Professional Terms

1. Position

Position is a market agreement, promised to buy and sell the contract in the initial position, buy the contractor is long, in anticipation of the site; sell the contract for the short, in the part.

2. Short

The transaction is expected to fall in the future foreign exchange market prices, that is, according to the current market price to sell a certain amount of currency or options contracts, and other prices fell and then added to the end.

3. Long

Traders expect the future foreign exchange market prices will rise to the current price to buy a certain amount of currency, after a period of time after the exchange rate rise, the higher the price of hedging the contract area, and thus make a profit. This way is the first to buy after the sale of the way.

4. At Par

Neither long nor short, that is called parity or flat. If the investor has no place, or all the parts offset each other, that is called flat.

5. Open Position

Any transaction that has not been paid in real terms or is equivalent to the equivalent or opposite transaction.

6. Closed Position

By selling (buying) the same currency to settle the previously bought (sold) currency position.

7. Hedge

Hedging trading is a concept. As a way of trading, it follows the “market neutral” principle, it is a specific position as a financial vector, the direction of the vector for the open, hedge trading is through different directions of financial instruments to do the open management, Often through the matching position to fit the exposure (arbitrage) to achieve the absolute risk management under the exposure. To find the market or commodity efficiency gap between the formation of arbitrage space, through two or more transactions, the use of hedging mechanisms to avoid risks, so that the market risk to minimize. A simple explanation is the profit and loss of transactions, that is, two related market quotation at the same time, in the opposite direction, the number of considerable, profit and loss transactions.

8. Stop Loss

Stop loss is when a loss of investment to reach a predetermined amount, the timely liquidation out to avoid the formation of greater losses. Its purpose is to limit the loss of investment in a small range.

9. Stop Profit

Stop Profit means that when the stock price rose by a few percent or up to a price, to lighten up. Use this approach can control the profit to a certain height, to maximize their own interests.

10. Interval

The fluctuation of the currency up and down over a period of time.

11. Detrended Price Oscillator

Money in a range back and forth, fluctuating.

12. Shift Up / Shift Down

Price target, the price above the resistance level, the price below the support level.

13. Bottom

Under the important support level.

14. Long Run / Medium Run / Short Run

Long: one month to more than half a year (more than 200 pips); medium: one week – one month (100 pips to 200 pips); short: one day – one week (30 ~ 50 pips).

15.Bull Market / Bear Market Bull Market / Bear Market

Bull market for long-term one-way up; bear market for long-term one-way market down.

16. ChoppyMarket

Prices rise or fall the rate is very small, the price change is not big, the market price is like a pegged like, such as leather toughness. In the cattle market is often the volume is also very small, cow is a kind of buyers and sellers in the balance of power when the price of the market performance.

17. Thin Market / Active Market

Thin Market refers to a small amount of trading, volatility is not large; active refers to large trading volume and volatility.

18. Up / Down

Monetary value due to news or other factors have a clear direction of development.

19. Deadlock

Pan potential is unknown, the interval is narrow.

20. Correction

After a period of rapid rise or fall, encountered resistance or support, began to fluctuate up and down slightly, the rate of about 15%.

21. Make Correction

In the trend of price fluctuations, the middle of the reverse market.

22. Bottoming

When the price down to a place, a period of time is not volatile, narrow range (such as box finishing).

23. BreakPosition

Break through the support or resistance (generally need to break above 20-30 pips).

24. False Breakout

Suddenly breaks the support or resistance position, but immediately goes back.

25. Uper

Price level that expected to be sold .

26. Roll-up / Drill-down

Test the price level.

27. Panic Selling

Heard some kind of message and square the position, regardless of the price is good or bad.

28、Long Covering / Short Covering

Was holding short position, then turns to the long position; was originally holding a long position, due to news or data, turns to short position

29. One-day Reversal

Was holding (Long) / (short) position, and then hold opposite position and more than the opening price.

30. Selling Pressure / Buy Gas

Rallies of the single sellers; pay a low price.

31. Stop Buying

As short before the direction of the foreign exchange market sold out, the exchange rate does not fall up, forced to have to buy back short.

32. Lock Position

Is one of the practices of margin operation, is the same number of trading lots, but not open.

33. Wandering Order

Blew single refers to the unit in a loss state, not stop or closed, let the floating, holding the chances waiting for the market back. This is the first big account killer, than Shigekura also powerful killer.

34. Good-Till-Cancelled Order

By the trader to retain the order, at a fixed price to buy or sell. The order is valid until the customer is canceled.

35. Limit Order

In accordance with the limit or below the limit to buy, or in accordance with the limit or higher than the price to sell.

36. At Sight (On Demand)

A transaction is traded immediately, but the funds are usually completed within two days of the transaction.

37. Renewal

According to the difference of exchange rate of the two currencies, the settlement of a transaction is extended to another.

Risk Disclaimer:Forex margin trading carries a high level of risk to your capital, may not be appropriate for all investors. Investors shall carefully consider your financial condition and affordability before trading any financial product. Trading could lead to profits as well as loss of your investment capital, you may lose all your initial invested capital. Please ensure you've read all the risk warning before trading.