An account opened by the company for a client that keeps a record of transactions.
Account Statement Report provides the customer with all debits, credits, trading confirmations and other activity that occurs in the customer's account over a specified period of time.
An automated script that is used by the trading platform software to manage positions and orders automatically without (or with little) manual control.
The simultaneous purchase and sale of on different markets, of the same or equivalent financial instruments to profit from price or currency differentials.
Also known as the “Offer”, this is the market price offered to traders to buy currencies.
An ascending trend is any period in which exchange rates reach a higher value when compared to the previous rate. It's an upward gain in rates from the rate before it.
The current value of a customer's account given the amount of money deposited, changes as a result of profits and losses from existing and closed out positions, credits and debits from daily rollovers, and charges such as commissions, transfer fees or bank related fees if applicable.
A graphical chart that presents the price movements of financial instruments. It consists of high and low prices, opening price and closing price.
Base currency is the first currency in the pair. For example, EUR/USD –the Euro is the base currency.
A situation whereby there exists a prolonged period of generally falling prices for a particular investment product.
This is the price at which you can sell the base currency.
These are trading digital contracts that behave like fixed-odds-return investments. They have two possible absolute outcomes, with a structured reward and risk. The trader predicts the direction of the trade for the underlying asset and the potential payouts are predetermined at the time of purchase.
Term used to describe a sudden or rapid fall in instruments pricing away from a consolidated range.
A prolonged period of generally rising prices for a particular investment product.
Buy Limit — buy provided the future "ASK" price is equal to the pre-defined value. The current price level is higher than the value of the placed order. Orders of this type are usually placed in anticipation of that the security price, having fallen to a certain level, will increase;
Buy Stop — buy provided the future "ASK" price is equal to the pre-defined value. The current price level is lower than the value of the placed order. Orders of this type are usually placed in anticipation of that the security price, having reached a certain level, will keep on increasing;
An digital contract that gives the owner the right but not the obligation to buy the underlying security at a specified price (its strike price) for a certain, fixed period (until its expiration). For the writer of a call digital contracts, the contract represents an obligation to sell the underlying product if the digital contracts is assigned.
A chart that presents the daily high, low, opening and closing price.
Stands for “Contract for Difference”. It is an agreement that involves exchanging the difference in value of shares between the time of opening and closing a contract.
Central European Time (CET) is 1 hour ahead of Coordinated Universal Time (UTC). This time zone is in use during standard time in: Europe, Africa, Antarctica.
A chart shows the price changes for a security with the time. Charts are necessary for performing technical analysis, working of expert advisors and testing thereof.
An electronic or printed notice that describes all the relevant details of a transaction.
The second currency in a currency pair. In the Currency Pair EUR/USD, the Counter Currency is the USD.
A spot contract to purchase or sell one foreign currency in exchange for another specific foreign currency. The currencies exchanged are not the US Dollar.
A Foreign Currency or US Dollar
A currency digital contracts is a contract that grants the buyer the right, but not the obligation, to buy or sell a specified currency at a specified exchange rate on or before a specified date. For this right, a premium is paid to the seller, the amount of which varies depending on the number of contracts if the digital contracts is bought on an exchange, or on the nominal amount of the digital contracts if it is done on the over-the-counter market. Currency digital contracts are one of the most common ways for corporations, individuals or financial institutions to hedge against adverse movements in exchange rates.
Same as overnight.
An order that if not executed on the specific day is automatically canceled.
Speculators who take positions in investment products, which are then liquidated prior to the close of the same trading day.
An individual or firm acting as a principal, rather than as an agent, in the purchase and/or sale of foreign exchange. Dealers trade for their own account and risk.
The sale of a security (usually an equity or stock) at a price lower than the previous one.
The secure part of a trader’s account.
Also known as The Federal Reserve System, this is the central bank of the United States.
The macro economic factors that are accepted as forming the foundation for the relative value of a currency, these include inflation, growth, trade balance, government deficit, and interest rates.
