You should meet in your investment journey many terms and phrases that are not understood by you, so the BankMal will provide you with a list focused on all the commercial and financial terms that you may need to facilitate the way in the money market and we are aware that you have encountered such terms before but you were not Know its meaning and here we will facilitate this process to start:
1. Balance - BALANCE
It is a set of deposits and profits minus losses, used for trading and to open more deals or to withdraw profits.
2. Ask price - ASK PRICE
Is the minimum price a trader is prepared to accept in return for buying a certain asset.
3. The Bear Market - BEAR MARKET
Is the situation that the market is in a state of decline, as it is the bear tax when attacking from top to bottom.
4. Bid price - BID PRICE
The highest price is willing to trade in. Pay for buying a certain asset.
5. Revolutionary Market - BULL MARKET
This name is called when the market is in a high position relative to the bull company directing the blows from the bottom up.
6. Candles - CANDELSTICK CHART
This method is the method of bidding on the ion charges which easily show you the price of the currency from the opening and closing, as well as the highest and lowest value within a certain time frame.
7. Core currencies - BASE CURRENCY
Is the first currency in the pair, and always represents an independent unit means for example if the USD / JPY pair price is 115.7 this means that $ 1 equals 115.7 ¥. There are 4 major currencies: EUR, GBP, JPY and CHF
8. Financial value - EQUITY
It is the amount that is in your account and available for trading, and also the user's guarantee to calculate the amount of your margin, when you have open positions swinging your financial value index and all positions are closed the balance of the financial are equal.
9. Available margin - FREE MARGIN
This means that the amount remaining in your account after deducting the margin used and available for trading, and therefore is a variable factor and stop the requests for financial value, this amount is the maximum amount allowed to lose in the transaction.
10. Leverage
Investors in the Forex market use the leverage to benefit from exchange rate fluctuations between two different countries, and in the Forex market it is the only place where investors can get the highest leverage.
You can also use the leverage to trade positions larger than the amount in your account. And expresses the amount of leverage by, for example:
50: 1, 100: 1, 500: 1
Suppose you have $ 1,000 in your account to trade and you are trading in positions sizes of $ 500,000 / JPY, your leverage will equal
11. Graphs - LINE CHART
Select a time frame and see the movement of the financial asset by tracking its value on the graph.
12. Financial Hedging - HEDGING
This means opening a buy-and-sell process at the same time on the same currency pair in order to limit losses from a market turnaround.
13. Lotte - LOT
A unit used in pallets to determine the amount of base currency used in contracts, and may vary depending on the size and type of account.
14. Pending Order - FUTURE ORDER
Is the order to buy and sell a currency at a predetermined price by you. If the currency price actually reached the price you specified, the order will be executed and if it does not arrive, the order will not be executed. A pending entry order may be used when a currency pair is expected to rise or fall at a certain price.
15. Immediate Execution - INSTANT EXECUTION
Open a deal at the specified price you ordered for immediate execution, the transaction will not be opened if the specified price is not available.
As the units of measurement of weight when buying a particular commodity, the lot for the sale and purchase of currencies is the fixed unit that we deal with the only difference is that the log is constant can not be divided in the sense that it must be a multiplication of the true one.
16. ORDER - MARKET EXECUTION
Is the process of opening a deal on the best price available in the market, in the event that this price is not available then you will get a contract when the second best contract.
17. Margin - MAEGIN
The margin, also known as the "margin trading", is a deposit placed by the trader as collateral to keep an open deal, which is not a fee to be paid by the trader. It is not a cost to the transaction; it is part of your balance, For margin deposit. This value represents the traded contracts, and the margin size required to maintain the open trade will be determined ultimately based on the volume. As volumes grow, margin requirements increase exponentially.
18. Point - PIP
Is the smallest unit to measure the coin, equal to one of 10 thousand pairs.
For example, if the EUR / USD = 1.3500
Then it became: EUR / USD = 1.3501 with .0001 change
We say that the euro rose one point against the dollar one pip.
When you trade a 1-lot trade (equivalent to 100,000 units of the base currency), the value of the point is $ 10. The value of the pip is changed from one currency pair to another. If the dollar is traded as the base currency, then the value of the pip is the exchange rate. for example:
(0.0001 / 1.3500) * 100,000) means that the point value is 7.407 euros or 10 dollars.
19. Hybrid currencies - QUOTE CURRENCY
Which is known as the second currency in the pair, according to which is measured the value that is required to buy one unit of the base currency, for example:
If a pair is 115.7 it means USD / JPY that ¥ 115.7 equals $ 1.
20. Liquefaction - STOP OUT
This is the limit at which transactions are closed after you receive the margin call and take no step to improve your account balance and raise the margin above 20%.
21. Technical Analysis - TECHNICAL ANALYSIS
Is an analysis method used to predict the future direction of the market by examining historical data on price and volume traded and used by traders to receive this trading information as well as mathematical indicators to make their trading decisions.
22. Profit Collection Order - TAKE PROFIT
The trader is pre-positioned and is similar to the Stop Loss order. You have already set a price as a target to take profit and get out of the deal at a profit if the market reaches that price. For example, if you open a $ 50 deal and you want to achieve 20% 60 $, when the market reaches this price the transaction will be automatically closed.
It is worth mentioning that you can get the book of your economic lexicon issued by the BankMal which contains more than 50 meaning of term used in trading operations.