WELCOME TO Promax Trading
Forex Trading Glossary
A
WELCOME TO Promax Trading
ABC Consumer Comfort Index – United States
Assessment of consumer sentiment toward the economy based on telephone interviews of several hundred adults. The survey queries people on their personal financial situation and current willingness to spend.
WELCOME TO Promax Trading
Accept
Agree to specified terms, as in a contract.
WELCOME TO PROMAX TRADING
Account
Financial relationship between two parties involving a transfer of funds, and an agreement to hold them. An Account is also summary of all financial transactions between those parties, the record tracks income, expenses, adjustment, credits and debits over a period of time.
WELCOME TO PROMAX TRADING
Account Balance
The amount of money in an account
WELCOME TO PROMAX TRADING
Account Statement
Any document designed to summarize and record all transaction activity in a given accounting period, usually annual or monthly.
WELCOME TO PROMAX TRADING
Active Account
An account at a brokerage firm or a bank which generates more activity and transactions then normal.
WELCOME TO PROMAX TRADING
Active Money
Money and coins that are circulated in the hands of consumers and businesses. Non-Active Money is not in circulation, for example federal reserve requirements, reserve requirement for commercial banks
WELCOME TO PROMAX TRADING
Active Participant
An individual who participates in a retirement plan sponsored either by his/her employer or, if self-employed, by himself or herself. A person would be considered an active participant if his/her account balance in the retirement plan has received any contributions at all in a given year.
WELCOME TO PROMAX TRADING
Activity
The volume of a stock or exchange over a given period of time.
WELCOME TO PROMAX TRADING
Adjustable Rate
Any interest rate that changes on a periodic basis.
WELCOME TO PROMAX TRADING
Adjusted Futures Price
The cash-price equivalent reflected in the price of a futures contract.
WELCOME TO PROMAX TRADING
Advisor
A person or organization employed by an individual or mutual fund to manage assets or provide investment advice.
WELCOME TO PROMAX TRADING
Agent
A firm or individual that places transactions for securities in the place of clients.
WELCOME TO PROMAX TRADING
Aggregate Demand
The total amount of goods and services demanded in the economy at a given overall price level and in a given time period.
WELCOME TO PROMAX TRADING
Aggregate Supply
The total supply of goods and services produced within an economy at a given overall price level in a given time period.
WELCOME TO PROMAX TRADING
Alert
A notification, often by email or pager, of a market event such as a stock reaching a target price.
WELCOME TO PROMAX TRADING
Analysis
The examination and evaluation of the relevant information to select the best course of action from among various alternatives.
WELCOME TO PROMAX TRADING
Arbitrage
Profit made from a price discrepancy between markets when securities are purchased on one market and then immediately sold on another market.
WELCOME TO PROMAX TRADING
ASK
The lowest price that any investor or dealer has declared that he/she will sell a given security or commodity for. For over-the-counter stocks, the ask is the best quoted price at which a Market Maker is willing to sell a stock.
WELCOME TO PROMAX TRADING
Asked Price
The price at which a security or commodity is offered for sale on an exchange or in the over-the-counter market.
B
WELCOME TO PROMAX TRADING
Back Office
The administrative functions at a brokerage that support the trading of securities, including trade confirmation and settlement, recordkeeping, and regulatory compliance.
WELCOME TO PROMAX TRADING
Balance
The amount of money in an account. An account statement will be able to provide the balance as well as the full record of all transactions that lead to the current balance.
WELCOME TO PROMAX TRADING
Balance Of Trade
A country’s exports minus its imports; the largest component of a country’s balance of payments.
WELCOME TO PROMAX TRADING
Bank Holiday
The temporary closing of a bank in the event that its obligations exceed its resources.
WELCOME TO PROMAX TRADING
Bank Note
A non-interest-bearing promissory note of a Federal Reserve Bank which is payable to the bearer on demand and can be used as cash.
WELCOME TO PROMAX TRADING
Bank Rate
The interest rate charged by a bank for loans.
WELCOME TO PROMAX TRADING
Basis Trading
An arbitrage strategy usually consisting of the purchase of a particular security and the sale of a similar security (often the purchase of a security and the sale of a corresponding futures contract).
WELCOME TO PROMAX TRADING
Bear
An investor who believes that a security, a sector, or the overall market is about to fall. opposite of bull.
WELCOME TO PROMAX TRADING
Bear Market
A prolonged period in which investment prices fall, accompanied by widespread pessimism. If the period of falling stock prices is short and immediately follows a period of rising stock prices, it is instead called a correction. Bear markets usually occur when the economy is in a recession and unemployment is high, or when inflation is rising quickly.
WELCOME TO PROMAX TRADING
Beneficiary
An individual, institution, trustee, or estate which receives, or may become eligible to receive, benefits under a will, insurance policy, retirement plan, annuity, trust, or other contract.
WELCOME TO PROMAX TRADING
Bid
The highest price a dealer will pay at any given time to purchase a currency pair or a financial instrument.
