.

Limitation- this is the establishment of the maximum size of an open position for a particular asset or securities.

Margin lending- opportunity to buy securities for an amount exceeding your own capital, as well as the opportunity to sell securities, which are not on your account. This is possible thanks to lending, which provides you broker.

Open a position or deal- purchase shares in order to sell them at a higher price (long), or selling shares in order to buy them cheaper (shorts). When opening a position, funds are exchanged for securities.

Briefcase- this is the structure open positions By securities and funds in the account. It also means a union or collection of several securities, which have certain proportions in relation to each other.

Making an investment decision- involves making a decision to carry out a purchase or sale transaction valuable papers.
Forecast- a conclusion about the upcoming development and price movement, based on a special study. Often the forecast contains exact values of the predicted parameters.

Deal or operation- the act of buying or selling valuable papers on the stock exchange at a specific point in time at a certain price. Or, in other words, the implementation of an investment decision to buy/sell valuable papers on the exchange.

Fair or reasonable share price- share price calculated using various fundamental approaches: market, income or asset based.

Technical analysis is a set of techniques and methods by which price dynamics are analyzed valuable papers. The purpose of technical analysis is to determine the most likely direction of market movement securities rates.
Technical Analyst- a specialist who studies and uses technical analysis.
Trading session- the period during which trading occurs on exchanges. For example, on the MICEX the trading session begins at 10:30 and ends at 18:45.
Trading system or systemic trading- trading in which opening and closing positions occurs according to certain trading rules. Rules can be based on different types of analysis, ideas or approaches.

Trade- two opposite operations that led to the formation of a financial result when trading on the market valuable papers. Thus, to complete a trade, that is, to fix a profit or loss, it is necessary to perform at least two operations: to open and to close a position.

Trend- directional price movement. The trend can be upward or downward.
Stock market- this is a market in which securities are freely traded (bought, sold, pledged, etc.).

Formalized trade- cm. trading system

Fundamental Analysis- a set of analytical research methods used to assess the state and prospects of the market valuable papers, industries, commodity, financial markets and the economy as a whole. To explain processes, events and obtain the necessary forecast data, a study and research is carried out on the dynamics of macro and microeconomic indicators, comparing them with each other, as well as financial analysis.

Fundamental Analyst- a specialist involved in the study and application fundamental analysis.

Hedging- discovery of opposites positions in different but economically interconnected markets. In fact, this means that for each transaction completed, stock, the reverse operation must be carried out on the derivatives market for the corresponding underlying asset.

Security or financial instrument- they may be promotion, bond, bill, futures, etc., giving their owner certain rights.

Dictionary of trader terms

Ask, ask- purchase price. In the currency quote it is indicated on the right. For example, in the quote GBP/USD 1.5771/1.5773, the purchase price is 1.5773. At this price, the trader can buy the base currency for the quote currency, in this case 1 British pound for 1.5773 US dollars.

Base currency – the currency that comes first in the currency quote. For example, in the GBP/USD quote, the base currency is the British pound sterling. For many quotes, the base currency is the US dollar.

Buy, buy - purchase.

Bar chart – a method of displaying price movement, in which each price segment is presented in the form of a bar, which has in a visual representation the opening, closing, minimum and maximum prices for the period.

Bid- Selling price. In the currency quote it is indicated on the left. For example, in the quote GBP/USD 1.5771/1.5773, the selling price is 1.5771. At this price, the trader can sell the base currency for the quote currency, in this case 1 British pound for 1.5771 US dollars.

Broker– an intermediary (organization or individual) who ensures the meeting of buyers and sellers in the market. To be able to make transactions on the Forex market, you need to choose a broker that meets the necessary criteria and open a trading account with him.

Bull market – a market situation where sustainable growth is clearly visible.

Quote currency (counter currency), counter currency – the second-ranked currency in the foreign exchange quotation. For example, in the GBP/USD quote, the quote currency is the US dollar.

Intraday trading, day trading, intraday – making transactions during the trading session without transferring open positions to the next trading day.

Volatility (changeability), volatility – a characteristic of the market, indicating the measure of price movement over a certain period of time. Increased market volatility is often observed during the release of data on important economic indicators.

Graphic shapes – various figures of graphic analysis constructed using lines. Graphic figures make it easier to understand the market situation and help predict further price movements.

Gap, gap– gap in the price chart. A gap may occur during sharp fluctuations in the market, after the release of important economic data, or under force majeure circumstances. This phenomenon often occurs after the weekend, when closing and opening prices differ significantly.

Demo account – a training account with virtual money, on which a novice trader can train, get acquainted with the trading platform and make transactions without the risk of losing capital. Trading on a demo account is practically no different from trading with real funds; quotes and charts are updated in real time.

Deposit – the amount of funds in the trading account.

Divergence, divergence, divergence – the discrepancy between the price chart directed upward and the oscillator directed downward. Indicates a weakening of the upward trend.

Diversification, diversification – a risk reduction strategy in which funds are distributed among different financial instruments. In relation to Forex, diversification is trading in different currencies that have minimal influence on each other.

Dealing center – a company that provides the public with access to trading on the Forex currency market. Typically, traders can make trades directly from the dealing room, equipped with all the necessary software.

Long position – a transaction made with the expectation of making money on a rise in price. Take a long position - make a purchase.

Closed position – a transaction with a fixed result that is no longer affected by market fluctuations. Close a position – perform the opposite operation to the original one with the same transaction volume.

indicator – market analysis tool; converted and specially processed data, which can greatly clarify the situation on the market and help predict further price movements. Superimposed on the price chart in the form of various lines and histograms. There are technical, economic (fundamental) and even psychological indicators.

Channel– consistent reduction and increase in price within a price range limited by two parallel lines. Channels can be downstream and upstream as well.

