Average Directional Index (Technical Indicator). A measure of trend strength, used in technical analysis.

The sum of government spending, personal consumption expenditures, and business expenditures.

A currency is said to “appreciate” when it strengthens in price in response to market demand.

The purchase or sale of an instrument and simultaneous taking of an equal and opposite position in a related market, in order to take advantage of small price differentials between markets.

Dealer jargon used in quoting when the forward premium/discount is near parity. For example, “two-two around” would translate into 2 points to either side of the present spot.

The rate at which a financial instrument is offered for sale (as in bid/ask spread).

Investment practice that divides funds among different markets to achieve diversification for risk management purposes and/or expected returns consistent with an investor’s objectives.

Average True Range (Technical Indicator). A measure of market volatility based on the range of price movement over a set period.

Australian Dollar (ISO code).

The departments that support the settlement process for financial transactions.

The difference between the value of a country's exports and the value of its imports.

Standard bar charts are commonly used to convey price activity into an easily readable chart. Usually four elements make up a bar chart, the Open, High, Low, and Close for the trading session/time period.

In general terms, the base currency is the currency in which an investor or issuer maintains its book of accounts.

Bolinger Bands (Technical Indicator). They measure market volatility and define high or low price boundaries relative to a moving average using three lines: a middle simple moving average and two outer standard deviation bands.

Breakeven. A break-even point is the exact price level where a position results in zero net profit or loss.

A market distinguished by declining prices.

The rate at which a trader is willing to buy a currency.

The difference between the bid and offer price, and the most widely used measure of market liquidity.

Dealer expression referring to the first few digits of an exchange rate.

Bank of Canada.

Bank of England.

Bank of Japan.

In a professional trading environment, a ‘book’ is the summary of a trader’s or desk’s total positions.

Basis Point. A unit of measure used in finance to describe the percentage change in interest rates or other financial percentages

An individual or firm that acts as an intermediary, putting together buyers and sellers for a fee or commission.

An agreement that established fixed foreign exchange rates for major currencies.

A market distinguished by rising prices.

Germany’s Central Bank.

In the forex market currencies are always priced in pairs.

Trader jargon referring to the Sterling/US Dollar exchange rate. So called because the rate was originally transmitted via a transatlantic cable beginning in the mid 1800’s.

Canadian Dollar (ISO code).

A chart that indicates the trading range for the day as well as the opening and closing price. If the open price is higher than the close price, the rectangle between the open and close price is shaded. If the close price is higher than the open price, that area of the chart is not shaded.

Chicago Board of Trade. It provides a centralised marketplace where buyers and sellers trade futures and options contracts. It helps businesses manage financial risk through hedging and allows market participants to discover fair prices for commodities and financial instruments

Commodity Channel Index (technical indicator) also Consumer Confidence Index (economic indicator). The Commodity Channel Index (CCI) is a momentum-based oscillator used by technical analysts to determine whether an asset is overbought or oversold. The Consumer Confidence Index (CCI) is a macroeconomic metric that measures how optimistic or pessimistic consumers feel about their personal financial prospects and the broader economy.

A government or quasi-governmental organization that manages a country’s monetary policy. For example, the US central bank is the Federal Reserve, and the German central bank is the Bundesbank. Others include the ECB, BOE, BOJ.

Chartered Financial Analyst. A globally respected professional credential for investment and financial experts. Offered by the CFA Institute, the charter proves a person has master-level skills in portfolio management, asset valuation, and strict industry ethics

Contract For Difference. A financial deal where two sides swap the cost difference of an asset from when the deal opens to when it closes. You trade on price moves without owning the real item, like stocks or gold. In energy, it means a fixed pay rate for power generators.

CFD Trading. The practice of speculating on price movements in shares, indices, commodities or currencies through contracts for difference, rather than through direct ownership of the underlying instrument.

Commodity Futures Trading Commission (regulatory). An independent U.S. government agency that regulates the U.S. derivatives markets, which include futures, swaps, and certain options, to prevent fraud and market manipulation.

Swiss Franc (Confederation Helvetia Franc).

An individual who uses charts and graphs and interprets historical data to find trends and predict future movements. Also referred to as Technical Trader.

A market with no spread. All trades buys and sells occur at that one price.

The settlement process applied to a trade before final delivery of funds.

Chicago Mercantile Exchange.

Chinese Yuan (ISO code).

A transaction fee charged by a broker.

