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Dictionary

  • Account

    Trading account of the client. Trading accounts can be: real, demo account and competitive accounts.As a rule, brokers in the FOREX market open to the clients accounts of the following types: Cash (without providing a broker loan), Margin (with possibility of providing a broker loan and, respectively, with possibility of carrying out transactions like "sale without covering" and "purchase with a shoulder"). The American brokers can also give bills of the following types: Option (for trade in options), Custody (by proxy - for example, for benefit of minors), IRA (pension), Joint (joint).In our company clients can select multiple currency accounts from the following currencies: USD - the standard account in dollars; USC - the account in cents.Also when opening the trading account the client can request the account without charge of swaps (Swap-Free Account).

     

  • Account history

    The list of complete finished transactions and uncommercial transactions on the trading account.

  • Account history

    It is information about all perfect actions with any account of Forex. It can be profit, a harm, the credit, the deposit and many other things.The account history is necessary for the objective analysis of the concluded bargain and keeping track of by the account of Forex in real time. Besides, the account history allows to evaluate in details efficiency of trade strategy of the trader for the long period and to reveal everything its strong and weaknesses. The account history represents a detailed database on all the spent trader of trade operations. Proceeding from all accumulated information, the trader has opportunity to retrieve the mass of information, useful to it, from the present possibility.

     

  • After-hours trading

    Making of transactions of purchase and asset sale at an inopportune time that at the moment is available only to professional participants of the market and the largest customers. Usually in FOREX market such opportunity is not given.

     

  • Arbitrage

    Profit earning on price distinctions of identical financial instument, in the different markets or at different brokers.Use of arbitration strategy is forbidden or limited at most of brokers of the FOREX market.With some clauses the arbitration is allowed at trade at the exchanges and in large banks (it is recommended to study previously regulations of trade operations).

     

  • Arbitrage deal

    It is the financial transaction consisting in profit earning from price difference on certain goods in the different markets. That is the goods are bought in one market, and sold in other market. On a difference of the prices of the purchased goods in the different markets the profit forms. Carrying out arbitration transactions conducts to that the prices of the same goods in the different markets will come nearer to each other in process of increase in intensity of arbitration trade.This results from the fact that buying goods in that market where costs it less, the trader thereby increases the price of it in that market, and selling to the goods purchased earlier in other market where it is more expensive, it automatically reduces the price of those goods.The request to pay attention: In our company it is forbidden to carry out the arbitrage transactions on the basis of these other brokers.

     

  • Ask

    High price in the quotation. A course at which bank or the broker agrees to sell an asset, and the client can buy this asset.

  • Asset allocation

    Process of drawing up an optimal portfolio of tools of different types (currency, sktalla, indices, stocks, bonds, derivatives, etc.) for the purpose of decrease in the general risk of a portfolio and maximizing cumulative profitability.

     

  • ATS - Alternative trading systems

    The segment of infrastructure of the market which is most quickly developing recently provided by different computer networks (electronic communication networks or ECNs) which give opportunity of more rapid and cheap access to the market.

    The most known ECN: Integral, Currenex, CitiFX Pro, Hotspot FX, FastMatch.

    The most known ATS of stock market: Instinet, SOES, Island, SelectNet, Terra Nova.

     

  • Automated trading systems

    Automatic trade systems (commercial counselors) represent the computer programs written in a special programming language (MQL, etc.).Such trade systems work at point-of-sale terminals and are allocated with functions of independent generation of trading signals and opening of trade positions on the basis of these signals.The automatic trade system is capable to perform independent trade, on the basis of the trade algorithm set for it, without participation of the person.Unlike the person, the commercial counselor (robot), is capable to trade round the clock, without breaks. The adviser is deprived of any emotions so inherent in the trader, and makes trade decisions only on the basis of logic of the program.

     

  • Averaging

    Strategy of optimization of the average price of an asset in the trader's portfolio by additional purchase of necessary volume and increase in the size of the position which is already available in a portfolio.

     

  • Averaging down

    Strategy of optimization of the average price of an asset in the trader's portfolio by additional purchase of necessary volume in case of reduction of price.For use of this strategy micro accounts (with balance in cents), or accounts with rather large capitalization are recommended.Use of this strategy is not recommended for the beginning traders.

     

  • Averaging up (Averaging in case of growth of the asset price)

    Strategy of optimization of the average price of an asset in the trader's portfolio by additional purchase of necessary volume in case of growth of the asset price.

     

  • Backtesting

    Process of testing and optimization of trade systems and indicators on historical data.

     

  • Balance

    Cumulative financial performance of all complete finished transactions and transactions of introduction/money withdrawal from the trading account.

