An interest rate charged to financial institutions for loans received from a country’s central bank.
is the difference between two correlative instruments. For instance, intermarket divergence happens when one of the markets reaches cyclical/session/history price extremes (highs or lows) when the correlated market does not do so. Divergence quite often signifies a price reversal; (it) is used by traders as a trading signal
is the distribution of invested or loanable money assets among different investments with the purpose of smoothing out potential losses.
is Dow Jones Industrial Average index, the oldest stock index in the USA which is a simple arithmetic average of price growth of 30 top industrial U.S. companies’ shares.
is a classic pattern of technical analysis where the price reaches two consecutive lows placed at the same level; it signifies a reversal
is a classic pattern of technical analysis used to depict two consecutive price rises placed at the same level; it signifies a reversal
A stock market transaction at a price below the previous transaction.
Downtrend is the forex market term meaning gradual decline of a currency price at a certain period of time.
European Central Bank which carries out EU is monetary policy.
was established on June 1, 1998. The ECB headquarters are situated in Frankfurt am Main, Germany. The General Council of the European Central Bank includes representatives of all the EU countries. The ECB is independent from other EU authorities.
is the development of stable relations among neighbouring countries into unification of economies. This process is usually accompanied by coordinated interstate economic policy.
assesses current economic conditions in a country.
The theory on the basis of which analysis and forecast of price movement is made. According to the theory, the psychology and behavior of market participants influences financial markets’ trends. It can be identified and serve as a guide in trading decisions.
the secured part of the client account, including open positions, that is bound to the Balance and the Floating rate (profit/loss) by the following formula: Balance + Floating + Swap, i.e. the funds on the client account minus the current loss of the open positions, plus the current profit of the open positions
stands for European Stability Mechanism. It is a joint financial fund of the Eurozone countries replacing the two existing EU funding programmes.
investment funds much like securities which serve as certificates for share portfolio. ETF may consist of securities of different companies and share funds. On legal basis, ETF is a type of share funds.
is a rate European banks use to borrow funds from peers for three months.
The price of a nation's currency in terms of another currency.
means delivering (or shipping) goods or capital abroad.
is a regional bank of Federal Reserve System of the USA. A network of 12 Reserve Banks carry out money management of the government.
is the U.S. banking system which fulfils functions of country’s Central Bank.
allows regulating financial markets, in particular, the market of derivatives.
is one of the largest rating agencies which provide analytical data of financial markets and estimates companies’ borrowing power.
is the situation on the currency market characterized by the absence of an uptrend or downtrend; also known as non-trend or sideways movement
An exchange rate which fluctuates depending on the supply and demand of a currency in relation to other currencies on the forex market. It is also called floating exchange rate.
Unrecorded gains/losses on the opened positions at current rates values.
occurrences which could not be foreseen or prevented. These include: natural disasters; wars; acts of terrorism; government actions, actions of executive and legislative government authority, hacker attacks, and other unlawful acts toward servers
Assesment of future market conditions on Forex within a short-term, medium-term and long-term framework.
is a segment of the financial market for interbank currency exchange at non-fixed rates.
is a software-based analytical tool that can be used to receive and visualize additional information (or information transformed into more understandable format) about the price chart
It occurs when the price moves in an identifiable direction over a specific period. There is an uptrend, downtrend and a sideways trend.
A contract that specifies the price and quantity of an asset to be delivered in the future. Although delivery is made in the future, the price is determined on the day of the transaction.
determines the state of an account. Calculated according to the formula: Equity - Margin = Free margin
stands for Federal State Statistics Service of Russia. It is a federal executive institute responsible for official statistical data on social, economic, demographic, and ecological conditions in Russia. In addition, FSSS controls and supervises state statistics in the Russian Federation.
A popular way of forecasting price behavior on the forex market. The fundamental analysis is based on the analysis of the world’s leading economies’ indicators and reports on economic sectors released by major countries. The fundamental analysis also includes important political and financial news that can have impact on prices. Based on the analyzed information, experts say in what direction an asset’s price will move.
