Pips – the smallest price quotation in the currency. In the futures, the term tic is often used. For example, if EUR/USD moves from 1.3055 up to 1.3056, this is one pips.
Spread – the difference, usually in pips, between the quotes buy and sell. A narrow spread is positive for the trader, because of the lower transaction costs.
Cost of Carry, Interest, Premium – the interest that is often quoted in dollars, pips or rent for maintaining an open position.
Leverage – the ratio, with which the trading sum exceeds the demanded margin for the transaction. For example, if we have a transaction for 100 000 dollars, the necessary margin is 2000, it is traded in leverage 50 to 1.
Limit Order– an order for buy or sell on a particular price.
Market Order – an order to buy or sell on a present market quotes.
Stop Order – an order for buy or sell on a particular price, when it comes, it closes or opens new position.
Margin – the necessary sum for a client to open a position or maintain one. For example, if you have a demand for 1% margin, then with 1000 deposit you can maintain a position for 100 000 dollars.
Margin Call – a request from the broker to deposit more funds, in order to maintain an open position. If it does not happen , the broker has the right to close the position, in order to avoid any loss.
Technical Analysis – analysis that are based on historical price movements on the market, using charts and various indicators.
Fundamental Analysis – analysis that are based on the economic conditions of the country, monetary policy, as well as other macroeconomic elements.
