Sunday, November 1, 2009

FOREX TERMINOLOGY PART 3

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.

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