Financial Glossary

Financial Glossary





ASK RATE
Demand, will sell at a certain price.


BAR CHART
Type of graphs, which consists of four main points: (1) the highest price (2) lower price, which make up the vertical column; (3) opening price, which is marked with a little horizontal line to the left column; (4) And the rate of closure, which is marked with a little horizontal line at the right column


BEAR
Who believed that market prices will decline.



BEAR MARKET
Characterized by low market prices.


BID RATE
Supply, the desire to buy at a certain price.


BROKER
The broker deals with requests for investors to buy and sell financial instruments for a commission.


BULL
People believed that market prices heading upwards.


BULL MARKET
Market prices are high.


CABLE
Words exchanged between the traditional public show traffickers exchange rate British pound / dollar.


CALL RATE
Interest rate on procurement contracts: Journal of interest rates among banks.


CANDLESTICK CHART
Type of graphs, which consists of four key rates: the highest price, the lowest price, the price of opening and closing price. Wax and columns composed of the price of opening and closing price. To clarify that the opening price higher than the closing price, leaving empty-Amud, but if the price was higher than the closing price of opening a column full.


CFD (Contract for Difference


Holding versus differences: agreement between the two parties to exchange differences, when concluding the contract, between the opening price and the final price of the contract, multiplied by the number of (units) specified in the contract.




CLOSING PRICE


Another rate reached contract at the end of the trading session.






COMMODITY


Any product designed and approved by the trading market circulation, according to instructions market circulation.






CONTRACT MONTH


Clarifies month and year that ends contract with the authority to order. And also called (Delivery Month).






CONVERTIBLE CURRENCY


Convertible currency: The currency can be converted, without any hindrance, into another currency, or for gold, without special authorization from the competent authority.






COMMISSION


Operations fees charged by financial intermediary.






CONFIRMATION


The close correlation between the various parties to the process described by certain conditions of that process.






CONTRACT


The standard unit of trading.






CORRECTIONS


Opposite direction of price movements, which often result from reaping the profits. It moves technique to be occur and can be measured by the amount before they occur through the measurement (Fibonacci correction ratios).






COUNTER - PARTY


The other party: the party or the bank, which is contracted with him.






CREDIT CHECKING


Examining the financial solvency: financial solvency is a critical element when trading, because of a shift of funds from party to another, it is important to make sure that the other party's ability to complete the deal, and are examining the financial solvency when the agreement on price, if were not solvency will not be a good deal.






CROSS RATE


Opposite the exchange rate / counter: is the rate of exchange between the two currencies are usually formed from the individual exchange rates for both currencies against the U.S. dollar price.






CURRENCY


Any kind of money issued by government or central bank and used as a cash of trade exchanges.






CYCLES


Periodic changes since returning to a certain point the beginning. It is believed that certain movements of prices back and show once again, depending on index (Fibonacci Sequential numbers), which can be predicted to occur. And is usually used in estimating the timing of the expected market movements or adverse changes.






DAY TRADING


It is a term indicating the opening and closure of certain specific centre centres) during the trading day one.






DEALER


Key party person or party opposed to the commercial operation. And represents the party's basic part of the process as it seeks to reap profit from the difference between the price of supply and demand through the process of closure of the centre later with another party. But contrary to the financial broker who represents a person or company collects the buyer and seller with each other and for a fee or commission.






DERIVATIVES


"Trading in derivative transactions" are derived from trading in some commodities like other existing shares, bonds, currencies and other commodities and derivatives transactions can be made either through the markets traded or outside (OTC) derivative transactions note that the credit risk of introducing a broader view of dealing directly with the other party instead of Financial market, and includes examples of derivative transactions on the options (Option), swaps and other interest rates.






DIVERGANCE


When it fails two kinds of indicators in determining the direction of a certain price, this is an indication of a significant correction move to the market or to move the opposite direction. And often ratify all the expectations of all formations (double-tops/bottoms) and (triple-tops/bottoms).






EURO


Currency used within the European Union (EMU-European Monetary Union) as an alternative to what was (ECU-European Currency Unit).






EURODOLLARS


Stocks dollar in European banks: American dollars deposited with the bank / banks outside the United States even if these banks is a subsidiary of U.S. Bank, and, accordingly, this deposit is outside the jurisdiction of the United States.






