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Traders Dictionary

3 - way contingent order

3 orders where 2 slave orders only become working orders if (If Done) a primary order is executed first. These slave orders are themselves related as O.C.O. orders allowing both a stop loss and a profit taking order to be placed around a position.

Account

The unique number that identifies the account used to fund positions.

Account overview

An overview over your account(s) including base currency, value, cash available, unrealized margin profit/loss, funds available for margin trading and margin utilization.

Account Statement

The Account Statement provides an overview of the current balance and of changes in the balance of each account.

Account Summary

The status and trading activity of a specific account. If you maintain multiple accounts, the Account Summary shows information about individual accounts as well as the aggregate of all the accounts.

Account value

The current value of the account, combining Cash balance, Unrealised value of positions and Transactions not booked.

Activity Log

A list of all your activities using the SaxoTrader. The Activity Log includes details of trades, orders, requested prices, chat dialogs, system messages and, for Simulation version accounts, account resets.

Analysis

The study and analysis of historic price data to try to anticipate future movements in the price of an instrument.

Appreciation

An increase in the value of an instrument.

Ask price

The price at which you can buy the specified instrument. This is also called the Offer price. For Forex trading, it is the price at which you can buy the trade/base currency (quoted first) by selling the price currency of the pair.  For example, if you buy 100,000 EURUSD, you are buying 100,000 Euros against US dollars.

At The Money (ATM)

A condition in which the strike price of an option is equal to (or nearly equal to) the market price of the underlying security.

At-The-Money (ATM) forward strike

The at-the-money forward strike price of an option is the strike price of the corresponding forward outright price at a specific forward date, as calculated via interest rate differentials.

Auto-execution

The maximum amount of the instrument that can be automatically traded before manual confirmation from a dealer ('Live price') is required.In periods of volatile market conditions, automatic trade execution may be disabled.

Available for margin trading

The funds available for margin trading derived from subtracting Used for margin requirements from Account Value.

Bar

A graphical representation of an instrument's movement that usually contains the open, high, low and closing prices for a set period of time.

Bar HLC technical study

A chart style that shows the highest, lowest and the closing prices for each chart period.

Bar OHLC technical study

A chart style that shows the opening, highest, lowest and the close prices for each chart period.

Base currency

In Forex, it is the currency that the investor buys or sells. For example, in EURUSD the base currency is EUR, i.e. 1 unit of EUR is worth a variable amount of USD. When you buy EUR, you pay with USD, and when you sell EUR you receive USD. The other currency (USD in the example above) is called the variable currency.

Bear

A trader who believes that prices will fall. A bearish market is one in which prices are falling, whereas a bear market is when prices have fallen by 20% or more over a sustained period.

Bid price

The price at which you can sell the specified instrument. For Forex trading, this is the price at which you can sell the trade/base  currency (quoted first) by buying the price currency of the pair. That is, if you sell 100,000 USDJPY, you are selling 100,000 US dollars and buying Japanese yen.

Breach

When the price of an instrument trades through a specified level. For example, if a the execution price for a limit order to buy is set at 100, and the price jumps  from 105 to 95, the 100 price level has been breached and the order will become a market order and be filled as soon as possible.

Bull

A trader who believes that prices will rise. A bullish market is one in which prices are rising, whereas a bull market is when prices have risen by 20% or more from a low point over a sustained period.

Buy offer

A limit order to buy at the current Offer (Ask) Price.

Call option

You can buy or sell a call option. If you buy a call option you have the right, but not the obligation to buy the underlying instrument at the agreed strike price on the agreed expiry date (European option).If you sell a call option you have the obligation to sell the underlying instrument at the agreed strike price on the agreed expiry date (European option).

Candlestick technical study

A chart style where a thin line represents the price range for the instrument in the chart period. The opening and closing prices for the period are represented by a thicker line (red if the price finished lower and green if it finished higher). The overall effect can look like a candle. Many traders believe it is the easiest chart style to read.

Cash balance

The current value of the cash funds in your account.

