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A trading strategy involving buying and selling of the same financial instrument at the same time whereby due to price differences, one can obtain a risk free profit.
The lowest price that a seller is willing to sell for a security.
An instruction given to a dealer to buy or sell at the best rate that is currently available in the market.
A stop-loss order that must be executed since market price has hit the trigger price.
Slang for the Australian dollar.
Balance is the amount of your capital left with the broker. Even when there is a trade going on, this balance amount will not fluctuate along with the floating profit or loss. If you have opened a position and liquidated it, the amount will be changed in accordance to your profit or loss amount.
The rate at which a central bank is prepared to lend money to its domestic banking system.
Bar charts are a type of chart that display a vertical line for each data point to describe the highest and lowest price for each period of time it represents. Furthermore, horizontal lines are used in conjunction to show the closing and opening price.
The currency in which the operating results of the bank or institution are reported.
The difference between the cash price and futures price.
One per cent of one per cent (0.0001). It is commonly used as a measure of unit for interest rates and other percentages in finance.
It is a trading strategy where a trader takes opposite positions in the cash and futures market with the intention of profiting from favorable movements in the basis.
A market view believes that prices will decline.
A market in which prices decline against a background of widespread pessimism (opposite of Bull Market).
The maximum price that a buyer is willing to pay for a security.
The point at which gains equal to losses in trade positions.
A market view believes that prices will rise.
Bullions are gold or silver that is in the form of bars and ingots of which have to be at least 99.5% pure.
A market characterized by rising prices.
Candlestick Chart is a type of chart that contains a "candlestick" for each period of time it represents. The bottom and top of the box represent the opening and closing while the vertical lines coming out of the boxes represent the lowest and highest price. If the candlestick is showing a rising trend, then the opening price is at the bottom of the box and the closing price is at the top of the box. For a decreasing price trend, the location of the opening and closing price are inverted.
A tool to view the underlying securities’ movements according to different time frames. When a period is selected, the corresponding changes will appear in the active chart. The client terminal has nine chart periods (M1 - indicates one-minute chart; M5 - indicates five-minutes chart; M30 - indicates thirty-minutes chart; H1 - indicates one-hour chart; H4 - indicates four-hours chart; D1 - indicates one-day chart; W1 - indicates one-week chart; MN - indicates one-month chart).
The fee that a broker may charge clients for a trade or transaction.
An agreement to buy or sell a specified amount of a particular product.
Contract for Differences (CFDs) are contracts between two parties whereby it is agreed that the seller will give the buyer the difference between its current value and the value at the end of the contract of an asset agreed upon. These are financial derivatives whose value depend solely on the change of price of an underlying asset meaning no physical asset is purchased.
The month in which a futures contract expires.
Contract Size is the deliverable quantity of a product. The size and the units of measure for each product differs from one another.
Contract Value is the value of an order that moves with the market price. It is largely dependent on three things, the volume the client is purchasing, the contract size and the current market price of the product. It is found by the formula:
Contract Value = (market price X volume X contract size)
It is a selected group of currencies in which the weighted average is used as a measure of the value or the amount of an obligation, it functions as a benchmark for regional currency movements.
The final date by which the underlying commodity for a futures contract must be delivered in order for the terms of the contract to be fulfilled.
It is a security which itself is a contract between two or more parties where its price is dependent upon or derived from one or more underlying assets.
Where the domestic currency is a variable amount and the foreign currency is fixed at one unit.
Equity is the sum of balance and gains and losses.
The Euro is the currency used by the Eurozone.
An execution is the completion of a buy or sell order for a security. There are three basic order execution modes:
An expert advisor is a software program that analyses data and provides trader with buy and sell recommendations that fit within the trader’s strategy.
The final day that a futures contract may trade or be closed out before rollover to next trading period.
The day after which a trader who has purchased a futures contract may be required to take physical delivery of the contract’s underlying commodity. First Notice Day varies by contract; it also depends on exchange rules.
A fixed spread is where the difference between bid and ask of a security stays the same, even while the prices themselves are changing.
When the value of a currency is decided by the market forces dictating the demand and supply of that particular currency.
A floating spread is where the difference between bid and ask of a security constantly changes according to market supply and demand.
Forex is the market in which currencies are traded.
Free margin is the difference of your account equity and the open positions’ margin.
A method of evaluating a security that entails attempting to measure its intrinsic value by examining related economic, financial and other qualitative and quantitative factors.
