Exchange Dictionary

mr.traderJune 13, 2022

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Currency intervention (lat. interventio)

What is currency intervention? Intervention (lat. interventio - intervention) is a term in economic theory used to define the intervention of the Central Bank or other organizations that manage the financial system of the country in the position of the national currency in the world market. In other words, currency intervention - is the operation of the central bank of issue, which are to buy or sell their country's currency to maintain its rate. Also, this concept includes targeted operations associated with the purchase and sale of foreign currency, the purpose of which is to limit the dynamics of the currency rate to certain limits of its depreciation or appreciation. The purpose of intervention is to regulate the exchange rate to a specific level. What is the essence of intervention in the foreign exchange market?

mr.traderJune 5, 2022

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Divergence in the market

What is divergence on the currency pair? Divergence (from lat. divergere - to detect a divergence) is one of the key indicators in the technical analysis of stock trends, which shows a discrepancy between the price chart direction and the selected technical indicator readings. As a rule, the divergence is most noticeable on indicators-oscillators - RSI, Stochastic, MACD, CCI, etc. What does the divergence on the chart mean? The presence of divergence on the chart indicates a possible price reversal. The divergence is often called bullish or bearish, depending on the direction the price moves in. A bullish divergence reflects a rising trend, a bearish one - a falling trend. There are several types of divergence in stock trading: Divergence of class "A"...

mr.traderJune 4, 2022

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Trading lot

Trading lot (exchange lot, exchange lot, transaction volume) - a standard unit for measuring a contract in the market, which has a fixed size. In Forex, the size of the trading lot is used to assess the volume of the currency, which is traded on this contract. In the foreign exchange market it is the volume of a transaction to buy or sell. When entering into a Forex transaction, a trader chooses a position size multiple of a standard trading lot, thereby determining how much currency is involved in the turnover. Depending on the selected lot the risks and the amount of potential profit change. Standard lot equals 100,000 units of currency. Knowing this, it is possible to calculate the profit of one pip. An exchange lot is a unit of trades,...

mr.traderJune 4, 2022

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Trend on . Defining and constructing trend lines

Trend - in the sphere of financial markets it is a direction of price movement of the chosen instrument: growth or decline in the price of an asset. Types of Trends Trend Phases Trend Strength Drawing a Trend Line Rule of Numbers Difficulties of Trading by Trend Line Traded correctly Classic Strategy Method of Determining Trend by Peaks and Declines by Dow Theory Trend Indicators Trend Indicators Advantages and Disadvantages of a Trend Strategy There are three main types of trends: an uptrend (bullish trend, up-trend), which shows price growth in a certain period of time. On the chart it looks like a series of price lows, each higher than the previous one. a downtrend (bear trend, down-trend), which tells...

mr.traderMay 29, 2022

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Volatility

What is volatility? Volatility is the instability of market conditions, demand, prices, which often occurs due to lack of liquidity, i.e. the inability of assets to sell quickly at a price close to the market price. Volatility is considered the most important financial indicator, as it allows to calculate financial risks (the probability of risk when using any financial instrument during a certain period of time). The annual average volatility is most often used for this purpose. What does volatility on the currency market mean? On the currency market, volatility means the maximum and minimum price change within a certain period of time. The greater the distance between the maximum and minimum of the price in the allocated interval of time, the greater the volatility. The less this distance, the weaker the volatility....

mr.traderMay 28, 2022

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Exchange bull (bull)

Who are the stock bulls? An exchange bull is a participant of exchange and over-the-counter markets (investor, trader) who pursues an "upside" strategy for currencies, stocks, derivatives and other instruments. In other words, a bull on the exchange is a market participant who opens a long position expecting further growth in the price of an asset. Strong activity of bulls leads to overpricing, which is why the market with rising prices is called "bull market". The opposite of "bull" is the concept of "bear". Why are buyers called stock bulls? The terms stock bulls and bears first appeared on the stock exchanges of London in the 18th century. According to the most common version, the buyers are called by analogy with bulls, which raise their prey on the horns. Tho.

mr.traderMay 1, 2022

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Preferred shares

What are preference shares? Preferred stocks (preferred stocks, preference shares) are a special type of stock with a fixed amount of dividends on it. In finance, the slang word "preference shares" is also used for preferred shares. What is the difference between preferred stock and common stock? The advantage of preferred stock is the right: to receive a fixed income, either as a percentage of the value of the stock, or a certain amount of money paid regardless of corporate performance; to receive priority dividends; to have priority participation (after satisfaction of creditors - bondholder banks) in the distribution of the corporation's assets when it is liquidated; to receive a surcharge if the dividends paid for common stock exceed the dividends with preferred stock. Holders of preferred shares...

