Terminology

A
Accrual Accrual: The accumulation of interest and discounts generated by swap deposit (arbitrage) transactions in forward foreign exchange transactions.
Adjustment policy adjustment: government behavior, generally manifested as changes in domestic economic policies to deal with imbalances in income and expenditure or adjust the country's exchange rate.
Analyst: A person who is engaged in the analysis of company data, economic data, or price icons to make trading recommendations.
Appreciation: The rise in the price of a country's currency due to increased market demand is called "appreciation."
Arbitrage arbitrage: refers to the reverse trading of the same number of positions in the relevant market while buying or selling an investment product, so as to arbitrage the gains brought by small price fluctuations between different markets.
Asian central banks: Asian central banks: It is a private profitable monetary and financial institution established by public authorities in Asian countries or regions. It has the characteristics of both intergovernmental organizations and non-governmental organizations. It is the central bank of central banks in Asian countries and regions. Bank.
Asian session Asian market: 23:00 – 08:00 (Tokyo).
Ask/Offer Price (retail buyer): Refers to the price at which the market is ready to sell a product. Two-way quotation is carried out at the "buy/sell" price. The market maker selling price is also called the retail buying price. In foreign exchange transactions, it means that the trader can buy the basic currency at this price, which is the number on the right in the quote. For example: EUR/USD is quoted at 1.0762/64, the base currency is Euro, and the dealer's selling price is 1.0764, which means that you can buy 1 Euro with 1.0764 US dollars.
AUS200: Australian Standard & Poor's 200 Index.
At Best best price trading: an order to ask the trader to buy at the lowest price or sell at the highest price.
At or Better transaction at this or better price: an order to trade at a certain price or better.
Aussie: Also known as "Oz" or "Ozzie", which means the "AUD/USD" currency pair.
B
Balance of trade: The difference between a country’s exports minus imports.
Bar chart: A type of foreign exchange chart, there are 4 important components: the highest and lowest prices that constitute the vertical height, the opening price (displayed as a short horizontal line to the left of the vertical line) and the closing price (displayed as A short horizontal line to the right of the vertical line).
Barrier option: The main function of this option is to automatically form other trading options when interference occurs. The degree of change in the financial option standard is very peculiar. Once the price of the priority guarantee bond reaches an obvious level, this barrier option will become quite active or disappear.
Base currency: refers to the previous currency in the currency pair. Quotations are usually expressed as the value of a unit of base currency in other currencies. For example, if USD/CHF=0.9720, it means that 1 US dollar (base currency) is worth 0.9720 Swiss francs. In the foreign exchange market, the U.S. dollar is usually placed at the top of a currency pair as the "base currency" of a quotation, that is, the quotation is expressed as the value of 1 U.S. dollar in other currencies. Except for the British pound, the euro and the Australian dollar (their exchange rate against the U.S. dollar usually puts the U.S. dollar at the bottom).
Base rate: It is an interest rate that has a universal reference effect in the financial market. Other interest rates or financial asset prices can be determined based on this basic interest rate.
Basing stationary period: refers to the period in which the trading prices of stocks etc. change little or even remain unchanged.
Basis point: A unit of measurement used to describe the smallest change in product prices.
Bearish/Bear market Bearish/Bear market: Unfavorable price trends, causing the market to go down is called a bear market, because the bear is a pessimist on Wall Street. A bear market is the opposite of a bull market. It is said that when a bear wants to attack or attack others, the bear’s eyes will look downward, so the bear market is used to compare the meaning of a decline. For example, "We are bearish on the EUR/USD", which means that we believe that the EURUSD will fall.
Bears: A bearish trader who believes that the price will fall and holds a short position.
Bid Price: The price at which the market is preparing to buy a product. Two-way quotation is carried out at the "buy/sell" price. In foreign exchange transactions, the bid price means that the trader can sell the base currency at this price, which is located on the left of the currency pair quotation. For example: EUR/USD 1.0762/64, the base currency is Euro, and the purchase price is 1.0762, which means you can sell 1 Euro at 1.0762 US dollars.
Bid/ask spread: The difference between the buying and selling prices.
Big figure: refers to the first two or three digits of foreign exchange quotations. For example, if the bid and ask price of USD/JPY is 120.06/08, then 120 is the major part. Similarly, EUR/USD is quoted at 1.0762/64, with 1.07 being a large number. Since the majority of the exchange rate usually fluctuates less frequently, traders often omit it when making verbal quotations. The EUR/USD quote is 1.0762/64, and the general oral quote is read as "62/64".