     

  • Base currency

    Monetary unit in which are nominated and calculated the sub-account, all balances, commission payments and payments.

     

  • Bear

    The participant of the market taking positions waiting for falling of asset cost, that is "selling short".

     

  • Bear market

    The market, tending to decline in rates.

     

  • Bid (Bid, offer)

    The smallest price in the quotation. Rate at which bank or the broker agrees to purchase an asset, and the client can sell this asset.

  • Big figure

    On a dealer slang designates basic number - 100 points.

     

  • Binary option

    The option which depending on execution of the resolutive condition in the stipulated time or provides the fixed size of the income (award), or does not bring anything. As the option is bought in advance at the fixed price, an overall total value or positive (in the amount of a difference between an award and the price of an option), or negative (on option cost value).

    Usually it is about, whether the exchange price of an underlying asset will be higher (or below) than a certain level. The defined benefit is made in case of an option prize, irrespective of extent of the change in price (as far as the it is higher or lower).

    The binary options allow to know precisely the amount of payment and possible risks even before contracting that provides opportunity more simply to manage a lump of trade operations.

    In the ForexStart company you receive 90-100% of profit at the successful forecast (the award makes 190% of option cost).

     

  • Bond

    The debt obligation issued more than for one year. Possible issuers: government, states, cities, corporations.

     

  • Broker

    The person or firm which works as the intermediary between the buyer and the seller, usually demanding a payment for the commission.

     

  • Bull

    The participant of the market taking positions waiting for growth, that is "going a bull".

     

  • Bull market

    The market in which the upward tendency of the price of the traded asset is noticeable.

     

  • Buy

    Transaction on purchase of a certain quantity of a financial instrument. That is purchase of base currency in a certain currency pair for currency of the quotation. This type of financial transaction is one of the financial markets which are most extended on all types in whom for profit earning it is necessary to buy and sell to financial instruments for the purpose of profit earning as a result of the performed operations.

     

  • Central Bank

    Central Bank. One of functions of Central Bank is management of currency holdings, carrying out the currency interventions having impact on the level of an exchange rate, and also on the level of interest rates on attachments in national currency.

     

  • CFD - Contract for difference

    Contract for a difference. CFD gives the chance of earnings on the basis of fluctuation of cost of a financial asset which this contract provides. Thus availability of the asset on hand is not required from the trader. Among assets which provide the contract for a difference it is possible to select: stocks, different goods and indices. The trader can earn on the basis of profit earning when opening and closing transactions with use of this financial instrument.CFD allow to make financial transactions to traders with small deposits that considerably increase possibilities of trade in expensive goods for the people who are not possessing the big capitals. The contract for a difference is present in the market already some tens years. However widely it began to be used only in recent time. CFD give to traders opportunity of opening as transactions on purchase, and for sale that was unavailable to the traders who are not possessing big deposits recently. Today use of contracts for a difference became wide to be applied owing to fast and simple implementation of financial transactions and the low commissions for carrying out transactions.Today the trader has opportunity to use a Credit leverage which gives the chance to use larger amounts when carrying out trade operations and to receive higher level of profit. Opening of positions is performed in the shortest time. At trade in contracts for a difference there is no need in physical transfer of an asset that very much facilitates work to traders.

     

     

     

  • Chart (Graphics, Diagram)

    Graphic display of the change in price and other information in time.

     

  • Client

    The physical person or legal entity concluding the conversion arbitrage operations with the Company according to the quotations provided by the Company.

     

  • Client’s log file

    The file created by the client terminal which to within a second records all requests and orders sent by the Client Dileru.

     

  • Closed position

    Market position on which the reversing transaction was carried out and calculation was made.

     

  • Company

    Legal entity CARMEL INVESTMENTS CONSULTANTS INC., the providing making of transactions and carrying out all necessary calculations with the Client according to this agreement.

     

  • Completed transaction

    Consists of two Contrarian trade operations with an identical volume (the position opening and the position closing): purchases with the subsequent sale or sales with the subsequent purchase.

     

  • Contract for currencies

    Currency pairs, available to auction.

     

  • Contract specifications

    Main trade conditions (spread, lot size, minimum volume of trade operation, step of scope change of trade operation, initial margin, margin for the varnished positions, etc.) for each tool.

     

  • Contrarian

    The trader playing against the tendency created by most of participants of the market. Strategy of his behavior consists in commercialization on "rollbacks" (rebounds) when participants of the market understand that the tendency brought them too far and the price of the traded asset strongly overpriced/are strongly is underestimated.

     

  • Conversion arbitrage deal

    The transaction between the Company and the Client on purchase or sale of the contract for currencies which assumes implementation of at least two Contrarian transactions on purchase and sale of the contract of identical volume.

