Foreign exchange trading involves a lot of professional terms, which are different from our usual speech. Especially, foreign exchange novices may not know what these terms mean when they come into contact with these terms. Today, we will sort out common foreign exchange special terms in foreign exchange trading.
Binary option: If it is profitable to buy, binary option buying is more like standard European buying, except that it must be settled in the counterparty’s currency at maturity.
Delivery: The settlement of a transaction by delivery of a financial instrument or currency.
Delivery date: The expiration date of the contract, that is, the time when the transaction is settled by currency exchange.
The delivery date is often referred to as the starting date.
Delivery risk: Delivery risk is used to indicate that the counterparty is unable to complete its trade.
In OTC transactions, there is a very high risk when the transaction is not secured by both parties.
Cross transaction: A cross transaction is a transaction in which the buyer’s broker and the seller’s broker are the same person or both parties belong to the same company.
Cross trading: Forex trading involves two currencies, neither of which is the base currency.
Cross hedging: The technique of using financial futures to hedge different but related cash instruments.
This technique is based on consistent price changes across tools.
Cross rate: The exchange rate between two currencies, usually consisting of the exchange rate of the two currencies. Most currencies use the exchange rate with the United States dollar.
Intervention: The act of a central bank to influence the value of its money by entering the market.
Market maker: A financial service provider that creates markets for financial products by offering buy and sell quotes.
Market maker system is a securities or futures trading method that forms trading prices and drives the development of trading with market maker’s quotation.
Correspondent bank: Foreign banks are typical, providing services such as easy transfer of funds to banks that do not have a branch in the relevant centre.
In the United States, this often happens at home because of internal state banking restrictions.
Spread: (1) The difference between the selling price and the buying price of a currency.
(2) The difference between two related futures contracts.
(3) For options, the same underlying currency involves trading in two or more option series.
Quota: A portion of a transaction or structured finance specifically used to borrow from the IMF.
Undervaluation: Generally an exchange rate that is undervalued below its purchasing power level.
Look up: Right here.
Bear: Sell.
Risk margin: Funds deposited in a designated escrow account by a member for the purpose of clearing transactions and controlling risk to the member.
Closing profit and loss: The profit and loss caused by the closing of an intraday position, a realistic surplus or loss.
Settlement of profit and loss: under the daily settlement method without liabilities, it refers to the profit and loss caused by the change of settlement price after the closing of the market, resulting in real capital changes, and directly transferred to the capital account.
Floating profit and loss: intraday profit and loss caused by the latest price bump, not a realistic surplus or loss.
Profit and loss: changes in funds due to price changes are divided into position profit and loss (also divided into floating profit and loss and settlement profit and loss) fighting position profit and loss.
Settlement price: The settlement price is the equalization of the buying price and selling price 10 minutes before the closing of the trading day, and the settlement price is used as the basis for calculating the profit and loss of the day and the open position price of the next trading day.
Profit closing order: The performance of profit closing after the commodity price reaches the expected level.
If the price reaches the set price, a win order will be executed to automatically close the original position.
Gold exchange The unit of calculation for gold trading is the “hand”.
Short jump: The market is stimulated by strong “bullish” or “bearish” news, the price began to jump sharply, in the rise, the opening or the lowest price of the day is higher than the previous day’s closing price called “upward jump”;
When a decline occurs, the opening or high of the day is below the previous day’s closing price.
Support level: The price has a downward trend within a certain period of time. The price that falls to a certain price range and stops falling is called the support level.
Resistance level: The price is rising for a certain period of time, and the level at which it stops rising within a certain price range is called resistance.
Summary: What are the technical terms for foreign exchange speculation and what are the terms for foreign exchange speculation?
What are the technical terms of foreign exchange trading? What are the terms of foreign exchange trading?
What are the common technical terms used in forex trading?
I believe you should know a lot now!