An agreement to buy or sell a predetermined amount of a financial asset or a commodity at a specific price on a specific date in the future. Futures contracts are characterized by strict conditions on the type and quantity of assets, involving only minor discrepancies. These contracts also have certain terms of payment of invoices or transportation costs.
is a break between prices which may happen as a result of sharp fluctuations on the market or during the weekends (between the closing price of one week and opening price of the other)
is a natural gas supply and distribution company which is the largest in Russia and the entire world. The company possesses the most extensive gas pipeline system.
is a macroeconomic indicator measuring the market value of output produces within a year in all the economic sectors of a country, for consumption, exporting and hoarding, regardless of the producer's nationality.
is a huge commercial bank, financial conglomerate, established in 1869 by Marcus Goldman and Samuel Sachs in order to perform stock market operations. Currently, the bank’s activity includes investment banking business together with exchange business, as well as management of securities and assets.
The term denoting a currency that can be easily exchanged (i.e. widely accepted around the world) with a stable rate. Hard currencies generally come from developed nations with strong economies. Because of its liquidity, a hard currency is considered to be a good investment instrument.
is the Indian financial services company located in Mumbai and registered in 1994. The fifth largest bank in India by volume of assets, and the second largest by market capitalization. The bank was supported by Housing Development Finance Corporation, which is the main real estate investment company (established in 1977) in India.
The funds that are managed much more aggressively than their mutual fund counterparts. The strategies applied for increasing the yield include trading with leverage, swaps, and arbitrage.
Collateral necessary to cover open position.
stands for Harmonized Consumer Price Index. HICP is an indicator of inflation, a single cornerstone in the statistical system for the EU countries. The index is particularly important in the periods of interest rate increases, as its growth provokes further monetary tightening and consequently the national currency upswing.
is a type of trading which applies technical tools and computer algorithms (high-speed servers) to trade securities with high speed. In contrast to usual trading, High-Frequency Trading uses powerful computers to execute a greater number of trading operations. Usually, a computer analyzes the markets and executes operations based on its own trading strategy. The number of operations generated via High-Frequency Trading daily is counted in tens of thousands
international organization established by the UN and grants loans to member countries to meet balance of payments needs.
is delivery of goods or capital into the country from abroad.
is fostering domestic production of goods rather than importing foreign goods.
A quote serving for information about the current price of an asset. It is not used for making market orders.
is an economic indicator published by the Federal Reserve Board of the United States. It is based on the most significant categories of industrial goods. Since this index reflects changes in output of mineral resources, energy efficiency, gas and water usage as well as manufacturing production, it can be regarded as a GDP constituent.
is the process of increase in prices for goods and services. Due to inflation, a certain amount of money sufficient for purchase of some good or service at present will not be sufficient anymore in a while.
An amount necessary to open a position that serves as a trader’s guarantee of fulfillment of obligations towards a broker. The margin largely depends on leverage. The higher the leverage, the lower the margin required to open a position.
It is the first time that the stock of a private company is offered to the public for sale. As a rule, an IPO is made when a company wants to attract attention of shareholders. If you invest in the stock of such companies, you should be ready for risks.
A person who belongs to a group or organization and has special knowledge about it unknown to ordinary traders and related to financial markets.
The mechanism of providing a client with quotes without prior request. Clients see live streaming forex rates of a dealer, based on which they can send an order to execute a trading operation at any time.
implies that each country produces certain goods because it has everything necessary to produce them as compared to other countries. By specializing in suitable production, the country satisfies its own needs yet relying on foreign trade. Thus, international division of labour is a principle of the world economy where every country has its own specializations, exports the goods produces while importing the goods other countries specialize in.
refer to a country’s external highly liquid assets, namely gold and currency, controlled by the monetary authorities. International reserves are meant for financing the current account deficit, currency interventions etc.
is a system of relations implying exchange of goods and services across international borders.
trade oriented at gaining profit within one day
Assets purchased with the idea that they will provide income in the future or will be sold at a higher price for profit. However, an investment not always results in a financial gain, unless it is made in profitable projects or shares. So it is crucial to determine potential risks. As a rule, investing in high-yield assets is more risky.
is the initial public offering of joint-stock company shares for selling.
