Exchange Dictionary
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A downtrend (bearish, down trend) is one of the types of stock trends, which characterizes a gradual decline in the rate of a financial instrument over a period of time. Its presence is a signal for the opening of transactions to sell the asset for the trader. How can I find out if the trend is descending? Actually the downtrend reflects the situation on the chart when the volume of currency which the market participants want to sell at the current price is more than the volume of currency which other participants plan to buy. I.e. this is a reaction to decrease of trader's investment interest in the asset. Traditionally, it is said about a downtrend if two or more consecutive price peaks or troughs are formed, through which the downtrend support line is drawn...
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What are Forex trading signals? Trading signals (forex signals) - timely recommendations to buy and sell currencies (opening or closing positions) from practicing traders. Typically, traders receive signals from private professionals or brokerage companies for free or on a reimbursable basis. What are the signals from traders based on? Traders signals are based on a trading strategy, which brings a certain percentage of profit over a long time to the author. Offering to use his TS, he shows his results in the form of an account statement or monitoring. Types of trading signals All trading signals can be divided into two categories: Signals for manual market entry Signals for manual market entry...
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Who is a trader? Trader (from English to trade) is a person who trades, a trader. The term is used for financial markets for those who trade relevant instruments - currencies, securities, commodities, futures, etc. Accordingly, a currency trader or trader is a person who trades currencies in the market . What kind of traders there are on the currency market? There are several conventional methods of gradation for traders. According to the degree of professionalism, traders can be divided into professionals and amateurs: A professional trader is a person who received the appropriate education and works as a trader in banks, DCs, investment funds or independently. In other words, a professional trader is a person for whom trading on the currency...
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What is the interest rate? The interest rate is the interest charged by the lender for the use of borrowed funds. The calculation period varies and is set out in the contract, usually monthly, quarterly or annually. What are the different interest rates? We distinguish between interest rates of the Central Bank, lending operations of credit institutions with non-banking customers, the yield of securities (such as bonds), etc. The interest rate can be real, i.e. cleared of inflation, or nominal, which takes into account the amount of inflation. There are also fixed interest rates, which do not change throughout the contract, and floating interest rates, which are reviewed once every certain period. The latter, for example, includes the interest rate...
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What are technical analysis patterns? Technical analysis patterns (patterns, Japanese candlestick patterns) is a tool for graphical technical analysis of financial markets, which is a variety of repeating combinations of Japanese candlesticks. What are the patterns of technical analysis? Technical analysis patterns can be divided into two categories: trend continuation patterns and reversal patterns. There are five basic patterns: Head & Shoulders, Double Top, Triple Top, Triangle and Flags. All other TA figures are their derivatives. There are many shapes of technical analysis, which are actively used by traders, both classical and new, modern. Most often the presence and reaction of the market to such patterns can be explained economically, which is why they are...
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What is a Price Breakdown (Price Breakdown) is a professional term for financial traders, which means the fixation of the price above / below a strong price level as support / resistance, which has been repeatedly tested by the market. True and false price breakdowns Price breakdowns can be true, when the price actively moves in the direction of the breakdown, as well as false, when a reversal occurs after the breakdown. In the latter case, it is often said that the traders did not have enough strength to hold the breakout. What happens to the price after the break in the channel? As we mentioned above, a breakout can be true or false. In case of a false breakout, the price returns to the borders of the previously formed channel.....
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What is Take Profit? Take Profit is an order to automatically close the deal with the profit when the price level is reached. Take Profit is translated into Russian as "Take Profit", this order is usually set when a trader cannot continuously watch the open trade or expects sharp price movements. How do we set Take Profit? Take Profit is set for a Buy trade above the order price, as we anticipate the price to move upwards. For example, if we opened a buy trade at EURUSD at 1.12595, and we want to make a 50 pips profit without being in the trading terminal, we should set a take profit...
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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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