Forex glossary | Brokerscout.ai

Glossary

Bear A trader, investor, speculator who bets in his trade on the downside, i.e. on the fall of the whole market or the quotations of specific stocks.

Example:

A trader, focusing on current trends, has taken a bearish position, expecting further price declines in the market.
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Bear market A bear market is a market that is characterised by a general decline in stock prices, stock indices

Example:

In bear market conditions, investors often reorient their portfolios, choosing protective assets or applying strategies aimed at reducing potential losses.
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Bond A bond is an equity security that entitles its holder to demand repayment of its full value upon expiry of its circulation term, as well as to receive a fixed income (coupon) within the terms stipulated in the securities prospectus.

Example:

An investor has purchased a fixed coupon bond expecting to receive interest payments and principal repayment at the end of the term of the securities.
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Broker A broker acts as an intermediary between a seller and a buyer of securities on behalf of a client. The client also pays for the broker's work - most often the payment is made in the form of commission for various operations. There is also a concept of a floor broker.

Example:

The broker provides the trader with detailed information about various financial instruments and trading conditions, facilitating informed decisions.
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Bull A trader or investor who acts on the belief that the market and prices of specific financial instruments (currency pairs, stocks, etc.) will rise. Opens buy trades (long position).

Example:

A "bull" in the stock market has decided to increase his investment, convinced that the price of the selected company's shares will rise soon.
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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

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