CFD financing

When you hold a CFD (Contract For the Difference), you agree to settle the difference between the price when you open the position and the price when you close the position. You do not pay anything up front when you open a position, but are instead charged a financing cost. Reversely, if you have a short position, you are credited/paid interest.

Close a position

Close an investment by transacting the opposite trade. For example, if you bought 100,000 USDJPY, you would have to sell 100,000 USDJPY to close the position.

Close rate

The price a position was closed at. This is not applicable to opening trades and will be the same as the Trade Rate.

Commission

Any fixed commissions and ticket fees that apply to trades of the specified trade size.

Contingent order

Contingent orders are the same as related trade orders. Several types are available:If Done (slave), where a slave order only becomes active if the primary order is executed.One Cancels the Other (O.C.O.) where the execution of one order cancels the other. 3-way contingent orders are also available where 2 orders are placed if (If Done) a primary order is executed. These orders are themselves related as O.C.O. orders allowing both a stop loss and a profit taking order to be placed around a position.

Contract For Difference (CFD)

A Contract For Difference (CFD) is a derivative of a stock product and is used for trading.The CFD price behaves exactly like the underlying stock price.CFD trading offers a number of advantages over traditional stocktrading, for example trading on margin and direct (immediate) trading instead of waiting for a trade order to be filled on an exchange.

Conversion rate

Transfers and profit/losses from trades are converted into the Base currency of the account based on the day's prevailing exchange rate.

Cost to close

The cost of closing your positions, e.g. commissions and trading fees.

Counter currency

In Forex, it is the currency that the investor pays with or receives when trading. For example, in EURUSD the variable currency is USD, i.e. 1 unit of EUR is worth a variable amount of USD. When you buy EUR, you pay with USD, and when you sell EUR you receive USD. The other currency (EUR in the example above) is called the base currency.

Cross

Select the currency cross to trade, for example USDJPY. USDJPY means that you trade U.S. dollars against Japanese yen. If you buy, you buy dollars and pay in yen, and if you sell, you sell dollars and receive yen.

Day Order (DO)

An order that is valid until the end of the day. If it has not been filled before this, it is cancelled. For Forex, the end of the day is 22:00 GMT on the day that you place the order. For CFDs and stocks, the end of the day is when the exchange that the stock is traded on closes.

Decline

A decrease in the value of an instrument.

Delivery date

The date when delivery of the underlying goods of a futures contract will take place. For speculative investing in futures, the contract future position must be closed on or before this date.

Delta

In Forex Options, a  Delta of - for example - 25 implies a 25 % exposure to the underlying spot. In other words, a spot position that equates to 25 % of the notional amount of the option. An option with a Delta of 25 at inception indicates a 25 % likelihood that the option will be exercised in the money. Technically, Delta can be described as a ratio that compares the change in the price of the underlying asset to the corresponding change in the price of a derivative.

Depreciation

A decrease in the value of an instrument.

Derivative

Instruments that are constructed (derived) from another security. For example, CFDs are derivatives of physical stocks.

Direct Market Access (DMA)

Direct participation in the order book maintained by an exchange. The order book contains orders to buy and sell a security and is used to establish the current market Bid / Ask price.

Dividend

The percentage of a company's stock value paid to shareholders. A stock selling for $100 a share with an annual dividend of $1 a share yields the investor 1%.

Downtick

A downward movement of 1 tick or more in the price quote. Many stock exchanges have an "uptick rule" that states that a stock can only be sold if the stock price has ticked higher than the last price at which a transaction has taken place. This is aimed at traders who want to sell short and is designed to prevent snowballing declines in the market.Other exchanges have "tick test rules" that are essentially the same as the uptick rule: stocks may only be shorted on so-called zero-upticks, which means that the transaction price is either higher than the last transaction price, or that the transaction price is unchanged but higher than the transaction price that preceded it. This is known as a 'zero uptick' or 'zero plus' tick.CFDs are advantageous for traders that are bearish on a stock, because there are no uptick or tick test rules associated with CFDs.

