Exchange Dictionary

mr.traderAugust 30, 2022

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Forward contract (forward)

Что такое форвардный контракт? Форвардный контракт или форвард – это договор купли-продажи или обязательной поставки выбранного инвестором актива через определенное время в будущем. Фактически форвардный контракт – это срочный договор, который обязательно исполняется каждой из сторон. Все условия форвардного контракта четко и заранее устанавливаются сторонами в момент совершения сделки. Зачем нужен форвардный контакт? Форвардный контракт заключается, как правило, в целях осуществления реальной продажи или покупки соответствующего актива и страхования поставщика или покупателя от возможного неблагоприятного изменения цены. Контрагенты страхуются от неблагоприятного развития событий, однако они также не могут воспользоваться возможной благоприятной конъюнктурой. Изначально такой тип бумаг использовался между продавцами и…

mr.traderAugust 28, 2022

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Dividends

Что такое дивиденды? Дивиденды (лат. dividendum — подлежащее разделению) – прибыль акционерного общества или хозяйствующего субъекта, которая распределяется между акционерами или держателями бумаг в соответствии с долей принадлежащих им паев. Распределяемая сумма рассчитывается после уплаты налогов, пополнения страховых и других резервов, отчисления в фонды и др. Другими словами, дивиденд – это денежная сумма, получаемая за вклад в развитие компании, выраженный в полученных акциях общества (денежный дивиденд). Реже дивиденды выплачиваются имуществом компании или акциями. Дивиденды можно получить как по обыкновенным, так и по привилегированным акциям. Как начисляются дивиденды? Акционерное общество (предприятие) в течение года получает прибыль от своей деятельности. Затем, собрание…

mr.traderAugust 26, 2022

0 525

What is a recession?

Рецессия (от лат.  recessus — отступление) – это фаза цикла экономики, характеризующаяся умеренным, некритическим спадом производства в стране, также рецессией называют замедление темпа роста ВВП или его снижение, сопровождающееся ростом безработицы, снижением банковского кредитования и уменьшением объема инвестиций в основной капитал. Рецессия, как правило, является предтечей кризиса в экономике. Почему возникает рецессия? Причинами рецессии могут являться: естественное развитие экономике, когда после сильного роста, исчерпав возможности для движения вверх, экономика нуждается в передышке; войны и междоусобицы; резкое изменение цен на сырьевые товары, в частности – нефть; подрыв доверия покупателей; неуверенность предпринимателей и инвесторов; рост внутренних и внешних долгов (возможное следствие – дефолт); падение…

mr.traderAugust 25, 2022

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Securities

What is a security? A security is a document indicating certain property rights of its owner when presented. A security must be designed according to its type and the general criteria for such documents. There are three most common definitions of securities: A security is a document the presentation of which is necessary to exercise the right expressed in it. A security is a business document of established form, monetary or property content, which has legal force. A security is a special form of existence of capital, which can be transferred instead of the capital itself, circulate on the market as a commodity and bring profit. Their essence is that there is no capital itself, but there are all the rights to...

mr.traderAugust 22, 2022

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Bears

Кто такие медведи на бирже? Биржевой медведь (bear) – это участник бирж (инвестор, трейдер), ориентирующийся в своей торговой стратегии на позицию «на снижение» инструментов, которые чаще всего ему хочется выгодно приобрести. Иначе говоря, «медведь» — это участник рынка, который открывает позиции на продажу (короткая позиция, short) актива (валюты, акции, индекса, другого финансового инструмента) с целью получить прибыль, т.к. он считает, что цена актива будет падать. Медведи на бирже являются оппонентами «быков», которые напротив покупают актив, ожидая роста его цены в ближайшей перспективе. Активность же медведей приводит к понижению цен, в связи с чем рынок с нисходящей динамикой цен называют «медвежьим». Почему…

mr.traderAugust 19, 2022

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Deflation

Что такое дефляция? Дефляция (от лат. deflatio — сдувание) – экономическое явление, противоположное инфляции, которое означает рост стоимости денег и увеличение покупательской способности внутренней валюты отдельно взятого государства. Простыми словами, дефляция — это ситуация, когда стоимость товаров снижается. Почему возникает дефляция цен? Главное правило баланса в торговле и здоровой экономике – спрос должен рождать предложение. Если хотя бы одна составляющая этого тезиса выходит за рамки разумного происходит сбой. В случае с дефляцией складывается ситуация, когда предложение настолько велико, что в разы превышает спрос на рынке. Отсюда снижение цен на товары, остановка предприятий, и конечно же безработица. Дефляция возникает в том случае, если…

mr.traderAugust 14, 2022

0 3,134

Spread (spread, spread)

What is a spread (spread) - the difference between the Bid price (the price at which the base currency is sold) and the Ask price (the price at which the base currency is bought) at the same point in time. What is the essence of the spread? The minimum spread is set by the market-maker and it increases further up the chain to the trader, because it also earns money for dealing centers and brokers as a commission for each transaction. Spread size is the criterion of market liquidity, and the higher it is, the less liquid it is. That is why spread values are small when trading popular currency pairs. For example, when opening an order on EUR/USD pair...

mr.traderJuly 29, 2022

3 647

Oscillator in the market

What are oscillators on ? In technical analysis, oscillators are indicators of the rate of price movement over a specific time frame. They refer to a leading indicator that can move around the zero line between 0 and 100%. During the periods of time when the price is stable, it either moves only within the channel or pauses for a while before reversing. The oscillator is designed to find the points after which the price will either follow the trend or move to the opposite side of the channel. The main notions, which are needed when using oscillators, are the concepts of oversold and overbought. These are the situations in which the indicator value...

mr.traderJuly 24, 2022

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What is inflation?

What is inflation? Inflation (Latin: Inflatio) is a macroeconomic indicator of a country's economy, characterizing the change in the general price level of goods, leading to a depreciation of money. The actual inflation rate in the country at 10% says that you can buy 10% less goods for the ruble you earn, which means that inflation is a decrease in the purchasing power of money. What is the essence of inflation? The essence of inflation is that it is inherent exclusively to paper-money circulation, which means overfilling the sphere of circulation mass of paper money in excess of the needs of turnover, their depreciation and as a result the price of goods and services increases, and the falling purchasing power of money. Inflation is caused by...

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...