The tendency of an economic crisis to spread from one market to another. In 1997, financial instability in Thailand caused high volatility in its domestic currency, the Baht, which triggered a contagion into other East Asian emerging currencies, and then to Latin America. It is now referred to as the Asian Contagion.

The standard unit of trading.

The standard unit of trading on certain exchanges.

Commitments of Traders (market report). A weekly publication by the Commodity Futures Trading Commission (CFTC) that shows open interest and breakdown of trader positions in U.S. futures markets. It is released every Friday at 3:30 p.m. Eastern Time, reflecting data recorded as of the previous Tuesday.

One of the participants in a financial transaction.

The degree of exposure to legal and political conditions in a cross-border transaction.

Consumer Price Index (economic indicator). A primary economic indicator that measures the average change over time in prices paid by urban consumers for a market basket of consumer goods and services.

The exchange rate between two currencies expressed as the ratio of two foreign exchange rates that are both expressed in terms of a third currency. Foreign exchange rate between two currencies other than the U.S. dollar, the currency in which most exchanges are usually quoted.

Commodity Selection Index (technical indicator). It helps short-term traders choose which commodity futures markets have the strongest trends and volatility, offering the potential for the highest returns in the shortest time.

Commodity Trading Advisor. An individual or firm that provides advice or manages client accounts regarding futures contracts, options, forex, and swaps.

Any form of money issued by a government or central bank and used as legal tender and a basis for trade.

In most currency pairs the quoted currency is USD (U.S. dollar). For example, in the EURUSD pair the base currency is EUR, and the quoted one- USD. But there are a few exceptions, where the base currency is the USD - for example, USDCHF (U.S. dollar / Swiss franc).

The degree of exposure to adverse movements in exchange rates.

Refers to positions which are opened and closed on the same trading day.

- Drawdown. Measures the biggest drop in money from a high point to a low point.
- Due Diligence. A careful check of facts before signing a contract or buying a business.
- Dealing Desk (see NDD). The broker acts as a market maker. They take the other side of your trade and can influence pricing.

An individual who acts as a principal or counterpart to a transaction. Principals take one side of a position, hoping to earn a spread (profit) by closing out the position in a subsequent trade with another party. In contrast, a broker is an individual or firm that acts as an intermediary, putting together buyers and sellers for a fee or commission.

The difference between payments out and payments in, where outflows exceed inflows.

An FX trade where both sides make and take actual delivery of the currencies traded.

A fall in the value of a currency due to market forces.

A contract that changes in value in relation to the price movements of a related or underlying security, future or other physical instrument. An Option is the most common derivative instrument.

The deliberate downward adjustment of a currency’s price, normally by official announcement.

Dow Jones Industrial Average. A stock market index that tracks 30 large, publicly traded "blue-chip" companies in the United States. Created in 1896, it serves as a key economic indicator to gauge overall market health and investor confidence.

Expert Advisor. An automated software program used in trading platforms like MetaTrader 4 and MetaTrader 5. It scans market data, spots trends, and opens or closes trades on its own using preset rules.

European Central Bank.

Electronic Communication Network also Electronic Currency Network.

Economic indicators such as GDP, foreign investment, and the trade balance reflect the general health of an economy, and are therefore responsible for the underlying shifts in supply and demand for that currency.

Exponential Moving Average (technical indicator). A moving average that places greater emphasis on recent data points, making it more sensitive to recent price.

An order to buy or sell at a specified price. This order remains open until the end of the trading day which is typically 5PM EST.

Exchange Traded Fund. A basket of securities like stocks or bonds that trades on public stock exchanges just like an individual company share.

Euro (ISO code). Since 2002 the Euro has been the currency of the European Monetary Union (EMU). A replacement for the European Currency Unit (ECU). Members of the EMU are Germany, France, Belgium, Luxembourg, Austria, Finland, Ireland, the Netherlands, Italy, Spain, and Portugal.

Elliott Wave (theory). It states that financial market prices move in repeating, predictable cycles driven by crowd psychology and investor sentiment.

Fundamental Analysis. A method used to find the true or intrinsic value of an asset like a stock. It looks at economic factors, financial statements, and management quality to see if an investment is underpriced or overpriced.

Futures Commission Merchant. An individual or organisation that takes orders to buy or sell futures contracts, options, or swaps, and accepts customer money or assets (margin) to back those trades. They act as vital financial bridges between clients and commodity exchanges.