     

  • Credit leverage

    This ratio between the amount of pledge and amount of trade operation: 1:1, 1:5, 1:10, 1:20, 1:40, 1:50, 1:100, 1:200. The Credit leverage 1:200 means that for implementation of the transaction it is necessary to have on the trading account the amount of 200 times smaller, than an amount of transaction.

     

  • Currency

    Any form of money which is in circulation.

     

  • Currency of the quotation

    The second currency in designation of a currency pair for which the Client can purchase or sell the base currency.

     

  • Currency pair

    Object of trade operation cornerstone of which is the change in cost of one currency to the other currency.

     

  • Currency pair

    Object of trade operation which cornerstone the change in value of one currency in relation to other currency.

     

  • Data vendors

    The specialized firms selling to quotations (as historical, and in real time), data of balances, reports of analysts, etc.

     

  • Dealer

    It is the employee of this company who makes request processing of clients, opens and closes transactions and performs other financial transactions at the request of clients of the company. The dealer is an intermediary by means of whom the trader has opportunity to trade in exchange market. The dealer performs requests of the client on its own behalf. The dealer assumes liabilities on implementation of trade operations on the specified clients to the prices. All financial transactions performed by the dealer are carried out at his expense. The dealer works, charging a certain fee for the services, it his work is a little similar to exchangers of currencies. Earnings of the dealer are calculated as a difference between the purchase prices and sales of a financial instrument. Anyway the dealer acts as your partner, it means that any financial operations performed by the trader will be performed by the dealer.

     

  • Deposit

    The money deposited to account for further transactions.

     

  • Developer

    MetaQuotes Software Corp company., the company creator of a trade platform of MetaTrader - one of the best trade a trade platform in the market. MetaQuotes Software Corp. Is one of the best companies which is engaged in creation of the special software for financial markets. The staple put by this company on the market is "MetaTrader". MetaTrader is the trade program complex created for the dealing centers which the Forex, CFD, and Futures allows to trade in the markets. The program MetaTrader complex was widely adopted worldwide. At the moment it is used by more than 250 companies on all terrestrial globe. The company began the activity in 2000, and since then the it quickly develops, putting on the market all new products helping to trade successfully in financial markets.

     

  • Diversification

    The strategy developed to reduce risk, a capital investment distributing between different assets.

     

  • Economic indicator

    Sales of goods or services via the Internet.

     

  • Electronic commerce

    Sales of goods or services via the Internet.

     

  • Equity

    It is the indicator characterizing a state of the account of the trader. Remained equitiy on the customer account are calculated in currency of the deposit. Thus the positions opened by the client at the time of calculation of an indicator are taken into consideration.

    Equity is very important for determination of a state of the account of the client taking into account the transactions opened for them as allows the investor to affect course of world development in case of strongly unprofitable situation on the trading account of the trader in time at the moment.

    Equitiy is the part of the sub-account of the Client taking into account open positions which is connected with and Floating (Profit/Loss) the following formula: Balance + Floating +Swap

     

  • Exchange rate

    Rate at which the currency can be transformed to other foreign currency.

     

  • Expert

    The automatic program system which makes or suggests to make the transaction in the Metatrader 4 program.

     

  • Expert Advisor

    It is the program written in the MQL language which can both analyze charts of currency rates, and to conclude bargains without participation in it of the person. The adviser monitors tendencies of the market during the set time frame. The adviser of Forex uses indicators or other analyzers, he considers and compares different conditions and market factors then on the basis of the carried-out analysis the adviser opens transactions.Main types of advisers in the FOREX market:

    - Trend advisers;

    - scalpers and pipsers;

    - multiple currency advisers;

    - advisers by Martingale;

    - the combined advisers.

     

  • Expert system

    It is the program written in a specialized programming language (MQL and t.p). Generally such programs are engaged in the analysis and market forecasting, and also structuring and processing of data bulks. Primal problem of such program is to make the analysis of primary data and to provide to the trader an expert assessment. On results of expert system the trader makes the decision.

     

  • Fast marke

    Status of exchange market at which rate movement on a certain currency pair becomes rather very fast. This market situation of Forex market most often takes place owing to an output in mass media of news of the following character:

    - Declaration heads of Central Banks of the leading world powers of value of an interest rate;

    - An output in mass media on an influential economic indicator any of economically large countries which change strongly influences state of the economy;

    - Large currency intervention from influential banks or the organizations;

    - Press conferences of heads of financial institutions of the largest economic powers;

    - The large natural disaster which caused a serious loss to economy: hurricanes, earthquakes, floods, etc.;

    - Accidents at the largest economic enterprises;

    - Different vis major of large scale;

    - Carrying out large military operations;

    - The other events capable considerably to affect world economy.

