The Japanese yen rose today against most other major currencies on the speculation that the slowdown of the global economic growth will increase demand for the Japanese currency as the safe haven.
The Canadian dollar slipped today after the economic reports from both the US and Canada itself intensified the concerns about the slowdown of the global economic growth.
The US dollar weakened today against most other major currencies after the unemployment claims unexpectedly surged and other reports signaled that the economic recovery in the US is slowing.
The Great Britain pound rose today versus other major currencies as the nation’s budget shortage in July was smaller than expected.
Friday, August 20, 2010
Markets Tread Water Ahead of Jobs, USD Slides by Michael Boutros 20-aug-2010
8/19/2010 07:00 am: EUR/$..1.2850 $/JPY..85.54 GBP/$..1.5661 $/CHF..1.0385 AUD/$..0.9013 $/CAD..1.0269
Markets Tread Water Ahead of Jobs, USD Slides by Michael Boutros
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Asia Pacific markets were firmer after a lackluster performance in US equities saw the Dow and the S&P close virtually flat on the session, while the Nasdaq posted a marginal gain of 0.3%. With no economic data on the calendar, markets have been driven by corporate earnings and M&A activity, with mining giant BPH Billiton's hostile bid for Potash Corp making global headlines. The Nikkei 225 was the strongest performer in the region, advancing by more than 1.3% on speculation that the BoJ may implement additional monetary easing measures in an effort to stem deflation and combat recent strength in the yen. The Hang Seng index and the Shanghai SE composite were higher by 0.8% and 1.0% respectively, while the S&P/ASX 200 index nudged higher by a meager 0.1%.
Also worth noting is China's decision today to allow the yuan to trade in the domestic market against the Malaysian ringgit for the first time. The move suggests China is taking steps towards a free floating currency, which would undoubtedly see the yuan appreciate considerably against most of the major currencies, save the yen. Having recently surpassed Japan as the world's second largest economy, a stronger yuan could have significant implications on global inflation as the cost of Chinese goods increases. The subsequent domestic slow down could also put pressure on the nation's closest trading partners, as weaker Chinese demand weighs on commodities and commodity backed economies.
Commodity prices were mixed, with crude oil gaining 1.0% to trade at $76.00 per barrel and gold holding just beneath the $1230 mark. Commodity backed currencies were firmer, with the aussie and the loonie advancing nearly .25% against the dollar to trade at .9000 and 1.0270 respectively. The greenback is weaker across the board, with the dollar index falling to 82.30. Bond yields have continued to slowly recover, with the 5-year at 1.477 and the 10-year at 2.67.
This article contains the following sections:
# Euro Gains Lack Conviction
# World Cup Boosts UK Sales
You need to be logged in to Forexnews to view the remainder of this article. Please login with your username and password at the top left corner of the site, or Request Free username and password to receive full access.
Markets Tread Water Ahead of Jobs, USD Slides by Michael Boutros
Advertisement
Asia Pacific markets were firmer after a lackluster performance in US equities saw the Dow and the S&P close virtually flat on the session, while the Nasdaq posted a marginal gain of 0.3%. With no economic data on the calendar, markets have been driven by corporate earnings and M&A activity, with mining giant BPH Billiton's hostile bid for Potash Corp making global headlines. The Nikkei 225 was the strongest performer in the region, advancing by more than 1.3% on speculation that the BoJ may implement additional monetary easing measures in an effort to stem deflation and combat recent strength in the yen. The Hang Seng index and the Shanghai SE composite were higher by 0.8% and 1.0% respectively, while the S&P/ASX 200 index nudged higher by a meager 0.1%.
Also worth noting is China's decision today to allow the yuan to trade in the domestic market against the Malaysian ringgit for the first time. The move suggests China is taking steps towards a free floating currency, which would undoubtedly see the yuan appreciate considerably against most of the major currencies, save the yen. Having recently surpassed Japan as the world's second largest economy, a stronger yuan could have significant implications on global inflation as the cost of Chinese goods increases. The subsequent domestic slow down could also put pressure on the nation's closest trading partners, as weaker Chinese demand weighs on commodities and commodity backed economies.