Forex Dealer Member. A regulated financial firm that acts as the counterparty in leveraged or margined off-exchange foreign currency trades with retail customers.

Federal Reserve System. The central bank of the United States of America.

The regulatory agency responsible for administering bank depository insurance in the US.

The central bank of the United States, with responsibility for implementing the country's monetary policy and regulating member banks of the System. The Fed was created in 1913 and is composed of 12 regional Federal Reserve Banks and a national Board of Governors.

First In, First Out. An asset and inventory management method. It assumes that the oldest products or materials bought or made are sold, used, or thrown out first.

Official rate set by monetary authorities for one or more currencies.

Floating exchange rates refer to the value of a currency as decided by supply and demand.

Dealer jargon used to describe a position that has been completely reversed, e.g. you bought $500,000 then sold $500,000, thereby creating a neutral (flat) position.

Federal Open Market Committee. The branch of the U.S. Federal Reserve that sets national monetary policy. It controls the money supply and interest rates - most notably the federal funds rate - by buying and selling U.S. government securities in open market operations.

(Forex, FX) is the simultaneous buying of one currency while selling for another. This market of exchange has more buyers and sellers and daily volume than any other in the world. Taking place in the major financial institutions across the globe, the forex market is open 24-hours a day.

The pre-specified exchange rate for a foreign exchange contract settling at some agreed future date, based upon the interest rate differential between the two currencies involved.

A forward contract fixes the exchange rate for future delivery at a date to be agreed by both participants. A deposit (or a minimum margin) is usually required in forward transactions. For example, if I want to lock in today's rate to buy $10,000 USD at 1.5820 Canadian for the next 4 months, I will have the ability to purchase up to $10,000 USD at this rate.

A Forward Rate refers to a cash price of 2 currencies interest difference for a fixed term. Forward rates can be calculated easily given the fixed term interest rates of each currency and the current spot rate.

Forward trading is making the opposite trade of a spot trade in a given period of time. Often investors will swap their trades forward for anywhere from a week or two up to several months depending on the time frame of the investment. Even though a forward trade is on a future date, the position can be closed out at any time. The closing part of the position is then swapped forward to the same future value date.

The difference between the spot rate and the forward rate, expressed in pips.

Focuses on the economic forces of supply and demand that causes price movement. The Fundamentalist studies the causes of market movement, whereas the Technician studies the effects.

An obligation to exchange a good or instrument at a set price on a future date. The primary difference between a Future and a Forward is that Futures are typically traded over an exchange (Exchange-Traded Contracts – ETC), versus forwards, which are considered Over the Counter (OTC) contracts. An OTC is any contract NOT traded on an exchange.

Foreign Exchange. The process of changing one country's money for another. It also means the giant global marketplace where banks, companies, and traders buy and sell national currencies. This market sets the exchange rates used for international trade, travel, and global investments.

Great Britain Pound Sterling (ISO code).

Gross Domestic Product (economic indicator). The total money value of all final goods and services produced inside a country during a set time, like a year or a quarter. It is the main tool used to check if an economy is growing or shrinking

Also known as margin trading. A term used in the relationship of actual equity versus controlling equity.

Greenwich Mean Time. The local mean time at the Royal Observatory in Greenwich, London, counted from midnight.

Was a term coined back in the mid-1900s to describe an economy that was not too hot and not too cold. This typically describes an economy that enjoyed steady growth with a nominal rate of inflation.

An order to buy or sell at a specified price. This order remains open until filled or until the client cancels.

Are five leading industrial nations (France, Japan, Germany, the UK, and US), which meet from time-to-time to discuss common economic problems.

Are 7 leading non-communist industrial nations composed of G5 plus Canada and Italy.

Is also known as The Paris Club which includes Belgium, Canada, France, Germany, Italy, Japan, the Netherlands, Sweden, UK, and US. These nations signed an accord in 1962 to increase the fund available to the IMF and aid member countries with balance-of-payments difficulties.

A hedging transaction is a purchase or sale of a financial product, having as its purpose the elimination of loss arising from price fluctuations. With regards to currency transactions, it would protect one against fluctuations in the foreign exchange rate. (see Forward Contract).

Higher Low (chart). A price dip that stops at a higher level than the previous dip. It is a key sign of a bullish (rising) market trend because it shows that buyers are stepping in sooner and are willing to pay higher prices during pullbacks.