WELCOME TO PROMAX TRADING
Bid/Ask Spread
The Bid-Ask Spread, also known as the Bid-Offer Spread, is the quote of the price at which participants in a market are willing to buy or sell a good or security. Specifically, the bid price is the price at which a party is willing to purchase, while the ask (or offer) price is the price at which the same person or another party is willing to sell the same good or security.
WELCOME TO PROMAX TRADING
Break-Even Point
The price at which a financial instrument cost is equal to the proceeds acquired by exercising this financial instrument.
WELCOME TO PROMAX TRADING
Breakout
Technical analysis term used to describe price action rising above resistance or dropping below support.
WELCOME TO PROMAX TRADING
Broker
An individual or firm which acts as an intermediary between a buyer and seller, usually charging a commission. For securities and most other products, a license is required.
WELCOME TO PROMAX TRADING
Bull Market
A prolonged period in which investment prices rise faster than their historical average. Bull markets can happen as a result of an economic recovery, an economic boom, or investor psychology.
WELCOME TO PROMAX TRADING
Bullion
Gold, silver, platinum, or palladium, in the form of bars or ingots.
WELCOME TO PROMAX TRADING
Buy
To obtain ownership of a security or other asset in exchange for money or value.
C
WELCOME TO PROMAX TRADING
Calendar Spread
A strategy in options or futures where a spread is established by entering both a long and short position at the same time on the same underlying asset but with different expiration dates.
WELCOME TO PROMAX TRADING
Cash
Currency and coins on hand, bank balances, and negotiable money orders and checks.
WELCOME TO PROMAX TRADING
Cash Delivery
A requirement of certain futures contracts that the underlier should not be delivered to the buyer at maturity, and instead the value of the underlier should be paid out.
WELCOME TO PROMAX TRADING
CBOT
Chicago Board of Trade. An exchange where grain, gold, and Treasury Bond futures and options are traded.
WELCOME TO PROMAX TRADING
Certificate of Deposit
A negotiable certificate in bearer form issued by a commercial bank as evidence of a deposit with that bank which states the maturity value, maturity rate and interest rate payable.
WELCOME TO PROMAX TRADING
Chart
A chart is a collection of historical price action that is represented visually in a graph form.
WELCOME TO PROMAX TRADING
Chartist
A person who uses charts to aid in technical analysis.
WELCOME TO PROMAX TRADING
Closed Position
A transaction which leaves the trade with a zero net exposure to the market with respect to a particular currency.
WELCOME TO PROMAX TRADING
CME
CME. An exchange where financial futures, foreign currency futures, commodity futures, and futures options are traded.
WELCOME TO PROMAX TRADING
COMEX
Commodity Exchange. The leading U.S. exchange for metals futures and options trading.
WELCOME TO PROMAX TRADING
Commission
A fee charged by a broker or agent for his/her service in facilitating a transaction, such as the buying or selling of securities.
WELCOME TO PROMAX TRADING
Commodity
A basic good, such as food, grains, and metals, which is interchangeable with other commodities of the same type, and which investors buy or sell, usually through futures contracts.
WELCOME TO PROMAX TRADING
Contract
An agreement to buy or sell a specified amount of a particular currency on OTC, future or option basis for a specified month in the future.
WELCOME TO PROMAX TRADING
Contract Expiry Date
The last trading date of a futures or options contract.
WELCOME TO PROMAX TRADING
Contract Month
A futures contract expires during this month. Delivery may also take place in this month, dependent upon the terms of the contract. This month is sometimes referred to as the contract month or the delivery month.
WELCOME TO PROMAX TRADING
Counter Party
The party that takes the other side of an exchange transaction.
WELCOME TO PROMAX TRADING
Cover
To repurchase a previously sold contract. also called short cover.
WELCOME TO PROMAX TRADING
Credit
A contractual agreement in which a borrower receives something of value now, in exchange for the promise to repay the lender at a later date–typically with interest.
WELCOME TO PROMAX TRADING
Cross Rates
Rates between two currencies neither of which is the US Dollar or the base currency.
WELCOME TO PROMAX TRADING
Current Account
The net balance of a country’s balance of payments (BOP) and contains the import and export items of goods and services as well as transfer payments and net investment income.
D
WELCOME TO PROMAX TRADING
Daily High
The highest price achieved by a tradable security or commodity during a given day.
WELCOME TO PROMAX TRADING
Daily Low
The lowest price achieved by a tradable security or commodity during a given day.
WELCOME TO PROMAX TRADING
Day Order
An order to buy or sell a security which automatically expires if it is not executed during the same trading session.
WELCOME TO PROMAX TRADING
Deal Ticket
The primary method of recording the basic information of a transaction.
WELCOME TO PROMAX TRADING
Dealer
An individual or entity that acts as a principal and stands ready to buy and sell for its own account. More generally, a dealer sells products and holds inventory.
WELCOME TO PROMAX TRADING
Dealing Desk
A desk where transactions for buying and selling securities occur.
