Forex glossary | Brokerscout.ai

Glossary

Stock market The stock market - money market plus capital market, is a mechanism for buying and selling securities listed on exchanges (exchange) and off-exchanges (over-the-counter).

Example:

A trader has decided to diversify his investment portfolio by investing in various securities available on the stock market in order to achieve long-term capital growth.
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Stocks A financial instrument (security) that gives an investor the right to an ownership interest in the issuing company.

Example:

An investor would consider the shares of a particular company by analysing financial statements and prospects before deciding to buy those shares on the stock market.
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Stop Loss Stop loss in English means "stop loss". Applied to the forex market, this order allows the trader to minimise the influence of the psychological factor, which, as we know, in 90% of cases prevents normal earnings on the currency market.

Example:

Fearing possible losses, the trader places a stop loss on his open position, setting a predetermined price level, when reached, the transaction will automatically close to minimise losses.
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Stop Loss Orders These are stop orders that are executed (close a position) in case of unfavorable market movement for the trader.

Example:

A trader places a stop-loss order for his open position in the stock market, setting a price level at which the trade will automatically close to minimize losses in case of adverse price movement.
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Stop Order Stop orders are usually used to close trading positions and prevent losses.

Example:

A trader has set a Sell Stop Order to protect his position from potential losses in the event of unfavourable market movement, having previously determined the price level at which the position should be automatically closed.
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Risk Warning

Before embarking on Forex trading, it is essential to thoroughly evaluate your investment objectives, level of experience, and risk tolerance. Never allocate funds that you cannot afford to lose.

Off-exchange foreign exchange transactions carry significant risks, encompassing leverage, credit risk, limited regulatory protections, and market volatility. These factors can significantly influence currency prices and liquidity.

Furthermore, the leverage inherent in forex trading means that market fluctuations can result in substantial gains or losses relative to your initial investment. If market conditions go against you, you may risk losing your entire initial margin and be required to inject additional funds to maintain your position. Failure to meet margin requirements may lead to position liquidation and subsequent losses for which you bear responsibility

Before embarking on Forex trading, it is essential to thoroughly evaluate your investment objectives, level of experience, and risk tolerance. Never allocate funds that you cannot afford to lose.

Off-exchange foreign exchange transactions carry significant risks, encompassing leverage, credit risk, limited regulatory protections, and market volatility. These factors can significantly influence currency prices and liquidity.

Furthermore, the leverage inherent in forex trading means that market fluctuations can result in substantial gains or losses relative to your initial investment. If market conditions go against you, you may risk losing your entire initial margin and be required to inject additional funds to maintain your position. Failure to meet margin requirements may lead to position liquidation and subsequent losses for which you bear responsibility