BIS Bank for International Settlements: A syndicate composed of central banks in Britain, France, Germany, Italy, Belgium, Japan and other countries, Morgan Bank representing the interests of the U.S. banking sector, and Citibank in New York and Chicago. According to the Hague International Agreement in May 1930 Jointly established and headquartered in Basel, Switzerland. It is an international organization dedicated to international monetary policy and fiscal policy cooperation. It is composed of central banks from more than 50 countries.
Black box: refers to the design of a trading strategy in advance, and then compile it into a computer program, and use the computer to execute the trading strategy that the human brain thinks up. This strategy is based on the past law of price movement, chart patterns or signals or fundamentals Or summarized by the law of motion generated by the report, it can be a trend following mode, a counter-trend mode, or other trading modes such as cycles, which determine the timing, price, and quantity of orders.
Blow off The price rose rapidly and then fell, and the bubble head: the same amount of upward movement brought about by the capitulation selling. That is, the shorts admit defeat and flatten the remaining short positions.
BOC: Central Bank of Canada.
BOE: The Central Bank of the United Kingdom.
BOJ: The Central Bank of Japan.
Bollinger bands Bollinger bands: a tool used by technical analysts. The channel draws two standard deviations on each side of the moving average, and is often used to indicate support and resistance levels.
Bond bond: is a kind of debt investment. Investors borrow money from entities (companies or governments) that need funds at a specific interest rate and period. Investors can obtain a certificate, that is, a bond, which sets out the interest rate that the investor can obtain ( Coupon) and the date of repayment (maturity date).
Book: In a professional trading environment, the book is an overview of all positions of the dealer or the trading desk.
British Retail Consortium (BRC) shop price index British Retail Consortium Shop Price Index: An indicator that measures the level of inflation by investigating different retailers. This indicator only measures changes in the prices of goods purchased in retail stores.
Broker: Refers to an individual or company acting as a middleman who has a relationship with buyers and sellers for the purpose of collecting fees or commissions. On the contrary, the "trader" manipulates funds and establishes a long or short position, hoping to close the position in a subsequent transaction with the other party to earn a spread (profit).
Buck: Used to refer to the dollar base currency pair of 1 million units or market jargon collectively referred to as the US dollar.
Bullish / Bull market Long market / bull market: support the market to strengthen and the price to rise. For example: "We are bullish on EUR/USD" This sentence means that we believe that the Euro will rise against the U.S. dollar. Investors are optimistic about the market and expect the market price to rise, so they buy when the price is low and sell when it rises to a certain price to obtain the difference. Generally speaking, people usually call a market that maintains an upward trend for a long time as a bull market/long market. The main feature of changes in the bull market is a series of ups and downs.
Bulls: Traders who expect prices to rise and hold long positions.
Bundesbank Deutsche Bundesbank: The Central Bank of Germany.
Buy: Also called "long", it refers to buying a certain currency, which is bullish.
Buy dips Buy dips: Waiting for a callback trend with a 20-30 point increase, which is a phased transaction.
C
Cable GBP/USD: An industry term that refers to GBP/USD. It is called "Cable" (meaning cable in English) because the exchange rate was originally transmitted via Atlantic cable in the mid-19th century.
CAD Canadian Dollar: Also known as Loonie or Funds.
Call option Call option: seeking currency transactions between the two countries. Traders sell a low-interest currency and buy a high-interest currency to gain interest rates between the two countries during the duration of the transaction.
Canadian Ivey Purchasing Managers (CIPM) index Canadian Ivey Purchasing Managers (CIPM) Index: A monthly index published by Richard Ivey Business School to observe the business climate in Canada.
Candlestick chart: A chart that indicates the trading range of the day and the opening and closing prices. If the opening price is higher than the closing price, the rectangle between the opening and closing prices is solid. If the closing price is higher than the opening price, the chart area is hollow.
Capitulation Capitulation: At a certain point in time at the end of the extreme market, a trader holding a losing position closes out. This situation often indicates that the expected market reversal will soon come.