WELCOME TO PROMAX TRADING
Deflation
A decline in general price levels, often caused by a reduction in the supply of money, higher interest rates, and lack of credit.
WELCOME TO PROMAX TRADING
Delivery Month
The month of expiration for a futures contract. Delivery may take place during this month according to the terms of the contract. It is also called the contract month.
WELCOME TO PROMAX TRADING
Delivery Notice
A formal notification of the delivery of products on a specified date.
WELCOME TO PROMAX TRADING
Deposit
Transaction involving the transfer of funds from one party to another for a particular purpose.
WELCOME TO PROMAX TRADING
Derivative
A financial instrument whose characteristics and value depend upon the characteristics and value of an underlier, such as a commodity, bond, equity or currency.
WELCOME TO PROMAX TRADING
Dip
A small, short-term decline in price.
WELCOME TO PROMAX TRADING
Double Bottom
A technical analysis term used to describe a chart on which the price of a security has made two approximately equal bottoms over a period of time.
WELCOME TO PROMAX TRADING
Double Top
A technical analysis term for two successive rises to the same price level.
WELCOME TO PROMAX TRADING
Downtrend
Downward price movement of a security or the overall market over a period of time.
E
WELCOME TO PROMAX TRADING
E-Commerce
The purchasing and selling of products and services by businesses and consumers over the internet.
WELCOME TO PROMAX TRADING
ECB
European Central Bank (ECB). The central bank empowered to manage monetary policy for the Euro-zone – the group of countries that use the Euro single-currency.
WELCOME TO PROMAX TRADING
Equities
An instrument that signifies an ownership position, or equity, in a corporation, and represents a claim on its proportionate share in the corporation’s assets and profits.
WELCOME TO PROMAX TRADING
EU
Abbreviation for the European Union.
WELCOME TO PROMAX TRADING
Exchange Control
A system of controlling inflows and outflows of foreign exchange.
WELCOME TO PROMAX TRADING
Expiration Month
The month in which an option expires.
WELCOME TO PROMAX TRADING
Export
A country’s exports reflect the value of goods and services that were shipped to another country.
WELCOME TO PROMAX TRADING
Exposure
The condition of being subjected to a source of risk.
F
WELCOME TO PROMAX TRADING
Factory Orders
Dollar volume of new orders, shipments, unfilled orders and inventories as reported by domestic manufacturers.
WELCOME TO PROMAX TRADING
Fed
The United States Federal Reserve. The 7-member Board of Governors that oversees Federal Reserve Banks, establishes monetary policy, and monitors the economic health of the country.
WELCOME TO PROMAX TRADING
Federal Reserve Board
The 7-member Board of Governors that oversees Federal Reserve Banks. Its members are appointed by the President subject to Senate confirmation, and serve 14-year terms. Also called the Fed.
WELCOME TO PROMAX TRADING
Fibonacci
The Fibonacci sequence, named for its discoverer Leonardo Fibonacci, forms the basis for Elliott Wave theory used in trading financial markets. Out of Elliott Wave theory comes Fibonacci retracements and Fibonacci arcs discussed below. The Fibonacci sequence is 1,1,2,3,5,8,13,21,,34,55,89… to infinity. The sum of two consecutive numbers equals the next number. The ratio of any number to its next highest number approaches .618. The ratio of alternating numbers approaches .382. Also, 1 – .618 = .382. The midpoint of .382 and .618 is .50. This is why .382, .50, and .618 are used.
WELCOME TO PROMAX TRADING
Fill
To execute an order or buy or sell a security or commodity.
WELCOME TO PROMAX TRADING
Financial Leverage
In finance, leverage is the general term used to describe the ratio between an investor’s market exposure to borrowed funds.
WELCOME TO PROMAX TRADING
First Notice Day
The first day that a buyer of a futures contract can be called upon to take delivery.
WELCOME TO PROMAX TRADING
Fixed Exchange Rate
Official rate set by monetary authorities. Often the fixed exchange rate permits fluctuation within a band.
WELCOME TO PROMAX TRADING
Floating Exchange Rate
An exchange rate where the value is determined by market forces.
WELCOME TO PROMAX TRADING
Floating Profit/Loss
The profit/loss that may only be realized if the open contracts are liquidated (settled).
WELCOME TO PROMAX TRADING
Floor
An exchanges trading area. May also be used as the lower limit of an option or an interest rate.
WELCOME TO PROMAX TRADING
FOMC
Abbreviation for Federal Open Market Committee.
WELCOME TO PROMAX TRADING
Forex
FX and Forex refer to Foreign Exchange, the exchange of one currency for another. Foreign Exchange is traded over the counter on an inter-bank system, a network of several thousand banks, although most trading is done by a few hundred such institutions.
WELCOME TO PROMAX TRADING
Forward Contract
A cash market transaction in which a seller agrees to deliver a specific cash commodity to a buyer at some point in the future. In contrast to futures contracts, forward contracts are privately negotiated and are not standardized.
