Forex glossary | Brokerscout.ai

Glossary

Trend, tendency Trend, or tendency, is a basic concept in the world of trading. It is impossible to start trading on the forex market without familiarising yourself with the trend and studying its nature.

Example:

Following a long-term trend in the market, a trader decides to open a position in the direction of the current trend, expecting further price movement in the same direction.
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Value date (settlement date) The value date (settlement date) is the settlement date agreed by the parties to a transaction, which is a business day in the countries issuing the base currency and the counter currency.

Example:

The accounting system automatically sets the settlement date for each trade, reflecting the moment when a financial liability is incurred or a gain or loss is realised.
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Volatility Volatility - the range of fluctuations in the price of a financial instrument - is one of the most significant indicators of the attractiveness of the instrument in trading. It is volatility that reflects the degree of risk in working with this or that instrument, because the higher this indicator, the greater the range of changes in the exchange rate in a certain period of time.

Example:

The trader took into account the level of volatility in the market, adapting his strategies and managing risk in the conditions of price fluctuations to achieve more successful trading results.
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Warrant The term "order" in the Forex market means a request from a client or a company that acts on his behalf to make a trading operation on the platform.

Example:

A trader has placed a limit order to buy a stock at a lower price than the current market price, expecting that prices will rise and he will be able to take advantage of the favorable offer.
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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