     

  • Federal Reserve Bank

    One of 12 regional banks of the USA authorized to support reserves, accounts of issuing bank, and to provide money to banks of states.

     

  • Flat

    Market condition at which the asset price is in narrow range.

     

  • Floating profit/loss

    Floating (unrealized) profit / loss on open positions at the current values of quotations.

     

  • Force-majeure circumstances

    Events which could not neither be expected nor prevent. As a rule, it: natural disasters; wars; acts of terrorism; actions of the government, legislative and actuators of the power; hacker attacks and other illegal actions concerning servers

     

  • Forecast

    Assessment of future tendency, by means of research and the analysis of available information.

     

  • FOREX

    Curb market where buyers and sellers carry out currency transactions.

     

  • Free margin

    Uninvolved in pledge on open positions equities. It is calculated: Free Margin = Equity - Margin. This indicator is used for determination of number of transactions which can be open at the moment.

     

  • Fundamental analysis

    Analysis type supporters of which try to determine the original cost of the tool depending on inflation, economic news, economy in general and other fundamental factors. Strategy of behavior is based on the assumption that the market price will be made even to the original sooner or later.

     

  • Futures

    The standardized sales contracts or exchange which demand delivery of products, bonds, currency, at determined price, in certain future date.

     

  • Gap

    Rupture of a price chart or lack of the price of a financial instrument in some interval of time. The gap designates absence of any transactions on a specific currency pair this time. To trade during possible emergence of gaps quite risky, because of a high probability of absence of the trader ready in that instant to purchase something from you or to sell. Most often the Gap can appear on the chart in the period of an output of important news of economic character: new value of a discount rate, rate of inflation and unemployments, etc. Or during the periods between the days off when the international exchange market does not work. So, the gap can be observed in the morning when the market opens after days off when the price can be much higher or lower than that level of the price which was recorded by the last after closing of the market upon termination of business week. Some markets are more located to emergence of gaps, others are less located. Forecasting of education of gaps is an important task for the trader who in most cases should close all open transactions. Here the essential moment is the most exact trackings of education of a gap and correct time of its probable emergence. The gap can be an important signal of a turn of a trend if the price started moving in the direction of education of a gap. It means that on the market important information which strongly influenced forecasts of traders and investors who aim at certain actions at that time arrived. If the price returned to a former status after education of a gap, it testifies to insignificant market fluctuation.

     

  • Graphical analysis

    Graphic market research is based on the assumption that the market is based on human psychology which is invariable, therefore steady models (which often are called as templates or patterns) suitable for use earlier, will also work and in the future. It is necessary to notice that the technical analysis of exchange market can a little conditionally be separated into categories, one of which - the graphic analysis.

  • In the black

    Professional expression for designation of profitable transactions.

     

  • In the red

    Professional expression for designation of unprofitable transactions. The return to "in the black".

     

  • Indicator

    Graphical set on graphics which allows to predict the movement of the price

     

  • Initial margin

    The cash cover demanded by the Company for the position opening.

     

  • Initial margin

    The cash cover demanded by the Company for the opening of position.

     

  • Instant Execution

    Procedure for granting of quotations to the Client without request when the Client sees in real time a flow of quotations of the Dealer according to which it can send the order for commission of trade operation at any time. This mechanism grants to the trader the right to perform financial transactions according to strictly set quotations. It means that if the trader confirms sale or purchase of a financial instrument at the price set by it, in that case the dealer undertakes to perform the transaction on that price set by the trader.

     

  • Instruction

    Any request for opening, closing or change of positions sent by means of the point-of-sale terminal of the Client to the server.

     

  • Instrument

    The character used in trade operations. In FOREX market generally it is currency pairs and metals (some brokers I can provide indices and different CFD); In stock market stocks, futures, options, indices and other financial assets can act as tools.

     

  • Interbank Quotations

    Quotations which are considered as a standard for transactions in the market. Quotations according to which there is an overlapping of positions of clients of the ForexStart company. At quoting failures the client has the right to file a claim taking into account quotations of Mezhbank.

     

  • Interbank rates

    1) Exchange rates which large international banks quote to other large international banks. Distinction between buying rates and sales of currency can be about 0,03-0,08%

    2) Weighted average rate of several banks delivering liquidity.

     

  • Investment club

    Special type of legal entity which is created by group of private investors (usually, relatives, friends or colleagues) only for joint investment of personal equities. Gives quite good opportunities for diversification of a joint portfolio and mutual training. In the USA, it is exempted from the corporate taxes.