Carry trade arbitrage trading: long a relatively high-interest currency and short another low-interest currency to make a trading strategy. For example: New Zealand dollar/yen is a well-known arbitrage transaction for a period of time. The New Zealand dollar is a high-yielding currency, while the yen has a lower yield. Traders who wish to take advantage of such spreads will buy New Zealand dollars and sell Japanese yen, or go long New Zealand dollars/yen. If the NZD/JPY downtrend lasts longer, it is most likely due to changes in interest rates. At this time, arbitrage trading is called "unwinding."
Cash market: The market in the actual target market on which the derivative contract is based.
Cash price: The price at which the product is delivered immediately, that is, the price of the product at that moment.
CBs: Abbreviation for Central Bank
Central bank: A government or quasi-government organization that manages a country's monetary policy. For example: The Central Bank of the United States is the Federal Reserve Bank, and the Central Bank of Germany is the Bundesbank.
CFDs: CFDs are a kind of financial derivatives that can show changes in the value of underlying assets (such as indexes or stocks). It allows traders to leverage their funds (by trading much higher than the nominal principal of the account funds) and provide them with all product benefits when the trader does not actually own the securities trading products. In practice, if you buy a CFD transaction for $10 and then sell it for $11, you will get a price difference of 1 yuan. Conversely, if you short the transaction and sell it for $10, and then buy it back for $11, you need to pay a difference of 1 yuan.
Chartist: A person who looks for price trends and predicts future trends by applying charts, graphs, and interpreting historical data.
Choppy disordered market: limited follow-up is not conducive to the short-term price trend of aggressive trading.
Cleared funds: funds that can be used to clear a transaction at any time.
Clearing: The process of closing a transaction.
Closed position Closed position: Financial contract exposure (such as currency) no longer exists. The position is closed by offsetting the open position through the reverse equivalent transaction. Once the position is closed, the position is "closed".
Closing: The process of stopping (closing) an existing trade by performing an operation that is completely opposite to that of an open trade.
Closing price Closing price/closing price: The price at which the product position is closed. Also refers to the price of the last transaction in a day's trading session.
Collateral: An asset given to guarantee a loan or guarantee performance.
Commission commission: fees charged for buying or selling products.
Commodity currencies Commodity currencies: The currencies of economies whose exports rely heavily on natural resources; often refer specifically to the currencies of Canada, New Zealand, Australia and Russia.
Components: The US dollar currency pairs that make up the cross trading (for example, the euro/US dollar component is US dollar/Euro + US dollar/Japanese yen). Selling crosses through components refers to alternately selling USD currency pairs to establish a cross position.
COMPX: stands for NASDAQ composite index.
Confirmation: A communication document between the parties to a transaction, which contains the terms of the transaction.
Consolidation: a period of interval fluctuations after the price has moved sharply.
Construction spending US construction spending data: The US Department of Commerce's Census Bureau releases monthly data to measure the amount of new construction spending.
Contagion Economic Contagion: Refers to the tendency of an economic crisis in one market to spread to other markets.
Contract: The standard unit of foreign exchange transactions.
Contract note: A confirmation letter that outlines the exact details of the transaction.
Contract size: the nominal amount reflected in the contract for difference.
Controlled risk: A situation where the risk is limited due to a guaranteed stop loss.
Convergence of MAs Moving Average Convergence: A technical observation that describes the convergence of moving averages in different periods of time. Normally, this situation indicates the price consolidation.
Corporate action: An event that changes a stock ownership structure (and usually stock prices). For example, acquisitions, dividends, mergers, stock splits and spin-offs are all corporate actions.
Corporates: Companies that enter the market for hedging or financial management. Companies are not always price-sensitive like speculative funds, and their investment interests are quite long-term, which makes the company's investment interests less valuable for short-term transactions.
Counter currency: The latter currency in a currency pair.
Counterparty: A party involved in financial transactions.
Country risk: Risks associated with cross-border transactions, including but not limited to legal or political circumstances.
CPI: A measure of inflation, short for Consumer Price Index.
Crater fell: the market is ready to sell off sharply.
Cross (eg Yen cross) (such as the Yen cross): currency pairs that do not include the US dollar.
Crown currencies: refers to the Canadian dollar, Australian dollar, British pound and New Zealand dollar (all are the currencies of the Commonwealth of Nations).
CTAs: Refers to commodity trading advisors (commodity trading advisors), speculative traders whose behavior is similar to short-term hedge funds, and often refer to traders or futures-oriented traders in Chicago.
