If you never traded before on financial markets, this small dictionary will help you quickly understand what’s what and to know the basics of investment and words that you do not understand.
This is total amount of all the finances in your trading account, including your investment and the result of already closed transactions on your trading account.
Available finances on your trading account, for trading usage.
Total amount of finance on your trading account including balance and open deals with the current result.
Example: The balance of $ 1000 in open trades – $ 800, which shows a profit of $ 400, means that your Equity will be $ 1,400.
After closing of these trades, the balance will vary depending on the profit received, or loss from trades.
The point at which the platform will automatically close your trade with a fixed loss. Exhibited personally by you.
The point at which the platform will automatically close your deal with a fixed profit is exhibited personally by you.
Exchanges around the world mainly work for 5 days a week 24 hours. The transition to the next day on each exchange is accompanied by the termination of trade from 5 to 15 minutes depending on the exchange. The transfer of transactions from one trading day to another is levied by a commission, which is called Swap, it can be flexible depending on the asset.
Dynamics of prices of assets on the platform. Quotations (asset prices) are formed by the average arithmetic calculation: Purchase price + Selling price divided by 2.
This is the intensity of the asset’s price movement in the market. High volatility means that there is a rapid price movement in the market while low volatility occurs when the pricing on the market is for small quantity and the traffic is measured.
A stock is a share in the ownership of a company in monetary terms.
Any raw material available for trading on world commodity exchanges, from oil to gold, examples of products on which to trade: Coffee, Platinum, Silver, Copper, Rice, etc.
The exchange is translated as a market. Currency Exchange is a currency trading market. Stock Exchange is a market where trades on shares are carried out.
The prices that you see under each asset on the platform, reflecting the value of the asset in real time.
Any assumptions based on any indicators, or methods of analyzing the market, can be called trading signals, that is, the moment when it is worth to open or to close a trade. Signals can be based, either on technical, or fundamental analysis, or mixed.
Analysis of the situation on the market that uses patterns in market data to identify trends and make predictions.
Analysis of the situation in the financial market based on news events. Wars, political unrest, economic events, all this creates volatility in the market.
The difference between the purchase price and the sale price of the asset, which makes up the broker commission on which the company earn.
Trading on the financial markets on some of the assets, there are certain limits to entry into the position. For example, the minimum position for EUR / USD (One lot) is 100,000 dollars. However, with a leverage from a broker you need only a part of this amount, the missing finance is complemented by the broker. For example: a leverage of 1:50 means that each dollar invested by you costs $ 50. $ 2000 of your balance will be considered as $ 100,000 in the market.
Certain investor actions, based on any analysis of the movements of assets on the market, may be called trading strategies. The trading strategy can be based as trading signals, not only on technical analysis, but also on the fundamental one.