– Bull market – typically a market which is on a consistent upward price movement and can be distinguished by its rising general prices.
– Buy limit – order to execute a transaction at a specified price (the limit) or lower.
– Buy on margin – the process of buying a currency pair where a client pays cash for part of the overall value of the position. The word margin refers to the portion the investor puts up rather than the portion that is borrowed.
– Cable – the GBP/USD exchange rate. Was called so because starting from the mid 1800’s, the said exchange rate was originally transmitted by means of a transatlantic cable
– Candlestick Chart – A Forex trading chart, which displays the trading price range, which changes daily. Could either be open, close, low or high.
– Carry – It is the cost or the income coupled with maintaining overnight a foreign exchange position. It is derived when for only one period of time, the currency pairs in the position have unlike interest rates. Also called the “interest rate carry.”
– Carry trade – It is the concurrent selling of a currency pair with a low interest rate, while buying currency pairs with higher interest rates.
– Central Bank – A national government-administered bank that controls the movement and behavior of financial establishments within its periphery and executes fiscal policies.
– Chartist – Refers to an individual who utilizes technical analysis and tries to predict future price movements by studying and analyzing the historical price movements displayed and recorded on trading charts and graphs.
– Closed Position – exposures in foreign exchange currency pairs that are already closed or do not exist any longer. The process to close a position is to sell or buy a certain amount of currency to offset an equal amount of the open position. This will ‘square’ the position.
– Closing a Position – Process of selling or buying a specific amount of currency or a foreign exchange position to offset an equivalent amount of the open position. This will then “square” the position and result in its liquidation
– Closing Market Rate – It is the rate or amount at which a position can be closed. It would depend on the amount of market price at end of the day.
– Commission – The additional fee charged by an establishment or a broker to carry out a trade on behalf of a customer.
– Confirmation – written acknowledgment of a transaction, including all the significant details such as the size of the trade, the price, the date of transaction, the commission, if there is any, and the amount of money involved in the transaction. A written document that states the terms of a transaction. This is exchanged by the counterparts.
– Counterpart – A participant or partaker in a commercial transaction or financial trade cross currency. Any currency pair, which is neither the base currency nor the quote currency, is the U.S. dollar. These currency pairs demonstrate unpredictable price behavior in view of the fact that the trader has in fact instigated two USD trades. For example, instigating a buy GBP/AUD is equivalent to buying GBP/USD currency pair and selling an AUD/USD currency pair. In effect, cross currency pairs often has a greater amount of transaction cost.
– Currency – the money issued by a government.
– Currency Risk – The possibility of an adverse change in the value of exchange rates.
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