Forward rates are quoted in terms of forward points, which represents the difference between the forward and spot rates. In order to obtain the forward rate the forward points are either added or subtracted from the exchange rate. The decision to subtract or add points is determined by the differential between the deposit rates for both currencies concerned in the transaction. The base currency with the higher interest rate is said to be at a discount to the lower interest rate quoted currency in the forward market. Therefore, the forward points are subtracted from the spot rate. Similarly, the lower interest rate base currency is said to be at a premium, and the forward points are added to the spot rate to obtain the forward rate.
A forward / forward deal is one where both legs of the deal have value dates greater than the current spot value date.
A contract that involves executing a transaction at a certain time in the future when the price is agreed during the present.
The amount of funds in a trader’s account that can be used to trade.
When a quick market move occurs whereby prices skip levels without any trades being executed.
An order to buy or sell at a specified price that remains open until filled or until the client cancels.
An order type that will expire on the date you choose, should it not be filled beforehand.
This is a position that eliminates the risk of a trader’s primary position.
International Monetary Fund, Международный валютный фонд.
The foreign exchange rates which large international banks quote to each other.
Buy or sell action by a central bank in an attempt to affect the value of its currency. Concerted intervention refers to action by a number of central banks to influence the value of exchange rates.
The control of a large notional position through the use of a small amount of capital.
The London Inter-Bank Offered Rate. Banks use LIBOR as a base rate for international lending.
The term used to describe the amount of volume available to buy or sell at a point in time.
The term used to describe a customer who has opened a new position by buying a currency pair.
A unit to measure the amount of the deal. The value of the deal always corresponds to an integer number of lots.
The aggregate amount of customer cash pledged against the aggregate Open Position(s). The margin pledged is a function of the leverage ratio. The higher the leverage, the lower the pledged Margin. The lower the leverage, the higher the Margin needed to carry the position. Mathematically, Margin = Open Position Amount / Maximum Trading Leverage Ratio. For example, a USD/CHF 100,000 USD position at Maximum Trading Leverage Ratio 50:1 will require pledged Margin equal to 100,000/50 or $2,000. Note: To calculate margin for currency pairs, where USD is NOT the Base (First) Currency (e.g. EUR/USD, GBP/USD;) and crosses (EUR/JPY, GBP/JPY;), the Counter Currency amount is first converted into USD using the average exchange rate(s). Example: Customer buys 1 lot of EUR/USD when the price is .9600 9604. The average exchange rate is .9602. Therefore, 100,000 EUR equals 96,020 USD. $96,020 / 50 Leverage Ratio = $1,920.40
A demand for additional funds to be deposited in a margin account to meet margin requirements because of adverse exchange rate movements.
A percentage value based on the amount of available usable margin versus used margin. If the margin level is less than 100% the brokerage may freeze opening new orders. If the margin level is lower than the margin call level, the brokerage may automatically close your open orders and prevent further trading. The formula used to calculate the margin level is ( Equity / Used Margin ) x 100.
A way of smoothing a set of price/rate data by taking the average price of data range of values.
The total amount of money that is set aside for trade positions to be kept open.
The difference between assets and liabilities in a particular currency. This may be measured on a per currency basis or the position of all currencies when calculated in base currency.
A contract conferring the right but not the obligation to buy (call) or to sell (put) a specified amount of an instrument at a specified price within a predetermined time period.
When prices rise more than expected in regards to technical analysis.
When prices drop more than expected in regards to technical analysis. When prices drop more than expected in regards to technical analysis.
A deal from today until the next business day.
Customer gives directions either electronically via an online trading platform or verbally to enter into a specific foreign exchange contract with WorldForex by buying or selling a specified currency pair now or at a time when the price meets the customers specific requirements.
Quantitative methods designed to provide signals regarding the overbought and oversold conditions.
% of profit you gain, if digital contracts closes in money.
The smallest measure of movement for a foreign exchange rate
A pending order is an instruction to buy or sell an instrument when certain preconditions specified by the trader are met. Pending orders fall into two categories, limit orders and stop orders. Essentially, when placing a pending order a trader is informing their broker that they do not want the current market price, but rather that they only want their order executed if the market price reaches a certain level.
The same as “base currency”
The money gained after a trader closes a position.
To “stop out” of a trade means to close out the trade at a loss at a pre-determined level (the stop). An digital contract that gives the owner the right to sell the underlying stock at a specified price (its strike price) for a certain, fixed period (until its expiration). For the writer of a put digital contracts, the contract represents an obligation to buy the underlying stock from the digital contract owner if the digital contract is assigned.