Commodity prices were mixed, with crude oil gaining 1.0% to trade at $76.00 per barrel and gold holding just beneath the $1230 mark. Commodity backed currencies were firmer, with the aussie and the loonie advancing nearly .25% against the dollar to trade at .9000 and 1.0270 respectively. The greenback is weaker across the board, with the dollar index falling to 82.30. Bond yields have continued to slowly recover, with the 5-year at 1.477 and the 10-year at 2.67.
This article contains the following sections:
# Euro Gains Lack Conviction
# World Cup Boosts UK Sales
You need to be logged in to Forexnews to view the remainder of this article. Please login with your username and password at the top left corner of the site, or Request Free username and password to receive full access.
Thursday, August 12, 2010
BoE Lowers Growth Forecast- Yen Hits 15-Year High 12 -aug-2010
Asia Pacific markets were lower after a late day rally was unable to bring US equities out of the red. The Hang Seng and the S&P/ASX 200 indices were lower by .8% and 1.9% respectively, while the Shanghai SE composite eked out a gain of nearly .5% after a flurry of mixed data. While slightly weaker PPI and retail sales data indicates further slowing in the pace of growth, investors were comforted by inline industrial production and CPI figures. The Nikkei 225 was the worst performer, off by 2.7% as concerns continue to mount regarding the strengthening yen. Exporters were hit hard on speculation that persistent appreciation in the currency will begin to weigh on corporate earnings. European equity bourses are under considerable pressure today after the BoE lowered the UK's growth outlook, sounding cautious warnings of increasing uncertainty in the US and Eurozone economies.
Commodities were lower across the board with the exception of gold, which pared earlier losses as risk-off trades boosted demand. Gold is seen higher, with metal trading just below $1200 per ounce early in London trade. Crude oil fell below $80 per barrel for the first time this month to trade at 79.50. The dollar index has recovered all of yesterday's losses after the Fed stated that the "recovery is likely to be more modest in the near term than had been anticipated." The Fed's move to begin, “reinvesting principal payments from agency debt and agency mortgage-backed securities in longer-term Treasury securities,” is being dubbed by traders as 'QE lite' and suggests the Fed has moved away from an exit strategy in the interim. Traders are now expecting rates to remain unchanged until early 2011. The dollar index advanced nearly 1.4% to 81.70 as investors flocked to safer, lower yielding currencies like the dollar, the swissy, and the yen. US Treasury yields drifted lower, with the 5-year at 1.41 and the 10-year at 2.73.
Commodities were lower across the board with the exception of gold, which pared earlier losses as risk-off trades boosted demand. Gold is seen higher, with metal trading just below $1200 per ounce early in London trade. Crude oil fell below $80 per barrel for the first time this month to trade at 79.50. The dollar index has recovered all of yesterday's losses after the Fed stated that the "recovery is likely to be more modest in the near term than had been anticipated." The Fed's move to begin, “reinvesting principal payments from agency debt and agency mortgage-backed securities in longer-term Treasury securities,” is being dubbed by traders as 'QE lite' and suggests the Fed has moved away from an exit strategy in the interim. Traders are now expecting rates to remain unchanged until early 2011. The dollar index advanced nearly 1.4% to 81.70 as investors flocked to safer, lower yielding currencies like the dollar, the swissy, and the yen. US Treasury yields drifted lower, with the 5-year at 1.41 and the 10-year at 2.73.
BoE Lowers Growth Forecast- Yen Hits 15-Year High by Michael Boutros
Asia Pacific markets were lower after a late day rally was unable to bring US equities out of the red. The Hang Seng and the S&P/ASX 200 indices were lower by .8% and 1.9% respectively, while the Shanghai SE composite eked out a gain of nearly .5% after a flurry of mixed data. While slightly weaker PPI and retail sales data indicates further slowing in the pace of growth, investors were comforted by inline industrial production and CPI figures. The Nikkei 225 was the worst performer, off by 2.7% as concerns continue to mount regarding the strengthening yen. Exporters were hit hard on speculation that persistent appreciation in the currency will begin to weigh on corporate earnings. European equity bourses are under considerable pressure today after the BoE lowered the UK's growth outlook, sounding cautious warnings of increasing uncertainty in the US and Eurozone economies.
