Exchange Dictionary
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What is Martingale? Martingale is a system of betting management discovered by French mathematician Paul Pierre Levy. Originally, the Martingale system was used only in gambling games for calculating bets, but later it was actively used and transformed by traders in the stock and currency markets. What is the Martingale Principle? The essence of the Martingale system boils down to the following rule: you need to make an initial bet and then, every time the bet loses, double it to cover the losses in case of the next win. According to these rules, the player does not gain an advantage, but redistributes capital in order to win at any cost. That is why the Martingale system is often criticized: the costs of work...
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OAO Uralkali is a company that ranks among the most developed and large-scale enterprises in Russia. Open Joint Stock Company Uralkali has been producing potash fertilizers in the cities of Berezniki and Solikamsk in the Perm region since 1930. In 2007, Uralkali became the first chemical producer to have its shares listed on the MICEX, RTS and LSE. Uralkali and Silvinit merged with Uralkali in May 2011 to create the world's largest potash producer. Most of the production is exported abroad: China, Brazil, India and other countries. The company has the largest stake in Silvinit...
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Alligator indicator (Alligator) is a technical stock indicator developed and named by Bill Williams. The "Alligator" indicator is represented on the chart as three different-colored lines: blue, red and green. Metaphorically, these lines are called Alligator's jaw (blue line), teeth (red line) and lips (green line). This indicator consists of three Balance Lines and uses fractal geometry and non-linear dynamics in its construction. The Alligator's crossing point is a sign of price consolidation, after which, as a rule, there is a sharp change in the direction of price movement. Learn more about "Alligator" indicator
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What is the IMF? The International Monetary Fund (IMF) is a financial institution established after World War II with the aim of creating a stable economy in each country, preventing possible economic shocks in the world, ensuring economic and trade cooperation between countries and stabilizing the balance of payments of its members, if necessary. The International Monetary Fund operates on the basis of the IMF Charter. It is a specialized agency of the United Nations with headquarters in Washington, D.C., United States. What countries are members of the International Monetary Fund? The International Monetary Fund has 188 member countries. Membership in the IMF is open to any state that pursues an independent foreign policy and is willing to accept the rights and...
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The Swiss franc is one of the major currencies included in the so-called majors. Currency transactions in the CHF account for 3% of the total volume of transactions. This is not 42% of the US dollar, of course, but not bad at all. Traditionally, the Swiss franc acts as a safe haven currency for investors in case of any loss of interest in risk. The Swiss franc is regulated by the Swiss National Bank, or SNB for short. And for this bank is characterized by foreign exchange intervention to maintain the necessary rate of the national currency. The last serious intervention was made to weaken the franc against the European currency, which led to an increase in the currency pair EUR/CHF more than...
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The fourth place in the number of transactions on the foreign exchange market is occupied by the British pound sterling. It is also one of the so-called major currencies, or majors, most often used by traders to trade. The British pound is also often called the Cable in the traders' vocabulary. Approximately 6% of all transactions on the market involve the pound sterling. Currency pairs with the British pound are the most volatile on the market. It is easy to move this pair 200-300 points within one trading day. Most activity of currency pairs with GBP takes place during the European session, a little less - during the American one. Many pairs of British pound are flat at night in Europe, especially in the US.
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The third most popular among traders is the Japanese yen (JPY) and currency pairs. At the moment, about 9% of all transactions takes place in the Japanese yen. For yen trading, it is important to know that it is characterized by regular financial and political interventions from the Bank of Japan to reduce the national currency rate. Since Japanese economy is quite strong, and the interest rate in the country is traditionally low, the interest of investors in the yen is born at any risk. Government agencies prefer to limit the national currency from excessive growth by supporting their export-oriented companies. So it is imperative to keep that in mind when trading for JPY appreciation. Important...
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According to statistics, about 20% of all transactions in the foreign exchange market involve the euro. It is the second most popular currency among investors and private traders, as well as many states use it as a reserve currency. At the time of writing, the euro is under pressure due to the unfavorable economic situation in the euro area. Investment attractiveness of the EUR in this regard is quite low. The European Union consists of 17 countries that use the Euro, if not directly, as a rigid reference point for the exchange rates of their national currencies. The EU interest rate has varied in different years from rather high to as low as possible as a stimulus for the economy. The European currency first appeared...
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During the daily observation of currency pair quotes almost every trader comes to the conclusion that there are some dependencies, correlations and peculiarities among the currencies. The main currencies that account for the most transactions in the market are: USD, EUR, JPY ,GBP, CHF. Let us have a look at the first one. U.S. dollar - USD Statistically, the most operations with the U.S. dollar. According to various estimates, such operations account for about 42% of total market transactions. To date, the dollar is a universal means of payment and a safe haven currency. Let us recall the global financial crisis of 2008. The EUR/USD fell from 1.60 to 1.23.