Earnings Per Share (EPS)

The Earnings Per Share is the company's profit divided by the number of its outstanding shares. If a company earning $10 million in one year had $10 million shares of stock outstanding, its EPS would be $1 per share. Companies often uses a weighted average of shares outstanding over the reporting term when calculating EPS.

Equities

A financial instrument that represents partial ownership of a company. Known as stocks, equities or shares.

Exchange

A market where securities, options, futures and/or commodities are traded.

Exchange rate

What one currency is worth in terms of another. For example, 1 Argentine dollar might be worth 58 US cents or 70 yen. Currencies traded freely in foreign-exchange markets have a spot rate (applying to trades settled 'spot', i.e., two working days hence) and a forward rate (which is the spot rate adjusted for the interest rate differential between the two currencies until maturity). Countries can determine their exchange rates in several ways:A floating exchange rate system where the currency finds its own level in the market.A crawling or flexible peg system which is a combination of an officially fixed rate and frequent small adjustments which in theory work against a build-up of speculation about a revaluation or devaluation.A fixed exchange-rate system where the value of the currency is set by the government and/or the central bank.

Exercise method

Exercise method – Spot

If the option is in-the-money at expiry, an exercise spot position will be created.

Exercise method – Cash

If the option is in-the-money at expiry, an exercise spot position will be created and automatically closed out.

Exposure

Being subject to risk, such as exposure to foreign currency exchange rate fluctuations.

Exposure coverage

The percentage of the margin covered by your funds.

Fibonacci Technical study

The Fibonacci Fans and Bands are three-line guides drawn on charts derived from the Fibonacci number series. Some traders believe they help identify successive areas of support and resistance in a market.

Firewall

A device typically used to protect private networks against malicious activities from the public Internet. Firewalls restrict the type of network traffic that is allowed to pass to/from the public Internet and can sometimes cause problems with the operation of Client Station.

Forest

A chart style that takes the current close price as the base-line and plots each data point relative to this base-line.

Forward outright

An order to trade a Forex instrument at a fixed price on a fixed date. The price of the forward outright is the spot rate adjusted for the interest rate differential between the two currencies until maturity. Forward Outright orders are often used to hedge exposure risks when dealing in foreign markets.

Futures contract

A standardised exchange traded contract to trade a fixed amount of a commodity or financial instrument at a future date.

Gearing

The ability to hold an investment position of greater value than that of your equity (collateral). When leveraging (also called 'gearing') your investment, you need only deposit a fraction of the current value of the instrument you are investing in. For example if the commodity you are trading in requires a margin of 5%, this allows you to leverage (or gear) your investment 20 times. In other words, a deposit of USD 10.000 can hold a position of USD 200.000.

Good Till Cancelled (GTC)

An order duration where the order will be valid until it is either manually cancelled or is executed because the necessary market conditions have been met.

Good Till Date (GTD)

An order that is good until a date specified by the trader. If the order is not executed by the date the trader specifies, the order will be cancelled.

Half turn

The commission is charged per trade (for both buy and sell). The alternative is a round-turn commission which includes both opening and closing positions.

Hedge

A hedge is a tool used to limit exposure to investment losses. For example, an investor who has large, unrealised profits in a physical stock or stock options position might sell a CFD for the same stock to prevent any loss of the profits. While the hedge ensures profit in this case, it also ensures that the profit cannot grow – in other words, you limit your profits as well as your losses when you hedge.

IBAN

IBAN stands for International Bank Account Number. An IBAN contains information relating to the country, bank and branch of the beneficiary as well as the account number itself and used to facilitate automatic processing of cross-border payments. IBAN can be obtained from the beneficiary's bank. IBAN is mandetory within EU.

If Done order

An If Done order consists of two orders: A primary order that will be executed as soon as market conditions allow it, and a secondary order that will be activated only if the first order is executed.

Index

A numerical measure of the way the price of a representative group of stocks has changed over time. Every major exchange has one or more indices. For example, the American NASDAQ exchange has the NASDAQ 100 Index (a composite of the100 largest non-financial companies listed on NASDAQ). Some indices are created and managed by private corporations, such as the widely known Dow Jones Industrial Average and S&P 500. You can trade CFDs based on many of the world's stock market indices.