Currency Currency: any form of currency issued by a country's government or central bank as a legal tender or transaction basis.
Currency Pair: The two currencies that make up the foreign exchange rate. For example, EUR/USD (Euro/U.S. dollar).
Currency Risk: The risk caused by the reverse change of exchange rate.
Currency symbols: A symbol that represents a specific currency and consists of three letters, such as USD (United States dollar).
Current Account: Total trade balance (exports of goods and services minus imports), net production factor income (such as interest and dividends) and net transfer payments (such as foreign aid funds). Among them, the total balance of trade is the core element of the current account.
D
Day Trader Day Trader (short-term trader): Refers to a speculative trader in the commodity market who usually closes a position to make a profit on the same day.
Day trading: Open and close trading positions for the same product within one day.
Deal transaction: A term that indicates that the transaction is executed at the current market price. It is a real-time transaction, which is the opposite of an order.
Dealer: An individual or company that is a party to a transaction or a dealer. As one party to the position, the banker makes a profit from the spread (profit) by liquidating the other party's trading position. In contrast, brokers are intermediaries or intermediary companies that make profits by earning commissions or transaction fees from traders.
Dealing spread: The difference between the buying and selling prices of the contract.
Defend a level: The behavior taken by one or a group of traders to prevent the product from trading at a certain price or price zone. This is usually because they have established interests, such as barrier options.
Deficit: In short, expenditure is greater than income.
Delisting: Delisting of stocks listed on the exchange.
Delivery: The two parties in a foreign exchange transaction actually exchange currencies according to the contract.
Delta (the fourth letter of the Greek alphabet. Its uppercase is Δ, lowercase is δ): the ratio between the change in product price and the change in the underlying market price.
Department of Communities and Local Government (DCLG) UK Housing Price Data: DCLG’s monthly survey releases data to monitor price trends in the UK real estate market using a large amount of sold housing data.
Depreciation exchange rate decline: the currency price decline caused by market reasons.
Derivative: A contract whose value changes with the price of related or underlying stocks, futures or other investment instruments. Options are the most common derivatives.
Devaluation Currency devaluation: usually by the government to deliberately lower the price of the country's currency.
Discount Rate: The interest paid to the central bank by a qualified depository institution for borrowing short-term loans directly from the central bank.
Divergence divergence: In technical analysis, the price trend and the kinetic energy momentum are in the opposite direction, such as the price rising and the kinetic energy falling. Divergence is divided into positive divergence (bull divergence) and negative divergence (bear divergence); both types of divergence indicate changes in price trends. Positive/bull divergence occurs when the stock market price builds a new low and the momentum indicator starts to climb. Negative/bear divergence occurs when the stock market price reaches a new high, but the indicator fails to follow up and falls instead. Divergence is frequently seen when price movements are excessive, often ending in price reversals and following kinetic energy indicators.
Divergence of MAs moving average divergence: A technical observation method that describes the distance between moving averages in different periods of time, usually predicting price trends.
Dividend: The amount of company earnings distributed to the company’s shareholders, usually expressed in terms of value per share.
DJIA or Dow (DJIA or Dow): Dow Jones Industrial Average or US 30 Index abbreviation.
Dove: Dove refers to data or policy views that imply looser monetary policy or lower interest rates, which is the opposite of hawks.
Downtrend Downtrend: The price movement consists of lower lows and lower highs.
DXY$Y: represents the dollar index.
AND
European Central Bank (ECB) European Central Bank (ECB): the central bank of the new European Union.
Economic Indicator: Data released by the government or authoritative organization that can show the current economic development speed and stability. Common economic data include: employment rate, gross domestic product (GDP), inflation level, retail sales, etc.
End Of Day Order (EOD) Order of the day: An order to buy or sell a currency pair at a certain price. The validity period is before the market close on the day (usually 5pm Eastern Time).
EST/EDT: New York time zone, which means Eastern Standard Time/Eastern Day Time.
ESTX50: A name for the Euronext 50 index.
EURO: Eurozone currency.
European Monetary Union (EMU) European Monetary Union (EMU): A collective term for a combination of policies aimed at regulating economic and fiscal policies among EU member states.
European session European session: 07:00 – 16:00 (London time)
Eurozone Labor Cost Index Eurozone Labor Cost Index: An annual rate index that monitors the inflation level of compensation and benefits received by domestic workers, and is regarded as the main driving force for overall inflation.