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Уровень сопротивления (resistance) — в биржевой торговле и на это отметка или уровень на графике, который показывает максимальную цену инструмента за определённый промежуток времени. Уровню сопротивления противоположен уровень поддержки, являющейся нижней границей ценового канала. Пробой уровня сопротивления Пробой уровня сопротивления происходит при движении цены снизу вверх. Как правило, при наличии сильного уровня сопротивления, цена останавливается возле него, находясь не в состоянии его преодолеть (отскок), либо сделать это с первой попытки. После пробоя сопротивления часто следует активный рост курса. В рыночной терминологии быки (игроки на возрастание) толкают цену вверх, а медведи (игроки на понижение) – вниз. Поэтому в случае возникновения трудностей для…
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The futures market is also called the derivatives market, where transactions are made with futures contracts: forwards, futures, options, swaps. Depending on the instruments, the futures market can be exchange-traded (for example, operations with futures) and over-the-counter (operations with forwards). The types of contracts traded on the futures market involve the future delivery of the underlying asset on predetermined terms and differ in terms of the rights and obligations of the buyer and the seller of the contract.
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Open-end mutual funds are mutual investment funds whose main focus of investment is shares of open-end joint stock companies. The acquisition and management of shares by a mutual fund is carried out with the money of the unit holders (depositors). The price of units is directly proportional to the price of shares: if a company's shares rise in price, the value of units also increases. The success and efficiency of an open-end mutual fund depend on how professionally the manager defines the profitability of the acquired securities. Features of open mutual funds of shares The shareholders of open mutual funds of shares receive dividends on shares only when the units are redeemed as part of the price of the unit. The right to vote on shares does not pass to shareholders, it is at the disposal of the management company. Open mutual funds of shares are considered to be the most risky type of mutual funds, since....
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What is economic growth? Economic growth is the long-term trend of increasing real GDP (less often GNP, GNP, or NP) per capita. Economic growth is a quantitative measure that depends on the well-being of the people: life expectancy, health care, level of education and quality of life, etc. What types of economic growth are there? Sustained, long-term economic growth The American economist W. Rostow, who studied this type of economic growth, noted that it is often observed in countries that have just begun the process of economic development from a low level. At the same time, GDP per capita is consistently growing, new jobs are being created, investments are being increased and the well-being of the population is increasing. Zero Growth The concept of zero economic growth originated...
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The Federal Reserve System (Fed) serves as the central bank of the United States under the Act of December 23, 1913. The government plays a significant role in the management of the Federal Reserve System, with private ownership of capital. The Fed is a special kind of financial institution which combines characteristics of an independent legal entity and a public state agency. This was done to provide a balance between the taxpayers and the government and to prevent the possible use of the issue of money in the short-term interests of the U.S. Government, for example, to cover the budget deficit. The Federal Reserve consists of 12 regional reserve banks and a large number of private banks, which receive an inalienable, fixed return on FRB shares in exchange...
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Moving Average Convergence Divergence (MACD) is one of the most popular trend-following indicators. The MACD is the difference between the 12 and 26 exponential averages - plus a 9-period moving average for determining entry signals. MACD is most commonly shown as a bar chart. The crossing of zero line and divergence are considered basic signals. More about MACD indicator
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Индикатор Parabolic SAR – один из основных и наиболее популярных стандартных трендовых индикаторов. Первое название индикатора – «stop and reverse» (SAR), которое данный показатель получил в 1976 году. Основная задача, которую вкладывал в Parabolic SAR его создатель Уэллес Уилдер, — это определение тренда и момента закрытия позиций в период разворота рынка. Если график показывает рост, Parabolic SAR расположен ниже графика, если график направлен вниз, то индикатор стоит выше. При пересечении с ценовым графиком, Parabolic разворачивается и переходит на другую сторону от линии цены. Точка пересечения индикатора и графика является сигналом смены тренда. Подробнее об индикаторе Parabolic SAR
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What is tick volume? Tick volume reflects the number of ticks per unit of time, and the "tick" itself is nothing but the change in price of an instrument by one basis point. In fact, this type of volume is a simple oscillation counter and is not connected with the volumes of deals. In simple words, the tick volume shows how many times the price changed during a specified time and is not related to the real trading volumes. How to know the tick volume? Tick volume is available in any MetaTrader 4 terminal, and, as opposed to exchange volume, is available for all trading instruments provided by a broker. Note, the tick volume shows the amount of price change for a particular...
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Price Action trading tactic is one of the most popular types of trading strategies without the use of technical indicators. It is used in various markets, including . The basis of the Price Action trading tactic is the technical rule "Price takes into account everything", so based on the candlestick patterns of this TS, the fans of this system perform their transactions. The main patterns of Price Action trading tactics are Pin Bar and Incide Bar. These are price formations that indicate the continuation or reversal of the trend. Learn more about the Price Action trading tactic
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What is the optimization of the trading advisor in MT4? Optimization of the trading advisor in the MetaTrader terminal tester - the process of research of the trading advisor in the terminal, which allows by enumerating the basic external parameters of the robot in a given range with a given step, to find the best option of their ratio for the current market. Why do you need to optimize a trading Expert Advisor? The currency market is constantly changing. The volatility coefficient of currency pairs, the dynamics of their movement, etc. are changing. Sometimes even the most profitable trading robots become loss-making over time. For trading to become profitable again, optimization of Expert Advisors is necessary. How to optimize Expert Advisor in MetaTrader 4? Optimization of Expert Advisor is done in the strategy tester of the MT4 trading terminal, no additional...
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Neural network system of stock data analysis is one of the most recently invented and actively discussed trading strategies for working in all types of financial markets, including . The basis of various neural network indicators and experts is a neural network, on the basis of which the analysis is done and the further work of the program is built. The basic idea of the neural network programming is to carry out data-driven analysis and automatically "fit" trading parameters to the current market situation.
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