Indicative conversion rate

The market might move rapidly, so the rate displayed is indicative. The final rate will be based on the spot rate at the time of execution (after you have completed this request).

Instrument

A tradable symbol having a monetary value. This can be a Forex cross (currency pair), or a stock ticker (for CFDs and stocks), etc.

Interest rate differential

The yield spread between two otherwise comparable debt instruments denominated in different currencies.

Join bid

A limit order to buy at the current Bid Price.

Join offer

A limit order to sell at the current Offer (Ask) Price.

Leverage

The ability to hold an investment position of greater value than that of your equity (collateral). When leveraging (also called 'gearing') your investment, you need only deposit a fraction of the current value of the instrument you are investing in. For example if the commodity you are trading in requires a margin of 5%, this allows you to leverage (or gear) your investment 20 times. In other words, a deposit of USD 10.000 can hold a position of USD 200.000.

Limit order

Limit orders are commonly used to enter a market and to take profit at predefined levels. Limit orders to buy are placed below the current market price and are executed when the Ask price hits or breaches the price level specified. (If placed above the current market price, the order is filled instantly at the best available price below or at the limit price.)Limit orders to sell are placed above the current market price and are executed when the Bid price breaches the price level specified. (If placed below the current market price, the order is filled instantly at the best available price above or at the limit price.)When a limit order is triggered, it is filled as soon as possible at the price obtainable on the market. Note that the price at which your order is filled may differ from the price you set for the order if the opening price of the market is better than your limit price. In the case of Futures, the order will be filled if possible, and any remaining volume will remain in the market as a limit order. In the case of CFDs, the order will be filled if possible, and any remaining volume will remain in the market as a limit order.

Liquid (-ity)

The capacity to be converted easily and with minimum loss into cash. Ultra-short-dated treasury notes are an example of a liquid investment. A liquid market is one in which there is enough activity to satisfy both buyers and sellers.

Long

In general, going Long is buying, and going Short is sellling. A long position will increase in value if market prices increase.For example, in Forex trading, going long is buying the trade currency of the Forex currency pair. If you were going long on USDJPY, you would be buying USD by selling JPY. For securities, going long is taking ownership of a security through buying it as opposed to going short where you sell the security without owning it.

Lot

Used in futures contract trading to define a fixed contract size corresponding to a fixed amount of the item that will be traded in the future.

Margin

The amount of equity (collateral) required for an investment position, as a percentage of the current value. When trading on margin (also called 'gearing', or 'leverage'), you need only deposit a fraction of the current value of the instrument you are investing in. For example if the commodity you are trading in requires a margin of 5%, this allows you to gear (or leverage) your investment 20 times. In other words, a deposit of USD 10.000 can hold a position of USD 200.000.

Margin call

When you have exceeded your allowed operating margin, you are subject to a margin call to remedy the situation. To avoid having your positions closed for you (being stopped out, you must either close or reduce open positions, or send additional funds to cover your positions.

Margin utilization

The percentage of the available margin which you are utilizing.

Market order

Orders to buy or sell a specified instrument as soon as possible at the price obtainable in the market.

Mid-price

Mid-price is halfway between the bid and ask (offer) price e.g. if bid is 1.4426 and ask is 1.4430, then mid-price is 1.4428.

Module

A functional component of the SaxoTrader such as the Open Orders Module, the Chart Module etc. Modules are opened from the menus in the Toolbar.

Net exposure

The Net Exposure is the sum of the nominal value of your current positions converted into the base currency of your account.For Forex, this is the total value of all your Forex positions converted to the base currency of your account.

Non-margin position

The current market value of any securities (e.g. equities, bonds etc.) held as collateral for margin requirements. The market value is calculated using bid price.

Not available as margin collateral

A percentage of your current investments is available as margin collateral. This line states the amount that is not available as margin collateral.

Offer price

The price at which you can buy the specified instrument. This is also called the Offer price. For Forex trading, it is the price at which you can buy the trade/base currency (quoted first) by selling the price currency of the pair.  For example, if you buy 100,000 EURUSD, you are buying 100,000 Euros against US dollars.