Convergence, convergence, convergence – convergence of the price chart directed downwards and the oscillator directed upwards. Indicates a weakening downward trend.

Consolidation – market movement sideways within a certain price range. This is price stabilization that occurs after a pronounced directional market movement or occurs in the absence of major players.

Short position - a transaction made with the expectation of making money by reducing the price. Take a short position - make a sale.

Correction, rollback – a temporary price movement in the opposite direction from the existing trend. Occurs when the currency under study is overbought or oversold and is associated with a weakening trend.

Quote, currency quote, quote - market price; expressing a unit of one currency in units of another currency.

Leverage – the ratio between the collateral to secure the position (margin) and the transaction volume. Leverage of different sizes is provided by brokers to enable the trader to make transactions for amounts many times greater than the size of his deposit. However, the risk of loss also increases.

Cross-rate, cross-rate – quotes of world currencies that do not contain the US dollar. For example, GBP/JPY.

Liquidity – a characteristic of the market, indicating the efficiency and ease of execution of transactions, including large ones, which will not significantly affect the price movement.

Limit order – an order to complete a transaction with a limitation on the maximum purchase price and minimum sale price. For example, with a quote of EUR/USD 1.3795, a buy order can be placed at a level below this value. And the sell order (sell limit) is at a level above this value.

Line chart – a price movement chart indicated by a curved line.

Trend line – a line constructed based on characteristic price minimums or maximums formed during the sequential movement of the market in one direction. The trend line is an important psychological level. It helps to find points of entry and exit from the market and track moments of trend change.

Locked positions - two orders opened in opposite directions for one trading instrument with the same lot on one trading account. As a rule, it is used to fix a floating loss.

Lot, lot – unit of measurement of the transaction. A standard lot is $100,000. In modern trading, micro-lots are also popular when trading on micro-Forex.

Money management, capital management, money management – competent management of the trading deposit, including the correct choice of lot when trading, the number of simultaneously open transactions, the number of currencies traded, etc.

Margin, deposit – securing a position with a certain amount of funds that the trader is required to deposit to complete the transaction. In modern trading terminals it is calculated automatically.

Margin call – a situation when trading with leverage, when the funds remaining in the account are not enough to maintain open positions. If additional funds do not arrive to the account, the broker can independently close part of the client’s positions in accordance with the previously stated level.

Market maker – a significant market participant who, through transactions, can influence price behavior.

Bear market – a situation on the market when a steady decline in price is clearly visible.

Metastock, MetaStock is a well-known program for technical analysis.

Meta Trader, MetaTrader – the most popular trading terminal.

Mechanical Trading System (MTS) – a fully automated trading strategy designed specifically to allow trading without human intervention using modern software. MTS, which provides stable profits, is the dream of every trader.

Micro-forex, mini-forex, micro-forex – trading conditions under which it is possible to make transactions with a volume less than a standard lot (micro-lots). For example: 0.3 or 0.1 lot (30,000 or 10,000 units of base currency).

Non-market quote - an uncharacteristic quote for the current market trend, which simultaneously fulfills the following conditions: has a significant price gap with the schedule; returns to the previous level within a short time; there is no rapid market dynamics preceding it, and there is also no release of important economic indicators.
As a rule, non-market quotes arise as a result of a technical failure on the side of the broker or its counterparties and are subsequently deleted from the quote history. In this case, orders processed at a non-market quote are cancelled.

Volume– trading activity on a currency pair over a certain period of time. An increase in volume in the direction of the trend confirms its strength.

Order– an order to complete a transaction: buy or sell.

Oscillator – a type of technical indicators that work well during sideways market movements and show areas of overbought and oversold. As a rule, they are displayed in the form of histograms or a curved line and are located under the price chart.

Pending order – an order to execute a transaction when a certain price level is reached. By placing a pending order according to the desired conditions, the trader does not have to monitor the situation on the market - the transaction will be completed automatically.

Open position, open position – a transaction with an unfixed result, which can potentially bring profit or loss, depending on the current state of the market.

Overbought, overbought - a market condition in which prices are too high and are likely to decline soon.

Oversold, oversold - a market condition in which prices are too low and are likely to rise soon.

Floating profit (floating loss), floating profit (floating loss) – unfixed profit or loss on open positions, changing in accordance with the dynamics of current quotes.

Breakout – the price overcomes significant levels (support/resistance lines, trend lines, etc.)

Profit– profit on the transaction.

slippage – a situation in which an order is executed at a price worse than the stated one. This is possible after the release of important economic data or during sudden fluctuations in the market, when execution of an order at a given level is not possible.

Point, point, pip – the minimum possible price change. For example, if the quote changed from 1.3881 to 1.3882, it means that the price has moved 1 point.

Risk management (risk management), risk management – using methods of mathematical calculation and financial analysis to control and reduce risk when trading on the foreign exchange market.

Requote, Re-Quote – the broker offers a new price at the time of order execution. Often occurs during times of rapid market movement and can help generate greater profits when closing a trade. However, more often a trader in Russia has to deal with dishonest brokers who, using requotes, try to minimize the trader’s income and close the position at a less favorable price for him. More often the use of this term carries a negative connotation.

Sell, sell- sale.

Swap, swap - If a trader leaves an open position for the next day, then when it is transferred to the trading account, a certain amount of money, known in advance, is credited or deducted from it (depending on the selected currency pair). This operation is called a swap and is associated with the simultaneous purchase and sale of equal quantities of one currency with different value dates. The swap is calculated automatically in the trading terminal at 00:00 server time. From Wednesday to Thursday the swap is charged/subtracted in triple amount, from Friday to Monday it is counted as one day.