mr.traderApril 30, 2022

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Reserve Bank of New Zealand (RBNZ, Reserve Bank of New Zealand)

The Reserve Bank of New Zealand (RBNZ) is the central bank of New Zealand, which regulates the financial and monetary policy of the country and is responsible for the stability of the New Zealand dollar in accordance with the national interest. The RBNZ's functions and tasks New Zealand's financial regulator was established under the Reserve Bank of New Zealand Act on August 1, 1934. Since 1936 the RBNZ has been the property of the government. In 1985, the New Zealand dollar, after obtaining the status of a free currency, entered into free circulation in the international foreign exchange market. Despite this, its exchange rate is still controlled by the government in order to avoid sharp exchange rate fluctuations. As well as most ...

mr.traderMarch 25, 2022

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OPEC - organization of oil exporting countries

The Organization of the Petroleum Exporting Countries (OPEC) is an oil cartel or intergovernmental organization founded in 1960 to coordinate crude sales and control crude prices. OPEC includes 12 oil-producing countries, each of which has its own quota of possible production and sales of crude. Since 1998, Russia has been a permanent observer at OPEC conferences. OPEC members The following countries are members of OPEC: Algeria Angola Ecuador Iran Iraq Libya Kuwait Nigeria Qatar Saudi Arabia Venezuela UAE OPEC Functions OPEC accounts for about 40% of world oil production and controls 2\3 of world trade. Twice in a...

mr.traderMarch 22, 2022

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What is a stop-loss, how to correctly calculate and set it

One of the first rules of trading on the currency market, which is persistently put in the trader's head, is the obligatory placement of a stop-loss order to limit his possible loss if the price goes in the opposite direction to the open trade. There is no doubt that one of the most important qualities of a trader is the ability to manage his losses - this is the direct purpose of StopLoss order. What is StopLoss What is a Stop Loss Order for? How Stop Loss Order Works How to set Stop Loss Order in MetaTrader 4 Technical Rules for Setting a Stop Loss Order How to Calculate the Size of a Stop Loss Order What is Breakeven and How to Use it What is Trailing Stop Loss or Trailing...

mr.traderMarch 17, 2022

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Up-trend

What is an uptrend? An up-trend is one of the three types of trend on , which is a series of consecutively increasing price lows and highs. In other words, up-trend shows the growth of prices in a certain period of time. On the currency market, the up-trend is also called a bullish trend. The direct opposite of the uptrend is a downtrend. How to build an uptrend correctly? An uptrend is graphically shown as two parallel lines which slope upwards. The trend line limiting the uptrend from below and passing through the minimum values is the main support for the uptrend. It should be directed upward, the angle of the slope varies with the strength of the trend - the sharper it is, the...

mr.traderMarch 14, 2022

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Investment Portfolio

What is an investment portfolio? An investment portfolio is a set of financial and real assets, which the investor selects in various proportions in order to gain maximum profit or diversify risks. The quantity and composition of assets that make up an investment portfolio depend on the investor's experience and interests. For example, a portfolio may contain high-yielding and risky instruments, or, conversely, instruments, transactions with which will bring less profit, but will be more reliable. More often than not, an investment portfolio is a tool of a manager, who works with clients' funds. Depending on the chosen strategy and the desired timing of profit, an investment portfolio will include certain instruments. What types of investment portfolios are there? There are.

mr.traderMarch 14, 2022

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Pending Sell Limit order

What is a pending Sell Limit order? A Sell Limit order is a pending order which allows you to place a sell order above the current price. In fact, by placing a Sell Limit order, you want to sell at a higher price than you are currently able to do so. Sell Limit order is standard for MetaTrader 4, it is executed at the Bid price and it is possible to apply protective StopLoss and TakeProfit orders to it. How does Sell Limit work? Having analyzed the situation on the currency market, the trader believes that the price of the asset will grow to a certain level, after which it will resume its decline. In order to sell the asset at the pivot point, the trader...

mr.traderMarch 6, 2022

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U.S. Federal Reserve System (Fed, Federal Reserve)

