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what is the pending order ? | an order that has not yet been executed and therefore has not yet become an actual trade it can for example be an order that a trader states his her intention of buying or selling a financial instrument only when it reaches touches above or below a certain price level | |
what are penny stocks | penny stocks are essentially stocks that trade for very small sums generally defined by under 5 00 and by and large are traded over the counter otc in the united kingdom a penny stock is defined as any stock with a share price below 1 gbp | |
how does one use penny stocks | trading on penny stocks is much more risky than other stocks and cfds for one thing penny stocks are much more speculative than traditional stocks which makes accurate assessments of how the stock price will move and when much trickier second because penny stocks are traded otc rather than on any of the major exchanges they are not closely regulated which can and on occasion does result in scams and fraud finally because the price action on penny stocks is extremely volatile the bid ask spread tends to be much wider than on traditional stocks thus cutting even more deeply into an already risky profit margin this is not to say that there is nothing to gain from trading on penny stocks only that it really should only be done by very seasoned traders who are not averse to taking more extreme risks | |
what is the people s bank of china pbc ? | the central bank for the people s republic of china and the second largest national monetary authority after the federal reserve bank of the united states | |
what is the pip ? | a numeral point a security or financial instrument s price which denotes the smallest amount by which it can change in forex most currencies have four decimal places and a pip is therefore one unit of the fourth decimal point i e 0 0001 of the currency s value in some currencies such as the japanese yen a pip may at the second decimal point making it worth 0 01 of the currency | |
what is a pip squeak pop | when a stock price shows a moderate but not extreme increase in a relatively short period of time this is known as a pip squeak pop not to be confused with a champagne stock which is a stock whose value has shown an extremely dramatic increase a pip squeak pop is generally considered to be an increase of 25 50 over a period of days or weeks | |
how does pip squeak pop affect forex traders | pip squeak pop recognizes an uptrend in a stock price but should not be seen as a sure fire investment while the price is certainly worth a close watch and may continue to rise it could also peak or even reverse direction thus disappointing investors who saw it as the next potential champagne stock a solid fundamental and technical analysis can be very helpful in determining whether a pip squeak pop stock is a wise investment or a bubble ready to burst | |
what is a pivot point | pivot points are technical analysis indicators that reflect upward and downward trends as well as predicting when a price can be expected to change direction pivot points are determined by accounting the averages of an asset s high low opening and closing prices as well as support and resistance levels for the previous trading period | |
how does the pivot point affect forex traders | while pivot points can be used to help traders make longer term decisions weekly even monthly most commonly they are used for intraday trading to determine how a market price is most likely to move in the coming hours for short term trades if the pivot point is lower than the current price of an asset then it is a price support and it is seen as a resistance if the asset is trading lower than the pivot point pivot points are especially useful in enabling traders to recognize the best times to open and close positions on assets as well as whether the market is bearish or bullish at any given time two things about pivot points are very important for traders to bear in mind first a pivot point is only one of several technical analysis indicators and is most effective when used in conjunction with other technical and fundamental analysis tools second like all analysis indicators pivot points are predictive which means that the market will not always behave in the way that the indicators such as pivot points could lead us to believe they will | |
what is the pln ? | the official currency code for the polish zloty | |
what is the portfolio ? | a collection of investments held by an individual trader or financial entity | |
what is the position ? | the net balance of trades held by a trader in his her account at any given time there are three types of positions a trader can hold flat i e no security bought or sold long i e more security bought then sold or short more security sold then bought | |
what is the position size ? | the amount of a security or financial instrument a trader buys a long position or sells a short position | |
what is a practice account | a practice account also referred to as a demo account is just like a regular forex trading account in every way except for one the trader does not invest earn or lose any real money it provides traders with the opportunity to learn forex trading and develop effective trading strategies through experience without the risk inherent in actual trading | |
