Fundamental Analysis: The analysis shows how the value of the currency is affected by relevant economic facts and certain international variables.
Technical Analysis: The analysis examines the historical contribution of money to try determining a pattern to be repeated or any indication of when trends change.
Leverage: The amount by which we can operate in the market, expressed in proportion to our capital invested. If the leverage is 200: 1 we can operate with 200 Sometimes our capital.
Findings: We say that a currency appreciates when the price increases due to excess market demand; is an increase in the value of the currency.
Broker: An agent who handles investors’ orders to buy and sell currencies. For this service, a commission, which depends on the broker and the amount of the charge transaction? This commission is the spread.
Closing a Position: Delete a transaction in our portfolio, by running the opposite operation. For example selling a currency that we had bought or buying a we had sold.
Crossing: Quote of the coin or currency of a country measured in terms of another currency, which is also known as currency pair.
Depreciation: A decrease in the value of a currency due to oversupply of market.
Devaluation: Lower the value of one currency against another currency value, usually caused by an official announcement.
Currency: The name given to the currency of a country.
Forex: The FOREX word comes from the abbreviation of the word in English: Foreign Exchange (Foreign Currency). FOREX is known by the Foreign Exchange Market, one of the largest financial markets in the world, which involves buying and selling currencies international.
Economic Indicator: A statistic that indicates the current growth and stability economy, issued by the government or by a nongovernmental entity (eg Product Gross Domestic, Employment Rates, Trade Deficits, Inflation, etc.).
Margin Call: Request for additional funds in the account to maintain the minimum margin specified to cover adverse movements in market prices.
Market Maker: An agent who is willing to buy or sell at the prices stipulated buy and sell. A market maker runs a trading book.
Initial Margin: The initial deposit of collateral required to enter into a position as guarantee compliance with that position in the future.
Bull Market: A market characterized by a prolonged period of rising prices accompanied by a widespread optimism. (Opposite of bear market)
Bear Market: A market characterized by a prolonged period of falling prices accompanied by widespread pessimism. (Opposite of Bull Market)
Base Currency: The currency in which the investor or issuer maintains the balance of your account; the currency against which other currencies are quoted. In the currency market, usually considered the US dollar the currency `base ‘for quotes, meaning that the quotes are expressed as a unit of $ 1 USD (US dollar) per the other currency quoted in the pair.
Order Cancels Order (OCO): A mode of execution, in which having given two orders (such as a Stop-Loss and Limit) if one is executed, the other automatically canceled.
PIPS: It stands for “Price interest point” (Point of Interest Rates). It is the smallest unit of variation of a currency pair.
Platform: The software of the broker through which purchase and sell currencies foreign.
Position: A position to perform the current operation to a particular currency, expressed for the purchase or sale of the same, providing or detracting from our own.
ASK Price: price currency demand, the price at which the market is willing to sell This currency.
IDB price: price offer on the currency, the price at which the market is willing to buy This currency.
Spread: It is called the difference between the BID and ASK price of a currency. So that simplest, is the price difference between buying and selling price of a currency.
Stop-Loss Order: This is a tool in the Forex platforms by which we can set a determined to close a position we have open to avoid or limit losses.
Take Profit Order: Reverse a “Stop-Loss Order” here we set the price to close a position when we have automatically determined gain.
Volatility: A statistical measure of changes in price movements in the market over time and is calculated using a standard deviation. A high level of volatility implies a higher degree of risk.
Traded Volume: The volume traded, or level of operations in a given period, usually daily or yearly.
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