Advisor- a program for automatic trading that works independently according to a predetermined algorithm. Works when the terminal is turned on. Other names: expert, trading robot, mechanical trading system. Every trader dreams of having a profitable advisor who will carry out trading operations instead of him and earn money.

Spread– the difference between the purchase price (ask) and the sale price (bid).

Stop-loss, stop-loss, S/L – an order fixing losses. Used to limit the trader's losses. The stop loss can be set in advance below the buy price or above the sell price and will be automatically executed when the desired level is reached.

Stop order – an order to complete a transaction with a limit on the minimum purchase price and maximum sale price. For example, with a quote of EUR/USD 1.3795, a buy stop order can be placed at a level above this value. And the sell order (sell stop) is at a level below this value.

Take profit, take profit, T/P – an order fixing profit. Take profit can be set in advance above the buy price or below the sell price, and when the desired level is reached, it will be automatically executed.

Technical analysis, TA, technical analysis – analysis of market behavior and forecasting price movements based on visual perception of charts, taking into account historical data, using technical tools, constructing indicators and figures, identifying trends, etc. without taking into account economic trends and global events that may significantly affect market behavior. Technical analysis is often contrasted with fundamental analysis.

Trading system, trading strategy, trade system – a series of rules on the basis of which a trader performs operations on the market. Everyone can develop their own trading system that best suits their individual character traits and attitude to risk.

Trading session, trade session – operating hours of trading platforms located in different geographical areas. Main trading sessions: Asian, European and American.

Trading range – the distance between the lowest and highest price during a trading session, or the distance limited by two important price levels.

Trading terminal, trading platform, trade terminal – specialized software for making transactions on the market in real time. The most common trading terminal today is MetaTrader.

Trader - a person who performs transactions in the market.

Trading - trading on the market.

Trailing stop - a type of stop loss, an order for sequential automatic fixation of growing profits on an open position with a favorable price movement. The desired level of restriction is set and the program automatically moves it. Trailing stop is set for an open position and works only when the terminal is turned on.

Trend, tendency, trend, tendency – a stable and clear direction of price movement that persists for a certain time. The trend can be upward (upward, up-trend) and downward (downward, down-trend).

support level – a psychologically significant level at which mass purchases usually begin. The support level is an important part of technical analysis; it is built using two or more price lows in the form of a straight line.

Resistance level – a psychologically significant level at which mass sales usually begin. The resistance level is an important part of technical analysis; it is built using two or more price highs in the form of a straight line.

Fibonacci- in the Forex market it is used in the meaning of the market analysis tools of the same name, named after the great mathematician Leonardo Fibonacci, who studied the sequence of numbers and deduced interesting patterns. The following tools are traditionally used for market analysis: F Levels, F Time Zones, Extension, Channel, Fan, Fibonacci Arcs.

Flat, flat– lateral price movement within a certain price range; uncertainty in the market when there is no obvious downward or upward trend in price.

Forex– an over-the-counter transaction market where currency trading transactions are carried out.

Fundamental analysis, FA, fundamental analysis – analysis of the economic and political situation in the world and in individual countries, as well as events that may affect the further behavior of the foreign exchange market in order to determine price movements. Fundamental analysis is often contrasted with technical analysis.

Japanese candles, candlestick chart, candlestick chart – a special way of displaying a price chart, in which the opening and closing prices of the period, as well as its maximum (high) and minimum (low) prices are clearly visible. For ease of visual perception and quick determination of trends, candles are usually painted in different colors depending on the direction of price movement.

Analysis- a research method that consists in decomposing the object under study into its component parts and studying the properties of these parts.

Shareholder- a person (individual or legal entity) who owns shares of a joint-stock company.

Promotion- a security that gives its owner the right to claim a share of the company’s net profit, the right to take part and vote at a meeting of shareholders, as well as the right to claim a share of the company’s property.

Ask- (from the English “ask” - to ask, request) an application (sometimes the best application) for sale.

Outsiders- poorly informed market participants who do not have exclusive information that can influence the price of shares.

Broker- a specialist who executes orders (applications) of clients on the stock exchange for the purchase/sale of securities.

Base currency- the currency that comes first in the foreign exchange quotation. For example, in the GBP/USD quote, the base currency is the British pound sterling. For many quotes, the base currency is the US dollar.

Bar chart- a method of displaying price movement, in which each price segment is presented in the form of a bar, which has in a visual representation the opening, closing, minimum and maximum prices for the period.

Grandmas, loot, grandmas, beans- money.

Bucks- U.S. dollar.

Bait- buy.

Run ahead of the locomotive- try to catch a market reversal.

Chainsaw, saw, sawmill particularly strong intraday price fluctuations.

Bid- purchase order (bid).

Bonds- bonds.

"Paper" profit- the profit that could be received if you close a position at a certain point in time.

Sidewall, riser- the same as Flat.

Broker- a specialist who executes clients’ orders on the stock exchange.

Be in the market (in position)- that is, have an open position.

Be out of the market (out of position)- that is, not have an open position.

Bull- a market participant who bought securities, counting on an increase in their price on the stock exchange. He makes a profit due to the increase in the stock price.

Bull market- a growing market.

Quote currency (counter currency), counter currency- the second-ranked currency in the foreign exchange quotation. For example, in the GBP/USD quote, the quote currency is the US dollar

Currency basket is a conditional set of currencies that is created to control the dynamics of the national currency on the market, establish an objective exchange rate ratio or create an international unit of account that minimizes currency risks in international trade. Nowadays, the principle of a currency basket is used to link the ruble exchange rate to the dollar and euro, as well as for international lending to countries in need.