how does one use a practice account | many online brokers including fortrade provide a practice account free of charge when traders register on the site and fund the account with a sum of money fortrade for example starts traders off with 10 000 of imaginary money once the practice account is set up you can start trading as though you were investing actual funds it is a good idea to trade conservatively at least at the beginning a trader who invests unrealistic sums of the imaginary funds in the practice account simply because he has nothing to lose in real life is not able to benefit from the purpose of having the practice account which is to develop effective trading skills for when actual funds are being invested most experts and experienced traders recommend trading on a practice account for several months before investing real money click here to create a fortrade account and you can start with the practice account today | |
what is the premium buy sell rate ? | with regard to currency and foreign exchange markets a premium rate is the interest rate a broker or brokerage firm quotes to a certain security or financial instrument in order to compensate for the difference in national interest rates | |
what is the previous close rate ? | a security or financial instrument s closing rate on the previous day of trading | |
what is the profit ? | a financial gain especially the difference between the amount earned and the amount spent in security or financial instrument trading | |
what is the pullback ? | a reduction in price or demand of a certain security or financial instrument from its peak also referred to as a price reversal | |
what is the put call ratio ? | the number of puts options to sell traded assets in relation to the number of calls options to buy traded assets acts as an important indicator for determining the general market trend | |
what is the quantitative ? | denoting or relating to something measured by quantifiable data i e objective properties such as amount percentage or ratio | |
what is the quarterly ? | occurring every three months | |
what is a quote price quotation | the quote also referred to as the price quotation is the indicative cost upon which the buyer and seller agree for a financial instrument when trading forex and cfds there are two quotes buy ask and sell bid the bid sell quote is the highest price that the broker is willing to sell an asset or security to the trader or the trader to the broker and the buy ask quote is the lowest price that the trader is willing to buy it from the broker or the broker from the trader the buy ask quote is higher than the bid sell quote and the difference between them is known as the spread | |
how does quote price quotation affect forex traders | the quote or price quotation is one of the foundations of a forex and cfd trader s decisions as to when to open or close his positions because of the spread traders understand that when opening a long position buying on an asset the price must go up simply in order for them to break even alternately opening a short sell position means that before the trader breaks even or ideally sees a profit the asset price must drop to a certain level as a result knowing both the bid and the ask prices of an asset are a key part to investing wisely | |
what is the rally ? | a sustained increase in the price of a security or financial instrument typically refers to a recovery from a period of decline | |
what is the range ? | the difference between the highest and lowest price of a security or financial instrument during a given trading session | |
what is the rate of exchange ? | the value of one currency for the purpose of conversion to another currency unit for example the exchange rate of the euro eur against the us dollar usd | |
what is the rba ? | reserve bank of australia the central bank of australia | |
what is the rbnz ? | reserve bank of new zealand the central bank of new zealand | |
what is the realised gain ? | the amount of money gained liquidating a position | |
what is the realised loss ? | the amount of money lost from liquidating a position | |
what is the resistance ? | resistance or resistance level is a price point on a bar chart for a security in which upward price movement is impeded by an overwhelming level of supply for the security that accumulates at that specific price level this means people may sell at this level and stop any further upward trend developments | |
what is the resistance level ? | a price ceiling above which it is supposedly difficult for a market security or financial instrument to rise the opposite of support level | |
what is the revaluation ? | an official change in the price of a security or financial instrument especially in regards to a currency where it means an increase in the value of its exchange rate the opposite of devaluation | |
what is the rollover date ? | a particular predetermined date at which a trading contract is rolled over hence automatically renewed by the broker or brokerage firm | |
what is the rub ? | the official currency code for russian ruble | |
what is the segregated account ? | a separately managed account used by a brokerage firm to keep clients money separate from its own funds | |