One Cancels Other (O.C.O.) order

One-cancels-other orders consist of two orders. If either of the orders is executed because its market conditions have been met, the related order is automatically cancelled.

Open position

A position in a currency that has not yet been offset. For example, if you have bought 100,000 USDJPY, you have an open position in USDJPY until you offset it by selling 100,000 USDJPY.

Option

The right, but not the obligation, to buy (a call option) or sell (a put option) a specific amount of a given instrument, at a specified price (the strike price) on the agreed expiry date (European options).

Order

A trade order to buy or sell a specified instrument. Limit and Stop orders are the main types.

Order duration

The duration the order is valid for. See Order Duration for details.

Other collateral

Instruments NOT online tradable. For example bonds and other positions transfered from another bank.

Over The Counter (OTC)

Over The Counter. A trade that is negotiated between two parties without the use of an exchange. For example, a security that is not traded on an exchange is known as an OTC security.

Pip

Pip stands for "percentage in point" and it is the smallest increment by which a Forex cross price changes. Most currency pairs are quoted to four decimal places, meaning that a movement from 1.1850 to 1.1851 for a currency pair would constitute one pip.For a particular position, you can calculate the value of a single pip using the formula above. For instance, you know that the EUR/USD is quoted with four decimals, so for a given position you can multiply the position amount by the value of one pip, or $0.0001. So, on a EUR/USD 100,000 contract, one pip would equal USD 10. On a USD/JPY 100,000 contract, one pip is equal to JPY 1000 because USD/JPY is quoted with only two decimals (meaning 1 pip = JPY 0.01).

Portfolio

A person’s investment portfolio is the total range of financial instruments owned, such as company shares, fixed interest securities or money-market instruments. An investment portfolio should have a range of relatively unrelated, or uncorrelated, investments in order to minimise risk - brokers and investment advisers warn against 'putting all your eggs in one basket'.

Position

An investment in an instrument. When you trade (say, buy) USDJPY for example, you open a USDJPY position. When you then execute the opposite trade (in this case, sell) USDJPY, you close the position.'Position' can also refer to a trader's cash/securities/currencies balance, whether he or she is short of cash, has money to lend, is overbought or oversold in a currency, etc.

Posting date

The date the entry was posted in your account and the amount was added or debited to your account.

Price-to-Earnings (PE) ratio

The Price/Earnings Ratio is the Price of the stock divided by Earnings per share.

Primary order

A Primary order is the primary order of a 3-way or If Done contingent order. Related (secondary) orders will not become active market orders unless this order is executed.

Profit-taking

Closing a position to take profits. Typically  done using a limit order to close a position and take profits automatically when the market breaches a defined level.

Proxy

A proxy is a device that acts as an intermediary between a computer and the Internet. Proxies often have a cache built in to make web surfing faster and some also allow the filtering of web content for security purposes.

Put option

You can buy or sell a put option. If you buy a put option you have the right, but not the obligation to sell the underlying instrument at the agreed strike price on the agreed expiry date (European option).If you sell a put option you have the obligation to buy the underlying instrument at the agreed strike price on the agreed expiry date (European option).

Related order

Contingent orders are the same as related trade orders. Several types are available:If Done (slave), where a slave order only becomes active if the primary order is executed.One Cancels the Other (O.C.O.) where the execution of one order cancels the other. 3-way contingent orders are also available where 2 orders are placed if (If Done) a primary order is executed. These orders are themselves related as O.C.O. orders allowing both a stop loss and a profit taking order to be placed around a position.

Resistance

The price level at which a rising price is expected to stall when market participants begin to sell the instrument. The opposite of 'resistance' is 'support'.