Commodities were lower across the board with the exception of gold, which pared earlier losses as risk-off trades boosted demand. Gold is seen higher, with metal trading just below $1200 per ounce early in London trade. Crude oil fell below $80 per barrel for the first time this month to trade at 79.50. The dollar index has recovered all of yesterday's losses after the Fed stated that the "recovery is likely to be more modest in the near term than had been anticipated." The Fed's move to begin, “reinvesting principal payments from agency debt and agency mortgage-backed securities in longer-term Treasury securities,” is being dubbed by traders as 'QE lite' and suggests the Fed has moved away from an exit strategy in the interim. Traders are now expecting rates to remain unchanged until early 2011. The dollar index advanced nearly 1.4% to 81.70 as investors flocked to safer, lower yielding currencies like the dollar, the swissy, and the yen. US Treasury yields drifted lower, with the 5-year at 1.41 and the 10-year at 2.73.
US Dollar, Japanese Yen to Pare Gains as Stock Index Futures Erase Losses
The US Dollar and Japanese Yen are likely to pare gains as US index futures all but erase early Asian-session losses ahead of the opening bell in Europe, hinting a deeper correction of yesterday’s spike in risk aversion is ahead.
EUR/USD Classical 08.12
Wednesday’s violent pullback officially confirms short-term topping and opens the door for deeper setbacks over the coming sessions.
Commodities were lower across the board with the exception of gold, which pared earlier losses as risk-off trades boosted demand. Gold is seen higher, with metal trading just below $1200 per ounce early in London trade. Crude oil fell below $80 per barrel for the first time this month to trade at 79.50. The dollar index has recovered all of yesterday's losses after the Fed stated that the "recovery is likely to be more modest in the near term than had been anticipated." The Fed's move to begin, “reinvesting principal payments from agency debt and agency mortgage-backed securities in longer-term Treasury securities,” is being dubbed by traders as 'QE lite' and suggests the Fed has moved away from an exit strategy in the interim. Traders are now expecting rates to remain unchanged until early 2011. The dollar index advanced nearly 1.4% to 81.70 as investors flocked to safer, lower yielding currencies like the dollar, the swissy, and the yen. US Treasury yields drifted lower, with the 5-year at 1.41 and the 10-year at 2.73.
US Dollar, Japanese Yen to Pare Gains as Stock Index Futures Erase Losses
The US Dollar and Japanese Yen are likely to pare gains as US index futures all but erase early Asian-session losses ahead of the opening bell in Europe, hinting a deeper correction of yesterday’s spike in risk aversion is ahead.
EUR/USD Classical 08.12
Wednesday’s violent pullback officially confirms short-term topping and opens the door for deeper setbacks over the coming sessions.
Wednesday, August 11, 2010
FOREX NEWS 11-AUG-2010
Sterling Declines as Confidence of Consumers Wanes
The Great Britain pound declined today against the US dollar and the Japanese yen as the concerns about the possible slowdown of the nation’s economic growth weakened the currency.
Rand Weakens on Slower Manufacturing Growth
August 11th, 2010
The South African rand dropped versus the US dollar today, following yesterday’s decline, on the speculation that the growth of the manufacturing output slowed in South Africa.
Aussie Weakens on Reduced Demand for Riskier Assets
August 11th, 2010
The Australian dollar fell today as the signs of the slower economic growth, particularly in the US and China, damped the demand for the riskier currencies.
Dollar Weakens After FOMC Meeting
August 10th, 2010
The US dollar fell versus the Japanese yen and also declined against the Great Britain pound and the euro, remaining above the opening level though, after the Federal Reserve decided to keep the interest rates at the record low level.