what is the sek ? | the official currency code for swedish krona | |
what is the sell ? | taking a short position on a tradable security such as a currency pair stock index or commodity opposite of buy or long position | |
what is a short squeeze | a short squeeze happens when traders who took a short sell position are squeezed into buying back assets at a higher rate than they had hoped to thus creating an even sharper spike in the price of that asset essentially a short squeeze occurs when traders have anticipated that an asset price would drop so they sold the asset at a higher rate and with the expectation of buying it back at the lower rate for a healthy profit however if the market proves to be surprisingly bullish and the asset price continues to rise some traders may panic and close their position even at the higher price in order to limit their losses in doing so they cause the demand of that asset to be even greater than it already was thus driving the price even higher | |
how does a short squeeze affect forex traders | the short squeeze is basically a situation in which a trader is able to cut his losses but at the same time he is helping to ensure that the asset in question will remain unavailable at the lower price that he had anticipated for some time to come a short squeeze is not considered ideal for traders by any stretch of the imagination but it does help them avoid something even more unpleasant | |
what is the sgd ? | the official currency code for singapore dollar | |
what is the short covering ? | the buying back of a security or financial instrument that was earlier sold in a short position so as to close out exit that position | |
what is the silver contract ? | one of the most actively traded commodities on the market the standard trading unit for one contract is 1 000 troy ounces for more information on this commodity click here | |
what is slippage | slippage refers to the change in an asset price between the time a trader places an order either long or short with his broker and the time that the position is opened slippage occurs with financial instruments that are extremely volatile as well as when extreme movement has taken place on a usually illiquid asset in general slippage is viewed unfavorably by traders but there are times when it can work in the trader s favor | |
how does slippage affect traders | imagine a trader that wishes to purchase 100 shares of a stock that he sees is selling at 35 share he places the request with his broker expecting to pay 3 500 to open the position however if the asset is exceptionally volatile and a large number of other traders are buying shares at that same time by the time the broker executes the transaction the price has risen to 35 15 in which case the trader will pay 3 515 for the investment and already earned 15 the trade still may be a good one and if the price continues to rise the trader will see a profit and can close the position when he believes the time is right to do so alternately a trader wishing to go short on an asset that he believes will drop may ask his broker to execute a sell at 35 share only to see the price down to 34 50 by the time the sell is executed negative slippage can also occur which is to the trader s benefit as in the examples given above a trader wishing to open a long position at 35 may have his order executed when the price has dropped slightly or the trader opening a short position can see the price rise | |
what is the snb ? | swiss national bank the central bank of switzerland | |
what is the spot ? | a trade which requires immediate settlement in most cases two business days after its execution | |
what is the spread ? | the difference between a bid the price a broker or dealer is willing to buy a security or financial instrument and ask the price a broker or dealer is willing to sell a security or financial instrument | |
what is the ssl ? | secure sockets layer provides and maintains a consistent connection between browsers and websites allowing secure transmission of users personal data | |
what is the sterling ? | a nickname for the british pound gbp | |
what is the stop loss s l ? | a market order which automatically closes the position of an unprofitable security or financial instrument when it reaches a specified price for the purpose of limiting loss and preventing slippage a s l can be used in both long buy and short sell positions also known as a stop order or stop market order be aware a fortrade s l is not guaranteed and in very volatile conditions may not work this may lead to further losses | |
what is the stop out ? | a margin level depicted in percent at which a trading platform will automatically close open trading positions starting from the least profitable position and until the margin level margin level requirement is met in order to prevent further potential losses | |
what is the support ? | support or support level refers to the price level below which historically an underlying instrument has had difficulty falling it is the level at which buyers tend to enter a buy position and therefore stop the downward trend if the price of a stock or other financial asset falls toward the support level it is a test for the stock the support is either confirmed or eradicated confirmation occurs as buyers move into the stock causing it to rise if the price moves past the support level it means the support level failed and the market is looking for a new level | |