Eurozone Organization for Economic Co-operation and Development (OECD) Leading Indicator: The leading indicator of the Eurozone Organization for Economic Co-operation and Development (OECD) is an indicator published monthly by the Eurozone Organization for Economic Co-operation and Development (OECD). It measures the overall economic conditions of a country by integrating ten leading indicators (average working hours per week, new orders, consumer expectations, construction permits, stock prices and spreads, etc.).
EX-dividend ex-dividend: the purchaser gives up the next dividend and attribute the equity to the seller's stock purchase form.
Expiry date / price Expiry date / price: The exact date and time when the option will expire. The two most common options expiration times are 10:00am EST (also known as 10:00 New York time or New York time) and 3:00pm Tokyo time (also known as 15:00 Tokyo time or Tokyo time) . Due to the hedging and liquidation of the spot market, there is often an increase in market activity during these periods.
Exporters: A company that sells goods on a global scale, which in turn allows them to become foreign currency sellers and domestic currency buyers. It often refers to large Japanese companies such as Sony and Toyota, which are natural sellers of USD/JPY, in order to exchange USD from global merchandise sales.
Extended Excessive movement: The market movement is considered too fast and swift.
F
Factory Orders: The total value of durable goods and non-durable goods orders expressed in U.S. dollars. It is more in-depth than the durable goods orders announced earlier than each month.
Fair value: The difference between the derivative contract price and the underlying spot market price. Fair value means that there is no arbitrage opportunity between the two prices.
Fed Federal Reserve: Refers to the Federal Reserve Bank of the United States, the Central Bank of the United States or the Federal Open Market Committee (FOMC).
Fed officials: Fed officials: Refers to members of the US Federal Reserve Board or regional Federal Reserve Bank governors.
Figure / The figure: Refers to the "00" part of the quotation such as 00-03 (1.2600-03). The above quotation can be read as "figure-3". If someone sells at 1.2600, the trader can call it "the figure was given" or "the figure was hit".
Fill transaction: A situation where the order is fully executed.
Fill or kill if all transactions are completed, otherwise canceled: If all transactions cannot be completed, the order will be canceled.
First In First Out (FIFO): All open positions are closed according to the "first in, first out" principle. That is to say, for all positions in a currency pair, the positions will be closed according to the order of opening positions, the positions held first are closed first, and the positions held later are closed later.
Fix order: A large amount of foreign exchange must be bought or sold in order to execute the operation of a commercial customer's order. There are about five fixed orders in a foreign exchange trading day. Normally, these fixes will cause related market fluctuations. The usual trading hours are as follows (all in New York time):
5:00am-Frankfurt
6:00am-London
10:00am —— WMHCO World Market Trading Company
11:00am-WMHCO (World Market Trading Company), more important
8:20am-IMM (World Money Market)
8:15am-ECB (European Central Bank)
Flat or flat reading: The economic data reading is consistent with the level of the previous period, and there is no change.
Flat / square Closing/clearing: A foreign exchange trading term used to indicate a position where all reverse transactions have been settled. For example, if you buy $500,000 and then sell $500,000, the current position status is closed.
Follow-through Follow-through trend: after the directional breakthrough of a particular price level, new buying or selling interest appears. The lack of follow-up trend generally means that the directional trend will not last forever or will reverse.
FOMC: The Federal Reserve's Open Market Committee is the Federal Reserve's policy-making committee.
FOMC minutes FOMC minutes: Written minutes of the meeting issued 3 weeks after the FOMC policy development meeting. The minutes allow us to gain insights into the FOMC's deliberations and trigger a strong reaction from the market.
Foreign Exchange (forex, fx): Forex or FX for short, refers to the purchase of one currency and the sale of another currency at the same time.
Forward forward foreign exchange transaction: refers to a transaction in which both parties to the transaction establish the transaction exchange rate and establish the contract in advance based on the spread of the transaction currency, and then actual delivery is due in the future.
Forward Points: The number of points that need to be added or subtracted from the current exchange rate in order to calculate the forward exchange rate.
FRA40: An index name of the 40 largest listed companies (market capitalization) on the French Stock Exchange. The FRA40 index is also called the CAC 40 index.
FTSE 100: UK 100 Index Name
Fundamental Analysis Fundamental Analysis: Analysis of economic and policy aspects in order to distinguish the future price trend of a certain investment product.