The Great Britain pound declined today against the US dollar and the Japanese yen as the concerns about the possible slowdown of the nation’s economic growth weakened the currency.
Rand Weakens on Slower Manufacturing Growth
August 11th, 2010
The South African rand dropped versus the US dollar today, following yesterday’s decline, on the speculation that the growth of the manufacturing output slowed in South Africa.
Aussie Weakens on Reduced Demand for Riskier Assets
August 11th, 2010
The Australian dollar fell today as the signs of the slower economic growth, particularly in the US and China, damped the demand for the riskier currencies.
Dollar Weakens After FOMC Meeting
August 10th, 2010
The US dollar fell versus the Japanese yen and also declined against the Great Britain pound and the euro, remaining above the opening level though, after the Federal Reserve decided to keep the interest rates at the record low level.
Sunday, May 23, 2010
US Dollar Forecast
Fundamental Outlook for US Dollar: Bullish
- US Dollar surges as financial market confidence erodes
- Yet Greenback sinks despite further risk aversion
- Forex sentiment nonetheless points to further US Dollar, Japanese Yen gains
The US Dollar finished the week considerably higher against all except the Euro and Japanese Yen, fueled by a 4+ percent decline in the S&P 500 and broader financial market risk aversion. US stocks briefly saw themselves below last week’s “flash crash” lows as major indices saw their biggest single-day decline since April, 2009. A sharp rebound into Friday’s close suggests that bulls still have some fight left in them, but the S&P 500 Volatility Index (VIX) remains at impressive heights and emphasizes fear surrounding major financial markets.
Whether or not the US Dollar can continue higher against major counterparts will almost certainly depend on the trajectory of the S&P 500 and other financial market risk barometers. An effectively empty week of US economic event risk tells us that the Greenback will almost exclusively take its cues from other markets. To that effect, it may be especially important to watch whether Sunday-to-Monday’s sessions and whether they set the tone for the subsequent days of price action.
The S&P and Dow Jones Industrials Average started the past week sharply lower but recovered noticeably into Monday’s session close. Yet even at this early stage we saw key indicators such as the VIX and the Treasury-Eurodollar (TED) interest rate spread climb to fresh multi-month highs, emphasizing growing tensions below the surface. The steady climb in risk premiums show that credit markets are once again growing risk averse and greatly favoring the security of Government debt.
Three-month LIBOR rates now stand 35bp above the equivalent Treasury security—the largest difference since June, 2009. It serves to note that the credit crisis of 2008 saw the TED spread balloon to a massive 480bps and the more recent premium pales in comparison. Yet recent trends show a steady deterioration in market confidence, and we cannot rule out further flare-ups in market tensions.
Traders should watch market reactions to the coming week’s Conference Board Consumer Confidence results, Durable Goods Orders data, and revisions to US Gross Domestic Product figures. It is difficult to handicap the notoriously volatile Consumer Confidence and Durable Goods Orders releases, while GDP revisions are widely expected to show that the US economy grew slightly more than previously reported through the first quarter of the year. Positive surprises in said releases could arguably improve fundamental outlook for the US economy and calm financial market nerves. Yet it is difficult to imagine that financial markets will suddenly embrace risk and conditions will dramatically improve on a string of economic releases. In the absence of a substantive improvement in key risk barometers, the US Dollar may continue to gain against the highly risk-sensitive commodity currency bloc and other key counterparts. - DR
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Monday, May 3, 2010
Forex Glossary
ADX (Average Directional Index) — standard technical indicator that measures the strength of a trend.
Ask (Offer) — price of the offer, the price you buy for.
Aussie — a Forex slang name for the Australian dollar.
Bank Rate — the percentage rate at which central bank of a country lends money to the country's commercial banks.
Bid — price of the demand, the price you sell for.
Broker — the market participating body which serves as the middleman between retail traders and larger commercial institutions.
Cable — a Forex traders slang word GBP/USD currency pair.