what is the support level ? | a price floor below which it is believed a market security or financial instrument will not reach the opposite of resistance level | |
what is swap | swap is the overnight charge credit amount for an open position the amount reflects the interest rate difference between the central banks based on market rates and spreads of the two assets involved swaps are credited or debited once for each day of the week with the exception of wednesday on which they are credited or debited 3 times their regular amount the swap charge is accrued daily at 20 59 gmt | |
how are traders affected by swap charges | swap charges are released on a daily basis by the financial institutes which fortrade works with and are calculated and determined according to various risk management criteria and market conditions the swap premium is calculated in the following manner pip value depending on trade size swap rate in pips number of nights swap charge credit forex example you open a short position sell on eur usd for 1 lot with an account based in usd 1 lot 100 000 1 pip value 10 usd swap rate 3 2839 points equivalent to 0 32839 pips number of nights 1 swap premium 10 0 32839 1 3 2839 usd cfds example you open a long position buy on crude oil for 1 lot 1 000 barrels with an account based in usd swap rate 0 3807 1 cent value 10 usd number of nights 1 swap premium 10 0 3807 1 3 807 usd | |
what is swissy | a swissy has two meanings in the world of forex the general term is slang for the swiss franc chf more commonly the term swissy refers to the currency pair usd chf which measures the strength of the u s dollar to the swiss franc it is considered one of the major currency pairs | |
how does one use swissy | as with any currency pair the first currency quoted is the base currency and is always equal to 1 the second currency is the quote currency or the counter currency and it reflects the value of one unit of the base currency for example if the swissy which we said is the usd chf is at 1 01652 that means that 1 u s dollar is equivalent to 1 01652 swiss francs if the swissy rises to 1 02000 the usd is stronger because it can buy more francs than it could before if the swissy drops to 1 01225 the franc is stronger on fortrade the up to the minute trading chart of the swissy can be found here | |
what is the take profit t p ? | a market order which automatically closes the position of a profitable security or financial instrument when it reaches a predetermined price level that is suitable for the trader a t p can be used in both long buy and short sell positions | |
what is the tenor ? | the time left from the value date of a loan contract or option until its expiry date expressed in years months or days | |
what is the three session system ? | the foreign exchange market is divided into three trading sessions the asian or tokyo european or london and north american or new york also referred to simply as the forex three | |
what is the tick ? | the smallest possible change in the price of a security or financial instrument either up or down | |
what is the trading amount ? | specified blocks or portions of trades the value of a trade corresponds to an integral number of trading units for example gold and silver contracts are bought and sold in lot sizes of 10 and 1 000 troy ounces respectively | |
what is the trading sentiment ? | the general and prevailing attitude of traders towards a certain market security or financial instrument depict in percentages of currently open buy and sell orders | |
what is trailing | trailing is the term used to describe a recently completed time frame in reference to a set of financial data being gathered for example when reading the financial report of a company the data could be trailing 12 months meaning it covers the previous year or trailing 3 months meaning it covers the previous quarter trailing is also used as a risk management technique a trailing stop order in which a trader instructs his broker to close out his position when it hits a certain point above below the stock price s peak it is referred to as trailing because that peak moves as the share price does so the stop order refers to the latest time frame before the share price reversed direction | |
how does trailing affect forex traders | as described above trailing in terms of a trailing stop order can be a very effective tool for minimizing risk and maximizing potential profit when reading financial reports trailing describes the statistics that enable traders to analyze the short and long term strength of a particular company if a company shows a weak report 12 months trailing but very strong figures 3 months trailing it could be an indication that after a difficult period the company is on the road to recovery of course the trailing reports should never be the sole factor in technical or fundamental analysis but they can provide a good insight as to what traders should look for and look at when deciding where to invest funds and what positions to take when trading cfds | |
