Forex glossary | Brokerscout.ai

Glossary

Market opening The time when financial markets begin or resume operations after a weekend or holiday is referred to as the "market opening."

Example:

A trader decides to take advantage of the market opening by placing an order to buy shares of a technology company, expecting their price to rise at the beginning of the trading day.
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Market order An order to immediately buy or sell a financial asset at the market price that a broker receives from a client.

Example:

A trader has executed a market order by deciding to buy or sell a financial instrument at the current market price in order to enter into a position immediately.
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Offer Offer is the price that a broker offers to a trader to buy a certain financial instrument. In a broad sense, it is the price for which the seller is ready to part with his product. In the currency quote this price is indicated on the right. The bid price is always higher than the ask price.

Example:

Broker offered $50 for one share of XYZ company
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Offshore An offshore zone is a territory where taxes are low, sometimes close to zero. As a rule, such a zone is created in the legal framework of small states. This is an unofficial name; it does not appear in any legal act or agreement.

Example:

The company decided to register its representative office in an offshore jurisdiction in order to take advantage of tax benefits and improve conditions for its international business activities.
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Open currency position Open currency position is the ratio of currency claims and liabilities of each party under the concluded transactions, when the amounts of liabilities and the amounts of claims of each party in the base currency do not coincide.

Example:

The trader maintained an open currency position by holding a position in the USD/JPY currency pair and closely monitored the market dynamics in order to make informed decisions on closing the transaction.
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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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