Consists of the Bid and Ask for a currency pair.
A price recognized by technical analysts as a price which will usually stop a movement of a foreign exchange rate from going higher. If a resistance level is broken; the technician will conclude that the price movement of the instrument will continue to go higher.
A decline in business activity. Often defined as two consecutive quarters with a real fall in GNP.
A price recognized by technical analysts as a price which will usually stop a movement of a foreign exchange rate from going higher. If a resistance level is broken; the technician will conclude that the price movement of the instrument will continue to go higher.
At the end of each business day,Wforex will automatically rollover or swap, all existing open positions into the next spot date. The mechanics in effect involve the simultaneous close of an existing position and the opening of a new spot position. Wforex will debit or credit the customer's account depending on the interest rate differential between the base currency and the counter currency and the direction of the customer's position. For example, if the customer is long a currency pair where the overnight rate for the base currency is higher than the counter currency, the customer will earn a small credit for positions held overnight. If the opposite is true, the customer account will be debited for the difference in the interest rate differential. The fundamental reason is if a customer is long a higher yielding currency, he should benefit from being able to invest and earn a higher return overnight than what he has to pay for being short the lower yielding currency.
Sell Limit — sell provided the future "BID" price is equal to the pre-defined value. The current price level is lower than the value of the placed order. Orders of this type are usually placed in anticipation of that the security price, having increased to a certain level, will fall;
Sell Stop — sell provided the future "BID" price is equal to the pre-defined value. The current price level is higher than the value of the placed order. Orders of this type are usually placed in anticipation of that the security price, having reached a certain level, will keep on falling.
Having an open position that was created by selling a currency. If you sold the EUR/USD, the customer is said to be short the currency pair (sold the base currency). If a customer bought the EUR/USD, he would be long the currency pair, but short USD currency. Foreign exchange transactions assume being long one currency and short another.
When there are changing market conditions and there is a difference between the expected price of a trade and the price at which the trade is executed at.
This is the difference between the Bid and the Ask (Offer) price.
When a price is reached, a trader makes a stop-order to buy or sell.
A specific order entered by the customer to close out a position if the price moves a certain number of pips in direction opposite from where the market currently is. In most cases Stop Orders are executed as soon as the market reaches or goes through the Customer set Stop Price level. Once issued, the stop order will be held pending until the stop price is reached. Stop orders may be used to close out a position (Stop Loss), to reverse a position, or open a new position. The most common use is to protect an existing position (by limiting losses or protecting unrealized gains). Once the market hits or goes through the stop price, the order is activated (triggered) and FXDD will execute the order at the next available price. Market conditions including volatility and lack of volume may cause a Stop order to be executed at a price different than the order.
To “stop out” of a trade means to close out the trade at a loss at a pre-determined level (the stop).
Price levels in technical analysis that are below the current price level, therefore demand is strong enough to avoid the price from falling even more.
The interest paid/earned after extending a position at the end of a day without settling.
Take Profit order is intended for gaining the profit when the security price has reached a certain level. Execution of this order results in closing of the position. It is always connected to an open position or a pending order. The order can be requested only together with a market or a pending order. Terminal checks long positions with BID price for meeting of this order provisions (the order is always set above the current BID price), and it does with ASK price for short positions (the order is always set below the current ASK price).
A minimum change in price, up or down.
The process by which charts of past price patterns are studied for clues as to the direction of future price movements.
A Client’s terminal can work under the control of operating systems Windows XP (SP3) / 2003 / Vista / Win7/ Win8/ Win10.
A trailing stop allows a trade to continue to gain in value when the market price moves in a favorable direction, but automatically closes the trade if the market price suddenly moves in an unfavorable direction by a specified distance. Placing contingent orders may not necessarily limit your losses.
The direction of the market. It could be up, down or sideways.
A transaction executed at a price greater than the previous transaction.
How prices and variables fluctuate over a period of time. When there is high volatility in a financial market, this means there is more risk involved for a trader.
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TRADING ACCOUNT
Trading accounts for real trade with the standard lot size and minimum contract step.
DEMO ACCOUNT
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