Currency intervention represents the purposeful influence of the Central Bank on the exchange rate, carried out through the purchase or sale of large quantities of foreign currency. Here it is worth delving into the theory: the Central Banks of different countries accumulate foreign exchange reserves - the national currencies of prominent market players that have high liquidity (hence, there can be no problems with their sale). When the need arises to support the national currency, the Central Bank makes a large sale of foreign currency (for example, dollars). The value of the national currency rises sharply relative to the one that was sold.

Fall- sharp price reduction.

Variation- variation margin.

Pour in- sell in large quantities.

The glass was hit- a situation when someone aggressively sold/bought at demand prices.

Volatility- a measure of price variability or price deviation from its average or usual value. A measure of volatility is usually the standard deviation of price. The more fluctuations or changes in price, the higher the volatility.

Enter the market- open a position.

Intraday trading- trading in which the opening and closing of a position occurs within one trading day, that is, from 10:00 to 18:45. The operation period can last from 1 minute to several hours. Traders who never roll over an open position overnight are called intraday traders.

Second echelon- shares of small and medium-sized companies.

Out in the cache, Popping out, popping out of the papers- sell all securities, close all open positions.

Signal generation- obtaining a certain value, parameter, signal, which indicates what operation should be performed on the stock exchange: buy or sell, and at what price.

Hep- hep up, or hep down. Strong price change at market opening.

Blue chips(from American exchange jargon “blue chips” - blue chips) - shares of large, well-established companies with regularly paid dividends. A measure of the value of shares is the concept of capitalization. The name "blue chip" comes from the card game "poker", where the blue chip has the highest value.

Head- head and shoulders figure.

Graphic shapes- various figures of graphical analysis constructed using lines. Graphic figures make it easier to understand the market situation and help predict further price movements.

Dax (Deutsche Akzien Index, DAX)- one of the most important stock indices in Germany, which reflects the state of the country's economy. The index includes thirty of the largest blue chip companies in Germany, forming the top list of the Frankfurt Stock Exchange. Among them are Adidas, BMW, Siemens, Deutsche Bank and others.

Dvizhnyak- a strong trend, usually with good volumes.

Demo account- a training account with virtual money, on which a novice trader can train, get acquainted with the trading platform and make transactions without the risk of losing capital. Trading on a demo account is practically no different from trading with real funds; quotes and charts are updated in real time.

Day trading- trading in which the closing of a position occurs within one or several days after opening the position.

Day- daily scale chart.

Trader's Diary- a place where a trader records his actions, important events, thoughts, trading ideas and much more. A diary helps a trader better understand himself and his actions on the market, better assess the situation, identify mistakes and correct them.

Divergence, divergence, divergence- the discrepancy between the price chart directed upward and the oscillator directed downward. Indicates a weakening of the upward trend.

Diversification, Diver represents the allocation of capital between securities with different risks, returns and correlations, with the aim of minimizing investment risks. This means that the investor distributes shares in his portfolio so that losses in one asset are offset by profits in another.

Divas- dividends.

Dealing center- a company that provides the public with access to trading on the Forex currency market. Typically, traders can make trades directly from the dealing room, equipped with all the necessary software.

Tolerance- the difference between the stop price and the price in the stop order.

Top up- add to a profitable position.

Drawdown- account drawdown, loss.

Eurobond is a coupon bond that is issued in foreign currency. A specific value is issued for a long time, more than 40 years. There are also medium-term Eurobonds - more than 10 years and short-term Eurobonds - from 1 to 5 years.

Transaction journal- a place for recording and calculating current trading conditions for a transaction on the exchange, as well as storing previously completed transactions. The journal helps you make trading decisions, analyze trading actions, and identify and correct errors.

Bully- artificially increase the price.

Close a position or deal (exit)- an action when previously purchased shares are sold (long) or previously sold shares are purchased (short). When closing a position, securities are exchanged for cash (In English: Liquidate a position).

Stock up- buy in large quantities before the start of a strong movement.

Protective orders- special exchange orders used to protect an open position from unwanted losses, “evaporation”, as well as to “fix” profits. Protective orders include: stop loss, take profit, trailing stop.

"Evaporated" or "lost" profit"- profit that “evaporated” due to a fall or increase in the market value of shares.

Investor- one who has temporarily free funds and is interested in making a profit, for which he acquires securities. Investors can be individuals, organizations, companies and various funds.

Investment or investing- the process of investing capital in a project, enterprise, real estate, including securities. The purpose of investment is to obtain a return on invested capital.

Intraday operator- short-term speculator (intraday transactions).

Index- this is the average price of all financial instruments that are included in its calculation base. The index reflects the dynamics of the market (stock market, bond market, etc.).

indicator- market analysis tool; converted and specially processed data, which can greatly clarify the situation on the market and help predict further price movements. Superimposed on the price chart in the form of various lines and histograms. There are technical, economic (fundamental) and even psychological indicators.

Study- scientific study, consideration of something.

Channel- consistent reduction and increase in price within the price range limited by two parallel lines. Channels can be downstream and upstream as well.

Capitalization- the value of a joint stock company or the market value of its ordinary shares. It is equal to the number of ordinary shares multiplied by their market value.

Cash- (from the English “cash” - cash) - cash, free non-cash money on the investor’s trading account.

Quotation- the price at which market participants want to buy or sell shares. Electronic quotations of participants are formed into the so-called “order queue”, it is also called the “order book”.

Convergence, convergence, convergence- convergence of the price chart directed downwards and the oscillator directed upwards. Indicates a weakening downward trend.

Consolidation, stagnation or sideways movement- suspension of price movements and fixing them at a certain price level or in a certain price corridor. This may result in a significant reduction in volatility.