Funds: refers to the types of hedge funds that are active in the market; it is also another industry term for the US dollar/Canadian dollar currency pair.
Future: A contract between the two parties to execute a transaction at a certain time in the future at the current agreed price.
Futures Contract: A standard contract in which both parties agree to deliver a commodity or investment product at an agreed price at a certain time in the future. The basic difference between futures and forward transactions is that futures are generally traded on futures exchanges (Exchange Traded Contracts, or ETC for short), while forward transactions are over-the-counter (OTC) transactions. Over-the-counter (OTC) refers to any transaction conducted on a venue other than the exchange.
G
G7 Group of Seven: The seven largest industrial countries in the world, namely the United States, Germany, Japan, France, the United Kingdom, Canada and Italy.
G8 Group of Eight: G7 plus Russia.
Gap / Gapping gap: The market moves sharply, and the price skips multiple levels without any transactions. Gaps often occur after economic data or news releases.
Gearing (also known as leverage or margin) leverage ratio (leverage or margin): leverage ratio means that the nominal principal of the transaction exceeds the amount of funds required to hold the trader's account. Expressed as a percentage or fraction.
GER30: An index of the 30 largest listed companies (market capitalization) on the German stock exchange, another name for the DAX index.
Given Selling: Refers to the acceptance of the buying price or the appearance of interest in selling.
Giving it up gives way: the technical level is lost in the struggle.
GMT: stands for Greenwich Mean Time, the most commonly referenced time zone in the foreign exchange market. In contrast to Daylight Saving Time/Daylight Saving Time, GMT remains unchanged throughout the year.
Going Long: The act of buying stocks, futures, and currencies for investment or speculation purposes.
Going Short: refers to the action of selling currency, securities or other investment products without holding currency, securities, etc.
Gold (Gold's relationship): It is generally believed that the price of gold is in the opposite direction of the US dollar. The long-term correlation coefficient is negative most of the time, but the reliability of the short-term correlation is not as good as the former.
Gold Certificate Gold Certificate: A certificate of property rights used by gold investors to buy or sell gold. The characteristics are: no gold coins are minted, no gold coins are in circulation, and paper bonds are actually in circulation.
Gold Contract: The standard unit of gold trading is a gold contract. One gold contract = 10 troy ounces.
Good for day Valid on the day: An order that will become invalid at the end of the day if it has not been executed.
Good'Til Cancelled Order (GTC) is valid until cancelled (GTC): An order with a specified transaction price will remain valid until it is executed or cancelled.
Good'til date Valid before expiration: An order type that will expire if the transaction is not executed before the selected date.
Greenback: Another name for the dollar.
Gross Domestic Product (GDP): refers to the total value of goods and services produced by all economic activities in a country, whether domestic enterprises or foreign-funded enterprises. GDP reflects the speed of a country's economic growth (or retreat), and is regarded as the most macroscopic indicator for observing economic output and growth.
Gross National Product (GNP): The total value of goods and services produced by all nationals in a country during a certain period of time.
Guaranteed order: An order type that protects traders from market gaps and guarantees that the order is executed at the preset price.
Guaranteed stop Guaranteed stop: A stop loss order that guarantees that the position will be closed at the specified level when the market price reaches or exceeds your specified level. Even when there is a gap in the market, this order type can still guarantee a stop loss.
Gunning, gunned breakthrough: Refers to investors who push to trigger a known stopping point or market technology level.
H
Handle large number: every 100 points starting from 000 in the foreign exchange market.
Hawk-hawkish hawks: When a country’s monetary policy makers think that interest rates need to be raised, they will be called “hawks”. Generally, raising interest rates is used to fight inflation or curb excessive economic growth. It can also take both into consideration. By.
Hedge hedging: also known as hedging, refers to one or more positions established to reduce the risk of holding positions.
"Hit the bid" transaction: Refers to a promise to sell or buy at the reached selling price.
HK50 / HKHI: Hong Kong Hang Seng Index.
I
Illiquid is illiquid: the market volume is very small. Lack of liquidity often brings changeable market conditions.
IMM International Money Market: The International Money Market, that is, the currency futures market in Chicago, is an integral part of the Chicago Mercantile Exchange.