A futures contract is a contractual agreement that generally trade on a futures’ exchange to purchase or sell a product at a pre-determined price in the future.
Good till cancelled is an order left with a broker. The order remains in place until it is cancelled by the client or filled.
Good till today or day order is an order that if not executed on the specific day (in this case the pending order day) is automatically cancelled.
To provide prompt transfer of moderate amounts of information among experts, as well as organize conflict-free simultaneous working of several experts.
Hedging is a technique to reduce the risk of adverse price movements in an asset. Normally, a hedging consists of taking an offsetting position in the opposite direction for the same product.
Indicators are statistics used to measure past and current conditions as well as to forecast financial or economic trends.
Where the foreign currency is a variable amount and the domestic currency is fixed at one unit.
The smallest amount of money that an investor/trader must initially deposit into a new account.
The deposit required by the broker before a client can trade/transact a deal to have some protection for the broker in the event of default by the client.
Slang for the New Zealand dollar.
The final day that a futures contract may trade or be closed out before delivery of the underlying asset or cash settlement must occur. By the end of the last trading day, the contract holder must be prepared to accept delivery of the commodity, or settle in cash if the position is not closed.
Leverage is the use of a smaller amount of capital to gain exposure to a larger trading position. For example, a leverage of 30:1, also knowns as margin rate as 3.33%, means the necessary margin required is one thirtieth of the actual transaction size.
Line Chart is simple chart that mark data as a series of points connected to each other by a straight line.
It is the buying of a security such as a commodity or currency with the expectation that the asset will rise in value.
Slang for the Canada dollar.
Collateral that the holder of a position in securities, options, Forex or futures contracts, has to deposit to cover the credit risk of his counterparty. Other definitions to margin used in other areas are:
OHLC is a function in AETOS’s MT4 to show the current price’s Open, High, Low, Close respectively, it normally appears on the left top corner in the chart window.
Traders on AETOS’s MT4 terminal can buy or sell with a single click without having to fill out clumsy order tickets. Stop loss and take profit orders can be entered at the same time as the market order and pre-defined order templates can be set allowing the scaling in and out of positions at pre-defined targets.
An order is an instruction to buy or sell on a trading venue such as a stock market, bond market, commodity market, or financial derivative market. There are two main types of orders:
A market conducted directly between traders and principals rather than a regulated exchange trading floor.
A pip generally means the smallest movement in forex trading. For example, AUD/USD a move of 0.7700 to 0.7701 would be one pip. There are some exceptions, some currencies, such as Yen, one pip move would be 110.00 to 110.01.
A financial term for a trade that is either still able to incur a profit or a loss (open position) or has been closed (closed position), it is a way for trader to hope making profits.
An indicative price.
In financial trading, risks are the situations that an investment could lose money. Other risks including:
It is the selling of a security such as a commodity or currency with the expectation that the asset will fall in value.
The price which reflects the product’s current value in the market.
Spot Contract is a contract of buying or selling a commodity, security or currency for settlement (payment and delivery) on the spot date, which is normally two business days after the trade date. The settlement price (or rate) is called spot price (or spot rate).
The difference between the bid and ask price of a product.
Slang for the British Pound.
Stop Loss Order is an order placed to close an open position when it reaches a certain unfavorable price. It is designed to limit trader’s loss on a position.
Refers to the point at which margin has been reduced past its minimum level required by the broker which triggers the client’s largest losing position to be closed to release free margin. A margin call will occur before the stop out to demand on the client to bring his/her margin level up.
It is the interest that is earned or paid for holding a spot position overnight.
Slang for the Swiss Franc.
A symbol is an arrangement of characters (usually letters) representing a particular security listed on an exchange or otherwise traded publicly.
This is a pending order given instruction to the trading platform to execute/close a trade when it reaches a particular favorable level against current position, in order to lock in/realize a set amount of profit.
Technical analysis is a security analysis methodology for forecasting the direction of prices through the study of past market data, primarily price and volume.
A minimum change in price, up or down of any product, for example, in currency trading, one tick means 0.00001, with expectation of JPY which is 0.001.
All time frames shown on AETOS MT4 platform is in Greenwich Mean Time (GMT). Greenwich Mean Time is the same as Coordinate Universal Time (UTC).
A trailing stop order sets the stop price at a fixed distance from the market price with an attached "trailing" amount. As the market price movement is favourable, the stop price will follow by the trail amount, but if the market price movement is unfavourable, the stop loss price doesn't change, and a market order is submitted when the stop price is hit.
Slang for the Japanese Yen.