- Introducing Broker. Acts as an agent for a primary broker who finds new clients and builds relationships.
- Interbank. A global network where banks trade currencies which forms the core of the foreign exchange market.
- Interactive Brokers. A major electronic brokerage firm that offers access to stocks, options, futures, and forex.
- Inside Bar. A chart pattern that shows a pause or consolidation in market momentum.

International Monetary Fund. It is a global organisation of 191 member countries. It works to keep the global economy stable, encourage trade, and lend money to countries facing severe money troubles.

An economic condition whereby prices for consumer goods rise, eroding purchasing power.

Funds required to open a position, deposited as a guarantee of future performance.

The Foreign Exchange rates at which large international banks quote other large international banks.

International Organization for Standardization. An independent, non-governmental global network founded on February 23, 1947. Headquartered in Vernier, Switzerland, it brings together national standards bodies from member countries to develop voluntary, consensus-based, industrial and commercial international standards.

Japanese Yen (ISO code).

Statistics that are considered to predict future economic activity.

The London Inter-Bank Offered Rate. Banks use LIBOR when borrowing from another bank.

An order with restrictions on the maximum price to be paid or the minimum price to be received. As an example, if the current price of USD/YEN is 102.00/05, then a limit order to buy USD would be at a price below 102. (ie 101.50).

The Line Chart connects single prices for a selected time period.

The degree to which a market can absorb large transactions with minimal impact on price.

The closing of an existing position through the execution of an offsetting transaction.

Lower High (Chart). A price peak that reaches a lower level than the previous peak. It shows that buyers are losing power and sellers are taking control. When a chart shows a pattern of lower highs and lower lows, it means the market is in a downtrend.

Lower Low (chart). A financial chart is a price point where a trough drops below the previous low point. It is a core building block of market structure that signals strong downward pressure, seller dominance, and the presence of a market downtrend.

Linearly Weighted Moving Average (technical indicator). This assigns progressively greater weights to more recent price data in a linear fashion. This reduces lag compared to a Simple Moving Average (SMA) and reacts faster to current market changes.

A position that appreciates in value if market prices increase. When one buys a currency, their position is long.

Moving Average (technical indicator). A popular technical analysis indicator that smooths out price data by creating a constantly updated average price over a specific time frame. It helps traders filter out short-term market "noise", identify the direction of a trend, and spot potential support or resistance levels.

Moving Average Convergence Divergence (technical indicator). A popular trend-following momentum indicator used in financial trading. It shows the relationship between two exponential moving averages of a price, helping traders spot changes in the strength, direction, and momentum of a market trend.

Funds required to open and maintain a position, held as collateral by the broker.

The margin deposit is not a down payment on a purchase of equity, as many perceive margins to be in the stock markets. Rather, the margin is a performance bond, or good faith deposit, to ensure against trading losses. The margin requirement allows traders to hold a position much larger than the account value, which allows for this high leverage.

In the event that funds in the account fall below margin requirements, brokerage firms will automatically close all open positions.

A demand for funds required to maintain an open position when account equity falls below the margin requirement

A dealer who regularly quotes both bid and ask prices and is ready to make a two-sided market for any financial instrument.

The degree of exposure to changes in market prices.

The process of re-evaluating all open positions with the current market prices. These new values then determine margin requirements.

The date for settlement or expiry of a financial instrument.

- Market Maker. A regulated financial firm or institution that quotes both a buy (bid) and a sell (ask) price for an asset to provide continuous market liquidity. Money management refers to the strategies traders use to control risk, protect capital, and determine position sizes on every trade.
- Money Management. Effective money management means tracking your income, setting a realistic budget, building an emergency fund, and paying off high-interest debt. By controlling your cash flow and automating your savings, you can reach your financial goals and secure your future.

Metatrader Version 4.00 (trading platform). A top online trading platform made by MetaQuotes. People use it to trade foreign currencies, look at price charts, and use automated trading robots. You can get and use the software for free, but you must connect it to a real or demo account from a financial broker to trade.

Multiple Time Frame. A trading technique where you check the same asset across different chart speeds - like daily, 4-hour, and 15-minute charts. You use the highest time frame to find the main trend, the middle one for key levels, and the lowest one to time your exact entries and exits.

National Association of Securities Dealers Automated Quotation. The world's first fully electronic stock market, founded on February 8, 1971. It is the second-largest stock exchange in the world by market value, famous for listing major technology and biotech companies.