     

  • IPO - Initial Public Offering

    Output in market circulation of such securities which were unavailable to investors, for example, release of the stocks on the exchange earlier by corporation which was private company before. Due to growth of interest in first placements, even many brokers, the rendering limited volume of services (discounted and deep discounted brokers), began to give to the clients opportunity of participation in primary placements recently. It must be kept in mind, however, that in connection with features of legislative regulation of such situations, the broker can demand from the client of observance of certain conditions at investment into IPO. Most often, from the client it is required to continue to keep in the portfolio of paper, purchased during IPO, during some, in advance caused time frame.

     

  • Leverage

    This ratio between the amount of pledge and amount of trade operation: 1:1, 1:5, 1:10, 1:20, 1:40, 1:50, 1:100, 1:200. The Credit leverage 1:200 means that for implementation of the transaction it is necessary to have on the trading account the amount of 200 times smaller, than an amount of transaction.

     

  • Liquidity providers

    Most often suppliers of liquidity are large financial institutions or banks which trade in currency in huge sizes.

  • Lock

    Implementation of two transactions on one currency pair in both directions of identical volume. That is one transaction is made for sale, and another on purchase. Thus their volume is identical.This strategy enough is applied often for the purpose of "freezing" of the current financial performance for the purpose of further minimization of losses, or increases of profit. The strategy is not implemented in the MetaTrader 5 terminal.

     

  • Locked positions

    The long and short positions of identical volume opened on the same tool in one trading account.

     

  • Loss

    Capital reduction as a result of losses.

     

  • Loss taking

    The position closing after achievement of a critical level of losses, irrespective of expectations on further behavior of the asset price. It is very much recommended for the beginning traders.

     

  • Lot

    1) In FOREX market - a unit of measurement of an amount of transaction;

    2) In stock market - the Smallest indivisible volume of transaction of sale and purchase.

     

  • Lot size

    The quantity of base currency in one lot defined in the specification of contracts.

     

  • Margin

    The pledge amount demanded for providing a guarantee during the financial operations performed by the trader.

    The absolute majority of broker firms and their platforms for an output on financial markets automatically carry out all necessary types of checks on the demands made by broker company to the margin size.

    At a Credit leverage 1:100 necessary mortgage amount on the position opening, equal 1% of contract value.

    Only at satisfaction of all marginal requirements, the trader can perform the trade operations provided with sufficient money on his account.

     

  • Margin level

    The indicator characterizing a state of the account. Is calculated as (Equity / Margin) *100%

     

  • Margin trading

    1) Occupation of both long, and short positions with use of a broker loan;

    2) Implementation of the arbitrage operations with contracts for currencies as a result of which volumes of the opened positions exceed several times the size of a variation margin.

     

  • Market Execution

    This system will not determine the speed of processing of request, but only principle of operation which has to bring the order to the market.

    If for execution of the order, the broker uses this system, it is a guarantee of his execution. Thus there is a probability of that (though insignificant) that the order will be executed by it at the price which at the time of execution will be actual in the market, but not that which was specified on the trader's monitor when it gave the order on opening. Thus the price can be rejected as to the best, and in the worst.

    If only the input fact, but not its accuracy is more important, it is better for trader to use services of the broker of the execution of Marlet Execution working on system. This system will relieve the trader of requote and will allow the broker to process much quicker requests and to bring them to the market.

     

  • Market maker

    Large banks and finance companies determining the current level of an exchange rate at the expense of a considerable share of the transactions in the total amount of the market. Market makers set the current level of an exchange rate by carrying out transactions with each other and with less large banks, being users of the market.

     

  • Market maker spread

    Distinction between the prices at which the broker firm buys and sells an asset.

     

  • Market opening

    Resuming of trade after days off or holidays.

     

  • Market order

    The order on purchase or sale at the best price available at the moment.

     

  • Market price

    Last message on price value at the moment time.

     

  • Market timing

    The cumulative name of all investment strategies based on active trade in attempt of use both its growth, and falling.

     

  • Necessary margin

    The cash cover demanded by the Company for maintenance of open positions.

     

  • Necessary margin

    Demanded by the Dealer for maintenance of all positions opened by the trader. This requirement is obligatory for carrying out trade operations.

    For the purpose of maintenance of open positions, the trader needs to have on the trading account the sufficient amount, for opening of positions necessary for it in the beginning.

    The size of a Necessary margin varies depending on value of a Credit leverage which the trader uses.

    So, in case of a Credit leverage 1:100, the Necessary margin will be equal to one interest from the volume of perfect trade operation. In case of a Credit leverage 1 to 50, the size of a margin will be equal to two interests and so further.

    It means if the broker allows to use a Credit leverage 1:100, in this case for implementation of trade operation it is necessary to have available a sum of money, smaller the volume of the current transaction a hundred times.