Corner(from the English corner - to buy goods for speculative purposes, literally - to drive into a corner), the simplest form of association of capitalists to seize the market for a product through its purchase for the purpose of subsequent speculative resale. Corners are created on commodity and stock exchanges to buy shares of individual companies, both for their subsequent sale and for the acquisition of a controlling stake in a particular company.

Correction, rollback- price movement directed in the opposite direction from the main or prevailing price movement.

Cola- call options.

Krupnyak- a collective name for large market operators.

Cross-rate, cross-rate- quotes of world currencies that do not contain the US dollar. For example, GBP/JPY.

Market price of shares (rate)- the price of a transaction made on the exchange with specific shares at a specific point in time. It is also called the market price of the stock. The market price of a stock can change every minute, every day, every month and year.

Puppeteer, puppets- a market maker, or a major player in the stock market, who is often suspected of price manipulation.

Puppeteer- manipulate prices.

Leverage- leverаge, see Shoulder.

Line chart- a price movement chart indicated by a curved line.

Trend line- a line constructed according to characteristic price minimums or maximums formed during the sequential movement of the market in one direction. The trend line is an important psychological level. It helps to find points of entry and exit from the market and track moments of trend change.

Limitation- this is the establishment of the maximum size of an open position for a particular asset or security.

Limited order- this is an order that is executed on the exchange at the price specified in it or at a more favorable price. When entering a limit order, it indicates a specific price to buy or sell.

Limits- in KVIC, own funds.

Liquidity- implies the ability to exchange shares for cash relatively quickly and without loss and vice versa. To quantitatively measure liquidity, the trading turnover for a specific stock and the spread of this stock are used. The higher the turnover and lower the spread, the higher the liquidity of the stock.

pour- sell at the current market price.

Long or long position(from the English “long position” - long position) - the presence of previously purchased securities for the purpose of their further resale at a higher price.

Longwing- bulls closing positions.

Locked positions- two orders opened in opposite directions for one trading instrument with the same lot on one trading account. As a rule, it is used to fix a floating loss.

Loy, loy- minimum price (low). Catching loy means buying at the lowest price.

Lot, lot- unit of measurement of the transaction.

Money management, capital management, money management- competent management of the trading deposit, including the correct choice of lot when trading, the number of simultaneously open transactions, the number of currencies traded, etc.

Margin lending- the ability to buy securities in an amount exceeding your own capital, as well as the ability to sell securities that are not in your account. This is possible thanks to the lending provided by the broker.

Margin, leverage- Margin trading (from the English Margin trading) carrying out speculative trading operations using money and/or goods provided to the merchant on credit secured by an agreed amount of margin.

Marzhinkol, Kolya, Marzhov Kolya- margin call, a situation when playing with leverage, when the account decreases so much that it no longer meets the necessary requirements to maintain the loan taken. In this case, the broker can independently close part of the client’s positions.

Majority shareholders- large shareholders who, as a rule, are members of the company’s Board of Directors. They or their proxies can participate in the management of the company, they have access to all internal information about the company, their voice is significant when making decisions by the Board of Directors and the meeting of shareholders.

Bear- a market participant (in a broad sense - any seller) who has sold securities or has opened a short position or is about to open one, hoping for a decrease in prices. Makes a profit by reducing the stock price.

Bear market- falling market.

Mechanical Trading System (MTS)- a fully automated trading strategy designed specifically to allow trading without human intervention using modern software. MTS, which gives stable profits, is the dream of every trader.

Minority shareholders- these are small shareholders, they are not members of the company’s Board of Directors, and the decisions of the shareholders’ meeting practically do not depend on their vote. Minority shareholders invest money in shares in the hope of increasing their market value and receiving dividends.

Moving- moving average.

Non-market quote- an uncharacteristic quote for the current market trend, which simultaneously fulfills the following conditions: has a significant price gap with the schedule; returns to the previous level within a short time; there is no rapid market dynamics preceding it, and there is also no release of important economic indicators.
As a rule, non-market quotes arise as a result of a technical failure on the side of the broker or its counterparties and are subsequently deleted from the quote history. In this case, orders processed at a non-market quote are cancelled.

Neftyanka- a collective name for shares of oil companies.

A share is a type of security that provides the opportunity to buy part of a business. Owners (shareholders) have the right to receive dividends and participate in annual meetings.

Ask - the price at which you can buy at the current moment. In other words, this is the lowest bid among sellers in the glass.

Base currency is the currency that comes first in the currency quote. For example, in the USD/RUB pair, the base is the dollar. Sometimes the base currency is also called the "base" currency.

Buy - buy. Is one of the operations on financial markets. Moreover, this term applies to all types of financial instruments (stocks, bonds, futures, currencies, etc.)

Bull - a trader who trades upward. In other words, he makes money on the growth in the value of the asset.

Quote currency(counter currency) – the currency that is second in the currency quote. For example, in the EUR/USD pair it will be the dollar. The quote currency is also called the counter currency.

Volatility is a relative market characteristic that reflects the strength of price fluctuations. For example, for a certain market, the average daily volatility will be 2% (i.e., the difference between the high and low prices for the day is 2%). If the amplitude for this market is 4%, then they speak of high volatility in the market.

The Grail is a trading strategy that allows you to make only profitable trades. Over the entire existence of markets, no one has been able to develop a strategy that produces only the right trades.

Demo account is a trading account that does not contain real money. There are only virtual ones. Demo accounts allow you to test strategies and get acquainted with trading terminals without investing any funds.

Deposit – money in a trading account.

Diversification – reducing investment risks by purchasing different types of assets. This is done to reduce the volatility of your deposit and reduce the risk of bankruptcy of one asset. For example, instead of buying one stock, several types of stocks from different sectors of the economy are bought. By doing this, we reduce the risk of one issuer, which may significantly fall in price due to some unforeseen circumstances. Most often, bonds are added to further reduce risks.