what is a trailing stop | a trailing stop is an excellent method with which forex and cfd traders can either minimize their potential losses on a position or secure potential earnings it is a standing order that the trader gives his broker to close out his position when it hits a certain point above below the stock price s peak while a trailing stop can be in a dollar amount it is more commonly a percentage above below the high low of a stock price | |
how does a forex trader use a trailing stop | if a trader were to buy 50 shares of a company stock at 50 per share he may place a trailing stop at 10 that is to say if the price drops 10 to 45 then his broker has a standing instruction to sell the shares thus keeping the loss at a 5 share or 250 total however if the stock price rises the trailing stop of 10 rises with it and if the price peaks at 80 before beginning to fall then the trailing stop is 72 or 10 of the 80 peak that the price reached if the price now falls below that 10 line the broker has instructions to sell thus enabling the trader to earn 22 per share or 1 100 before the stock price continues to drop successful traders are those who can find the proper balance to ensure that the trailing stop is not too large thus risking higher losses but at the same time big enough to allow for the stock price to correct any anomalies and continue in the desired direction | |
what is the trend ? | the general direction of a market or of the price of a security or financial instrument the terms bull and bear are often used to describe the two main types of trends upward and downward respectively | |
what is the try ? | the official currency code for turkish lira | |
what is the tse ? | an abbreviation for tokyo stock exchange | |
what is the underperform ? | a situation in which a security or financial instrument is believed to be less profitable than the overall market also known as market underperformer opposite of outperform | |
what is the uptrend ? | a situation in which each successive peak or trough on a security s price chart is higher than the ones preceding it the opposite situation is a downtrend | |
what is the upward trend ? | an upward trend report refers to events in which our research department believes the technical analysis of an underlying product indicates that it may increase in price it is your decision to trade if you feel you agree we always recommend you to consider other external sources and only open a trade if it is appropriate for you visit our research analysis page for more information | |
what is the us treasury securities ? | interest bearing debt instruments issued by the united states department of the treasury to finance the federal debt of the united states in cfd trading the three most actively traded treasury securities are the us 5 year treasury note often symbolised as us5y the us 10 year treasury note often symbolised as us10y and the us 30 year treasury bond often symbolized as us30y | |
what is the usdx ? | symbol for us dollar currency index click here for more details | |
what is the utc ? | coordinated universal time often interchangeable with greenwich mean time gmt | |
what is the volatility ? | a tendency in a market security or financial instrument to fluctuate sharply on a regular basis | |
what is a web trader | a web trader is a platform through which forex traders can open and close positions online without downloading any software using a web browser traders can follow bid ask spreads place stop loss and take profit orders and track all positions executed past and current | |
how does one use a web trader | once a trader has opened an account with a broker such as fortrade he will see links to the trader s web trading platform by clicking on the link and confirming that he is in fact the trader with the account he can access his entire trading history through the web trader as well as all potential forex trades that he can buy or sell complete with bid ask spreads the fortrade web trader can be found here | |
what is the weighted moving average wma ? | a type of moving average that gives even more weight to recent price changes than an exponential moving average ema meaning it reacts very quickly to potential market trends | |
what is wti crude oil | wti west texas intermediate crude is crude oil that is drilled from wells in the united states it is one of the two major benchmark oils in the world the other being brent crude crude oil is defined as natural unrefined petroleum that can be refined into thousands of products known as petrochemicals the most common uses of refined crude oil include gasoline diesel fuel kerosene and heating oil because crude oil is a nonrenewable source and poses many dangers to the environment and world eco system in recent years much progress has been made in finding alternative energy sources including solar and wind which are safer and will never run out as a result it is difficult to know how much longer crude oil will be considered a critical commodity however for now it certainly is and many countries are major suppliers including the united states russia and saudi arabia like most commodities the price of wti and brent is driven primarily by supply and demand and is extremely vulnerable to external factors if for example members of opec organization of petroleum exporting countries decide to limit production of oil the global supply will dwindle and the price of wti and brent will rise alternately when oil rich countries opec and others produce excessive amounts of oil the supply outweighs the demand and the prices can drop | |