Occurs when there is light trading and greater fluctuations in prices relative to volume. This is often interchanged for THIN MARKET.

Non-Disclosure Agreement. It stops people from sharing sensitive or secret information. Businesses and people use it to share ideas safely.

Non-Dealing Desk. A trading platform offered by a forex broker that provides unfiltered access to interbank market rates of exchange.

National Futures Association (regulatory). The independent, self-regulatory organisation for the U.S. derivatives industry. Designated by the Commodity Futures Trading Commission (CFTC), it protects investors, maintains market integrity, and regulates futures, forex, and swaps markets from offices in Chicago and New York.

Non-Farm Payroll (economic indicator). A core economic indicator tracking the monthly change in paid U.S. workers, excluding farm employees, private households, and non-profit staff. Published monthly by the U.S. Bureau of Labor Statistics, it covers roughly 80% of the U.S. workforce and drives global financial market volatility.

New York Stock Exchange. An American stock exchange headquartered at the New York Stock Exchange Building in the Financial District of Lower Manhattan in New York City. It is the largest stock exchange in the world by market capitalisation.

New Zealand Dollar (ISO code).

One-Cancels-the-Other (order type). A pair of linked trading orders where the execution or triggering of one order automatically cancels the other. It is widely used by traders to lock in profits with a limit order while simultaneously limiting potential losses with a stop-loss order.

A designation for two orders whereby one part of the two orders is executed the other is automatically cancelled.

The rate at which a dealer is willing to sell a currency.

A trade which serves to cancel or offset some or all of the market risk of an open position.

Open, High, Low, Close (chart). A financial tool used to show price movements for a specific time period. Each vertical line represents a single timeframe - like one day or one hour - displaying the price range, starting price, and ending price.

An order that will be executed when a market moves to its designated price. Normally associated with Good ‘til Cancelled Orders.

A deal not yet reversed or settled with a physical payment.

Used to describe any transaction that is not conducted over an exchange.

A trade that remains open until the next business day.

Point and Figure (chart). A technical analysis tool that tracks asset price movements using columns of X's (rising prices) and O's (falling prices). It completely ignores the passage of time and volume, updating only when prices move past a set threshold.

Price Action. The study of a security's raw price movements over time. Traders use clean charts - usually without lagging indicators - to spot trends, support and resistance levels, and candlestick patterns to make real-time decisions

Pin Bar abbreviation of Pinocchio Bar (chart). A single candlestick pattern on a financial chart that shows a sharp price rejection and a potential reversal. The name is short for "Pinocchio bar" because its long wick acts like Pinocchio's growing nose, signalling that the market "lied" about a breakout before moving the other way.

A measure of the smallest change in the exchange rate of a currency pair.

The smallest standard unit of price movement in forex trading. For most currency pairs, 1 pip equals 0.0001 (the fourth decimal place).

The degree of exposure to changes in government policy that may adversely affect a position.

The Point & Figure Chart disregards Time and focuses entirely on price activity.

The netted total holdings of a given currency.

Pivot Point. A fixed central pin, axis, or fulcrum around which a mechanism, lever, or physical body turns, rotates, or balances. Depending on the context, the term also refers to technical trading indicators used to find market support and resistance, or a strategic shift in business.

Producer Price Index (economic indicator). A key economic indicator that measures the average change over time in the selling prices received by domestic producers for their output. Often compiled monthly by national statistical agencies like the U.S. Bureau of Labor Statistics, it tracks wholesale inflation before it reaches the final consumer.

Price Pivot Zone. An area on a financial chart where market prices frequently reverse, consolidate, or find strong support and resistance. Unlike a single line or exact price point, a PPZ treats key inflection areas as a wider band where high trading volume cluster.

Parabolic Stop and Reversal (technical indicator). It identifies trend direction, spots potential reversals, and sets trailing stop-loss levels by plotting a series of dots above or below price action on a chart.

The difference between the forward or futures price and the spot price, where the forward price is higher.

Describes quotes to which every market participant has equal access.

Quantitative Analysis. A problem-solving and decision-making technique that uses mathematical and statistical modelling to evaluate numerical data. It helps researchers, businesses, and Investopedia Financial Guide professionals identify patterns, test hypotheses, and forecast future outcomes by turning complex situations into measurable values.

An indicative market price, normally used for information purposes only.