Long position is the purchase of an asset in order to make money on its growth. For example, “hold a long position” or “play long” means that the asset has already been purchased and the investor is simply expecting its growth.

Protective orders- the same as stop loss.

AND

An indicator is a tool for technical analysis of the current situation. Thousands of them have already been invented. Of the classic ones, literally 5-10 pieces can be distinguished. However, there is no “magic” indicator that would allow you to make money with a guarantee. Some work well in flats, while others work well during periods of growth or decline.

Channel – price movement within two parallel lines: one is built along the highs, the other along the lows. In appearance, this resembles a channel in which the value of the asset is located.

Qualified investor- a trading participant who has access to all types of financial instruments (including very risky ones). To be assigned the “qualified” status, you must have one of two criteria: 1) Having 6 million rubles in your account, 2) Monthly trading operations for 12 months.

The status is issued by the broker. To assign it, you must make a request, after which you will be notified of the results.

Quote - the current price of a transaction on the exchange.

Consolidation is a lull in the market after growth or decline. Usually at such moments the price is marking time, rising to highs, then rebounding to local lows. This movement can continue for several months. At such moments, a redistribution of funds occurs. Large players either gain a position or, on the contrary, get rid of it.

Cross-rate – currency pairs without the participation of the US dollar. In slang they are also called "crosses". For example, AUDCAD, AUDJPY, EURAUD.

Liquidity is an indicator of trading volume. For example, a liquid market makes it possible to purchase or sell a financial asset at any time during trading without significant slippage and spread costs. For active trading, you need to choose only liquid instruments, otherwise your earnings will be too small. I advise you to read: liquidity - what is it.

A limit order is a market order that allows you to set an exact execution price. This allows you to buy or sell an asset at the price you want without having to sit at the monitor screen all day waiting for where the market will go. The main disadvantage of limit orders is that the market price may not reach your order, in which case the transaction will not occur.

Locked positions- two transactions that are opened in opposite directions. Used only by professionals. For ordinary traders there is no need for this. Plus, for locking you will have to pay a commission for transferring the position.

Lot – the minimum unit of transaction volume. In Forex and the stock market, different volumes are accepted. For example, on Forex, 1 lot in the EURUSD pair at a price of 1.15 is equal to 115 thousand dollars. However, many brokers allow you to split a lot and buy 0.01 lots. In the stock market, brokers do not allow splitting lots. As a rule, one lot can include 1, 10, 100, etc. shares depending on specification.

Money management (MM) or capital management(money management) – a mechanism for controlling your risks when opening a transaction. For example, with a 50%/50% chance of winning, you can make a profit if you open trades with the required volume. Thus, we compensate for unprofitable transactions with a profitable transaction. You can read more about money management in the article money management.

Margin – providing an open transaction with a volume of funds.

Margin call – lack of own funds to provide leverage. In this case, the broker automatically closes part of the position at the market price so that there are enough own funds for collateral.

A market maker is a major player or players who, according to some established opinions, push prices up or down. Sometimes they are also called "smart money".

Bear is a trader who makes money on short positions.

Bear market is a falling market.

Minority shareholder (minority shareholder) is a shareholder who owns a small block of shares (up to 5% of the total). They are also called "small shareholders."

MICEX – Moscow Interbank Currency Exchange. The main stock exchange in Russia for trading securities.

ABOUT

A bond is a security that provides the opportunity to receive guaranteed income. Has an exact expiration (repayment) date. On this day, the issuer is obliged to buy it back at par. Reminiscent of a bank deposit, but with certain nuances. You can sell the bond at any time and not lose the previously accumulated interest. However, the biggest disadvantage is the risk that the value may temporarily drop.

Order – an open position, an order to complete a transaction. See: order types

Oscillator– an indicator that is displayed in a separate window and shows overbought and oversold zones. There are many oscillators that work great during flat periods.

Mutual investment fund (UIF)- a company that carries out trust management of money. Simply put, it is a fund that trades with the goal of generating income for its investors. Read: what is mutual fund

Overbought(overbought) - a situation in which prices have risen significantly and with a high degree of probability a correction will occur (quotes will return to lower levels).

Oversold

Oversold(oversold) – similar to overbought, but only in relation to sales.

Portfolio investor- an investor who forms an investment portfolio.

Profit – profit.

Liquidity provider(liquidity supplier) - a professional player who works on the exchange and replenishes the glass with orders if they are missing. There are people like this on every exchange.

Drawdown – a drop in the deposit by some non-critical value. Since the market is volatile, drawdowns occur regularly for every trader.

Point (point, pip) – the minimum possible price change

Rally is a powerful price movement before some event. For example, there are often pre-New Year rallies.

Re-Quote – offering a new price at the time of order execution

RTS is a Russian trading system. The second exchange after the MICEX. The RTS index is calculated in the same way as for the MICEX, but in dollars. Simply put, the RTS index reflects the dynamics of the stock market in dollars.

WITH

Sell – sale

Scalper - a trader who trades small price movements

An advisor is a program that is designed for automatic trading. Sometimes the advisor does not open trades himself, but only gives signals.

Stock split - increasing the number of outstanding shares by splitting them

Depth of Market is the conventional name for the place where buy and sell orders are displayed.

Stop order is a pending order that will be executed only when a certain level is overcome. Only, unlike a limit order, a stop order is placed on the contrary worse than the price. This type of orders is suitable for those who trade breakouts of levels. For example, the current price is 99.55, you can place a stop order at 100.00. In this case, the trader expects the price to impulsively continue its movement.

Take profit (T/P) – the price for taking profit. As soon as the price reaches this price, the order is closed.