     

  • Neural nets

    The computer programs based on use of artificial intelligence. Owing to the capability to self-training, are widely advertized as very powerful tool of forecasting of market behavior. In spite of the fact that statistically reliable efficiency of their use is still not documented, are not bad sold.

     

  • Nikkei Index

    Index of shares of 225 leading companies sold at Tokyo Stock exchange.

     

  • Normal market conditions

    1) The market situation satisfying each of the following conditions:

    - lack of considerable breaks in receipt of quotations in the trade

    platform;

    - absence of precipitant dynamics of the price;

    - lack of essential price gaps.

    2) Reference market conditions assume price fluctuations owing to which there is a change of value of risks causing the necessity of change of warranty requirements or other mechanisms of monitoring risks only for 1% on time, that is on average only on 1 day trading from 100. For example, in case of the purchase agreement of an asset with reference market conditions such conditions under which there is a change in price equal or distributions of potential changes of contractual cost exceeding the first percentile for the period of time during which there can be an accumulation of risks will be considered.

     

  • Obvious error

    Incorrect or inaccurate execution of the Client order by the Dealer: opening or the position closing of the Client at the incorrect price, or at the price which considerably differs from that price which was specified in the order of the Client. The appreciable error is considered also failure to act of the dealer in the situation favorable for execution of the order at the price specified in it or incorrect determination by the Dealer of level of market prices in necessary period.

     

  • Offer

    The same as Ask

  • Open position

    Market position on which at the moment time it was not spent the reversing transaction.

     

  • Pending order

    The general name for the postponed orders of all types. The postponed order represents instructions of the Client to make the transaction (to open a trade position) in case of execution specified in the order. There are four types of the postponed orders: Buy Limit, Buy Stop, Sell Limit and Sell Stop.

     

  • Point (pips, pip)

    The minimum change in price - normally is the fourth sign after a comma. 0.0001 for EURUSD

     

  • Position trading

    Strategy of behavior in the market at which the trader takes long or short positions for a period of several days till several years.

     

  • Price gap

    Emergence of any of two situations:

    - Bid of the current quotation is more than Ask of the previous quotation;

    - Ask of the current quotation is less than Bid of the previous quotation.

    The price gap takes place at emergence of a notable difference between the closing price and the opening price of the chart elements which are consistently going one after another. By detailed consideration of the price chart, it is possible to see a gap between two elements of the chart (for example, the candle chart). The price gap most often arises in low-liquid markets, and also during the periods between trading sessions and during the periods between days off. Price gaps can arise owing to an output of important news of fundamental character.

     

  • Price Gap on the Market opening

    Emergence of any of two situations:

    - Bid of the quotation of opening of the market is more than Ask of the quotation of closing of the market;

    - Ask of the quotation of opening of the market is less than Bid of the quotation of closing of the market.

    When opening the market, a price gap quite frequent phenomenon, especially on low-volatile currency pairs. It is caused by changes in the markets in view of a possible output of important news of fundamental character, or the speculative large deals performed by large banks or funds.

     

  • Price prior to Spike

    The closing price of the minute bar preceding minute bar with the non-market quotation. In other words, it is the latest cost of goods, before the output of the non-market quotation. For more exact determination of the price preceding the non-market quotation it is necessary to reveal it on the teak chart per second, before emergence of the non-market quotation.

     

  • Profit

    Positive capital gain, as a result of investments, or trade operation, after subtraction of all expenses.

     

  • Profit-taking

    The position closing after achievement of the planned yield rate, irrespective of expectations on further behavior of a security.

     

  • Provider of Liquidity

    The bank providing both quotations, and possibility of opening (reopening) of transactions of clients.

     

  • Quotation flow

    Sequence of the quotations on each tool coming to a trade platform

     

  • Range

    The highest and lowest actual selling prices of an asset, during this period. Also it is called as price dispersion.

     

  • Rebound

    1) Change of driving direction of the prices in the market after a long-term trend of their growth or falling led to that participants of the market consider the developed prices too high / too low;

    2) Insignificant correction of the price within the existing trend.

     

  • Recreational investor

    The type of the investor, especially private which, without understanding that, plays in the market not so much to get profit, how much in order that was about what to brag to friends that "to tickle nerves", etc. In itself it is not so terrible, but it is important not to play far!

     

  • Referal Link

    Special element which fastens to the link, turning the link into the referal - after transition according to this link of any person - the cookies (your agency number) are saved in files register in the computer - and in case of registration - it becomes your referral - then you get profit from each transaction made by it. The Referal Link can be made after registration in the Private office.

     

  • Referal tag (promo-tag, promo code)

    Any word or symbol set which you can assign to your account in a private office - then any person who will enter them in the field at registration - will become your referral. And you will get profit for each his transaction.

