1.
Valuation
The process of determining the value of an asset or company.
2.
Value Date
The settlement date for a currency contract, usually two business days. For USD/CAD it is one business day.
3.
Variation Margin
Funds, which are required to bring the equity in an account back up to the initial margin level, calculated on a day-to-day basis.
4.
Volatility
Measure of how much [...]
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1.
Unconvertible Currency
A currency that cannot be exchanged for another because of foreign exchange regulations.
2.
Uncovered
See Open Position.
3.
Under-Valuation
See Undervalued.
4.
Undervalued
When a currency is below its purchasing power parity it is considered undervalued.
5.
Unit
A widely used quantity of currency. In FXTrade, one unit of USD is equal to one United States dollar, while one unit of EUR is one euro. [...]
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1.
S/N Roll
See Spot/Next Roll.
2.
Same Day Transaction
A position that is opened and closed on the same day.
3.
Sell Limit Order
An order to execute a transaction only at a specified price (the limit) or higher.
4.
Sell Stop
A limit order with a limit placed below the current market price. Once triggered, the limit order becomes a market order.
5.
Selling Rate
Same as [...]
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1.
Rainbow Option
An option that has two or more underlying assets. The option only pays out when all the underlying assets act accordingly.
2.
Rally
A period where prices surge upward.
3.
Range
The difference between the highest and lowest price of a currency pair during a given trading period.
4.
Rate
Price at which a currency can be purchased or sold against another currency.
5.
Rate [...]
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1.
Quantitative Analysis
A technique used to analyze an observed behavior by employing complex mathematical and statistical modeling, measurement, and research.
2.
Quantitative Easing
Quantitative easing is a monetary tool used by central banks to encourage spending within an economy. One of the most well-known instances of quantitative easing remains the Bank of More…
3.
Quote
When both a bid and ask price [...]
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1.
Par
The official value of a currency.
2.
Par Spread
The term used to describe the situation where the bid and ask prices for a forward spread rate are identical.
3.
Paris
Nickname for the US Dollar-French Franc currency pair before the French Franc was converted to the Euro.
4.
Parity
See Purchasing Power Parity.
5.
Partial Lot
Some brokerages allow trading in partial lots, which are fractions [...]
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1.
OCO
See also: One Cancels the Other Order
2.
Odd Lot
A non-standard transaction size. In forex, a standard lot is usually 100,000 units of a particular currency.
3.
Off-Shore
A business entity that may or may not be physically located in a country, but whose operations and regulation fall outside the country, primarily because it is incorporated elsewhere.
4.
Offer
Also known as the [...]
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1.
Naked Put
A put sold by someone who is not short the underlying asset.
2.
Narrow Market
Also known as a thin market, where there is light trading.
3.
NAV
Net Asset Value. The total value of an asset less liabilities. In the case of a trading account, the NAV is the balance of deposits, realized and unrealized profit/loss, and interest, minus [...]
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1.
M1
Money supply component which consists of all cash in circulation, plus all of the money held in checking accounts, as well as all the money in travelers checks.
2.
M2
Money supply component which consists of M1 plus all of the money held in money market funds, savings accounts, and small Certificates of Deposits.
3.
M3
Money supply component which consists [...]
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A long term perspective may be taken with an existing channel line and an opportunity for entering the market may exist for the EUR/USD pair.
The original trend line (1) has been drawn, connecting with yesterday’s closing price of 1.4732. A parallel channel line (2) has been drawn from the prominent peak of 1.3630. Notice the [...]
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