Technical Analyst- technical analysis specialist

Tilt is a negative psychological state after a series of large losses or wins. After this effect occurs, the trader begins to feel bad and lose money. The best solution is to stop trading for a while.

Trading system/strategy(trade system) – the rules by which a trader conducts his trading activities.

Trading session – trading time of the exchange. For example, Forex works 24 hours a day on weekdays. And the stock market is only open during business hours.

Trading range(trade range) – price fluctuations within a channel. There is an upper and lower limit, above which the price does not rise or fall.

Trading terminal/platform(trade terminal) – a program for accessing trading. For Forex trading, MetaTrader is used, for the stock market Quik, Transaq.

Trend/tendency – a clearly expressed price direction either up or down. During these periods, traders can earn a lot as the market moves some distance every day.

Support level(support level) – a technical price range in the market in which prices previously stopped falling.

Resistance level(resistance level) – a technical price range in the market in which prices previously stopped growing.

F C

A security is a financial asset that is listed on an exchange. For example, stocks, bonds.

Short or short position(short) - trading for a fall. A trader sells an asset that he does not have, and then buys it cheaper. The difference will be profit. However, if the asset grows after the sale, you will have to buy it at a high price.

H E

Issuer is a company that issues securities.

Expiration - the expiration date of an option, future or bond

I E I

IPO (ipio) - Initial Public Offering (initial public offering on the stock market). Simply put: it is the process of listing shares on the stock exchange. Read more: IPO - what is it.

VSA (volume and spread analysis, from the English "Volume Spread Analysis") is a method of analyzing the market situation, based on the study of price behavior in conjunction with volume and candles. Read: VSA analysis

Forex terms general information

While for many Forex terms have already become everyday words, and their meaning does not raise any questions, for beginners the foreign exchange market is a puzzle in which each time they find new words that they do not understand. I would like to help everyone who is faced with a new unknown term from this market to quickly find answers to all questions. In this article you will find a dictionary program, by installing it on your computer, you will be able to quickly and accurately find definitions for everything unknown that you encounter in the foreign exchange market.

Still an unfamiliar market

Any area of human professional activity includes a certain set of terminology that is practically not used anywhere else. If you find yourself in the company of nuclear physicists or genetic biologists, you probably won’t understand even half of the information that these specialists exchange among themselves. Meanwhile, without these terms their work would be impossible. The situation is exactly the same in the financial market, where over the centuries-old history of its existence, this market has acquired its own terms, definitions, that is, words incomprehensible to the average person. At the same time, if we are going to become professionals in the foreign exchange market, then it is simply necessary to understand what this or that unknown word means.

Let’s give the simplest example: you open a regular or technical analysis, which gives recommendations on what to do in order to make a profit, and you see there a lot of words that you don’t understand. Ignorance of them will not allow you to correctly conclude a deal or place pending orders. As a result, at a minimum, you will not make a profit, and at a maximum, you will receive a loss, since you were unable to protect your capital from unforeseen circumstances in the trading asset market.

Yes, for beginners, Forex terms seem dauntingly incomprehensible and the very thought that all of them need to be studied over time and understand their meaning is confusing. Whereas, more experienced traders perceive all the terms of this market “automatically”. There is nothing complicated here. Each word has its own clear definition, and once you understand the meaning, you will receive the key to another stage of the Forex puzzle.

How many unknown words for a Forex trader?

No one specifically counted how many terms are used in the Forex market. But we can say that there are a lot of such words. As mentioned above, the financial market has existed for hundreds of years. And during this time, he managed to “invent” a huge number of words and phrases, most of which are used daily and everywhere by participants in currency trading to conclude transactions, by analysts when making forecasts, analyzes and reviews, and by brokers in describing their trading conditions. When you open any trading platform, you will see a lot of unfamiliar words that describe the important functions of trading terminals. Without knowing the meaning of these words, you simply will not be able to make your dream come true by making it a stable source of your income.

Our electronic trader's dictionary includes more than 2,500 thousand words. This number may seem huge. Meanwhile, all these incomprehensible terms are a daily reality for any participant in the financial market. And due to the fact that it is simply impossible to study the entire vocabulary of the bigwigs of this market in a few weeks or even months, having an electronic trader’s dictionary at hand is an ideal option for quickly finding definitions for all the incomprehensible words of this market. We came across an unfamiliar word - we opened the trader’s dictionary, entered this word there and within a split second we received its clear definition. In other words, the answer to a question that is required in the process of making a profit.

But the 2,500 words that are included in our electronic trader’s dictionary, which you can download on this page, are far from the limit. In fact, there are much more of them. In our dictionary you will find only those that you will encounter every day, and without which your activity as a trader and investor is impossible.

How our electronic trader's dictionary works

You can download the electronic trader's dictionary in this article. By saving it on your computer, you will have access at any time to definitions of all words and terms unknown to you.

The trader's dictionary works as follows:

The archive, which must be downloaded from the link at the end of the article, contains a self-executing file.
Unpack the archive file to any location convenient for you on your computer.
After you come across a new Forex word that is unknown to you, double-click on the dictionary.
In the search window of the program that opens, start typing the search word. The Trader's Dictionary program works in such a way that, having received only the first few letters of the word you are interested in, it will give you a whole list of possible options for what you are looking for. That is, there is no need to enter the entire search word into the program. All you have to do is select the word that interests you from the list and click on the “Output” button. After this, the definition of the term will appear in the right window of the program - read and enrich yourself intellectually and financially.

