Forex Glossary

The meaning of all the central concepts you will encounter when trading on the Forex market is available in the Forex glossary!

Our Forex glossary will keep you informed on the meanings of all the central concepts you may encounter when trading on the Forex market.

Bear Market

It shows that there is a majority of the sellers in the market. It is used to imply that the prices are falling. The name of the term was taken from the tactic of the bear attack, which hunts by hitting with its claw from above.

Balance

Displays the final balance of a user's account without calculating open positions.

Base Currency

The base currency is the unit to the left of the currency pair. For example: in USD/JPY, the base currency is USD.

Standing Order

The position placed in the future date means that the order will be executed at a certain price level and at a future date. Once the related orders have been set, the related orders become active.

Bull Market

It shows that there is a majority of buyers in the market. It is used to depict markets where prices are starting to rise. It is named after the attack tactic of the bull which hunts by throwing up and then pulling down its victim.

Bollinger Band

It is a technical indicator that helps compare price levels and fluctuations in one of the preferred currencies over a specific time period. This indicator consists of 3 groups that move with price movements. Often, this shows the top resistance point between the three bands and the bottom support point. The positioning price per middle band may be important in determining the course of the market.

Bretton Woods Agreement

44 countries participated in the conference in 1944 to make important decisions such as the establishment of the World Bank and the IMF. After the conference, the gold standard was abandoned and the monetary system, which is still in use today, was established. It has been decided that all currencies can be converted into one another.

According to this agreement, the dollar is the only currency that can be converted into gold and the price of gold is fixed at 1 ounce = 35 dollars.

Buy

A transaction that results in a buying position in the Forex market.

Sell

A transaction that results in a selling position in the Forex market.

Buy Limit

Refers to the automatic buy order given to the market to operate at a level below the current price at a later date when the offer is received.

Buy Stop

Refers to an automatic buy order that allows the market price to be traded at a higher level at a later date as the market receives that offer.

Bid

The price at which a buyer is willing to buy.

Ask

The price at which the currency or instrument is offered.

Lot

Amount of the trade. The value of a trade always corresponds to an integer number of lots.

CFD

The Contract For Difference (CFD) is an investment instrument that includes the sum of all the vehicles that are possible to contract in the market without any obligation to physically buy the investment instrument. A commodity purchased in CFDs is only an expectation of price increases or decreases.

Line Chart

These graphs are only generated for closing prices. It is a graphical format that provides the simplest display.

Bar Chart

The first transaction price at the specified time slot is indicated by a line to the left of this bar with a line. Similarly, the closing price, which represents the last transaction price, is shown on the right side of the bar with a line. The closing price represents the closing price for a specified time period and is in the form of a line to the right of the bar. The highest point of the bar shows the highest price in a time slot, the lowest point shows the lowest price.

Support

The falling price signals the levels that are difficult to pass for the falling price trend. These are important levels in terms of following the market.

Resistance

It implies the levels which would be difficult to pass for the rising price trend. These are important levels in terms of following the market.

Doji

Doji is a candlestick chart. This model is an indication of uncertain markets where the opening and closing prices are equal.

Economic Calendar

It is a calendar showing the time and status of economic indicators and events. Investors can follow relevant timetables to be informed quickly about developments in the market.

Commodities

The product group, which is considered as commercial products on the Forex market, stands for soy, oil, cocoa, coffee and many other crude products, among others.

Fibonacci Sequence

The Fibonacci Sequence refers to the number sequence where the next number is found by adding the two previous numbers. Technical analysis can be done according to the proportions of the numbers.

Price Channel

It means the channel created when the price of a particular instrument moves between the limits specified in the graph.

Free Margin

It is the trade balance of the investor in a trade account open to new positions. It is calculated as follows: Free Margin = Equity – Margin.

Hedge – Hedging

It means opening up a transaction of the same magnitude and turning it into a different direction from the position that it was opened to, thereby limiting or balancing the probability of loss or profit. It can be used to save money in a short amount of time. A hedge can be done in full or proportionally.

Trailing Stop

The type of order that follows the movement of the market. In this way, the price moves in the direction you expect, the price of the stopping point you mentioned earlier.

Quotation

It infers the buying-selling price levels that are decided instantly.