EUROPEAN CENTRAL BANK (ECB




Central Bank of the European Union's new.




EXPIRATION DATE


The last day of trading in futures contracts.






FEDERAL RESERVE (Fed)


Central Bank of the United States of America.






FILL OR KILL


Executed or cancelled: a customer fails to specify the price of execution or cancellation.






FLAT / SQUARE


Level / equal: to be level or equal status means that there is no longitudinal trend contracts (Long) or contracts direction short (Short), or that there is no open centres, or that all centres to void for each other.






FLOATING INTEREST RATE


A floating interest rate: the interest rate that fluctuates according to the movements of market interest rates.






FOREIGN EXCHANGE MARKET (Fx / Forex




Trading foreign exchange market: buying and selling foreign currencies, where the majority of exchange rates against the U.S. dollar, and if dealing in other currencies (such as the British pound / Swiss franc), they then known as exchange rate derivative (Cross Rate).




Forex (See FOREIGN EXCHANGE MARKET




A brief word to denote the market trading of foreign currencies (see above).




FORWARD


(Held to) deal beginning on the date agreed upon future, that any "contract of three months" of the British pound / dollar starts after 3 months from the date of the transaction.






FRONT AND BACK OFFICE


Dealing room front and rear: "Trading in the front room" usually means the room in which they are traded, while mean "background dealing room" where the settlement of transactions taking place.






FUNDEMENTAL ANALYSIS


Study the moves in the market based on the principle of "causes and consequences" This is based on several factors responsible for news and world events, political and commercial






FUTURES


Trafficking term: traffic on bond or currency or goods by value or future delivery as at the date in the future.






FUTURES CONTRACT


Futures contracts: a legal standard contract for the sale or purchase of a commodity or financial Mtsndhat etc. at a later date the future.






Fx (see FOREIGN EXCHANGE MARKET




A brief word to denote the market trading of foreign currencies (see above).




GTC (Good Till Cancelled




Saleh until cancelled: is filed with the mediator to complete the purchase or sell a specified price, and demand continues to exist until cancelled by the customer.




HEDGING


Protection centres: the process of a financial package to protect against the risk of loss in another deal. The example of this is the direction the short sale contract (Short Selling) to reflect the transaction were previously purchased or purchase contract term trend (Buying Long) to reflect the deal with short-selling trend (Short Sale).






HIGH / LOW


High / low: is the highest or the lowest price for the commodity financial been traded during the trading day one.








INDICATED AND FIRM PRICES


Prices shown and confirmed: that the price "set out" is the rate of non-"uncertain". The rate is the rate set forth for information purposes only, and to ensure the installation must be confirmed.






INITIAL MARGIN


The margin of principle: the amount of deposit, which must be submitted to the client before any deal.






INSTRUMENT


Contract are traded him.






INTEREST RATE SWAPS (IRS




Usefulness of currency swaps: trade deal Parties shall exchange fixed and floating interest with each other, and this deal can be seen as parallel tracks, one of two loans such as fixed and the other a floating rate may be set against a floating interest rate between banks in London while the differences between the price paid the appropriate direction at every renewal. In the case of currency swaps benefit certain currency exchange, it is not essential but useful amounts of currency.




INTRODUCING BROKER (IB




Mediator ID: is a person or company seek or accept requests for the purchase or sale of futures contracts and spot or requests for foreign currency exchange, but does not accept money or other assets from clients to support these requests.






LEVERAGE


Crane Finance: is the ability to control large amounts of currency / commodity by a relatively small capital.






LIBOR


Interest rate offered between banks in London: This is a reference point used in currency swap transactions to determine the floating of derivative transactions are also used as a reference point for the majority of trading operations around the world.






LIMIT ORDER


Is given in advance, for selling the future, at a price agreed upon previously.






LIQUID / ILLIQUID MARKET


Market liquid or liquid: liquid market is the case when it sprawl between the price of supply and demand little. It also could mean that the number of financial institutions that are trading the market is high. Others liquid market is the market that are the opposite.






LIQUIDATION


Close center is open through the interview process.







LOT


The term given to the number of contracts, for example: the purchase of 5 contracts / Lotus.






