Forex glossary | Brokerscout.ai

Glossary

Cross-courses These are currency pairs that do not contain US dollars. For example, EUR/GBP, GBP/CHF, AUD/CAD, CHF/JPY.

Example:

A trader has decided to open a position on the EUR/AUD cross currency pair, taking into account the expected change in the exchange rates of the Euro and the Australian dollar.
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Currency Currency is the monetary unit of a country participating in international economic exchange and other international relations related to monetary settlements.

Example:

Major currencies of the forex market: USD - US dollar; EUR - Euro; GBP - British pound sterling.
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Currency of the instrument The currency in which an instrument is traded.

Example:

It is important to take into account the currency of the instrument when trading, because changes in the exchange rate of the designated currency can affect the value of the asset and, consequently, the results of transactions on the Forex market.
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Daily order A trade order that remains active for one day.

Example:

Having decided to limit his trading operations to the day, a trader placed a day order to buy a stock with a certain price level, which was active only during the current trading session.
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Divergence Divergence is taken into account by traders as a signal of future trend reversal. In translation, this concept means "divergence". In the forex market it is a divergence of the price chart and the indicator chart, i.e. they go in different directions.

Example:

Divergence in financial markets such as forex, stocks or futures occurs when the price and indicator directions are different, which can signal a change in trend.
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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