The price of one currency in terms of another, typically used for dealing purposes.

A term used in technical analysis indicating a specific price level at which analysis concludes people will sell.

An increase in the exchange rate for a currency as a result of central bank intervention. Opposite of Devaluation.

The revaluation rates are the market rates used when a trader runs an end-of-day to establish profit and loss for the day.

Exposure to uncertain change, the variability of returns significantly the likelihood of less-than-expected returns.

Funds required to trade that an individual can afford to lose without affecting their standard of living

Risk management enables you to implement a set of rules and measures to ensure any negative impact of a forex trade is manageable.

The settlement process by which an open position is carried forward to a new value date.

The daily rollover interest rate is the amount a trader either pays or earns, depending on the established margin and position in the market. To avoid rollovers, simply make sure positions are closed at the established end of the market day.

Risk/Reward (ratio). This compares the potential loss of an investment or trade against its expected profit. For example, if you risk R100 to make R300, your ratio is 1:3. This concept helps investors use Binance tools to measure potential returns before entering the market.

Relative Strength Index (technical indicator). A measure of the speed and magnitude of recent price changes, used in technical analysis to identify overbought and oversold conditions.

Relative Vigor Index (technical indicator). A momentum indicator that measures the strength of a price trend by comparing a security's closing price relative to its opening price, scaled by the day's total trading range. It oscillates above and below a zero center line.

Stop and Reversal. A trading order that closes your active position and immediately opens a new position in the opposite direction. It is also represented by technical tools like the Parabolic SAR Indicator, which uses dots on a chart to track trends and spot changes in price momentum.

Securities and Exchange Commission (regulatory). An independent federal agency of the United States government created by the Securities Exchange Act of 1934. It holds primary responsibility for enforcing federal securities laws, regulating the securities industry, protecting investors, and maintaining fair, orderly, and efficient public markets.

The settlement process by which a trade is entered into the books and records of the counterparts to a transaction. The settlement of currency trades may or may not involve the actual physical exchange of one currency for another.

An investment position that benefits from a decline in market price. When one sells a currency, their position is short.

Stop Loss (order). An instruction to your broker to automatically sell or buy a security once it reaches a specific price, helping to limit your potential financial loss.

Simple Moving Average (technical indicator). A basic financial tool. It adds up an asset's closing prices over a set number of periods and divides by that number. This creates an average line that smooths out daily price jumps. Traders use it to spot market trends.

Smoothed Moving Average (technical indicator). A technical analysis indicator that calculates an asset's average price over a specific period while factoring in a longer history of price data. It reduces short-term market noise and lag, helping traders confirm long-term trends.

A currency deposit transaction or the simultaneous purchase and sale of currency, or vice versa by means of swap for spot value day against the next working day.

The current market price. Settlement of spot transactions usually occurs within two business days.

In FX Markets, Spot refers to the cash price without interest factored in.

When you trade foreign exchange you are always quoted a spot price 2 business days in advance. This is under normal conditions where there are no bank holidays in the traded currencies countries or is not over a weekend.

The difference between the bid (buy) and offer (ask, sell) prices; in other words the spread is the commission that the brokerage house makes on each trade. This can vary widely between currencies and between brokerage firms. For example, USD/JPY may bid at 131.40 and ask at 131.45, this five-pip spread defines the trader’s cost, which can be recovered with a favorable currency move in the market.

Standard & Poor’s. ) A major American financial services company. It works as a credit rating agency and tracks stock market indexes. It is one of the big three rating agencies in the world.

Support/Resistance. These are core tools in market trading. Support is a price floor where buying stops a price drop. Resistance is a price ceiling where selling stops a price rise. Markets use these zones to show where buyers and sellers meet.

Slang for British Pound.

Order type whereby an open position is automatically liquidated at a specific price. Often used to minimize exposure to losses if the market moves against an investor’s position. As an example, if an investor is long USD at 156.27, they might wish to put in a stop loss order for 155.49, which would limit losses should the dollar depreciate, possibly below 155.49.

This technical analysis indicator is based on the premise that during an upward trading market, prices tend to close near their high, and during a downward trading market, prices tend to close near their low.

Stochastic Oscillator (technical indicator). It compares a security's closing price to its price range over a specific time period (typically 14 periods) on a scale from 0 to 100 to spot potential overbought or oversold market reversal zones.