WELCOME TO PROMAX TRADING
Forward Deal
A transaction consisting of a purchase or sale (often of foreign currency) with settlement to occur at a specified future date. Such a transaction will state the specific amount of the asset to be delivered at the specific time, as well as the unit price at which it will be delivered.
WELCOME TO PROMAX TRADING
Front Office
The activities carried out by the dealer.
WELCOME TO PROMAX TRADING
Fundamental Analysis
For a currency trader, fundamental analysis focuses on key underlying economic and political factors to determine the direction of a currency’s value. There are a number of fundamental indicators traders may follow that reflect how an economy is changing and gleam insight into Forex market prices to come.
WELCOME TO PROMAX TRADING
Futures Contract
A standardized, transferable, exchange-traded contract that requires delivery of a commodity, bond, currency, or stock index, at a specified price, on a specified future date. In contrast to options, futures convey an obligation to buy.
G
WELCOME TO PROMAX TRADING
G-7
Abbreviation for the Group of Seven, or the seven largest industrialized countries, including the United States, Japan, Great Britain, France, Germany, Italy, and Canada.
WELCOME TO PROMAX TRADING
G-8
The group of G-7 countries, plus Russia.
WELCOME TO PROMAX TRADING
Gap
The significant price movement of a security or commodity between two trading sessions, such that there is no overlap in the trading ranges for the two days.
WELCOME TO PROMAX TRADING
GDP Deflator
A ratio that is used to account for the effect of inflation on the GDP figure.
WELCOME TO PROMAX TRADING
GNP
Acronym for Gross National Product, which refers to the total value of all final goods and services produced within a nation in a particular year, plus income earned by its citizens (including income of those located abroad), minus income of non-residents located in that country.
WELCOME TO PROMAX TRADING
Gold Standard
A monetary system that backs its currency with a reserve of gold, and allows currency holders to convert their currency into gold.
WELCOME TO PROMAX TRADING
Gross
The total amount before anything is deducted.
WELCOME TO PROMAX TRADING
Gross Domestic Product – GDP
Measures the value of goods and services produced with in a country . GDP is the most comprehensive overall measure of economic output and provides key insight as to the driving forces of the economy.
H
WELCOME TO PROMAX TRADING
Head and Shoulders
A technical analysis term referring to a chart formation in which a price exhibits three successive rallies, the second one being the highest. The name derives from the fact that on a chart the first and third rallies look like shoulders and the second looks like a head.
WELCOME TO PROMAX TRADING
Hedge
A hedge is a type of protective investment designed to offset adverse price movements in a given asset. Typically, a hedge is an offsetting position taken in a related security.
WELCOME TO PROMAX TRADING
High
The greatest value that a security or currency hit during a specific period of time.
WELCOME TO PROMAX TRADING
Housing Starts
Gauges the change in the number of new houses beginning construction. Housing Starts are one of the earliest indicators of the housing market, only trailing Building Permits in timeliness.
WELCOME TO PROMAX TRADING
Hyperinflation
A period of rapid inflation that leaves a country’s currency virtually worthless.
I
WELCOME TO PROMAX TRADING
IMF
The IMF, or International Monetary Fund, was established after World War II in December 1946. Its goals included promoting free trade, stabilizing exchange rates, and overseeing international monetary policy.
WELCOME TO PROMAX TRADING
IMM
International Monetary Market is part of the Chicago Mercantile Exchange that lists a number of currency and financial futures contracts.
WELCOME TO PROMAX TRADING
Implied Volatility
A theoretical value designed to represent the volatility of the underlying instrument as determined by the price of the option. The factors that affect implied volatility are the exercise price, the rate of return, maturity date and the price of the option.
WELCOME TO PROMAX TRADING
In-the-Money
A call option is in-the-money if the price of the underlying instrument is higher than the exercise/strike price. A put option is in-the-money if the price of the underlying instrument is below the exercise/strike price. Such options have intrinsic value.
WELCOME TO PROMAX TRADING
Indicator
Data which provide information about or predict the overall health of the economy or the financial markets; examples are inflation, interest rates, employment, volume, and insider trading.
WELCOME TO PROMAX TRADING
Industrial Production
Measures changes in the volume of output produced by the manufacturing, mining, and utility sectors.
WELCOME TO PROMAX TRADING
Initial Margin
The amount of cash collateral required by a brokerage firm to be deposited before buying or selling on margin.
WELCOME TO PROMAX TRADING
Inter-Bank Rates
The bid and offer rates at which international banks place deposits with each other.
WELCOME TO PROMAX TRADING
Interest Rate Options
An option contract whose underlying security is a debt obligation.
WELCOME TO PROMAX TRADING
Intervention
Action taken by a central bank to affect the value of its currency.
WELCOME TO PROMAX TRADING
Intra Day Position
An open position that is usually squared off by the close of the day.
WELCOME TO PROMAX TRADING
Introducing Broker
A person or organization which is able to perform all the functions of a broker except for the ability to accept money, securities, or property from a customer.
