FX Glossary

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Are there anyone who are in trouble of 「so many Forex terminologies…」「it seems like there are general terminologies but are being used in Forex with different meaning..」 Is everything alright? For these occasions, we have prepared a convenient Forex Glossary.
To all those beginner traders who have just started Forex, and experienced traders too, by all means, please make use of it as your reference.

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Actual Demand

Supply and demand of foreign exchange associated with capital transactions and import and export, such as institutional investors. It is used as a word for speculation.

Actual Demand Channel

It refers to the institutional investors to perform foreign exchange transactions involving the import and export and capital trade (investment and speculation). The Actual demand channel, because it’s not doing the buying and selling for the purpose of trying to obtain a profit by exchange rate fluctuations, so as not to affect too much to the direction of future market, there is a feature to the transactions indifferently.

Adjustment Phase

The rise in the stock prices and economic indicators, etc.by slowing down the speed of increase like in the case of entering a cooling-off period, this is said to be entering to adjustment phase. In the case of stock prices, it is common to interpret and perform the width adjustment and pattern of the day (time). After the adjustment phase, if there is also entering to the original upward trend, because sometimes as a result the ceiling can be seen and fell back, you need to be careful.

Against

The condition where loss is coming out to the position that is on hold. The condition where gains are coming out is Favor. [← → Favor]

Alternative Investments

It can refer to the investment of aside from the direct investment to the investment trust, transferrable deposits, stocks and bonds investment. It might include art works and antiques collection, funds intended for the product or commodity, derivative-related products, foreign exchange trading, hedge funds, oil and gas, precious metals, real estate, etc.

Amount

Refers to the trading unit and trading volume.

Analyst

It analyzes the entire movement of the individual stock prices and market, the investors call them someone that provides the information. To roughly distinguish, the chart analyst, the people that take advantage of the technical factors (technical analyst), there are also people that analyze based on fundamental factors, such as economic statistics and business conditions (fundamental Analyst).

Anomaly

The fluctuation of the market unexplained in the theory.

Appreciation

The position you have when you calculated at market prices, when profit is coming out, the amount of profit is estimated profit, when loss is coming out, the amount of loss it is called the estimated loss. On the other hand, when you actually settle the position, the determined profit is realized gains. During the loss cut, it is called realized loss.[→ Realized Gains]

Arbitrage

Using the price difference "arbitrage" is called the "Arbitrage." For example, it is a method to pull the profit by using the gap of the "exchange rate traded in the spot market ", and the "exchange rate traded in the forward market".

Ask

The Selling price of the (Company), the side where the price is being presented. It has the same meaning with Offer. The side being represented (customer) is the price that they will buy. [← → Bid] [= Offer]

Asset

Refers to resources

Asset Approach

One of the decision theory of foreign exchange rates. By the asset motive selection theory of Keynesian, the theory where the exchange rate is determined by the level of interest rates between the two countries.

Assistant Dealer

It refers to the person that gives assistance to the dealers. The dealers, when it comes to the given authority to do trade in their own judgment, in the case of assistant dealers, rather than in their own self-discretion, they perform the transaction as a support, according to the judgment of the dealers. In general, as an assistant dealer, then from gaining experiences they can become a dealer.

Aussie

The nickname of Australian dollar.

Average Cost

Refers to the value that has the average by holding on to multiple positions of brands at the same time.

Averaging

It is refers to adding a position of the same brand in order to lower the average cost of the position (especially out of evaluation loss).