Forex Currency Trading System Glossary of Words Forex Mentor Currency Trading System Professional trader and author Peter Bain's Video Forex Course demonstrates simple yet powerful pivot currency trading systems.

Appreciation - A currency will appreciate when it gains strength in price in direct response to market demand.  Ask Price (Offer) - The price that the market is prepared to sell a specifec currency in a Cross Currency Contract or a Foreign Exchange contract.  an example is --in the quote  USD/CHF 1.5463/35, the ask(offer) price is 1.5435 which means you can buy one US dollar for 1.5435 Swiss francs. Balance of Trade - The value of a country's exports minus the imports. Bar Chart - Is a type of chart which has four significant points:   The high and the low prices -- these form the vertical bar   The opening price -- a little horizontal line on the left of the bar   The closing price -- a horizontal line on the right side of the bar.  Base Currency - This is the first currency in a currency pair.  It shows how much the first currency is worth when measured against the second currency.  There are exceptions to this rule -- the Euro, the British Pound and the Australian Dollar. Bear Market - A market identified by declining prices. Bid Price -  The price that the market is prepared to buy a specifec currency in a Cross Currency Contract or a Foreign Exchange contract. Bid/Ask Spread - This is the difference between the bid price and the offer price. Broker (Stock)- A firm or an individual who put buyers and sellers together to buy and sell stocks.  The broker is paid a fee or a commission, usually from the buyer and the seller.  Bull Market - A market identified by rising prices. Bundesbank - Germany's Central Bank     Cable - Is the name for the Sterling/USD exchange rate. It got the name because of the way rates were originally transmitted in the 1800's - via translantic cable. Candlestick Chart - This is a chart that indicates the trading range for the day as well as the opening price and closing price.  When the opening price is higher than the closing price, the rectangle between the two prices is shaded.  When the close price is higher than the open price, the rectangle is not shaded. Central Bank - Is a government or quazi-governmental organization that manages the monetary policies.  As an example -- the US central bank is the Federal Reserve Bank and the Bundesbank is the central bank of Russia. Chartist - Is an individual who uses charts, and graphs to interpret historical data.    The chartist them find trends and and uses them to predicts future movements. Closed Position - These are exposures in Foreign Curriencies that no longer exist.  Collateral - Is cash given to secure a loan or a position in the Forex Concerted Intervention - The action by several central banks to control exchange rates. Contract - The transaction charged by a broker Cross Currency Pairs - A foreign exchange transaction where one foreign currency is traded against a second foreign currency.  JPY/NZD Cross Rate - This is another name for cross currency pairs. It is also a foreign exchange transaction where one foreign currency is traded against a second foreign currency.  JPY/NZD Currency Symbols - A foreign exchange transaction where one foreign currency is traded against a second foreign currency.  JPY/NZD   NZD - New Zealand   AUD - Australian Dollar   CAD - Canadian Dollar   EUR - Euor   JPY - Japanese Yen   GBP - British Pound   CHF - Swiss Franc Currency Pair - This is the two curriencies that make up a foreign exchange rate.  JPY/USD Day Trader - Speculators who buy commodities which are then traded or liquided prior to the end of the same trading day. Dealer - A firm or an individual that acts as the go-between to a transaction.  the dealer will take one side, hoping to earn a profit by closing out the position in a later trade with another buyer. Devaluation - Usually done by official announcement, this is a deliberate downward adjustment of a currency's price. Economic Indicator - A statistic issued by the government that indicates current economic growth and stability.  The common indicators are -- Gross Domestic Product (GDP), retail sales, employment rates, inflation and more. End of the Day Order (EOD)- An order to buy or sell at a specific price and the order remains open until the end of the business day, usually 5PM ET. European Central Bank - The Central Bank for the European Monetary Union. Federal Reserve - The Central Bank for The United States of America. Fundamental Analysis - The analysis of the economic and political data with the intent of derermining the future movements in a financial market. G7 - The seven leading industrial countries on the globe.  US Germany France Japan UK Canada Italy Going Long - The purchase of currency , stock or commodity for investment or speculation. Going Short - A currency or instrument sold by someone other than the seller. Gross Domestic Product - This is the total value of a country's output, expediture or income that is produced within the physical border of said country. Gross National Product - This is the income earned from investments  and work done abroad coupled with the gross domestic product. Good 'Till Cancelled Order (GTC) - An order to buy or sell at a pre-determined price.  The order remains open until it is filled or until the client cancels. Hedge - This is a position or a combination of positions that helps to reduce the risks of your primary  position. Inflation - An economic condition which makes prices for consumer goods rise.  This rise causes the purchasing power of the consumers to deteriorate. Initial Margin - The initial deposit of collateral that is required to enter into a position as a guarantee on future performances. Interbank Rates - The Foreign Exchange rates that large international banks quote to other large international banks. Intervention - The action by a central bank to manipulate the value of its currency by entering the market. Kiwi - Slang word for the New Zealand Dollar. Leading Indicators - The stats that are considered when predicting future economics.