Straight Through Processing. A system that handles business and money transactions from start to end using only computers. No person needs to check or fix the data along the way. It makes trades, payments, and requests finish fast without human mistakes.

A term used in technical analysis indicating a specific price level at which a currency will have the inability to cross below. Recurring failure for the price to move below that point produces a pattern that can usually be shaped by a straight line. It is the opposite of Resistance levels.

A currency swap is the simultaneous sale and purchase of the same amount of a given currency at a forward exchange rate.

Society of Worldwide Interbank Financial Telecommunications. It is a dedicated computer network that is set up to support fund transfer messages between member banks worldwide.

An effort to forecast prices by analyzing market action through chart study, volume, trends, moving averages, patterns, formations, and many other technical indicators.

Time Frame. A trading time frame is the specific duration that each individual bar or candle on a price chart represents. Ranging from a single minute to an entire month, your choice of time frame dictates your market strategy, holding period, and how you manage risk.

A measure of the smallest possible price movement in an instrument.

Shows current and/or recent history of a currency either in the format of a graph or table.

Trend Line. A straight or curved line drawn on a chart to connect data points or price highs and lows, showing the general direction of a trend. It is widely used in technical analysis for finance and data statistics to spot patterns, support levels, and momentum.

Simultaneous buying and selling of a currency for delivery the following day.

Take Profit (order). A tool in trading that tells your broker to automatically close an open trade when the asset reaches a specific, higher price. It locks in your gains without forcing you to watch the market all day.

Buying or selling of goods and services among countries called commerce. Forex Trading is the trading of Foreign Currencies.

The cost of buying or selling a financial instrument.

The date on which a trade occurs.

Simply the direction of the market, usually broken down into three categories: major, intermediate, and short-term trends.

This is a Technical Analysis indicator also called or linear regression, which is a statistical tool used to uncover trends. It is calculated by using the "Least Squares" method. There are two ways to use the linear regression line: a. Trade in the direction of the Trend line. b. Construct a parallel trend channel above and below the Trend line to be used as support and resistance levels.

Trailing Stop (order). An automated order type that dynamically adjusts its trigger price relative to market movement. For a long position, it sets a stop-loss at a fixed distance (dollar amount or percentage) below the peak market price, rising as the price climbs but locking in place if the market reverses.

True Strength Index (technical indicator). A momentum oscillator that uses double-smoothed exponential moving averages (EMA) of price changes to filter out market noise and help traders identify trend direction, strength, and potential overbought or oversold conditions.

A measure of the total monetary value of executed transactions in a given period.

When both a bid and offer rate are quoted for an FX transaction.

A new price quote at a price higher than the preceding quote.

In the U.S., a regulation whereby a security may not be sold short unless the last trade prior to the short sale was at a price lower than the price at which the short sale is executed.

The interest rate at which US banks will lend to their prime corporate Clients.

United States Dollar (ISO code).

United States Dollar Index (ISO code).

Universal Time, Coordinated. The primary global time standard used to regulate clocks and time zones worldwide. It is maintained by a network of precise atomic clocks, forms the basis for civil time, and does not observe daylight saving time.

The date on which counterparts to a financial transaction agree to settle their respective obligations, i.e., exchanging payments. For spot currency transactions, the value date is normally two business days forward. Also known as maturity date.

Funds required to restore a position to its minimum margin level after an adverse price movement.

The degree to which the price of currency tends to fluctuate within a certain period of time. The standard deviation of a price series is commonly used to measure price volatility.

A measure of total trading activity in an instrument over a given period

World Bank. An international financial institution founded in 1944 at the Bretton Woods Conference. Headquartered in Washington, D.C., it provides low-interest loans, zero-interest credits, and grants to developing and low-income countries to fund infrastructure, education, health, and poverty reduction projects.

Dollar is said to be weak (relative to a previous time period) against another currency when more dollars are required to buy one unit of another currency. The dollar is strong or has gained in strength when fewer dollars are required to buy one unit of another currency. For example, if $1 buys 10 FF in 1989 but today $1 buys only 6 FF then the dollar has weakened against the franc.

Slang for a condition of a highly volatile market where a sharp price movement is quickly followed by a sharp reversal.

Slang for a billion.

Yield is the cash income (like dividends or interest) an investment earns, shown as a percentage of its cost or value. Return on investment (ROI) is the total gain or loss, including both income and price changes. Yield looks only at cash flow, while return looks at total profit.