Forex glossary | Brokerscout.ai

Glossary

Stop Out A trader gets acquainted with the term "stop out" at the very beginning of his trading activity. The term means forced closing of positions in the trading terminal in case of insufficient funds on the account.

Example:

A stop out is triggered when a trader, faced with an unfavourable market movement, automatically closes his position to minimise losses and manage risks.
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Support The price level at which an instrument's value is expected to slow down or stop falling when the market trend reverses.

Example:

While analysing the price chart, a trader noticed a support level where demand for the asset is expected to increase and decided to open a long position, expecting prices to rise from this level.
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Swap In simple terms, a swap is a transaction in which a counter-trade is made, i.e. a reverse sale of the same currency after a certain period of time on contractually agreed terms.

Example:

A trader has considered using a swap to roll over his open position to the next business day to avoid unforeseen changes and keep the asset in the portfolio.
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Technical analysis The concept of technical analysis in trading includes the study of a set of historical data of price behaviour and forecasting on their basis the direction of its further movement and future prospects.

Example:

Applying technical analysis, a trader studies price charts and the indicators used to identify trends and predict future movements in the financial market.
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Tool A symbol of a traded asset indicating the price expressed in monetary units. The instrument can be currency pairs, stock tickers and CFDs, etc.

Example:

A trader has selected a particular financial instrument based on market analysis to include it in his/her investment portfolio and diversify risks.
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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