surveys supply managers in the field of services with an aim to trace changes in this field. The index tends to be sensitive to psychological factors, rather than an actual situation. New readings of the index are published at the beginning of every month at 10:00 EST (NY).
is an American global investment banking firm. Jefferies & Co is the largest independent bank in the USA.
shows an average of leading economic indicators such as Factory Orders, Initial Jobless Claims, Money Supply, Average Workweek, Building Permits, quotes of common stocks, Durable Goods Orders and Consumer Confidence. The leading index is believed to predict the pace of economic growth over the next six months. The index is calculated at the beginning of every month and released at 10:00 EST (NY).
An amount of money a broker is ready to give to a trader to trade on financial markets with larger trading volume. Using the leverage, traders increase their deposits tenfold and even more. Leverage is expressed in the ratio between the trader's own funds and those funds borrowed from the broker: 1:10, 1:100, 1:500, etc. If traders use the leverage, their own money serves as collateral.
stands for London Interbank Offer Rate. Libor is a commonly recognized indicator of the cost of funds to banks. This is the rate that determines the cost of loans the world’s largest banks provide each other with on the London Interbank Exchange. Libor is one of the most widely used benchmarks for short-term interest rates. At present, it fixes rates for EUR, USD, GBP, JPY, CHF, CAD, AUD, DKK, and NZD. Libor is calculated for various borrowing periods, ranging from overnight to one year.
is a standard oil brand which is extracted in Texas (the USA). Due to low content of sulfur and relatively high output of useful products, it is used mainly for gasoline processing. This kind of oil is in high demand in the USA and China. Light Sweet Crude Oil is a pricing benchmark for world types of oil. It is traded on NYMEX (New York Mercantile Exchange).
is a type of a pending order (see pending order) that enables entering the market at the given potentially important level after which the reversal is expected. Limit order types are Buy limit and Sell limit
Closing of an existing position by opening the opposite trade.
is the degree to which an asset (currency, security, etc.) can be sold at the current market price. This term refers to market volatility and dynamics: a liquid market is a type of a market with large trading volumes where every trade incapable of making a significant impact
Positions of the same asset and volume opened on one account in opposite directions (buy and sell).
is the buying of a financial instrument
is the fixed loss on the position
is a trading unit on the market; the standardized quantity of goods making up a transaction, exchange-traded securities, a certain amount of currency on Forex. Lot also represents the trade volume (position, order)
a quantity base currency in one lot, that is specified in the contract
The lowest traded price for an underlying instrument for the specific period of time. On the stock market it is the lowest traded price for a security for one trading day.
is a buyout market. It is highly developed in the USA and in Euro area where in the history of every company information about its merging and absorption with other companies is stated.
the required equity which an investor must deposit to collateralize a position equal to 1% (when leverage = 1:100) of an open position deposit
The ratio of equity to margin expressed in percentage. The margin level shows existing risks enabling a trader to prevent them. Looking at the margin level, a trader realizes whether he has enough funds to further open traders and keep orders open. The margin level is calculated using the following formula: Margin Level = (Equity Necessary Margin) × 100%.
using borrowed money to buy securities, with the expectation of increasing profits. Margin trading can bring big returns, but is also risky
is an Italian economist. He has been the ECB President since 2011. He also headed the Bank of Italy from 2005 to 2011.
A system with established rules of trade in financial assets or instruments, goods or services.
major banks and financial firms that pledge to provide liquidity by accepting the other side of a trade in a currency, security or futures contract
trade opening after a weekend, holidays or after an interval between trading sessions
either of the following situations: <br />– Market opening quote Bid is greater than market closing quote Ask; <br />– Market opening quote Ask is less than market closing quoteBid
the last posted bid and ask prices for a given asset, currently valid on the market
is a Russian stock exchange where papers of more than 700 issues with the total capitalization of 10 trillion rubles are trading.
An acceptable price range within one contract set by a stock exchange.
is Morgan Stanley capitalization composite index which unites 15 countries of Asia-Pacific region. Index with the reading of 100 notched at the end of December, 1987 is considered to be standard.
is a leading international analytical company which calculates global, national, and regional stock indices. Review of MSCI indices greatly influences stock markets.
is the US stock market where shares of more than 4,000 hi-tech companies with the total capitalization of $6 trillion are trading.