WELCOME TO PROMAX TRADING
Ivey Purchasing Managers Index (PMI) – Canada
A monthly measure of the change in purchases by corporate executives. One hundred and seventy-five managers distributed among different regions and sectors are asked: “Are your purchases higher, the same, or lower than the previous month” A headline value above 50 indicates an increase in purchases from the previous month and a value below 50 indicates a decrease.
J
WELCOME TO PROMAX TRADING
Joint Account
A type of account controlled and maintained by two or more people
WELCOME TO PROMAX TRADING
Journal
An accounting record, outlining all business transactions. A journal details which transactions occurred and what accounts were affected.
K
WELCOME TO PROMAX TRADING
Kiwi
Slang for the New Zealand dollar.
WELCOME TO PROMAX TRADING
Knock In
Where a barrier option becomes active as the underlying spot price hits the barrier level.
WELCOME TO PROMAX TRADING
Knock Out
Where a barrier option ceases to exist as the underlying spot price hits the barrier level.
L
WELCOME TO PROMAX TRADING
Last
The most recent trade of a security.
WELCOME TO PROMAX TRADING
Last Trading Day
The final day during which trading in a particular option contract is permitted.
WELCOME TO PROMAX TRADING
Leading Indicator
A leading indicator is an economic gauge that records changes before the overall economy experiences them. They are used to forecast financial and economic trends.
WELCOME TO PROMAX TRADING
LIBID
The London Interbank Bid Rate; the rate charged by one bank to another for deposits.
WELCOME TO PROMAX TRADING
LIBOR
Acronym for London Inter-Bank Offer Rate. The interest rate that the banks charge each other for loans (generally in Eurodollars).
WELCOME TO PROMAX TRADING
LIFFE
Acronym for London International Financial Futures and Options Exchange. The three largest UK futures markets.
WELCOME TO PROMAX TRADING
Limit
A Limit, is an order to close a trade when the market moves a specified amount to the advantage of a position.
WELCOME TO PROMAX TRADING
Limit Down
The maximum price drop allowed on a futures contract in a single trading day.
WELCOME TO PROMAX TRADING
Limit Entry
An Entry Order is an order to enter the market at a specified price.
WELCOME TO PROMAX TRADING
Linear Chart
The standard chart type, on which a given distance always represents the same absolute change in price.
WELCOME TO PROMAX TRADING
Liquid Market
Liquid Market – the degree to which market participants are willing to buy and sell at every price level.
WELCOME TO PROMAX TRADING
Liquidate
To convert (inventory, securities, or other assets) into cash.
WELCOME TO PROMAX TRADING
Long Hedge
Buying futures to hedge against the sale of a cash commodity. also called buying hedge.
WELCOME TO PROMAX TRADING
Loss
A decline in the value of an investment.
WELCOME TO PROMAX TRADING
Lot
Multiple shares held or traded together, usually in units of 100.
M
WELCOME TO PROMAX TRADING
M1
M1 is the narrowest definition of the money supply and includes all coins and currency held by the public, plus travelers checks, checking account balances, and other checkable deposits consisting of negotiable order of withdrawal (NOW) and automatic transfer service (ATS) accounts at depository institutions, credit union share draft accounts, and demand deposits at thrift institutions.
WELCOME TO PROMAX TRADING
M2
The M2 measure of the U.S. money supply consists of M1, plus certain overnight repurchase agreements and certain overnight Eurodollars, savings deposits (including money market deposit accounts), time deposits in amounts of less than $100,000 and balances in money market mutual funds (other than those restricted to institutional investors).
WELCOME TO PROMAX TRADING
M3
M3 measure of the U.S. money supply consists of M2, plus large-denomination time deposits of $100,000 or more at all depository institutions, term repurchase agreements in amounts of $100,000 or more issued by all depository institutions, certain term Eurodollars (overnight and term) held by U.S. residents at foreign branches of U.S. banks worldwide and at all banking offices in the United Kingdom and Canada, and balances in money market mutual funds restricted to institutional investors (money funds with minimum initial investments of $50,000 or more)
WELCOME TO PROMAX TRADING
Maintenance Margin
Maintenance, also referred to as “minimum maintenance” or “maintenance requirement”, refers to the absolute minimum amount of equity that an investor must maintain in their margin account at all times.
WELCOME TO PROMAX TRADING
Margin
Margin is a good faith deposit that a trader puts up as collateral to hold a position. The amount of margin that the trader puts up determines his leverage.
WELCOME TO PROMAX TRADING
Margin Call
A demand for additional funds to be deposited in a margin account to meet margin requirements because of adverse price movements.
WELCOME TO PROMAX TRADING
Market Maker
A brokerage or bank that maintains a firm bid and ask price in a given security by standing ready, willing, and able to buy or sell at publicly quoted prices.
WELCOME TO PROMAX TRADING
Market Order
A buy or sell order in which the broker is to execute the order at the best price currently available. Also known as at the market.