how do cfd and commodities traders use wti crude oil | while some traders purchase spot contracts on wti crude in which ownership of the oil changes hands at the moment of purchase and the price reflects the cost of crude at that moment it is far more common for traders to purchase futures contracts with futures contracts the price agreed upon reflects what both the buyer and seller believe will be the price of wti crude at a predetermined future date those who trade on oil cfds are essentially predicting how the price of oil will move before the position closes | |
what is the xag ? | the official standard code for 1 troy ounce of silver considered as a currency | |
what is the xag usd ? | the exchange rate for silver to us dollar | |
what is the xau ? | the official standard code for one troy ounce of gold considered as a currency | |
what is the xau usd ? | the exchange rate for gold to us dollar | |
what is the yard ? | currency market slang for one billion units of a currency derives from the french milliard | |
what is a yield | the amount of money that a trader earns on an asset or security as measured by a percentage rate of annual dividends is the yield as a general rule the lower the risk the lower the yield potential and stocks are seen as higher risk investments with correspondingly higher yield potential than bonds in most cases a potential yield does not guarantee a return on the investment but rather reflects the prediction of the future performance of the asset | |
how does the yield affect forex traders | forex and cfd traders are able to use potential yields as one of the indicators regarding the projected performance of an asset depending on the asset some traders reinvest the annual yield into additional assets while keeping the principal in the original thus enabling themselves to earn additional yields rather than use the dividends at that time | |
what is the stocks ? | stocks each unit of which is called a share represent ownership of a company stocks owned either directly or through a mutual fund or etf will likely form the majority of most investor s portfolios | |
what is the cryptocurrency ? | cryptocurrencies such as bitcoin are digital currencies not backed by real assets or tangible securities they are traded between consenting parties with no broker and tracked on digital ledgers | |
how do you get cryptocurrency | any investor can purchase cryptocurrency from popular crypto exchanges such as coinbase apps such as cash app or through brokers another popular way to invest in cryptocurrencies is through financial derivatives such as cme s bitcoin futures or through other instruments such as bitcoin trusts and bitcoin etfs | |
what is bitcoin | bitcoin is the most well known digital currency created in january 2009 after the concept was published in a white paper by the mysterious and pseudonymous satoshi nakamoto bitcoin and cryptocurrencies at large are touted to lower transaction fees when compared to traditional online payment methods and unlike traditional government issued currencies it is operated by a decentralized authority | |
what is ethereum | ethereum is a blockchain based crypto platform that is best known for its digital currency called ether or eth ethereum is second in market value only to bitcoin according to coinmarketcap data while the maximum number of bitcoins in circulation is limited at 21 million the amount of ether that can be created is unlimited which is one of the main differences that investors should know | |
how do i buy ethereum | one of the first steps to buying cryptocurrencies such as ethereum or bitcoin is to identify a platform for trading the digital currencies some of the top platforms including coinbase kraken bitstamp gemini binance and bitfinex which all offer ethereum to buy and sell ether is also backed by many fortune 500 companies spurring investor interest | |
what is an ico | investors looking to add new cryptocurrencies to their portfolios often look for an initial coin offering ico the crypto variation on an initial public offering ipo like an ipo a company seeking to raise money can create a new coin or service to launch an ico as a way to raise funds investors in turn can buy the initial coin offering to own the new token but should be aware of potential fraud within the industry which is monitored by the sec for potential abuse | |
what s the most expensive stock of all time | the most expensive publicly traded share of stock of all time were the class a shares of berkshire hathaway brk a warren buffet s conglomerate and holding company as of january 2022 they hit 487 675 per share on jan 18 2022 1 it s important to remember that this does not mean it is the most valuable company by stock value the value of a company s stock or market capitalization is determined by multiplying the price of its shares by the number of its shares | |
what is the all time high of the dow jones industrial average djia | as of early 20222yahoo finance dow jones industrial average dji historical data accessed jan 14 2022 the all time closing high of the dow jones is 36 799 65 points which it reached on january 4 2022 the index s all time intraday high was 36 952 65 reached on jan 5 2022 |