MANAGED ACCOUNT / DISCRETIONARY ACCOUNT


Account Period: an arrangement, which operates the account holder to issue a bill to appoint a person is often an intermediary to make trading decisions on his behalf.






MARGIN


Margin: is the amount withdrawn temporarily from the client account, when opening the financial deal, a way of security to cover the losses that occurred that may result from trading operations carried out by the client and returned to the client account when closing the deal.






MARGIN CALL


Request to add funds: requests from the customer deposit additional funds to restore the level of deposits required to minimize the safe side of the potential adverse price fluctuations in the market.






MARK TO MARKET


Determine the value of the centres under the market: is the way whereby assessment centres open to the customer as market price at a specific time of each working day.






MARKET MAKER


Market Maker: This is updated introduce market where sales prices and purchase of private valid and therefore the management book, which has traded himself.






MARKET RISK


Vulnerability to market fluctuations.






MINIMUM PRICE FLUCTUATION


Least of possible price change occurs when trading in a particular contract, and are usually called "Tech" (tick). And are less alone to change the price of a commodity traded






OFFSET


Instead: Take another center for the opposite of the Centre or the initial opening.






ONE CANCELS OTHER ORDER


Is cancelled is another matter: The situation in which implementation is the automatic cancellation of an earlier order.






OPEN POSITION


Center Open: deal, which has not been settled contrast DEAL counterproductive.






ORDER


Is: order or instructions to conduct trading.






OVER-THE-COUNTER MARKET (OTC




Trading outside the exchange market: is the situation is through the purchase and sale of goods such as financial and foreign currency bonds and other items outside the financial market, by telephone and other means of communication.




PIP or POINTS


Points: Based on the context, it means one basis point to the price of any 0.0001






POSITION


Center: It is a center of the market will express his buy or sell.






QUOTE


The market price is used only aim of knowledge






RATE


Certain price for his work compared with other currencies, and used this kind of view prices traded.






RESISTANCE (RESISTANCE LEVEL




Resistance level of resistance: the price at which it expects to complete the sale.




RISK


Exposure to changes unspecified amount, which usually bear the negative concept. (Risks)






ROLLOVER


Recycling: a situation where the transfer deal to another historic value (Value Date) based on the interest rate differential between the common currency trading.








SETTLEMENT


The registration process for a deal certain specific records, indicating all parties concerned. For registration FOREX transactions could include or not include a physical exchange of currencies.






SHORT


"Short-oriented": Centre market where it sells a commodity customer does not possess at the time, that is, before they sell are bought. If the shops "dollar short" the dollar is sold certain price level is expected to later buy when the price decline.






SPECULATOR


Rackets: market participants trying to reap profits by buying and selling futures contracts, due to expectations of price movements later.






SPOT


Instant: show usually the market price now, (the price within two days) of bonds / financial commodities.






SPREAD


The difference: the price differential points (PIPS), between the price of supply and demand price.






STERLING


In the vernacular the term given to the pound sterling.






STOCK INDEX


Equity Index: Index used to measure and reflect changes in the value of a selected group of shareholders.






STOCK MARKET


Stock market: the market is being bought and sold shares.






STOP ORDER / STOP LOSS ORDER


Ordered to stop / stop loss is: is the sale or purchase of pre-determined and implemented when it reaches the market to set the price of a certain customer.






SUPPORT or SUPPORT LEVEL


Supportive / pro level: the level of price, which is expected by the conclusion of the procurement process.






SWAPS


Swaps: using currency swaps to replace another currency then reversed again during a specified period of time. Refers to the calculation of the price of barter interest rate spreads between the two main currencies.






TECHNICAL ANALYSIS


Technical analysis: analysis based on market movements across study graphics and movement of average prices and volume of exchanges and other technical indicators.






TICK


The smallest increase permitted to change the price of the commodity during the trading session.






TREND


The general direction of the mobile market, as reflected peak times of movements of rising and falling market and end price movements.






TICKER


The agenda and / or graphic or both presents the chronology of each trading of certain commodities. It also presents the cursor moves toward the market. There are indications of daily trading, while pointing out the daily movements are no indicators of vulnerability indicators historic movements of long-term. Traffickers tend to use graphics and offering direction of market movements in a simple and easy.






VOLUME


The number of contracts traded during a certain period of time.






YARD


In the vernacular the term given to the bullion markets.