IMM futures International Money Market (IMM) futures: traditional futures contracts based on the establishment of major currencies against the US dollar. IMM futures are traded on the Chicago Mercantile Exchange.
IMM session International Money Market (IMM) trading hours: New York time 8:00am – 3:00pm.
INDU: Abbreviation of Dow Jones Industrial Average.
Industrial Production: To measure the actual output of manufacturing, mining and public utilities, the basis for measurement is quantity, not amount. It is very sensitive to economic development or contraction, and is a leading indicator of employment status and income status.
Inflation: Inflation refers specifically to the economic form of rising prices and declining consumer purchasing power.
Initial Margin: Initial deposit of funds as a guarantee for establishing a position.
IPO: The initial public offering of shares by a private company is short for Initial Public Offering.
Interbank Rates: mutual foreign exchange quotations between large multinational banks.
Interest: A cash adjustment that reflects the impact of the notional asset value under the CFD position due to or received.
Intervention Currency intervention: The central government intervenes in the market to influence currency prices. Joint intervention refers to the behavior of multiple central banks to jointly control the exchange rate.
Introducing Broker:
INX: stands for S&P 500 Index
ISM Manufacturing Index "Institute of Supply Management" Manufacturing Index: An index that evaluates the manufacturing situation in the United States. It measures the overall situation of the manufacturing industry by investigating the future production status, new orders, inventory, employment, and delivery. The value uses 50 as the dividing line. Above 50 indicates the state of expansion, and below 50 indicates the state of contraction.
ISM Non-Manufacturing "Institute of Supply Management" non-manufacturing index: The service industry outlook survey index that accounts for another 80% of the US economy outside the manufacturing index. The value also uses 50 as the dividing line. Above 50 indicates the state of expansion, and below 50 indicates the state of contraction.
J
Japanese Economy Watchers Survey Japanese Economy Watchers Index: A measure of the confidence level of direct service industries such as waiters, drivers, and beauticians. If the reading is greater than 50, it is getting better.
Japanese Machine Tool Orders: The total value of new orders from machine tool manufacturers. Machine tool orders are a measure of machine manufacturing demand and a leading indicator of future industrial production conditions. If the performance is strong, it means that the manufacturing industry is in good condition and the economy is in an expansion stage.
JPN225: Nikkei Index.
TO
Keep the powder dry Be prepared, just in case: restrict trading in a harsh trading environment. Regardless of whether it is a turbulent or a small market environment, it is best to keep the market outlook before a clear market opportunity emerges.
Kiwi: Another name for the New Zealand dollar.
Knock-ins: An option strategy that requires the underlying product to trade at a certain level before the purchased option takes effect. The knock-in option is used to reduce the additional cost of the underlying option. Once the option takes effect, it can trigger hedging behavior.
Knock-outs: An option that can invalidate previously purchased options when the underlying product is traded at a certain level. Once the transaction is touched at the expiration level, the underlying option no longer exists, and the hedge may have to be lifted.
THE
Last dealing day: The last date on which a specific product can be traded.
Last dealing time: The last time when a particular product can be traded.
Leading Indicators: Data used to predict future economic activity.
Level: A price area and special price, which is of great technical significance or is based on the interest of an already placed order/option.
Leverage: Also called margin, it refers to the increase of the total amount of tradable funds compared to the amount of your actual funds, expressed as a percentage or a fraction. It allows traders to trade much more than the nominal principal of all their actual funds. For example, a leverage of 100:1 means that the nominal principal that you can trade is 100 times the funds in your account.
Leveraged names: Leveraged traders: short-term traders, mostly referring to hedge fund groups.
Liability debt: potential loss, debt or financial debt.
LIBOR: London Interbank Offered Rate, that is, the inter-bank lending rate.
Limit order: If you want to trade a currency pair at a better price than the current price (the selling price is higher than the current price, and the buying price is lower than the current price), you can do so by setting a stop-profit order. For example, if the current exchange rate of USD/JPY is 120.28/30, the take profit order can be set to buy USD/JPY below 120 (for example, 119.50).
Liquid market: A market with sufficient liquidity: a market with ample numbers of buyers and sellers that can bring smooth price movements.
Liquidation: The act of closing a position through a reverse transaction and a position equal to an open position.
Liquidity: The ability of a market to accept large transactions without affecting price stability or to a minimum.
