Rollover

Process whereby the settlement of a deal is rolled forward to another value date.

Risk Control

Using of trading rules for restriction of losses.

Retracement

The possible correction of a price rate suggested by technical experts after a growth or fall occurs in the price.

Resistance

A term used in technical analysis indicating a specific price level at which analysts think people will sell.

Recession

Decrease in business activity.

Range

The maximum and minimum levels of the price (rate) achieved during the certain period of time.

Rally

Prompt rise in prices (quotations) in the market.

Pyramiding

Tactics used to gradually increase an available open position.

Profit Taking

Closing of a position with profit.

Principal

The participant of the market who is carrying out operations using own funds.

PPI

PRODUCER PRICE INDEX

Position Limit

The maximum allowable size of an open position.

Pip (Point)

The smallest unit of price for any foreign currency. Digits added to or subtracted from the fourth decimal place, i.e. 0.0001. Also called points.

Oversold

The situation arising in the market following quick and significant fall of the price (rate).

Overnight

A trade that remains open until the next business day.

Overbought

The situation arising at the market following quick and substantial increase of the price (rate).

NYSE

New York Stock Exchange

Necessary Margin

Necessary funds required for opening a position.

NASDAQ

National Assotiation of Securities Dealers Automated Quotation System; System of electronic stock quotes of the USA

Narrow Market

A market with a small amount of the participants characterized by low volumes, and significant fluctuations of the prices.

Moving Average

Sliding (dynamic) average. The indicator used in a technical expertise for definition of the tendency in the market.

Monetary Policy

Monetary and credit policy.

Mechanical System

The mechanical (computer) system of trade generating signals of an input (output) at the market.

Maturity Date

The date of settlement or expiry of a financial instrument.

Market price

The final price of the transaction at execution.

Margin Call

A request from a broker or dealer for additional funds or collateral to guarantee a position.

Margin Account

An account holding additional funds on behalf of the client in case extra funding is required.

Margin

The required equity that an investor must deposit to secure an open position.

Long Position

Long position (in relation to the same currency). Open position where the quantity of the bought currency exceeds the quantity of the sold currency.

Liquidity

The ability of a market to accept large transaction with minimal or no impact on price stability.

Limit Position

Limit Position -Maximum allowable size of an open position.

Libor

The London inter-bank offer rate.

Leverage

Also called margin. The amount used in a transaction to fulfill the required security deposit.

Indirect Quote

Representation of cost of unit of national currency in terms of a foreign currency

IMF

The International monetary fund

IBRD

the International Bank for reconstruction and Development

Hedging

A combination of short and long positions on different pairs which reduces the risks.

Head and Shoulders

Head and Shoulders - " a head and shoulders ". The figure of a technical analysis reminding a line of shoulders, necks and heads of the person.

Hard Currency

Hard Currency - it is the hard currency exchanged without restrictions on other currencies.

Good-Till-Cancelled (GTC) Order

Good-Till-Cancelled (GTC) Order - An order to buy or sell at a specified price. The order remains open until executed or until the client cancels.

GDP

GROSS DOMESTIC PRODUCT

Gap

Gap is a break in the market. The range of the prices inside of which there were no quotations, forms a break on the price schedule.

Futures Contract

The future contract. The standardized forward contract, being a subject of the purchase/sale at a stock exchange.

Fundamental Analysis

The fundamental analysis uses macroeconomic parameters of economy for forecasting a situation in the market.

Forward Contract

The agreement on an exchange of the certain sum of one currency on another under a fixed price during a time of stability.

Fiscal Policy

The financial-budgetary policy.

Fibonacci Sequence

Fibonacci Sequence - the sequence of numbers received by Italian mathematician Leonardo Fibonachchi. The given numbers are widely used in a technical expertise for definition of price levels (support and resistance) in the market.

Fed, FRS (Federal Reserve System)

The central bank of the USA combining federal and regional elements. Includes Advice of managing directors, 12 regional reserve banks in special districts from several staffs, 24 branches of reserve banks and about 5600 commercial banks - members of the system (and banks of a national level are obliged to be members of FOMC, banks of a level of staff - at will). The FOMC through advice of managing directors, reserve banks, Committee on operations in the open market carries out actions to a monetary and credit policy of the USA.

FalseBreakout

A short-term movement of a rate through some conditional border (the previous top or a bottom, a level of consolidation), and then return and movement to the opposite side.

Exchange risk

Risk of change of cost of the currency (currency risk).

Eurocurrency

Currency held on deposit in banks of the countries separate from the national reserves.

Equity

The balance on the account available after taking into consideration the open positions and margin requirements.

Elliott Wave Analysis

Method of a technical expertise of the markets, based on wave theory (Ralph Nelson Elliott).

Downtick

Movement of the price downwards.

Dow Jones Average

Dow-Jones index describing business activity of the share market of the USA.

Double Top

Figure of the technical analysis when the rate rose to the same level twice, and then fell again.

Double Bottom

The figure of the technical analysis when the rate fell to the same level twice, and then rose again.

Diversification

Trade in the several markets (several tools) for reduction of price risks.

Divergence

Divergence between the tendencies in the market, represented by the price schedule and the schedule of the technical indicator.

Discount Rate

The interest rate from which the central bank gives credits to financial establishments of the country.

Direct Quote

Representation of cost of the unit of a foreign currency in terms of national currency.

Dealer

A dealer is the person or company who commits the funds and takes one side of the position hoping to earn profit by closing a deal in a trade with another party.

Day Trading

The trading operations made within one day.

Day Order

Orders that are opened and closed within one day.