Carry Trade — in Forex, holding a position with a positive overnight interest return in hope of gaining profits, without closing the position, just for the central banks interest rates difference.
CCI (Commodity Channel Index) — a cyclical technical indicator that is often used to detect overbought/oversold states of the market.
CFD — a Contract for Difference — special trading instrument that allows financial speculation on stocks, commodities and other instruments without actually buying.
Commission — broker commissions for operation handling.
CPI — consumer price index the statistical measure of inflation based upon changes of prices of a specified set of goods.
EA (Expert Advisor) — an automated script which is used by the trading platform software to manage positions and orders automatically without (or with little) manual control.
ECN Broker — a type of Forex brokerage firm that provide its clients direct access to other Forex market participants. ECN brokers don't discourage scalping, don't trade against the client, don't charge spread (low spread is defined by current market prices) but charge commissions for every order.
ECB (European Central Bank) — the main regulatory body of the European Union financial system.
Fed (Federal Reserve) — the main regulatory body of the United States of America financial system, which division — FOMC (Federal Open Market Committee) — regulates, among other things, federal interest rates.
Fibonacci Retracements — the levels with a high probability of trend break or bounce, calculated as the 23.6%, 32.8%, 50% and 61.8% of the trend range.
Flat (Square) — neutral state when all your positions are closed.
Fundamental Analysis — the analysis based only on news, economic indicators and global events.
GDP (Gross Domestic Product) — is a measure of the national income and output for the country's economy; it's one of the most important Forex indicators.
GTC (Good Till Canceled) — order to buy or sell of a currency with a fixed price or worse. The order is alive (good) until execution or cancellation.
Hedging — maintaining a market position which secures the existing open positions in the opposite direction.
Jobber — a slang word for a trader which is aimed toward fast but small and short-term profit from an intra-day trading. Jobber rarely leaves open positions overnight.
Kiwi — a Forex slang name for the New Zealand currency — New Zealand dollar.
Leading Indicators — a composite index (year 1992 = 100%) of ten most important macroeconomic indicators that predicts future (6-9 months) economic activity.
Limit Order — order for a broker to buy the lot for fixed or lesser price or sell the lot for fixed or better price. Such price is called limit price.
Liquidity — the measure of markets which describes relationship between the trading volume and the price change.
Long — the position which is in a Buy direction. In Forex, the primary currency when bought is long and another is short.
Loss — the loss from closing long position at lower rate than opening or short position with higher rate than opening, or if the profit from a position closing was lower than broker commission on it.
Lot — definite amount of units or amount of money accepted for operations handling (usually it is a multiple of 100).
Margin — money, the investor needs to keep at broker account to execute trades. It supplies the possible losses which may occur in margin trading.
Margin Account — account which is used to hold investor's deposited money for FOREX trading.
Margin Call — demand of a broker to deposit more margin money to the margin account when the amount in it falls below certain minimum.
Market Order — order to buy or sell a lot for a current market price.
Market Price — the current price for which the currency is traded for on the market.
Momentum — the measure of the currency's ability to move in the given direction.
Moving Average (MA) — one of the most basic technical indicators. It shows the average rate calculated over a series of time periods. Exponential Moving Average (EMA), Weighted Moving Average (WMA) etc. are just the ways of weighing the rates and the periods.
Offer (Ask) — price of the offer, the price you buy for.
Open Position (Trade) — position on buying (long) or selling (short) for a currency pair.
Order — order for a broker to buy or sell the currency with a certain rate.
Pivot Point — the primary support/resistance point calculated basing on the previous trend's High, Low and Close prices.
Pip (Point) — the last digit in the rate (e.g. for EUR/USD 1 point = 0.0001).
Profit (Gain) — positive amount of money gained for closing the position.
Principal Value — the initial amount of money of the invested.
Realized Profit/Loss — gain/loss for already closed positions.
Resistance — price level for which the intensive selling can lead to price increasing (up-trend).
RSI (Relative Strength Index) — indicator that measures of the power of direction price movement by comparing the bullish and bearish portions of the trend.
