Short Forex Vocabulary From L To S
Long position — a position for purchase. On the Forex market a bough currency is named long, and a sold currency is named short.
Liquidity — a measure of the markets, which describes the relations between the trade volume and prices changes.
Lot — a certain number of units or a sum of money got for arrangement a transaction.
Leading Indicators — a compound index (1992 =100%) that composed of ten very important macroeconomic indicators and prognosticates the future development of economy for several months.
Limit Order — an order to a broker to open or to close a position at a fixed or better price. This price is named a limit price.
Loss — loss from closing a long position at a lower price than opening or a short position with a higher price than opening, or if the profit from closing the position is lower than the commission of a broker.
Margin Call — a demand of a broker to invest more money for maintenance of a margin account. It appears when an amount of money on th account falls to a certain minimum.
Margin — a certain amount of money that an investor must have on a broker’s account to have an opportunity to trade. Margin is the maximal possible loss, which a trader can incur taking part in tender.
Margin Account — an account that is used for saving an investor’s money for trade on the Forex market.
Market Order — an order to purchase or to sell a lot at the current market price.
Market price — a current price at which a currency pair is traded on the market.
Moving Average (MA) — a one of the basic technical indicators. It shows an average value calculated on a series of periods of a chart.
Order — an order to a broker to purchase or to sell a currency at a certain price.
Principal Value — an initial sum of invested money.
Pivot Point — a key point of maintenance/resistance calculated on the base of previous value of maximum, minimum and closing trend.
Pip — the last figure in a price (for example for EUR/USD 1 pip is 0.0001)
Profit — a positive sum of money got from a closed position.
Position — Opened position — a position of purchase or sale of a currency pair.
Closed position — a closed position at which all the operations have been implemented.
Support — a price level, a great number of purchases follows this level and as a result a raise of a price.
Stop Limit Order — an order to sell or to purchase a lot when a price reaches a certain level.
Stop Loss Order — an order to close a position when its price reaches a certain (worse than the current) level. This is the simplest and the most effective way to avoid huge losses.
There are two options you can earn on Forex.
You can learn the basics of Forex market trading with the help of a nice forex book and do the forex trading personally.
OR you can hire professional traders to manage the money on your trading account and they will trade for you. Find out more about forex investment.
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