As we said above, there are a huge number of terms in the Forex market, without which you will not understand what is being discussed on financial websites, which means you will not be able to use tips - reviews and recommendations of specialists in your trading. Yes, there is an option not to use third-party materials at all and focus on gaining independent experience in operating the trading platform, inventing, testing and using. But even here you will find an incomprehensible set of words. Namely, the name of the trading and analytical functions of the trading platform through which you will conclude transactions, a description of the trading conditions of the brokerage company, where you need to register, download the trading platform and top up the security deposit for trading. Therefore, whatever one may say, you will have to encounter a certain set of complex, although sometimes intuitive Forex terms and, accordingly, learn their definition in order to easily start trading and earning money and someday become a real tycoon of the foreign exchange market.

As we said, the list of the most important terms for a trader includes:

1. Terms of foreign exchange market brokers, which regulate the main advantages of their trading conditions and related services. Imagine a situation where, without knowing the terminology of a Forex broker, you register with a company that offers extremely unfavorable trading conditions!? Thus, instead of profit, you will receive a loss. And all just because they didn’t learn the meaning of the terms in time. Therefore, in order to register with a reliable and reputable broker, you need to know the minimum stock of broker terms, such as: spread, commission, leverage, minimum trading lot size, minimum trading deposit, trading assets, margin security, margin call, stop out, swap, etc. Believe me, these words carry a huge meaning for a trader, without understanding which you will not be able to choose the right broker for Forex trading. Whereas, a correct understanding of what exactly you need will allow you to choose the best company, which you will certainly find in the one we created .

2. Terms of trading platforms. You may understand intuitively which button to press in order to make a deal on the trading platform. But how to do it in such a way as to limit your possible losses, get maximum profit, place pending orders in the right direction and automatically remove them after a certain time - you won’t understand this intuitively. But all this is simply necessary for a trader to trade profitably. Thus, the second necessary set of terms awaits you in the trading platform of the brokerage company, through which you will get the opportunity to trade on the Forex market. It’s simple - you won’t be able to understand the names and meaning of the trading and analytical functions of the trading platform, you won’t be able to use it and, accordingly, you won’t be able to make money on the foreign exchange market. The Forex market uses more than 10 different platforms from different companies. But the main and most popular platform is Meta Trader. It’s best to start by studying its terms and options.

3. Terms of trading strategies– another set of specific words that regulate certain rules for trading the Forex market according to a certain system. And, given the fact that it is impossible to trade on the foreign exchange market without a system (strategy), you simply need a certain vocabulary and understanding of their meaning in order to use this or that trading strategy. Trading strategies explain to their users how to choose the most optimal moment for concluding transactions, where to place a stop loss and take profit or a pending order, the rules of risk management for trading according to the specified strategy, as well as how a trader should act in a given market situation (release of macroeconomic news, presence of a flat, unidirectional price impulse, etc.). Without knowing the interpretation of a particular term, you simply will not be able to follow the rules of the strategy and, accordingly, will not be able to make a profit.

4. Terms of analytical materials of the Forex market. The first and most important thing a trader must learn to do is to use financial market. It is the news in the macroeconomic calendar that is the driving force of the foreign exchange market. Thus, without understanding its meaning, terms and without learning how to use it, you will not be able to logically comprehend the processes that are taking place in the market, what causes them and what to expect from the Forex market in the future. And even if at first glance the movement of asset quotes and their behavior seems illogical. In fact, there are few unexplained events in Forex. As in any other area of human activity, in Forex each consequence has its own reason. Understand their relationship and possible scenarios - half the success is in your pocket. But, if you know the terms of fundamental analysis.

If you can somehow manage without fundamental analysis, technical analysis is a mandatory attribute of any trader. Without knowing the rules of technical assessment of the dynamics of the movement of Forex market asset quotes, you will look like a blind kitten. Support and resistance levels, trend lines, price channels, Fibonacci extensions, Eliot and Wolfe waves, trends and corrections are mandatory elements of technical analysis, and any study of the basics begins with studying the terms. After all, you want to become a successful trader, and not come and leave the foreign exchange market in a week with empty pockets?! Thus, it is extremely necessary for you to learn how to use analytical materials with the help of which traders forecast and analyze the market!

5. Investment terms. It's no secret that to make money on the Forex market you can not only trade, but also invest. Don't know how to make profitable deals? Let others do it for you, for whom Forex trading is the meaning of their whole life! All you need in such cases is to learn how to invest in successful traders. Therefore, investment tools such as transaction copying services, social trading and trust management in general will help you earn no less on Forex than traders. But, again, if you don’t know what the maximum drawdown, manager’s participation ratio, investment period, manager’s commission, offer and many other terms of the investment block of the Forex market are, you will not be able to become a successful investor! Because all of the listed terms help investors find successful trading managers. Without understanding the meaning of a number of words, you simply will not be able to assess whether a PAMM account is worthy for investment or whether it is better to look for another one!

conclusions

The financial market of the last decade has been able to make the dreams of hundreds of thousands of traders and investors come true. The minimum level for starting trading and investing, convenient trading software, a variety of investment products, the possibility of automatic trading, risk diversification, thousands of unique indicators and trading systems, social trading with the ability to copy the best transactions and much, much more, if used correctly, can make you a millionaire . This is a fact that has been confirmed by hundreds of success stories. And the most important rule of the financial market is that everyone has equal conditions here! Your persistence and efforts will undoubtedly be rewarded! And, if you do everything right, you will start making a profit very soon! But, at the same time, the financial market is exactly the place where there is no room for mistakes! Any flaw, “shortcoming”, manifestation of laziness or negligence turns into losses for the trader and so on until the trading account is empty. Everything is simple and logical. But all of these advantages can easily be used to your advantage. After all, the Forex market is exactly that competitive environment where you can win thanks to your abilities, skills and abilities. All in your hands! You just need to learn how to use the potential of the Forex market!

And our electronic market dictionary is a great opportunity to take the first and confident step towards your financial future. And remember: he who owns information owns the world!