The amount necessary to open the position of the needed volume. It is collateral a trader leaves on the account of a broker or a dealing center. The size of the necessary margin varies depending on the leverage used by the trader. The lower the leverage, the bigger the margin, and vice versa.
The difference between total open long and open short positions in a given asset held by an individual.
is New York stock exchange where securities of more than 3,000 issues bodies are trading daily with the overall capitalization above $27 trillion.
is Japanese stock market index which represents an average of the most widely quoted Japanese equities of 225 companies of the first section of Tokyo stock exchange.
depositing or withdrawing funds from a trading account, or extending credit
is an international gold-mining company which operates in Russia, Kazakhstan, African states of Burkina Faso, and Guinea. Company’s quotes are traded on London stock market.
condition of a market that meets the following requirements:<br />- absence of noticeable breaks in relation to the trading platform quotes;<br />- absence of rushing price dynamics; absence of significant price gaps
is the world’s largest free trade area which includes the USA, Mexico, and Canada. The area’s population makes up 406 million people while the total GDP is $10.3 trillion.
opening/closing client positions or executing client order at a price that greatly differs from price quoted per instrument in present flow quoting at the moment of processing. Or some other dealer activity or inactivity that deals with mistaken determination of market prices at the present moment
Offsetting is a liquidating of a buy or sell position by opening the equivalent position in the opposite direction. Thus, if a trader has short EUR/USD position, the offsetting position will be a long trade on the same instrument of the same volume.
The term \"offshore\" is used to describe a territory or a nation that accumulates foreign capital by offering special tax incentives to companies based there.
the result of the first part of a completed transaction; at the position opening, the client accepts the following liabilities: <br />- to execute the opposite operation of equal volume; <br />- to maintain equity not lower than 10% of the necessary margin
An instruction that is sent to a broker to enter or exit a position at a specified price.
The price specified in the order.
is the volume of goods a company has produced or services it has provided. It is measured in real and value terms.
is the situation on the currency market in which the demand for an asset increases the asset’s value to a level that does not meet the fundamental factors. It is commonly believed that in the overbought zone traders should sell
The position that a trader possesses at the end of a trading day. A trade that remains open until the next business day.
is the situation on the currency market in which the demand for an asset decreases the asset’s value to a level that does not meet the fundamental factors. It is commonly believed that in the oversold zone traders should buy
the client instructs the dealer to buy or sell once the price reaches the order level
the smallest unit of price for any foreign currency, also referred to as points
is the key point of support/resistance level calculated by taking the average of an asset’s previous high, low, and closing price
is a leading indicator. Its reading is determined by polling manufacturing supply managers. The index provides insight into business trends and influence of the economy on price formation.
measures changes in prices domestic producers receive for their output.
A quick market move in which prices skip several levels without any trades occurring. Gaps usually follow economic data or news announcements.
closing price of minute bar, prior to minute bar with non-market quoting. Price Gap – either of the following situations: <br />– Present quoting Bid is greater than prior quoting Ask; <br />– Present quoting Ask is less than prior quoting Bid.
Equal availability of quotes to all market participants.
is a trader’s initial capital, start-up capital
is the increasing of the average prices for raw materials and consumer goods calculated for the base/reference period.
A financial gain that resulted from investing, or from a speculative operation that exceeds an amount of initial capital.
is a method of increasing a position size in which each new position is less (greater) than the previous one
The second currency quoted in a currency pair on Forex.
a sequence of numerical data describing the price value of an instrument at a certain time period
Information about the stream of quotes.
the distance between levels of support and levels of resistance
The price of the base currency in terms of the quote currency.
stands for Reserve Bank of Australia. The bank is responsible for Australia's monetary policy, works to maintain a strong financial system and issues the nation's banknotes.
is a Russian media group operating in the Internet, mass media, and on TV. It embraces the RosBusinessConsulting information agency, a news website, the Quote.rbc.ru business analytics portal, and the RBC daily weekly analytical newspaper.
is an investment holding company, one of the biggest players in the housing and construction markets. The RBI headquarters are located in Saint Petersburg. The company operates in the segments of residential and commercial construction.
shows production output and incomes in real terms.
