Forex glossary | Brokerscout.ai

Glossary

Buy Buy - this term refers to the acquisition of financial assets, opening a long position (buying a commodity in the expectation that its price will rise) and closing a short position (buying a commodity at a price lower than the price at which it was sold, with the expectation of making a profit).

Example:

A trader has decided to buy a certain currency pair, expecting its value to rise in the forex market in the near future.
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Buy to close A close-out buy is made to reduce or close a short position in a particular financial instrument. It is also understood as the purchase of an option by an investor to compensate for a similar option that was sold earlier.

Example:

A trader decides to make a close-out buy, thereby closing his open position in the stock market before the end of the trading day.
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Candlestick chart (Japanese candlesticks) A Japanese candlestick is a rectangle on the chart, which contains the history of price movement for a certain period of time.

Example:

In financial market charts, the use of Japanese candlesticks provides traders with information about price movements and changes over time, providing a clearer view of price dynamics than traditional charts.
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Complete finished transaction A complete transaction is two reverse transactions in the trading platform (buy with further sale / sell with forthcoming purchase) using equal amount of funds. In other words, a complete finished transaction is the opening and closing of a trade.

Example:

A trader has completed a complete transaction by buying and selling a certain number of shares, exchanging currencies or closing an open position in the financial market.
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Cross currency pair Cross currency pairs, also known as minor currency pairs, are pairs that do not include the US dollar but include at least one of the other three major currencies of the world: EUR,GBP.

Example:

A trader has decided to open a position on the EUR/AUD cross currency pair, given the expected change in the EUR and AUD exchange rates.
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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