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.traderJune 2, 2020

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London Metal Exchange (LME)

What is the London Metal Exchange? The London Metal Exchange (LME, London Metal Exchange) is one of the most influential international exchanges of commodities, futures and options transactions. The exchange specializes in non-ferrous metals: copper, primary aluminum, lead, zinc, nickel, tin, aluminum alloy. In addition, the exchange trades an index contract LMEX, which includes some of the above metals. All transactions are guaranteed by the London Clearing House. Annual turnover on the LME amounts to 4,500 billion dollars. The London Metal Exchange was founded in 1877 in order to supply the market with considerable amounts of metals from abroad. Today the official LME prices are used when concluding long-term contracts...