Leverage - Also referred to as margin, this is the ratio -- of the amount used in a transaction -- to the required security deposit. LIBOR - London Inter Bank Offer Rate.  Banks use LIBOR when they borrow money from another bank.  Limit Order - A order that has restrictions on the maximum price to be paid or the minimin price to be recieved. Liquidity - The financial ability of a market to accept extraordinarily large transaction(s) with minimal to no impact on price stability. Long Position - Whenever the base currency in a pair is bought, the position is described as long. Lot - The value of a deal always corresponds to a whole number of lots and lot is the unit used to measure the value of the deal. Margin - The equity that an investor must deposit as collateral for a position. Margin Call - When a broker or dealer asks for additional funds or some other collateral to guarantee performance on a position that has moved against the speculations of the customer. Market Maker - This is a deal who quotes both bis and ask price(s) and are also ready to make a two-sided market for any financial catalyst. Money Management - The hiring of a person, company or institution as a financial advisor coupled with trading techniques to control and/or reduce exposure to many risks. Offer (ask) - The rate that a dealer is willing to sell a currency.  See also Ask (offer) price  One Cancels the Other Order (OCO) - A designation for two orders -- when one part of the two orders is executed the other part is automatically cancelled.  Open Order - An open order is usually associated with a good 'til cancelled order.  This is an order that will be executed when the market moves to its authorized price. Open Position - An active trade that has corresponding and unrealized P&L, which has not been offset by an opposite albeit equal deal. Over the counter (OTC) - If a transaction is not conducted over an exchange, it is called over-the-counter. Overnight Position - A trade that stay open after the 5:PM close and remains open until the next business day. Order - An instruction to fulfill a trade at a specific rate. Pips - The smallest unit of price for any foreign currency.   The digits added to or subtracted from the fourth decimal place  -- 0.0002.  Pips are also called points. Political Risk - The risks associated with exposure to changes in governmental policy that can have an adverse effect on an invedtor's position. Position - The net total holdings of a specified currency Profit Loss (P/L) - The realized gain or loss that results from the trading activities on Closed Positions plus the theoritical and unrealized gain or loss on the Open Position that have been Mark-to-Market. Rally - The recovery in price after a decline. Range - This is the difference in the highest and the lowest prices of a future during a given trading period.  Rate - The price of one currency compared to another - for dealing. Resistance - The terminology used in a technical analysis.  It indicates a specific level that the analysis predicts when people will most likely sell. Revaluation - As a result of bank intervention --(the opposite of Devaluation) this is an increase in the exchange rate for a currency. Risk - Exposure to inexact change, it is most often used in conjunction with a negative implication of adverse change. Secondary Currency - The currency listed second in a currency pair.  USD/CAD Short Position - An investment position that benefits from a fall in market price.  When the first (base) (USD/CAD) currency in a currency pair is sold, the position is termed as Short. Spot Price - The present market price.  Spread - The distinction between the bid and the offer price. Sterling - Slang term for the British Pound. Stop Loss Order - An order type where an open position is set to liquidate at a specific price.   This is often used to curtail exposure to losses when the market moves against the investors position. Support Levels - The tecnigue used in technical analysis -- that shows a specific price ceiling and floor -- where a given exchange rate will automatically correct itself.  This is the opposite of resistance. Swissy -  Slang term for the Swiss Franc. Technical Analysis - An effort to predict prices ny analyzing all market data - historical price trends and averages, open interest, volumes... Unrealized Gain/Loss - The theoretical gain/loss on Open Positions valued at the current market rates which are determined by the broker in its sole discrimination.  Volatility (Vol) - The statistical measure of a market's price movement over a period of time. Whipsaw - Slang term for a condition of a (highly) volatile market where a sharp price movement is followed almost immediately by a sharp reversal.    Get Printer Ink Cartridges up to 85% Off Ink cartridges and toners for your printer up to 85% off Retail prices. Choose from a huge selection of toners, ribbons and other printer accessories that are hard to find.