Friday, April 17th, 2015
Forex Glossary of Terms P to R
Package Deal When a number of exchange and /or deposit orders have to be fulfilled simultaneously. Par (1) The nominal value of a security or instrument. (2) The official value of a currency. Parities The value of one currency in terms of another. Parity (1) Foreign exchange dealer’s slang for your price is the correct market price. (2) Official rates in terms of SDR or other pegging currency. Permitted Currency It means a foreign currency which is freely convertible i.e a currency which is permitted by the rules and regulationsRead More
Forex Glossary of Terms N to O
Nickel US term for five basis points. Nostro Account A foreign currency current account maintained with another bank. The account is used to receive and pay currency assets and liabilities denominated in the currency of the country in which the bank is resident. Not Held Basis Order An order whereby the price may trade through or better than the client’s desired level, but the principal is not held responsible if the order is not executed. Note A financial instrument consisting of a promise to pay rather than an order toRead More
Forex Glossary of Terms L to M
Forex Glossary of Terms L to O Lay Off To carry out a transaction in the market to offset a previous transaction and return to a square position. LDC Less developed countries, often used with respect to secondary debt market. Leading Indicators Statistic that are considered to precede changes in economic growth rates and total business activity, e.g. factory orders. Leads and Lags The effect on foreign trade payments of an anticipated move in the exchange rate, normally a devaluation. The importers speeden up the payment for the imports andRead More
Forex Glossary of Terms F to K
Forex Glossary of Terms F to K Fast Market Rapid movement in a market caused by strong interest by buyers and/or sellers. In such circumstances price levels may be omitted and bid and offer quotations may occur too rapidly to be fully reported. Fed The United States Federal Reserve. Federal Deposit Insurance Corporation Membership is compulsory for Federal Reserve members. The corporation had deep involvement in the Savings and Loans crisis of the late 80s. Fed Fund Rate The interest rate on Fed funds. This is a closely watched shortRead More
FOREX 101 Things You Need to Know to Succeed in Forex Trading Online
FOREX 101 Things You Need to Know to Succeed in Forex Trading Online Firstly, never succumb to the ‘gamblers addiction’ when you are trading online in Forex. This is the downfall of perhaps hundreds of people who go into the Forex market without any sense of money management. Do not take unnecessary risks because taking risks means you are not thinking. You are not thinking about market psychology, prospects, the global political economic climate, market movements, currency behaviour and trends all over the world. You need to think to takeRead More
Forex Glossary of Terms A to B
Forex Glossary of Terms A to B Aggregate RiskTotal amount of exposure a bank has with a customer for both spot and forward contracts. American Option An option which may be exercised at any valid business date through out the life of the option. Appreciation Describes a currency strengthening in response to market demand rather than by official action. Arbitrage A risk-free type of trading where the same instrument is bought and sold simultaneously in two different markets in order to cash in on the difference in these markets. AroundRead More
4 Benefits of Forex Exchange Trading
The first thing you should know about when talking about the benefits of the Forex market is that it really is one of the largest markets in the world with a daily turnover of a few trillion dollars. While market saturation is always a problem, the Forex market is one that will always be accepting new retail investors on a daily basis. There is no worry that you will be going into a market that is saturated from the start, there will always be space for you to invest andRead More
Secret Forex Tips to Make You Millions
When you are trading in the Forex market, it is always useful to have some sort of code book that will be able to help you to decipher the whole market and pick it apart successfully. When you have the sheet in front of you, you will be much better positioned to conquer the market like no other and make your millions. Imagine, the market turns over at several trillion a day, so what is a few million to you if you are willing to work for it and youRead More
Before a Forex Trading Strategy is . . .
Money management. There is nothing more that you need to have as a base to your money making experience than a way to track the money you are putting in, losing and winning on the Forex market. You need to have the fundamentals of money management to assess and support the strategies that you are employing on the Forex market. There is no point just investing and not being able to track your performance. Your money diary is one of the key ways you are going to be able toRead More