A repurchase agreement where a seller agrees to buy assets back from a buyer at a predetermined price.
highest channel’s borderline
A reversal in the direction of a price movement or its pullback from a previous low or high.
is one of the world’s largest news agencies founded in the middle of the 20th century.
occurs, when every following value of the wave curve is higher than the previous rate value. The lows of the waves are connected with a straight line – the trend line
means using a strict set of rules in trading in order to limit losses
is closure of an expired position at current market price and simultaneous opening of the exact same position; the method of carrying the position overnight
conducts trades on the stock and derivative markets. Open 10:00 to 23:50 MSK (GMT+4). In December 2011, RTS merged with MICEX into MICEX-RTS. In 2012 the united stock exchange was renamed as OAO Moscow Stock Exchange (MSE).
is an independent national rating agency accredited by the Ministry of Finance of the Russian Federation. It has been operating since 2001. The agency focuses on banks’ credit ratings.
is a German company engaged in selling natural gas. It is second rated after E.ON.
is the method of short-term trading that suggests a large number of positions opened during a trading day fixing small amounts of profit or loss
measures credibility of the Eurozone economy in the eyes of investors. The indicator is calculated on the basis of a survey held among investors and analysts. If the indicator rises, a foreign currency is converted into a national one when buying securities or non-financial assets, which pushes the national currency rate up. Readings of the indicator exceeding forecast bode well for the currency.
file, created by the server, which records all requests and orders received from the client to a dealer, as well as the processing result, with 1 second accuracy
stands for the American international trading network founded by Richard Warren Sears and Alva Roebuck in the late nineteenth century. In early 2005, the company, which earlier was part of the industrial rating (Dow Jones Industrial Average), merged with the company Kmart and became known as Sears Holdings Corporation.
is a situation where a trader sells a financial instrument
is the situation on the currency market in which a broker closes an opened position at a less profitable price than stated in the order. It happens amid price spikes when the level of position closure is broken too fast
is one of France’s largest financial conglomerates. Its headquarters are located in Paris. Societe Generale was founded in 1864; it specializes in asset management, investment banking, financial services etc.
is one of the largest rating agencies which deal with analytical investigations of financial market. The company to one of the world’s most powerful rating agencies. S&P is also known as the creator and editor of the American stock index S&P500; and the Australian S&P200;.
is stock index of Standard & Poor’s rating agency which is comprised of 500 top publicly traded companies of the USA which securities can be found on the largest U.S. stock markets. It is a market-value-weighted index and one of the main indicators of the American economic climate.
a comparatively abrupt movement of a price or value level upwards or downwards (usually exceeding spread). Spikes have a peculiarity of recurrence during a certain period of time, from several minutes to several hours. According to InstaForex Public Offer Agreement, all positions opened and closed by non-market quotations are to be cancelled, which guarantees the safeguard of funds against spikes
The current price in the marketplace at which a given asset can be bought or sold. The standard settlement time frame for spot transactions is two business days from the trade date.
the difference in pips between the Bid and the Ask quote
The term means that the buy positions and the sell positions on the same asset are equal. It is also used when there are no opened trades.
represents a compilation of stocks to measure the value of a stock market sector.
(securities market) is a segment of the financial market where securities are traded.
is a pending order to close the losing position when it reaches a certain price
A forced closing of a position without the client's consent and prior notification in the event of lack of funds to maintain the opened position.
is a term denoting someone who is able to work, but begs or wanders for a living instead.
lowest channel’s borderline
the amount of money deducted from or added to a client account for the overnight position
A trading order that allows a trader to take profit when the price reaches a certain level. The order helps a trader to reduce risks. The take profit order for a chosen trading instrument will close the transaction automatically as soon as the price reaches the specified level. In an open trade, take profit can be set at any time.
