– Jobber – Refers to a Forex trader who engages in small, short-term transactions during the duration of a trading session. The transactions are severely short-term that a jobber rarely carries a position overnight.
– K – Nasdaq stock symbol, which symbolizes that the stock has no right to vote
– Kiwi – slang term referring to the New Zealand dollar.
– Leverage – it is the relative amount of the amount capital employed in an operation or transaction to the necessary margin or security amount deposit. It is the ability to direct great quantities of dollars while using up only a moderately small amount of capital. Leveraging ranges from 2:1 ratio to 400:1.
– Limit Order – Refers to an order to carry out a transaction at a limit or better. The limit is the specified price. A limit order to buy would begin at the limit or downward, while a limit order to sell would begin at the limit or upward.
– Liquidity – A term which describes the relationship between price movements and the size of a transaction. A market is said to be “liquid” if it can handle and execute large transactions by utilizing considerably small price changes only.
– Long – In Forex, this term refers to the primary currency when a currency pair is bought.
– Maintenance – refers to a set minimum margin
– Major currency – a currency included among the eight most traded currencies. These eight most traded currencies are:
USD – US Dollar
EUR – Euro
JPY – Japanese Yen
GBP – British Pound
CHF – Swiss Franc
CAD – Canadian Dollar
NZD – New Zealand Dollar
AUD – Australian Dollar
– Margin – the amount of money necessary to be in the margin account of the customer for him to be able to maintain a position. Opening a new margin account with a Forex agent or spot market broker implies a deposit of a particular minimum amount with that said broker. This minimum amount varies greatly, depending on the broker, and can range from 100 U.S. dollars to 100,000 U.S. dollars. Every time you implement a new trade, a specific percentage of the balance in the margin account will be reserved as the “initial margin requirement” for the newly-implemented trade established upon the original currency pair, the current price of that pair, and the lot size, which refers to the number of lots or units traded. The base currency is also the lot size.
– Margin Account – The customer’s account that allows borrowing on currencies already existing in the said account and leverage purchasing on credit. These privileges are subject to the standards set by the establishment carrying the account. An interest is imposed upon the customer for any borrowed funds and only when the loan is outstanding.
– Margin call – this is what all traders fear. This occurs when your Forex broker informs you that your margin deposits have dropped below the necessary minimum amount because an open position has shifted against you.
– Maturity – refers to the date when the payment of a financial commitment is already due.
– Minor currency – any other currency not included among the major currencies
– One Cancels the Other (OCO) Order – This refers to a combination of two orders wherein the execution of one of the orders will automatically trigger the cancellation of the other order.
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