WELCOME TO PROMAX TRADING
Microeconomics
A branch of economics, studying the behavior of small economic units (i.e. individual consumers or households. opposite of macroeconomics.
WELCOME TO PROMAX TRADING
Minimum Price Fluctuation
The smallest increment of market price movement possible.
WELCOME TO PROMAX TRADING
Money Market
Market for short-term debt securities with maturity of one year or less, and often 30 days or less.
WELCOME TO PROMAX TRADING
Money Supply
The total supply of money in circulation in a given country’s economy at a given time.
WELCOME TO PROMAX TRADING
Mutual Fund
An open-ended fund operated by an investment company that raises money from shareholders and invests in a group of assets in accordance with a stated set of objectives.
N
WELCOME TO PROMAX TRADING
Nasdaq
A computerized system established by the NASD to facilitate trading by providing broker/dealers with current bid and ask price quotes on over-the-counter stocks and some listed stocks.
WELCOME TO PROMAX TRADING
Nearby Month
The futures delivery month with the soonest delivery date, or the option delivery month with the soonest expiration date. Also known as nearest month.
WELCOME TO PROMAX TRADING
Net Position
The difference between total open long and open short positions in a given security held by an individual.
WELCOME TO PROMAX TRADING
Non-Farm Productivity and Unit Labor Costs
Report on the efficiency of industrial workers. Key figures released in this report include Productivity and Unit Labor Costs.
WELCOME TO PROMAX TRADING
Note
A short-term debt security, generally with a maturity of five years or less.
WELCOME TO PROMAX TRADING
NYSE
Acronym for New York Stock Exchange. The oldest and largest stock exchange in the U.S., located on Wall Street in New York City.
O
WELCOME TO PROMAX TRADING
OECD
Acronym for Organization for Economic Cooperation and Development, which refers to an organization that acts as a meeting ground for thirty countries which believe strongly in the free market system,
WELCOME TO PROMAX TRADING
Offer
The lowest price for which an investor or dealer is willing to sell a given security or commodity.
WELCOME TO PROMAX TRADING
Offset
The elimination or reduction of a current long or short position by making a transaction with the same security in the opposite direction.
WELCOME TO PROMAX TRADING
Online Broker
A brokerage that provides trading services to its clients over the Internet.
WELCOME TO PROMAX TRADING
Open Interest
The total number of outstanding option or futures contracts that have not been closed out by offset or fulfilled by delivery
WELCOME TO PROMAX TRADING
Open Market Operation
The buying and selling of government securities by a central bank (i.e. the Federal Reserve Bank in the U.S.).
WELCOME TO PROMAX TRADING
Option
The right, but not the obligation, to buy (call) or sell (put) a specific amount of a given stock, commodity, currency, index or debt at a specified price (the strike price) during a specified period of time.
WELCOME TO PROMAX TRADING
OTC
Over-the-Counter – a security which is not traded on an exchange.
WELCOME TO PROMAX TRADING
Out-of the Money
A call option whose strike price is higher than the market price of the underlying, or a put option whose strike price is lower than the market price of the underlyin.
WELCOME TO PROMAX TRADING
Overnight
A deal from today until the next business day.
WELCOME TO PROMAX TRADING
Overnight Limit
Net long or short position in one or more currencies that a dealer can carry over into the next dealing day.
P
WELCOME TO PROMAX TRADING
P&L
Acronym for profit and loss statement.
WELCOME TO PROMAX TRADING
Payment Date
The date on which a dividend, mutual fund distribution, or bond interest payment is scheduled to be made.
WELCOME TO PROMAX TRADING
Payroll
List of employees that a company is paying. The non-farm payrolls report is one of the key indicators of the labor market in the US. The report tends to include information on salaries, wages, bonuses and net pay after deductions.
WELCOME TO PROMAX TRADING
Philadelphia Fed Survey
Survey conducted by the Philadelphia Fed questioning manufacturers in the Third Federal Reserve District on general business conditions. Conducted since 1968, the “Philly Fed” survey is an established report, valued for its timeliness, scope of coverage and tendency to forecast developments in the market moving ISM Manufacturing figure.
WELCOME TO PROMAX TRADING
Pip
Pip or “percentage in point,” refers to the very last digit of a currency price.
WELCOME TO PROMAX TRADING
Point
Price changes are normally quoted in percentage points and are often denoted using the percent sign.
WELCOME TO PROMAX TRADING
Premium
The amount by which a bond or stock sells above its par value.
WELCOME TO PROMAX TRADING
Producer Price Index
PPI; an inflationary indicator published by the U.S. Bureau of Labor Statistics to evaluate wholesale price levels in the economy.
WELCOME TO PROMAX TRADING
Productivity
Producing or tending to produce goods and services having exchange value.
Q
WELCOME TO PROMAX TRADING
Quotation
Statement of the price of an item.
WELCOME TO PROMAX TRADING
Quote Size
Quantity of shares being offered for purchase at the bid price.