The U.S. Federal Reserve (Federal Reserve System, Federal Reserve) is the U.S. central bank, whose decisions may affect not only the U.S. economy, but the world as a whole. The explanation is simple: it is the Fed that issues the dollar USD, which remains the reserve currency and retains its paramount importance in the planetary scale. This is why the Federal Reserve gets a lot of criticism and advice on monetary policy and economic management from all over the world. History, Functions and Heads of the U.S. Federal Reserve One of the main differences between the U.S. Federal Reserve System and central banks from other countries is its independence from the government. In some ways, the Fed is controlled by Congress, which...

mr.traderFebruary 28, 2022

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G20 Summit or G20 Summit

The G20 Summit, or G20 Summit, is a meeting of finance ministers and central bankers of the world's 20 largest economies. The G20 also brings together representatives of the World Bank and the International Monetary Fund. The G20 was created at the initiative of the G8 in 1999 to address important economic issues. The G20 is joined by the European Union and 19 other countries: Argentina, Australia, Brazil, Canada, Great Britain, Germany, India, Indonesia, Italy, Japan, the PRC, Mexico, Russia, Saudi Arabia, USA, Turkey, France, South Africa, and the Republic of Korea. The economies of these countries account for 90% of world gross national product and 80% of world trade. Summit countries represent 2/3 of the world's population. It should be noted that before 2008.

mr.traderJanuary 25, 2022

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Federal Loan Bonds (OFZ)

What are federal loan bonds? Federal Loan Bonds (OFZ) are one of the types of securities in Russia that are issued by the Ministry of Finance. In essence, bonds have a standard format, their peculiarity only in the fact that the reliability of the securities is ensured by the state itself. What is the essence of federal loan bonds? Essentially, when you buy OFZs, you lend money to the government for a certain period of time. With OFZs, you'll receive coupon income (usually once every six months) for the entire term of the bond. At the end of the term, you'll receive a refund of the original cost of the bond itself. Types of Federal Loan Bonds Federal Loan Bonds are divided into several types based on the type of coupon payment and face value. By type of coupon payment...

mr.traderJanuary 22, 2022

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Option (option) - binary and classical

What is an option? Option (lat. optio - choice, desire, discretion) is a standardized contract related to the so-called derivatives or derivative financial instruments, under which the seller gives the buyer the right, but not the obligation, to buy a specified asset within a certain time at a specified price. The writer of the option is then required to make a reciprocal opposite transaction in the asset in accordance with the terms of the sold option. What kind of options are there? There are three types of options: call option - an option which gives the right to buy the asset at a fixed price; put option - an option which gives the right to sell the asset at a fixed price; double option. Depending on the underlying asset and...

mr.traderJanuary 18, 2022

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Cross rate of exchange in the market

What is the cross rate of currencies on the ? Cross rate is the ratio of the rates of two currencies, which is determined on the basis of their rate to the third. Since all currencies are quoted against the U.S. dollar, the third currency is the U.S. dollar. At the currency market the term cross rate characterizes currency pairs without the participation of the U.S. dollar. What are the cross rates at ? Currency cross rates can be divided into the following groups cross rates with Euro; cross rates with Yen cross rates with Pound Sterling; commodity cross rates (with Australian, New Zealand and Canadian dollars). Cross rates between the main hard currencies on the interbank Forex currency market have the largest trading volumes: EUR/JPY, EUR/CHF,...

mr.traderJanuary 18, 2022

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What is a timeframe?

What is a time frame? A time frame is an interval of time for grouping price quotations of any instrument to create a minimum element of a price chart. Minimal elements, most often bars, are used to display price movement. What timeframes are available in MetaTrader 4? Standard timeframes for the MetaTrader 4 terminal include: 1 minute - M1 5 minutes - M5 15 minutes - M15 30 minutes - M30 1 hour - H1 4 hours - H4 1 day - D1 or Daily 1 week - W1 or Weekly 1 month - MN or Monthly In other terminals you may find timeframes in a different breakdown: M10, M20, H2,...

mr.traderJanuary 1, 2022

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Futures (futures contracts)

What is a futures? Futures (futures contracts) is a derivative security (derivative) which is an agreement to set conditions for buying or selling a standard quantity of a certain asset at a certain time in the future, at a price set at the time of the transaction. There is a rule that there should be at least two working days between setting the terms of the transaction and its execution, otherwise the transaction is considered to be immediate. Why are futures contracts needed? Futures have three general purposes: the most important purpose of futures in general is to determine the price of an instrument. The applied meaning for market players can be one of two (or a combination): insurance against financial risks, i.e., hedging...