     

  • Remote quotation

    The quotation which is present at the client's terminal, but not being flowing on the server. Can arise at the sharp movement of the prices (more than one quotation per second), or the low-quality Internet on client side - ping more than 1 second. Usually does not influence in any way on trade if the client does not use the adviser making multiple requests.

     

  • Request

    Action of the Client for receipt of the quotation necessary for it. Thus the Client does not undertake to make any trade operations connected with the received quotation.

     

  • Resistance

    Price level at which active sales can suspend or unroll an upward tendency.

     

  • Scam

    In the Internet meets in the same forms, as in extra computer life: "pyramids" (Ponzi schemes), "letter chain" (chain letters), etc. It is possible to learn about emergence of especially shocking cases on the Web page of the American Commission on Securities. In the same place addresses of the organizations where it is recommended to address if you faced a case of potential fraud are given.

     

  • Server’s log file

    The file created by the server, which within a second records all requests and orders which arrived from the Client to Dealer, and also result of their processing.

     

  • Service systems

    Scripts or experts (Expert Advisor) written in specialized language (MQL, etc.) which are intended for automation of certain processes. Such programs work under control of the trader and carry out specialized tasks.

     

  • Short

    Sale or opened Sell position. Opposite to Long

     

  • Short position

    Sale of the tool counting on decline in the rate. In relation to currency pairs: sale of base currency for currency of the quotation.

     

  • Spam

    Aggressive advertizing by bulk mailing of advertizing to e-mail addresses. Owing to low cost of such mailing, unfair advertisers have opportunity to direct the messages hundreds of thousands and even millions of addresses where they, naturally, are extremely negatively perceived by receivers. The person who is engaged in such activity is called as spamster.

     

  • Spike

    The wrong quotation which appears when tendering, and also the quotation which is recognized as the broker "non-market" on a number of signs. The emergence facts on the chart of such quotations of the big sizes very seldom, banks and brokers trace it.

    As at the time of emergence of such quotations the deposit of the client can be considerably reduced, our clients have a right to address to administration, finance division or support desk.

    Can be a sign of "the non-market quotation":

    - A candle with incredibly big size which is beaten out from the general flow of quotations;

    - Availability of instant rollback to that price which was at the beginning, without visible fluctuations on the chart (is defined on teak history);

    - Availability of a price gap on the teak or minute chart;

    - Absence of precipitant price dynamics before emergence of this quotation;

    - Lack of considerable news of fundamental character (macroeconomic events and/or corporate news) at the time of emergence of this quotation, or shortly before emergence of such quotation.

    Quotations the having following signs can be carried to similar quotations:

    - Availability of a price gap on the teak or minute chart;

    - Absence of precipitant dynamics of the price before emergence of this quotation;

    - Return of the price during small period of initial level, or considerable correction on the minute chart after emergence of such quotation (it is possible with education of a price gap).

    - Availability of small trade volumes at the time of emergence of this quotation, or shortly before its emergence.

    Non-market quotations usually get to the broker from banks or information systems. Basic reasons of emergence of non-market quotations:

    - Technical failure.

    - The single transaction, often wrong, taken place in bank or an information system.

    In case of the non-market quotation, the broker firm has the right to removal of information it emergence from a database on a change history of quotations.

    The ForexStart company, reserves the right to cancel or copy client orders in a case of detection of such quotations.

    Clients of the company also have the right in accordance with the established procedure to demand canceling of the transactions, or processings of transactions on the market prices existing on that moment.

     

  • Spot

    The transaction at which calculations are at the second working day after the conclusion of the transaction.

     

  • Spread

    The difference between the current price of purchase (Bid) and sale (Ask) expressed in points.

     

  • Stock exchange

    The exchange at which shares and securities equivalent to them are sold and bought. For example: NYSE and AMEX.

     

  • Stop order

    The order on purchase or sale of currency at the fixed price or worse. This order is usually exposed for limit of losses if the market moved in the direction, the return expected.

     

  • Stop-limit order

    The order to buy or sell at determined price, but only after achievement of a set value of the price. In essence, combination of the stop order and limit order.

     

  • Stop-loss

    The stop order applied to limit of losses. Works for the position closing on a set value of the price, at its movement towards losses.

     

  • Stop-out level

    Status of the sub-account at which open positions are compulsorily closed by the Company according to the current quotations. The company reserves the right, at achievement of margin level of 15%, in order to avoid negative balance in the fast (volatile) market, to liquidate part of the most unprofitable of them. The last position is compulsorily liquidated at margin level of 15%. For deposits more than $1000, the company can enter other Margin Call/Stop-out level levels - 80%/60%.