R
WELCOME TO PROMAX TRADING
Rally
A substantial rise in the market price following a decline
WELCOME TO PROMAX TRADING
Range
Range refers to the area between high and low prices a currency pair tends to trade between during a given period of time.
WELCOME TO PROMAX TRADING
Ratio Calendar Spread
An options strategy in which long-term options are bought and a greater amount of short-term options are sold.
WELCOME TO PROMAX TRADING
Ratio Spread
An options strategy in which some options are bought and a different amount are sold.
WELCOME TO PROMAX TRADING
Real GDP
Real GDP reflects Gross Domestic Product that has been controlled for the effects of inflation.
WELCOME TO PROMAX TRADING
REPO
A contract in which the seller of securities, such as Treasury Bills, agrees to buy them back at a specified time and price.
WELCOME TO PROMAX TRADING
Reserve
The amount in assets kept in case of urgent need for liquidity. For central banks, reserves are the total amount in assets held by the bank in order to guarantee the authority’s solvency and ability to conduct open market operations.
WELCOME TO PROMAX TRADING
Resistance
The price level in which a currency pair has difficulty trading above. At resistance, price action tends to stall before breaking above, or reverse in the opposite direction.
WELCOME TO PROMAX TRADING
Retail Price Index
A measure of inflation used for wage bargaining and other purposes.
WELCOME TO PROMAX TRADING
Reuter Dealing
A system for screen based trading between banks in operation since the early 1980s
WELCOME TO PROMAX TRADING
Reversal
Change in the general direction of a market, such as a rally. also called trend reversal.
WELCOME TO PROMAX TRADING
Risk Management
The process of analyzing exposure to risk and determining how to best handle such exposure.
S
WELCOME TO PROMAX TRADING
S&P 500
Standard & Poor’s 500. A basket of 500 stocks that are considered to be widely held. The S&P 500 index is weighted by market value, and its performance is thought to be representative of the stock market as a whole
WELCOME TO PROMAX TRADING
Scalp
To trade quickly for small gains, often holding a position for less than a day.
WELCOME TO PROMAX TRADING
SDR
Special Drawing Right. An artificial currency unit based upon several national currencies. The Special Drawing Right serves as the official monetary unit of several international organizations including the International Monetary Fund, and acts as a supplemental reserve for national banking systems.
WELCOME TO PROMAX TRADING
Sell Order
Specific instructions made by an individual to a broker, bank, market maker, or financial institution to sell a currency, commodity, or security.
WELCOME TO PROMAX TRADING
Selling Rate
Rate at which a bank is willing to sell foreign currency
WELCOME TO PROMAX TRADING
Settlement Date
The date by which an executed securities transaction must be settled, by paying for a purchase or by delivering a sold asset; usually three business days after the trade was executed .
WELCOME TO PROMAX TRADING
Short Covering
Buying to unwind a short position
WELCOME TO PROMAX TRADING
Slippage
The difference between the price a trader expects to be filled at, and the price they are actually filled at.
WELCOME TO PROMAX TRADING
SOFFEX
Swiss Options and Financial Futures Exchange, a fully automated and integrated trading and clearing system.
WELCOME TO PROMAX TRADING
Speculative
Speculation is the practice of selecting investments (exposing one’s self to risk) with the intention of profiting from price fluctuations.
WELCOME TO PROMAX TRADING
Split Order
A large order which is broken into smaller pieces to be executed one at a time to avoid affecting the market price.
WELCOME TO PROMAX TRADING
Spot Month
The closest delivery month on a futures contract.
WELCOME TO PROMAX TRADING
Spot Price
The present delivery price of a given commodity being traded on the spot market. Also known as cash price.
WELCOME TO PROMAX TRADING
Spread
The Spread refers to the difference between the sell and buy price for a security.
WELCOME TO PROMAX TRADING
Sterilization
The practice of using open market operations to counteract the effects of exchange market intervention on a country’s monetary base.
WELCOME TO PROMAX TRADING
Stop Entry
An Entry Order is an order to enter the market at a specified price.
WELCOME TO PROMAX TRADING
Stop-Limit Order
An order to buy or sell a certain quantity of a certain security at a specified price or better, but only after a specified price has been reached.
WELCOME TO PROMAX TRADING
Stopped Out
This is when a position is closed due to the execution of a stop order.
WELCOME TO PROMAX TRADING
Straddle
This is when an investor purchases or sells an equal number of puts and calls, with the same strike price and expiration date.
WELCOME TO PROMAX TRADING
Strike Price
The purchase or sale price of underlying stock that an option holder sees upon the exercising an option contract.
WELCOME TO PROMAX TRADING
Swap
An exchange of different streams of payments over a given period of time, in response to prior specified terms. The most common swap is an interest rate swap. In such a swap, one party agrees to pay a fixed interest rate to the other company in exchange for receiving its adjustable rate.
WELCOME TO PROMAX TRADING
Swap Rate
The difference between the forward exchange rate and the spot rate of a currency. The spot rate is usually expressed in points.
