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Glossary of terms  

A  B  C  D  E  F  G  H  I  J  K  L  M  N  O  P  Q  R  S  T  U  V  W  X  Y  Z

A

Ask : The buying price. The higher price of the two way quote
   
B

Bearish : A term to describe a predicted decrease in price movement in the market

Bottom : The low price

Bid : The selling price. The lower price of the two way quote

Bullish : A term to describe a predicted increasing price movement in the market
   
C

CFD : This stands for a contract for difference. It basically means that there is no physical delivery of a product between the buyer and the seller. All profits and losses are simply made over a theoretical transaction on paper and not in owning the product

Closed : This term describes a position that has been open at one point but now has been offset by the opposite position to take profit.
   
D

Decline : A continuous decrease in price of a product is said to be a decline

Downside Target : A predicted lower price target
   
E


   
F

FX : Foreign Exchange or currency
   
G

GTC : This means good until cancelled. Basically if you place an order as GTC it will continue to stay in the market until it has been filled by hitting the price you placed it at or until you decide to cancel it.

GFD : Good for Day an order that will stay in the market until the market closes on that day
   
H

Hedging : This is a term used to explain someone who has the same number of buy positions as to their sell positions on one product. Market movements cannot affect a hedged position, as any profits or losses from one position will be offset by the other position.

High Range : If a product closes near to the high of the day
   
I


   
J


   
K


   
L

Long : Taking a buying position in the market (+1)

Low Range : If a product closes near the low of the day

Limit order : This is a type of order you can place into the market to prevent you having to keep watching the market. You would place an order like this at a price that is in a more favorable position to the current market price. They will be cancelled at the end of the trading day or until you cancel it.
   
M

Moc : Market on Close. This is the closing price of a product

Moo : Market on Open. This is the price at which a product opens

Mid Range : If a product closes near the middle of the trading range
   
N

Neutral : A predicted sideways movement in the market price
   
O

Overbought : A term used to show a bullish view has been wrongly predicted and that the market will change trends

Oversold : A term used to show a bearish view has been wrongly predicted and that the market will change trends

Open : This term someone who has a position that is affected by the movements of the market
   
P

Pip/Tick : The smallest possible price movement of a product
   
Q
 
   
R

Rally : When there is a continuous increase in price of a product it is said to be on a rally

Reversal : If the market is moving in one direction and suddenly changes it is said to have posted a reversal up/down

Resistance : A level at which it is predicted the market will take a downward action
   
S

Short : Taking a selling position in the market (-1)

Sideways : If a products price remains constant it is said to be moving sideways

Support : A level at which it is predicted the market will take an upward action

Stop Loss order : This type of order is placed (usually when you have one open position) to prevent losses. You place this in a less favorable market price to the current market price. This means if the market hits this price you will be losing money but by placing this order you are protected if the market continues to drop past this point

Spread : The spread is the difference in the price between the bid and ask or buy and sell price

Stochastics and the RSI : Technical Analyst specialists
   
T

Tick Value : This is the dollar value of the pip of a product. It depicts the amount of profit or loss one single pip movement has on a product

Two-way Quote : A quote which consists of two prices the bid and the ask. It is quoted with a buying price and a selling price with the two figures separated by this symbol / E.g. EUR/USD 1.3140/45. In this case the 40 is the bid 45 is the ask

Trading Range : This is the amount of pips a product has moved within a day. It is the difference between the high and the low of the product

Top : The high price
   
U

Upside Target : A predicted higher price target
   
V

   
W

   
X

   
Y

   
Z