  • STP-broker

    The broker who uses in his work STP methods.

     

  • Sub-account

    The special personal account of internal accounting opened in the Company. The client to whom there is account of obligations of the Company and the transactions made within this agreement.

     

  • Swap

    The equity withheld or added into the sub-account of the Client for prolongation (transfer) of a position next day.

     

  • Technical analysis

    Section of studing the market by means of different indicators and other elements.

     

  • Terminal

    The point-of-sale terminal which is used by clients of the company for execution of trade operations.

     

  • Thin market

    The market with a low supply and demand. It is characterized by low liquidity, high spread and high volatility. As a rule, such market situation is characteristic for Christmas holiday, national holidays in the countries of G7 and also during the period from 23:00 MOSCOW TIME till 5:00 MOSCOW TIME.

     

  • Ticket

    Unique number which is established for each postponed order or the opened trade position in a trade platform. This identification number is necessary for correct operation of the point-of-sale terminal and the accompanying programs. Unique numbers for a trade position or the postponed order are necessary for their designation in internal hierarchy of the software allowing you to trade in exchange market strictly to distinguish all actions performed by you.

     

  • TIS (Trader - Investor Systems, TIS-accounts)

    Trader - Investor System - system of providing equities to the managing trader. Thus the profit shares between traders and the investor in a known proportion. In this count system of managing directors can be open without attachment of own equities (DEMO), accounts of investors can be only real.

     

  • tools - big

    Tools with index big- EURUSDbig, USDCADbig, etc. - are intended for receipt of the maximum earnings when using bonuses - $80 for a trade lot. I.e. the client receives for each executed lot on the deposit $80 - from bonus equities.

     

  • Tools - ecn

    Tools with an index ecn are tools which we receive from system of internal overlappings - which connects a lump of brokers. Since the banking fee is not paid, the spread can reach 0 pips, however demands payment of the commissions of an internal system of overlappings. Generally the cost of transactions fluctuates from 0.6 to 1 pips.

     

  • Trading

    Buy or sale of market assets (currency, metals, securities, etc.) for profit earning in the future.

     

  • Trading account

    The unique personified register of accounting of transactions in trade platform in which the complete finished transactions, open positions, Uncommercial operations and orders are reflected.

     

  • Trading server

    The MetaTrader Server software product, by means of which there is a processing of client orders and requests, providing to the Client information on auction in financial markets in real time (in the quantity, certain is performed CARMEL INVESTMENTS CONSULTANTS INC.), accounting of the mutual obligations between the Client and the Dealer, and also an observance of the terms and limits.

     

  • Trading system

    Represents rule set according to which the trader takes long and/or short positions.

     

  • Trailing Stop

    It is the following control algorithm Stop Loss order: if profit on an open position did not exceed the value Trailing Stop, not to take any actions; as soon as the profit on an open position exceeds the value Trailing Stop, to send to the server the order about placement of Stop Loss of the order at distance of the value Trailing Stop from the current price; as soon as the quotation at the distance exceeding the value Trailing Stop is received from the exposed order Stop Loss, to send to the server the order about level variation of this order it was at distance of the value Trailing Stop from the current price. Trailing Stop works only when the Client terminal is started, connected to the Internet and successfully authorized on the server.

     

  • Transaction

    Set of trade operations at which equities pass from base currency into currency of the quotation and back.

     

  • Uncommercial operation

    Transaction of introduction into the trading account (money withdrawal from the trading account) or transaction of providing (return) of the credit.

     

  • Value date

    Completion date of terms of transaction, i.e. physical movement of money. Only the working days, excepting days off and holidays for this currency can be value dates.

     

  • Volatility

    Relative speed with which the price moves up and down. It is calculated an annual root square deviation of the daily change in price.

     

  • Volume

    1) Number of transactions during this time frame;

    2) Number of Tiks created bars for a certain period.

     

  • Weak hands

    The term applied to the instruction on those investors who hastily get rid of the papers at short-term falling of their market value.

     

  • Webterminal

    So-called "Thin client" for the trade server. The system allowing you to trade on your account without program installation on the computer. For trade you can use the standard browser, it is better to use the following browsers: Google Chrome, Opera and Mozilla Firefox. cUnfortunately Internet Explorer does not support this technology.

     

  • Working hours of the Company

    Period during business week within which the point-of-sale terminal of the Company provides carrying out transactions with standard foreign exchange contracts. An exception days off and holidays, temporary changes of internal rules and procedures of the Company, and also time during which customer service is impossible for technical reasons. In these cases the Company is obliged to take all feasible measures to inform the Client on change of an operation mode and to give the chance to the Client to eliminate the currency risks arising thus.