A popular way of forecasting a price behavior on the forex market. The technical analysis is based on the opinion that a price change in the past will be repeated in the future. Confirmation of previous patterns of market behavior are searched with the help of price chart analysis that detects certain graphical patterns that are interpreted as signs of a possible price move in one direction or another.
was established in 1960 by the world’s largest exporters in order to create common oil policy and ensure stable prices on global oil market.
a unique identification number given to each open position or a pending order in a trading platform
Refers to the time period of the chard chosen to display the price move on the forex market. Time periods in trading platforms include: 1 minute (M1), 5 minutes (M5), 15 minutes (M15), 30 minutes (M30), 1 hour (H1), 4 hours (H4), 1 day (D1), and 1 month (MN).
Short for tomorrow-next day. The process of moving the settlement value date on an open position forward from one business day after the trade date (tomorrow), to the next valid value date (next).
A currency pair or a contract for difference (CFD)
is a difference between the monetary value of exports and imports over a certain period of time (for example, a year). It is calculated for both separate nations and groups of countries and includes both actual transactions and those carried out on credit.
is a negative trade balance. Merchandise trade balance of a country is a difference between the value of exports and that of imports over a certain period of time. Merchandise trade balance includes all the actual transactions and those carried out on credit.
An outlook for future changes on the forex market. It is carried out through analysis of financial information and related research studies.
number of lots multiplied by lot size
person, who trades currency on the Forex market in order to earn profit
unique personalized stock-taking operations register on the trading platform, where complete closed transactions, opened positions, non-market operations and orders are reflected
Operating time of the world's financial markets such as London, New York, Hong Kong and others. Trading hours of exchanges located in different parts of the world differ. In the context of the forex market, trading hours mean the time when transactions can be made - round the clock on weekdays.
an act of buying or selling any instrument performed by the client
It occurs when currency rates on Forex move in a certain price corridor. The lower limit is formed on the support level, while the upper limit is located on the resistance level.
A system of trading on the forex market based on a certain approach to market forecasting. The most widespread strategies include trading with the help of Bollinger bands, moving averages, breakthrough of resistance levels, etc.
is a pending stop loss order automatically moved at a specified distance from the current price
trade operations where money resources move from base currency into quoting currency and vice versa
is the current general direction of a price movement for a substantial period of time. There is an uptrend (bullish trend), downtrend (bearish trend), and non-trend (flat or sideways movement)
the straight lines with a positive slope, plotted on a graph through low points when the tendencies are uprising, and with a negative slope, drawn through the high points when tendencies are declining; the lines define the current trends; the trend line gaps usually signal tendency changes
consists of more than 2,500 Japanese and foreign largest companies that are members of this stock exchange. It takes the second place in the world by capitalization after New York exchange.
Turnover is an aggregated cost of all executed trades in a specified time period.
The type of a quote that gives both the bid and the ask price of an asset.
is calculated by dividing the number of the jobless citizens by the number of the employed or by the total number of people of a certain population category. In most cases, the unemployment rate is expressed as a percentage.
It is a theoretical gain or a loss of opened positions calculated in accordance with current market prices as defined by a broker in its sole discretion. When the position is closed, unrealized gains or losses turn into realized gains or losses
New price that is higher than the previous one.
is a part of deposit not involved in trading which can be used to open new positions (orders). It is denoted as “Free” in the trading platform
is the blocked part of the deposit, which is used to cover potential losses on open orders. In the trading platform it is displayed in the Margin field
A date on which FX trades settle, i.e. the date that the payments of each currency are made.
Additional amount of deposit you need to make to your trading account in order to maintain sufficient money for loss deduction after significant losses have taken place
is instability, the measure of how much the market conditions, demand or prices change
is the Treasurer of Australia.
is a wholly owned subsidiary of the sixth largest Chinese bank China Merchants Bank; it is based in Hong Kong.
is a 100% sister company of Wing Lung Bank Limited, offering full range of services related to renting and managing real estate.
is a German politician, a member of the Christian Democratic Union of Germany. He has been the Federal Minister of the Interior since 2005 and Federal Minister of Finance since October 2009.
is China's Minister of Finance.
is a manufacturer of cranes and large steel structures.