Glossary

A company which acts as a mediator between sellers and buyers in return for specified commission. In the foreign exchange market, most of these companies only benefit from the differences between the selling and buying prices.

A technical tool drawn between three successive crests or troughs to estimate the levels of support and resistance that the price is expected to rebound from.

It is a type of broker companies which uses electronic networking to connect the buyers and the sellers and to manage transactions directly, without the presence of a third party between the traders and the market.

It is a financial candlestick chart whose opening price is equal to or a little higher or lower than its closing price. It comes at the end of a direction to show the probability of its rebound. It expresses the confusion between sellers and buyers.

It is the price at which an immediate transaction is completed at the foreign exchange market.

It is a general term for the Swiss Franc.

It is the price at which the investor buys. It also represents the price which is used by the executor to sell.

It is the price which the investor uses to sell. It also represents the price which the executor uses to buy.

The opening price is the price at which a security first trades upon the opening of an exchange on a given trading day

The price of a security at the end of a business day in a financial market.

A currency pair includes the two currencies involved in a single transaction. The first currency of the currency pair is called the "base currency" and the second currency is called the "quote currency". Each currency pair has an exchange rate which represents what should be paid of the quote currency to get one unit of the base currency

A chart with rectangles (each representing a category) placed next to each other, in which the length of each rectangle represents the amount of data in each category.

It is oldest graphical representation for price movement, which expresses the exchange activity using candle-like shapes. Each candle represents the exchange activity in a specific period indicating the closing, opening and highest price.

It is a chart representing the price movement regardless of the time factor. It consists of a number of columns represented by the letter (X) and the letter (O), where (X) represents the upward direction and (O) represents the downward direction.

It’s a line drawn over pivot highs or under pivot lows to demonstrate the prevailing direction of price.

It represents the rising trend and is drawn below the price as it connects between ascending troughs (two troughs or more)

It is a line representing the declining trend. It is drawn above the price and connects between two declining crests (two crests or more).

It is a tool for technical analysis consisting of three trend lines used to determine support and resistance areas.

The options contract is a contract that gives the holder the right (without obligation) to buy or sell a specific currency at a specific rate during a specific period in return of paying a deposit to the option provider.

It is an indicator invented by John Bollinger. It consists of a moving average surrounded by two lines below and above, which are calculated using standard deviation. This indicator is used to measure the degree of variation (volatility) of the given prices and areas of selling and buying saturation.

It is a general term for the US Dollar. The name refers to distinctive green color of the Dollar.

It is a general term for US dollar/Japanese yen pair (USD/JPY)

A take profit is the amount of money you intend to make in a trade. In your order, you specify a price at which you will close your trade.

It is a type of Doji candlesticks whose upper shadow is very long. Its opening price equals to its closing price and it appears at the end of the rising trend to indicate the probability of its rebound.

A trading system that benefits from the price difference for the same share, commodity or currency, by trading it at different places. This type of trade became more difficult due to the technological development in the recent years.

It is a system for exchange rate, where the exchange rate is determined based on the extent of supply and demand in the foreign exchange market.

It is the process of trading at the stock markets at high risk trying to expect the market trend to achieve large and quick profit.

It is a statistical measure of the extent of variation of price in a specified period. The degree of volatility increases as the speed and extent of price movement increases either upwards or downwards and vice versa.

It is the process of decreasing the par value of the currency with reference to the prices of gold and foreign currencies.

An economic theory that is used to estimate the required currency transaction so that the exchange rate is equal to the purchasing power of its currency.

It is the central bank of the United Kingdom (Britain). It issues currency and oversees the nation’s monetary policy.

It is the central bank of Japan. It issues currency and oversees the nation’s monetary policy.

It is the central bank of Canada. It issues currency and oversees the nation’s monetary policy.

Foreign exchange market, which is the market to exchange foreign currencies to benefit from the up and down price movement

Foreign exchange market, which is the market to exchange foreign currencies to benefit from the up and down price movement

It is a system for exchange rates where the currency exchange rate is fixed in comparison to another currency, a group of currencies or gold.