Scalping — a style of trading notable by many positions that are opened for extremely small and short-term profits.
Settled (Closed) Position — closed positions for which all needed transactions has been made.
Slippage — execution of order for a price different than expected (ordered), main reasons for slippage are — "fast" market, low liquidity and low broker's ability to execute orders.
Spread — difference between ask and bid prices for a currency pair.
Standard Lot — 100,000 units of the base currency of the currency pair, which you are buying or selling.
Stop-Limit Order — order to sell or buy a lot for a certain price or worse.
Stop-Loss Order — order to sell or buy a lot when the market reaches certain price. It is used to avoid extra losses when market moves in the opposite direction. Usually is a combination of stop-order and limit-order.
STP (Straight Through Processing) — an order processing that doesn't require any manual intervention and is fully automatic. In fact, 99.9% of all on-line Forex brokers support order handling with STP.
Support — price level for which intensive buying can lead to the price decreasing (down-trend).
Swap — overnight payment for holding your position. Since you are not physically receiving the currency you buy, your broker should pay you the interest rate difference between the two currencies of the pair. It can be negative or positive.
Technical Analysis — the analysis based only on the technical market data (quotes) with the help of various technical indicators.
Trend — direction of market which has been established with influence of different factors.
Unrealized (Floating) Profit/Loss — a profit/loss for your non-closed positions.
Useable Margin — amount of money in the account that can be used for trading.
Used Margin — amount of money in the account already used to hold open positions open.
Volatility — a statistical measure of the number of price changes for a given currency pair in a given period of time.
VPS (Virtual Private Server) — virtual environment hosted on the dedicated server, which can be used to run the programs independent on the user's PC. Forex traders use VPS to host trading platforms and run expert advisors without unexpected interruptions.
Ask (Offer) — price of the offer, the price you buy for.
Aussie — a Forex slang name for the Australian dollar.
Bank Rate — the percentage rate at which central bank of a country lends money to the country's commercial banks.
Bid — price of the demand, the price you sell for.
Broker — the market participating body which serves as the middleman between retail traders and larger commercial institutions.
Cable — a Forex traders slang word GBP/USD currency pair.
Carry Trade — in Forex, holding a position with a positive overnight interest return in hope of gaining profits, without closing the position, just for the central banks interest rates difference.
CCI (Commodity Channel Index) — a cyclical technical indicator that is often used to detect overbought/oversold states of the market.
CFD — a Contract for Difference — special trading instrument that allows financial speculation on stocks, commodities and other instruments without actually buying.
Commission — broker commissions for operation handling.
CPI — consumer price index the statistical measure of inflation based upon changes of prices of a specified set of goods.
EA (Expert Advisor) — an automated script which is used by the trading platform software to manage positions and orders automatically without (or with little) manual control.
ECN Broker — a type of Forex brokerage firm that provide its clients direct access to other Forex market participants. ECN brokers don't discourage scalping, don't trade against the client, don't charge spread (low spread is defined by current market prices) but charge commissions for every order.
ECB (European Central Bank) — the main regulatory body of the European Union financial system.
Fed (Federal Reserve) — the main regulatory body of the United States of America financial system, which division — FOMC (Federal Open Market Committee) — regulates, among other things, federal interest rates.
Fibonacci Retracements — the levels with a high probability of trend break or bounce, calculated as the 23.6%, 32.8%, 50% and 61.8% of the trend range.
Flat (Square) — neutral state when all your positions are closed.
Fundamental Analysis — the analysis based only on news, economic indicators and global events.
GDP (Gross Domestic Product) — is a measure of the national income and output for the country's economy; it's one of the most important Forex indicators.
GTC (Good Till Canceled) — order to buy or sell of a currency with a fixed price or worse. The order is alive (good) until execution or cancellation.
Hedging — maintaining a market position which secures the existing open positions in the opposite direction.
Jobber — a slang word for a trader which is aimed toward fast but small and short-term profit from an intra-day trading. Jobber rarely leaves open positions overnight.