T
WELCOME TO PROMAX TRADING
T-Bill
A short-term obligated investment that is backed by the U.S. government. These bills have maturities of a month (four weeks), three months (13 weeks) or six months (26 weeks). This bill is often called a treasury bill.
WELCOME TO PROMAX TRADING
Technical Analysis
The art of forecasting price movements through the study of chart patterns, indicator signals, sentiment readings, volume and open interest.
WELCOME TO PROMAX TRADING
Technical Indicator
A short-term trend that analysts can use to forecast future price movements of securities and/or commodities. This investment tool is also called a technical.
WELCOME TO PROMAX TRADING
The Base Currency
The first currency quoted in a currency pair.
WELCOME TO PROMAX TRADING
Thin Market
A market is thin when there are few bids and offers. Such a market condition is characterized by low liquidity, high spreads, and high volatility.
WELCOME TO PROMAX TRADING
Tick
This is the smallest possible movement in the price of a security. A tick may also be called a minimum fluctuation.
WELCOME TO PROMAX TRADING
Time Value
The amount by which an option’s premium exceeds its intrinsic value. This is also called a time premium.
WELCOME TO PROMAX TRADING
Trade Balance
A country’s trade balance reflects the difference between exports and imports of goods and services. The trade balance is one of the biggest components of the Balance of Payment, giving valuable insight into pressures on country’s currency.
WELCOME TO PROMAX TRADING
Trade Deficit
A negative balance of trade (i.e. imports exceed exports). Also known as a trade gap.
WELCOME TO PROMAX TRADING
Trailing Stop Loss
The trailing stop is a feature attached to stop-loss orders, where the stop (safety net) position is automatically moved to the trader’s advantage as the market moves to their advantage.
WELCOME TO PROMAX TRADING
Treasury Bond
One of three types of Treasuries. Treasury Bonds have a maturity of more than 7 years. They are exempt from state and local taxes, and pay interest every 6 months at a fixed coupon rate.
WELCOME TO PROMAX TRADING
Treasury Note
One of three types of Treasuries. Treasury notes have a maturity of between 1 and 7 years.
WELCOME TO PROMAX TRADING
Two-Way Market
A market in which the market makers are required to give both a bid price and an ask price for each security in which they make a market.
U
WELCOME TO PROMAX TRADING
Uncovered
A position not covered by an offsetting position
WELCOME TO PROMAX TRADING
Under-Valuation
An exchange rate is normally considered to be undervalued when it is below its purchasing power parity
WELCOME TO PROMAX TRADING
Unemployment Rate
The unemployment figure is typically calculated by dividing the number of out of work individuals in the labor force, by the total labor force.
WELCOME TO PROMAX TRADING
Unrealized Profit
A profit that has occurred but yet to be reflected in a transaction.
WELCOME TO PROMAX TRADING
Up Tick
A transaction executed at a price greater than the previous transaction.
V
WELCOME TO PROMAX TRADING
Value Date
For exchange contracts it is the day on which the two contracting parties exchange the currencies which are being bought or sold. For a spot transaction it is two business banking days forward in the country of the bank providing quotations which determine the spot value date. The only exception to this general rule is the spot day in the quoting centre coinciding with a banking holiday in the country(ies) of the foreign currency(ies). The value date then moves forward a day
WELCOME TO PROMAX TRADING
Volatility
A term that refers to the uncertainty or risk change in an underlying security’s value. The higher volatility the more potential that the asset’s value can be spread out over a wider range of values.
WELCOME TO PROMAX TRADING
Volume
Volume is the number of contracts, shares or any other unit of trade in a security over a certain period of time.
W
WELCOME TO PROMAX TRADING
Wall Street
The name denoted for a narrow street in lower Manhattan , New York City, and considered to be the historical heart of the Financial District. It was the first permanent home of the New York Stock Exchange
WELCOME TO PROMAX TRADING
Wholesale
The sale of goods in high quantities to non-consumers, with the purpose of reselling these goods.
WELCOME TO PROMAX TRADING
World Bank
a group of five international organizations responsible for providing finance in the form of loans to countries, with the objectives of economic development and eliminating poverty
WELCOME TO PROMAX TRADING
WTO
Abbr. World Trade Organization. An international agency that facilitates trade between member nations, and administers global trade agreements.
Y
WELCOME TO PROMAX TRADING
Yield Curve
The yield curve describes the relation between the interest rates and the maturity dates of debt instruments for a given currency (such as bonds and other related securities).
Z
WELCOME TO PROMAX TRADING
ZEW Survey – Euro Zone
A German Firm, the Center for European Economic Research (ZEW), queries financial experts throughout Europe every month in order to make a medium-term forecast about Germany ‘s economic situation
How to Get Started
To begin your investment journey in the
Forex markets, follow these simple steps
Sign up
Create an account in minutes & upload your documents.
Fund your account
Make instant deposits to your Promax Trading Wallet via debit card, wire transfer or your preferred online payment method.
Trade
Download your favorite trading platform on your device of choice & begin trading.
