Forex news Forex analysis Forex Strategies. forex, fx, foreign exchange, currency, gold, forex converter, dolar, euro, yen, technical analysis, fundamental analysis, fx trading, forex analysis, forex news forex fx foreign exchange currency gold forex converter dolar euro yen technical analysis fundamental analysis fx trading forex analysis forex news





Do you know this?

The US Dollar Index (USDX) is a futures contract offered by the New York Board of Trade. It is a trade-weighted average of six foreign currencies against the dollar. Currently, the index includes euros (EUR), Japanese yen (JPY), British pounds (GBP), Canadian dollars (CAD), Swedish kronas (SEK) and Swiss francs (CHF).

USDX broadly reflects the dollar's standing compared to the other major currencies of the world. It is widely used to hedge risk in the currency markets or to take a position in the US Dollar without having the risk exposure of a single currency pair.


Forex Tips

Money management is a critical point that shows difference between winners and losers.
It was proved that if 100 traders start trading using a system with 60% winning odds,only 5 traders will be in profit at the end of the year. In spite of the 60% winning odds 95% of traders will lose because of their poor money management. Money management is the most significant part of any trading system. Most of traders don't understand how important it is.

Forex Dictionary

Search:
English (166 terms) Explanation
"Hit The Bid" Acceptance of purchasing at the offer or selling at the bid.
Accrual The apportionment of premiums and discounts on forward exchange transactions that relate directly to deposit swap (Interest Arbitrage) deals , over the period of each deal.
Aggregate RiskTotal amount of exposure a bank has with a customer for both spot and forward contracts.
American Option An option which may be exercised at any valid business date through out the life of the option.
Appreciation A currency is said to 'appreciate' when it strengthens in price in response to market demand.
Arbitrage The purchase or sale of an instrument and simultaneous taking of an equal and opposite position in a related market, in order to take advantage of small price differentials between markets.
Around Used in quoting forward "premium / discount".
Ask (Offer) Price The price at which the market is prepared to sell a specific Currency in a Foreign Exchange Contract or Cross Currency Contract. At this price, the trader can buy the base currency. In the quotation, it is shown on the right side of the quotation. For example, in the quote USD/CHF 1.4527/32, the ask price is 1.4532; meaning you can buy one US dollar for 1.4532 Swiss francs.
Asset In the context of foreign exchange is the right to receive from a counterparty an amount of currency either in respect of a balance sheet asset (e.g. a loan) or at a specified future date in respect of an unmatched forward Forward or spot deal.
At Best An instruction given to a dealer to buy or sell at the best rate that can be obtained.
At Par Forward Spread When the forward price is equivalent to the spot price.
At or Better An order to deal at a specific rate o better.
At the Price Stop-Loss Order A stop-loss order that must be executed at the requested level regardless of market conditions.
At-the-Money An option whose strike/exercise price is equal to or near the current market price of the underlying instrument.
Auction Sale of an item to the highest bidder. (1) A method commonly used in exchange control regimes for the allocation of foreign exchange. (2) A method for allocating government paper, such as US Treasury Bills. Small investors are given preferential access to the bills. The average issuing price is then computed on the basis of the competitive bids accepted. In some circumstances for government auctions it is the yield rather than the price which is bid.
Average Rate Option A contract where the exercise price is based on the difference between the strike price and the average spot rate over the contract period. Sometimes called an "Asian option".
Back to Back (1) Transaction where all the obligations and liabilities in one transaction are mirrored in a second transaction. (2) Transaction where a loan is made in one currency in one country against a loan in another country in another currency.
Balance of Payments A systematic record of the economic transactions during a given period for a country.(1) The term is often used to mean either: (i) balance of payments on "current account"; or (ii) the current account plus certain long term capital movements.(2) The combination of the trade balance, current balance, capital account and invisible balance, which together make up the balance of payments total. Prolonged balance of payment deficits tend to lead to restrictions in capital transfers, and or decline in currency values.
Balance of Trade The value of a country's exports minus its imports.
Bar Chart A type of chart which consists of four significant points: the high and the low prices, which form the vertical bar, the opening price, which is marked with a little horizontal line to the left of the bar, and the closing price, which is marked with a little horizontal line of the right of the bar.