Terminology
January 17th, 2010 | 
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Terminology
| Term | Definition |
| Account | All accounting records relating to various transactions of a customer, including credit or debit balance, floating loss / profit and value of the real book. |
| Account Balance | The difference between debit and credit in an account. If greater than debitnya credit, the account is said to have a negative balance. In other terms is called a deficit. Whereas the opposite is called a surplus. |
| Arbitrage | The purchase or sale of stock / foreign exchange / precious metals / bonds / or other komuditas from one market to another separate but related. Arbitrage opportunities arise when two companies merge or are planning to do when a contract is transacted in currencies other types of markets, in order to obtain balance or the value of spot foreign exchange rate through the cross. |
| Ask Price | Price offer for sale of a currency contracts / shares. |
| At Risk | Possible losses. Investors in a limited partnership (limited partnership) can receive a tax deduction if the rate of return on their investment is not guaranteed. |
| Bar Charts | This type of graph shows the opening price, closing highest and lowest of a currency or stock. Value changes occur from time to time. Usually used by the dealer / trader in the currency / securities for forcasting, or the estimated price that may arise will be the future. In this analysis Bar charts also known a variety of patterns (chart pattern) which describes a \ Uatu conditions set price at a certain time and then the next price movement diantaisipasi according to the pattern had occurred in the past. |
| Base Currency | In a general sense, this explains a currency which has an investor in the balance sheet. In the foreign exchange market, the U.S. Dollar is normally called the base currency to trade against other currencies. Counted every one U.S. dollar per currency counterparties. Exclusion of this system is the base currency against the Euro, Pound Sterling, Australian dollar and other currencies are placed in advance in U.S. dollars kuotasinya, indicating the currency to be direct currency. |
| Bear Market | One condition in which prices continue to decline in the market. |
| Bearish | The term money market practitioners / stock price showed a decreasing trend. |
| Bid Rate | Price desired by the trader to buy a particular currency. |
| Bid/Ask Spread | Differences buying and selling prices at a certain time. The distance / difference in buying and selling prices are often used as indication of market liquidity. That is, if the spread is the less, the higher the liquidity of the market situation at that time. |
| Bottom Price | Lowest price occur at a specific time frame. |
| Botttoming Out | A condition of the price of a currency that has long been the basis of low price, and is expected to be the lowest price the last time, before the price of the currency back up. |
| Breakaway Gap | Fluctuations in the price where the highest price and lowest price exceeded the previous day’s price fluctuations and trends are created. For example, a positive trend is expected to appear if the lowest price today is higher than the highest price the previous day. |
| Bull Market | The term used by financial market practitioners to show a rising trend of prices. |
| Candlestick Chart | A variety of charts that indicate the range of transactions in a currency / shares. Contains information about the opening price, highest, lowest, and Closing. If the closing price is above the opening price, then the type of blank Candle, otherwise if the closing price is below the opening price (the price drops) then the candle will contain. This pattern analysis was first introduced by commodity traders in Japan at the beginning of the 18th century. |
| Closed Postion | Closing position after the opening made. If the opening position is Buy then the closure is to Sell and vice versa. |
| Commission | Commission Fee charged by a broker to the investor. |
| Currency Symbol | Abbreviation for the currency of a country. For example: AUD-Australian Dollar; CAD-Canadian Dollar; EUR-Euro; JPY-Japanese Yen; GBP-British Pound Sterling; CHF-Swiss Franc |
| Dealer | An individual who acts perform various financial transactions for and on behalf of a particular principal. Usually certain Principals take one position expect to reap the benefits of the transaction price difference. Another thing done by a broker usually mediates certain transactions from either the individual or corporation to sell or purchase transactions with a transaction commission. |
| Devaluasi | Decline in the value of the exchange rate, usually because the official announcement. |
| Hedge | A position or combination of several positions taken to reduce the risk of loss. |
| Initial Margin | The minimum deposit is charged to begin trading as collateral will be the future. |
| Leverage | Ratio required in the forex transactions. For example, if leverage is defined 1:100 with $ 500, customers can buy a dollar that is 100 times as much $ 50,000. |
| Limit Order | Used to limit the maximum value at the desired transaction so that when it reaches the desired rate will then be closed position by itself. |
| Lot | Standard units to deal happens. Any deal, set value is in the number of lots. On forex, 1 lot is same for USD100,000 |
| Margin Call | Request from the broker to add a deposit to an existing position was not due to liquidation by margin has been exhausted. |
| Overnight Position | Open position that continues to bone day the following day. |
| Pair | Currency pair in the transaction. For example EURUSD, GBPUSD, and so on. |
| Pips | Smallest unit of forex. Pips taken the last two digits of the value of the exchange rate, is often called the point. For example GBPUSD today moves from 1.8200 to 1.8250 GBPUSD it means an increase of 50 pips or 50 points |
| Quote | Exchange value. Usually used only for mere information. |
| Range | The difference between the highest and lowest prices at certain moments. |
| Resistance Point | A certain psychological level above the price at that time. At the point of resistance before the market is expected to be sold back to the exchange rate that has been purchased so that the exchange rate will weaken. |
| Spread | Difference pip to the open position on the price “buy” and price “sell”. The smaller the spread, investors will be more profitable due to reach break-even point (BEP) does not require a large price movements. |
| Stop Loss Order | Order given to a transaction at a certain point so that if the exchange rate has touched that point, the order is automatically closed position. This is a “lower limit” to prevent further losses. |
| Support Level | Certain lower limit has been analyzed. Expected before this limit, the exchange rate will bounce back. Is the opposite of “resistance”. |
| Swap | A currency swap is the simultaneous transactions in a certain number assigned to a level the currency determined later. |
| Turnover | Total value of money (volume) in all financial transactions at a time. |
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