Kiwi — a Forex slang name for the New Zealand currency — New Zealand dollar.
Leading Indicators — a composite index (year 1992 = 100%) of ten most important macroeconomic indicators that predicts future (6-9 months) economic activity.
Limit Order — order for a broker to buy the lot for fixed or lesser price or sell the lot for fixed or better price. Such price is called limit price.
Liquidity — the measure of markets which describes relationship between the trading volume and the price change.
Long — the position which is in a Buy direction. In Forex, the primary currency when bought is long and another is short.
Loss — the loss from closing long position at lower rate than opening or short position with higher rate than opening, or if the profit from a position closing was lower than broker commission on it.
Lot — definite amount of units or amount of money accepted for operations handling (usually it is a multiple of 100).
Margin — money, the investor needs to keep at broker account to execute trades. It supplies the possible losses which may occur in margin trading.
Margin Account — account which is used to hold investor's deposited money for FOREX trading.
Margin Call — demand of a broker to deposit more margin money to the margin account when the amount in it falls below certain minimum.
Market Order — order to buy or sell a lot for a current market price.
Market Price — the current price for which the currency is traded for on the market.
Momentum — the measure of the currency's ability to move in the given direction.
Moving Average (MA) — one of the most basic technical indicators. It shows the average rate calculated over a series of time periods. Exponential Moving Average (EMA), Weighted Moving Average (WMA) etc. are just the ways of weighing the rates and the periods.
Offer (Ask) — price of the offer, the price you buy for.
Open Position (Trade) — position on buying (long) or selling (short) for a currency pair.
Order — order for a broker to buy or sell the currency with a certain rate.
Pivot Point — the primary support/resistance point calculated basing on the previous trend's High, Low and Close prices.
Pip (Point) — the last digit in the rate (e.g. for EUR/USD 1 point = 0.0001).
Profit (Gain) — positive amount of money gained for closing the position.
Principal Value — the initial amount of money of the invested.
Realized Profit/Loss — gain/loss for already closed positions.
Resistance — price level for which the intensive selling can lead to price increasing (up-trend).
RSI (Relative Strength Index) — indicator that measures of the power of direction price movement by comparing the bullish and bearish portions of the trend.
Scalping — a style of trading notable by many positions that are opened for extremely small and short-term profits.
Settled (Closed) Position — closed positions for which all needed transactions has been made.
Slippage — execution of order for a price different than expected (ordered), main reasons for slippage are — "fast" market, low liquidity and low broker's ability to execute orders.
Spread — difference between ask and bid prices for a currency pair.
Standard Lot — 100,000 units of the base currency of the currency pair, which you are buying or selling.
Stop-Limit Order — order to sell or buy a lot for a certain price or worse.
Stop-Loss Order — order to sell or buy a lot when the market reaches certain price. It is used to avoid extra losses when market moves in the opposite direction. Usually is a combination of stop-order and limit-order.
STP (Straight Through Processing) — an order processing that doesn't require any manual intervention and is fully automatic. In fact, 99.9% of all on-line Forex brokers support order handling with STP.
Support — price level for which intensive buying can lead to the price decreasing (down-trend).
Swap — overnight payment for holding your position. Since you are not physically receiving the currency you buy, your broker should pay you the interest rate difference between the two currencies of the pair. It can be negative or positive.
Technical Analysis — the analysis based only on the technical market data (quotes) with the help of various technical indicators.
Trend — direction of market which has been established with influence of different factors.
Unrealized (Floating) Profit/Loss — a profit/loss for your non-closed positions.
Useable Margin — amount of money in the account that can be used for trading.
Used Margin — amount of money in the account already used to hold open positions open.
Volatility — a statistical measure of the number of price changes for a given currency pair in a given period of time.
VPS (Virtual Private Server) — virtual environment hosted on the dedicated server, which can be used to run the programs independent on the user's PC. Forex traders use VPS to host trading platforms and run expert advisors without unexpected interruptions.
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