London session London market: 08:00 – 17:00 (London)
Long position: A position that appreciates as the price rises. When buying the base currency of a currency pair, the position held is a long position.
Longs: A trader who buys a product.
Loonie: U.S. dollar/Canadian dollar industry slang.
Lot Lot: A unit representing the number of transactions. The total value of the transaction varies with the size of the lot.
M
Macro Macro Trader: The longest-term trader who makes trading decisions based on fundamental analysis. A "macro" trader's holding time can last from 6 months to many years.
Manufacturing Production: The total output value of the manufacturing sector in industrial production. Only the output value of 13 sub-sectors directly related to the manufacturing industry is counted. Manufacturing accounts for about 80% of the total industrial production.
Margin: The funds that investors need to deposit with the dealer as a margin for a position.
Margin Call: When the exchange rate fluctuates in the opposite direction and the deposited margin cannot maintain the position, the broker or dealer will issue a margin call to the investor, requesting the investor to continue to deposit a certain amount of margin to maintain the position.
Market capitalization: The total value of a listed company, equal to the stock price multiplied by the number of shares issued.
Market Maker: Also known as a market maker or market maker. In layman's terms, a trader who holds an inventory of financial products and promises to maintain two-way trading of these financial products.
Market order: An order to buy or sell at the current price.
Market Risk Market risk: The risk caused by changes in market prices.
Mark-to-Market: Mark-to-Market: A pricing method that re-evaluates the value of all open positions based on the current market price. The adjusted value will determine the amount of margin required.
Maturity: The delivery date or validity period of a financial product.
Medley report Medley report: Refers to Medley Global Consulting Company, a market consulting company that has close ties with global central banks and government officials. Because they claim to hold inside information from policymakers, their reports often cause currency market volatility. The accuracy of the report has not been stable for a long time, but the market will still pay attention to them in the short term.
Models: Same meaning as black box. A system for automatic trading based on technical analysis or other quantitative calculations.
MoM monthly growth rate: the abbreviation of monthly growth rate, which reflects the change of the previous month's level in one month of consecutive months.
Momentum: A series of technical studies that assess the speed of price changes (such as RSI, MACD, stochastic indicators, and momentum lines).
Momentum players: Traders who follow the intraday trend and try to get 50-100 points of profit.
N
NAS100: A name for the Nasdaq 100 index.
Net Position: The value of the long position held and the short position subtracted.
New York session New York market: 8:00am – 5:00pm (New York time).
No touch: If the market has not touched the pre-set barrier level, an option that pays a fixed amount to the holder.
NYA.X: stands for the NYSE Composite Index.
O
Offer (also known as the Ask price): The market price at which the product is sold in the market. Make a two-way bid/sell quotation. The dealer selling price is also called the retail buying price. The bid price represents the price at which the trader buys the base currency on the right side of the currency pair. For example, in the quotation of USD/CHF 0.9720/23, the base currency is USD and the purchase price is 0.9723, which means that you can buy 1 USD at 0.9723 Swiss francs.
Offered market: If a market is called a "sell" transaction, it shows that a currency pair is attracting substantial selling interest or a large number of selling.
Offsetting transaction: A transaction that is used to offset some or all of the market risk of open positions.
On top: Intent to sell at the current market order price.
One Cancels the Other Order (OCO) Two-way order (OCO): refers to setting two orders at the same time, when one is executed, the other is automatically cancelled.
One touch Pay: If the market hits a preset barrier level, an option that pays a fixed amount to the holder.
Open order: An order that will be filled when the price reaches the specified target price. Usually set to "valid until cancelled".
Overnight Position: The position that has been held until the next trading day.
Option: A financial derivative that gives traders the right but not the obligation to buy or sell a product at a specific price before a specific date.
Order: An order that requires a transaction at a specific price.
Order book: A system that shows the market capacity of traders who are willing to buy and sell at non-existing best prices.
Over the counter (OTC) Over the counter (OTC): Any transaction made outside the exchange.
Overnight position: A position that has been held until the next trading day.
P
Paid payer: refers to the seller of the market transaction.
Pair currency pair: a foreign exchange jargon that compares one currency with another.
Paneled selling is emerging: a fairly violent round of selling.
Parabolic market: The market fluctuates in a very short period of time, and the trend accelerates in a similar semi-parabolic form. The direction of the parabola may be upward or downward.
Partial fill Partial fill: Only part of the transaction is executed.