Forex Glossary

Forex Definitions: The Industry’s Most Important Terms Explained

Forex Glossary

Forex Definitions: The Industry’s Most Important Terms Explained

AED
UAE Dirham. The currency of the United Arab Emirates. 
Affiliate
An Affiliate is a member of the corresponding 24Domino Partners' program, who directs online traffic to 24Domino and benefits from the trading of his/her referrals. 
AFN
Afghani. The currency of Afghanistan 
ALL
Lek. The currency of Albania.
AMD
Armenian Dram. The currency of Armenia.
ANG
Netherlands Antillean Guilder.  The currency of Curaçao and Sint Maarten (Dutch part)
AOA
Kwanza. The currency of Angola.
Appreciation
A currency is said to ‘appreciate’ when it strengthens in price in response to market demand.
AUD
Australian Dollar.  The currency of Australia, Christmas Island, the Cocos (Keeling) Islands, Kiribati, Nauru, Norfolk Island and Tuvalu.
Balance
The amount of money in the account, excluding the profit/losses from your current open positions.
Base Currency
The first currency in a Currency Pair. It shows how much the base currency is worth as measured against the second currency. For example, if the EUR/CHF rate equals 1.6215 then one EUR is worth CHF 1.6215 In the FX markets, the EUR is normally considered the ‘base’ currency for quotes, meaning that quotes are expressed as a unit of 1 EUR per the other currency quoted in the pair. The primary exceptions to this rule are the British Pound, the USD and the Australian Dollar.
CAD
Canadian Dollar. The currency of Canada.
CHF
Swiss Franc. The currency of Switzerland and Liechtenstein.
Currency Pair
The two currencies that make up a foreign exchange rate. For Example, EUR/USD
Currency
Any form of money issued by a government or central bank and used as legal tender and a basis for trade.
Currency symbols
AUD – Australian Dollar CAD – Canadian Dollar EUR – Euro JPY – Japanese Yen GBP – British Pound CHF – Swiss Franc
Cross Currency Pairs
A pair of currencies that does not include the U.S. dollar. For example: EUR/JPY or GBP/CHF.
Commission
A transaction fee charged by a broker.
Commodities
A commodity market trades in goods such as coffee, cocoa, and mined products such as gold and oil.
Deposit
The option to add a sum of money to your account (Minimum deposit amount is $10)
Depreciation
A fall in the value of a currency due to market forces.
EUR/VEURO
The official currency of the Eurozone, which consists of 19 of the 28 member states of the European Union: Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain.
FX
Foreign Exchange.
Foreign Exchange (Forex, FX)
The simultaneous buying of one currency and selling of another.
GBP
Pound Sterling. The currency of United Kingdom of Great Britain and Northern Ireland, Guernsey, Isle of Man, Jersey
Indices
An index measures the performance of a basket of securities intended to replicate a certain area of the market, such as the Standard & Poor's 500.
Introducing Broker
A person or corporate entity which introduces accounts to 24Domino for a fee.
Instrument
Instrument also known as financial instruments are assets that can be traded. Currencies, Indices and Commodities are all instruments that you can trade.
Inflation
An economic condition whereby prices for consumer goods rise, eroding purchasing power.
JPY
Yen. The currency of Japan.
KYC
KYC means “Know Your Customer”. It is a process by which 24Domino obtains information about the identity and address of its customers. We will require : 1) Proof of Identity, could be a drivers license or passport and 2) Proof of residence, this could be a copy of your utility invoice.
Lot
A unit to measure the amount of the deal. The value of the deal always corresponds to an integer number of lots.
Long position
A position that appreciates in value if market prices increase. When the base currency in the pair is bought, the position is said to be long
Leverage
Also called margin. The ratio of the amount used in a transaction to the required security deposit.
Margin
The required equity that an investor must deposit to collateralize a position.
Maximum Risk
Is the amount of money you are willing to deposit and are willing to risk losing. You will never lose more than the amount you deposit.
Open position
An active trade with corresponding unrealised P&L, which has not been offset by an equal and opposite deal.
Profit/Loss
The actual “realized” gain or loss resulting from trading activities on Closed Positions, plus the theoretical “unrealized” gain or loss on Open Positions that have been Mark-to-Market.
Pips
The smallest unit of price for any foreign currency. Digits added to or subtracted from the fourth decimal place, i.e. 0.0001. Also called Points.
Personal Income
Measures an individuals’ total annual gross earnings from wages, business enterprises and various investments. Personal income is the key to personal spending, which accounts for 2/3 of GDP in the major economies.
Period
Period is actually an Expiration time that marks the moment when the position you open expires and closes automatically.v
Quote
An indicative market price, normally used for information purposes only.
Risk Management
The employment of financial analysis and trading techniques to reduce and/or control exposure to various types of risk.
Risk
Exposure to uncertain change, most often used with a negative connotation of adverse change.
Rate
The price of one currency in terms of another, typically used for dealing purposes
Stop
Stop is where you can close the position at the moment you feel its best.
Swap
The overnight or rollover interest (which is earned or paid) for having open positions running up to the next trading day.
Spread
The difference between the bid and offer pricesv
Transaction Date
The date on which a trade occurs.
Transaction Cost
The cost of buying or selling a financial instrument.
Uganda Shilling
The currency of Uganda.
Unemployment Rate
Measures the total workforce that is unemployed and actively seeking employment, measured as the percentage of the labor force.
USD
US Dollar. The currency of the United States of America, American Samoa, Bonaire, Sint Eustatius and Saba, the British Indian Ocean Territory, Equador, El, Salvador, Guam, Haiti, the Marshall Islands, Federated States of Micronesia, the Northern Mariana Islands, Palau, Panama, Puerto Rico, Timor-Leste, the Turks and Caicos Islands, United States Minor Outlying, British Virgin Islands, U.S. Virgin Islands.
Withdraw
Remove or take away your money from you balance account. Note that in order to withdraw any money you will need to upload : 1) Proof of Identity, could be a drivers license or passport or ID and 2) Proof of residence, this could be a copy of your utility invoice not older than 3 months.
XAF
CFA Franc BEAC. The currency of Cameroon, The Central African Republic, Chad, The Congo, Equatorial Guinea and Gabon.
XAG
Silver
XAU
Gold
Yen/JPY
The currency of Japan.

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