Glossary

  1. Basic Concepts

    • Account & Balance: Records of transactions and available funds.

    • Appreciation & Depreciation: Increase or decrease in asset value.

    • Arbitrage: Profiting from price differences in different markets.

    • Ask & Bid: Selling and buying prices of an asset.

  2. Market Players & Structures

    • Broker: Intermediary between buyers and sellers.

    • Dealer: Takes one side of a trade, profiting from spreads.

    • Central Banks: Institutions managing a country’s monetary policy.

  3. Market Conditions & Strategies

    • Bull & Bear Market: Rising and falling markets.

    • Hedging: Reducing risk in a trading position.

    • Liquidity: The ability of the market to handle large trades without price instability.

  4. Technical & Fundamental Analysis

    • Bar Chart & Candlestick Chart: Tools used to analyze price movements.

    • Fundamental Analysis: Assessing economic and political data to predict trends.

    • Leading Indicators: Economic metrics predicting future market activity.

  5. Trading Mechanics

    • Margin & Leverage: Using borrowed funds to trade.

    • Lot & Position: Measuring trade size and market exposure.

    • Order Types: Market orders, open orders, and one-cancels-the-other (OCO).

  6. Foreign Exchange (Forex) Terms

    • Currency Pairs: Two currencies traded against each other (e.g., EUR/USD).

    • Cross Rates: Exchange rate between two currencies without involving USD.

    • Forward & Futures Contracts: Agreements to trade an asset at a future date.

  7. Risk Management & Settlement

    • Stop Loss & Take Profit: Setting price points to minimize risk or secure profits.

    • Volatility & Liquidity: Market fluctuations and ease of trading.

    • Clearing & Settlement: Processes for finalizing transactions.