Ask (Offer) Price The price of the seller. The price on which the client can buy the currency interesting him (the greater figure in the bilateral quotation).

Bar Chart. This is the image of the price schedule in the form of a styled diagram.

Bear. The participant of the market playing on the reduction of prices.

Bear Market. The "bear" market describes reduction of prices (quotations).

Bid Price. The price of the buyer. The price on which the client can sell the currency interesting him (smaller figure in the bilateral quotation).

BOE. Bank Of England

BOJ. Bank Of Japan

Breakout. Break of a rate above a level of resistance or below a level of support.

Broker. An individual or a firm that acts as an intermediary, putting together buyers and sellers for a fee or commission. In contrast, a 'dealer' commits funds and takes one side of a position, hoping to earn a spread (profit) by closing out the position in a subsequent trade with another party.

Bull. A participant of the market playing on increase of the rate.

Bull Market. Bull Market is the market described by a rise in prices (quotations).

Commercial bank Such banks conduct the main volume of currency transactions on the FOREX market. These banks can execute a purchase/sale of currency for their clients. Also, these banks can execute buy and sell transactions independently with their own means. They accumulate market request for currency conversion, and also for the attraction of means and place with them with other banks.

Commission. Commission of the broker for conducting operations on behalf of the client.

Commodity. The goods traded at Commodity Exchanges by standard .

CPI. CONSUMER PRICE INDEX

Currency Swap. Swap is the difference between the interest rates when opened and closed overnight. The swap can be positive or negative depending on the interest rates.

Day Order. Orders that are opened and closed within one day.

Day Trading. The trading operations made within one day.

Dealer. A dealer is the person or company who commits the funds and takes one side of the position hoping to earn profit by closing a deal in a trade with another party.

Divergence. Divergence between the tendencies in the market, represented by the price schedule and the schedule of the technical indicator.

Double Bottom. The figure of the technical analysis when the rate fell to the same level twice, and then rose again.

Double Top. Figure of the technical analysis when the rate rose to the same level twice, and then fell again.

Elliott Wave Analysis. Method of a technical expertise of the markets, based on wave theory (Ralph Nelson Elliott).

Fundamental Analysis The fundamental analysis uses macroeconomic parameters of economy for forecasting a situation in the market.

Foreign Exchange - The purchase or sale of a currency against sale or purchase of another.

Forex - Foreign Exchange. Gap Gap is a break in the market. The range of the prices inside of which there were no quotations, forms a break on the price schedule.

Hedging. A combination of short and long positions on different pairs which reduces the risks.

Leverage Also called margin. The amount used in a transaction to fulfill the required security deposit.

Liquidity. The ability of a market to accept large transaction with minimal or no impact on price stability.

Long Position. Long position (in relation to the same currency). Open position where the quantity of the bought currency exceeds the quantity of the sold currency.

Limit order - An order to buy or sell a specified amount of a currency at a specified price or better.

Liquidation - Any transaction that offsets or closes out a previously established position.

Liquidity - The ability of a market to accept large transactions.

Margin call - A demand for additional funds to be deposited in a margin account to meet margin requirements because of adverse future price movements.

Margin - For currencies a deposit made to the forex firm on establishing a futures position account.

Moving Average - A way of smoothing a set of data, widely used in price time series.

Pip - Minimum fluctuation or smallest increment of price movement.

Position - The netted total commitments in a given currency. A position can be either flat or square (no exposure), long, (more currency bought than sold), or short ( more currency sold than bought).

Profit Taking - The unwinding of a position to realize profits.

Resistance Point or Level - A price recognized by technical analysts as a price which is likely to result in a rebound but if broken through is likely to result in a significant price movement.

Risk management - The identification and acceptance or offsetting of the risks threatening the profitability or existence of an organisation. With respect to foreign exchange involves among others consideration of market, sovereign, country, transfer, delivery, credit, and counterparty risk.

Spread -
(l) The difference between the bid and ask price of a currency.
(2) The difference between the price of two related futures contracts.

Stop loss order - Order given to ensure that , should a currency weaken by a certain percentage, a short position will be covered even though this involves taking a loss. Realize profit orders are less common.

Support levels - When an exchange rate depreciates or appreciates to a level where (1) Technical analysis techniques suggest that the currency will rebound, or not go below; (2) the monetary authorities intervene to stop any further down ward movement. See resistance point.

Swap price - A price as a differential between two dates of the swap.

Swap - The simultaneous purchase and sale of the same amount of a given currency for two different dates, against the sale and purchase of another. A swap can be a swap against a forward. In essence, swapping is somewhat similar to borrowing one currency and lending another for the same period. However, any rate of return or cost of funds is expressed in the price differential between the two sides of the transaction.

Swissy - Market slang for Swiss Franc.

Whipsaw - Term for where a trader takes a position, then has to move against it triggering stop loss limits and liquidation of positions, then having to move in the original direction. Normally occurs in volatile markets.

Working day - A day on which the banks in a currency's principal financial centre are open for business. For FX transactions, a working day only occurs if the bank in both financial centre's are open for business (all relevant currency centers in the case of a cross are open).