Risk management

Trying to control outcomes to a known or predictable range of gains or losses. Risk management involves several steps, beginning with a sound understanding of one's business and the exposures or risks that have to be covered to protect the value of that business. Then an assessment should be made of the types of variables that can affect the business and how best to protect against unwelcome outcomes. Risk management may be as simple as placing stop loss orders to prevent large losses or as complex as hedging positions with options or diversifying the portfolio to ensure that you are not overexposed to a single industry or instrument type. Consideration must also be given to the preferred risk profile, i.e. whether one is risk-averse or fairly aggressive in approach. This also involves deciding which instruments to use to manage risk, and whether a natural hedge exists that can be used. Once undertaken, a risk-management strategy should be continually assessed for effectiveness and cost.

Risk reversal

The simultaneous purchase of an out-of-the -money call [put] and sale of an out-of -the-money put [call], usually with zero up-front premium. The options bought and sold will have the same notional size and pre-defined maturity, and the deltas will typically be set to 25%. According to Black-Scholes, the purchase and sale of options with similar deltas (and so out-of-the-money forward to the same extent) should be zero cost. In practice, the market favours one side over the other. In the simplest case, the implied volatilities of out-of-the-money puts and calls of the same strike price and maturity date are different, and the extra cost of the favoured side is commonly known as the 'risk reversal spread'. This spread reflects the market's perception that the relevant probability distribution is not symmetrical around the forward but skewed in the direction of the favoured side. Another way of interpreting this is to say that implied volatility is correlated with spot, which is an impossibility in a Black-Scholes world.

Rollover

When a Spot Forex position is held at the end of the business day prior to its Value date, it will be 'rolled over' to a new value date on a Tom/Next basis. As part of the rollover, positions are subject to a swap charge or credit based on the LIBOR/LIBID interest rates of the two traded currencies with an added a markup of +/- 0.25% (for private accounts) plus an interest component for any unrealized profit/loss on the position.

Round turn

The commission includes both the opening and the closing of the position. The alternative is a half-turn commission, which is charged per trade (i.e. for both buy and sell).

Secondary currency

In Forex, it is the currency that the investor pays with or receives when trading. For example, in EURUSD the variable currency is USD, i.e. 1 unit of EUR is worth a variable amount of USD. When you buy EUR, you pay with USD, and when you sell EUR you receive USD. The other currency (EUR in the example above) is called the base currency.

Secondary order

A secondary order(s) of a 3-way or If Done contingent order will not become active market orders unless the Primary order is executed.

Securities

An investment instrument, other than an insurance policy or fixed annuity, issued by a corporation, government, or other organization. Securities are typically stocks and bonds.

Sell bid

A limit order to sell at the current Bid Price.

Shares

A financial instrument that represents partial ownership of a company. Known as stocks, equities or shares.

Short selling

In Forex trading, going short is buying the price currency of the Forex currency pair. For example, if you were going short on GBPUSD, you would be buying USD by selling GBP.For equities, going short is selling a security without owning it as opposed to going long where you are taking ownership of the security by buying it.A short position benefits from a decline in market prices.

Slave order

An If Done order consists of two orders: A primary order that will be executed as soon as market conditions allow it, and a secondary order that will be activated only if the first order is executed.

Speculative

Buying and selling in the hope of making a profit, rather than doing so based on a fundamental business-related need.

Spot

A direct trade on a market price with a standard settlement date (Value date) of 2 business days from the trade date.

Spot market

The part of the market calling for spot settlement of transactions. The precise meaning of 'spot' depends on local custom for a commodity, security or currency. In the UK, US and Australian foreign-exchange markets, 'spot' means delivery two working days hence.

Spread (in index points)

The difference between the Bid price at which you can sell the trading instrument and the Ask price at which you can buy the trading instrument.

Status bar

The area at the bottom of the SaxoTrader workspace and on many trading modules used for system messages and status information.

Stocks

A financial instrument that represents partial ownership of a company. Known as stocks, equities or shares.

Stop if Bid order

Stop if Bid orders are commonly used to buy the specified instrument in a rising market. If the price level specified is actually Bid on the market, the order will be filled at the price offered by the bank. For example, if you sold GBPUSD at 1.4280, with a Stop Bid at 1.4330, the position would be closed (GBPUSD would be bought) if the Bid price hits or breaches 1.4330. We recommend the use of Stop if Bid orders only to buy Forex positions. The use of Stop if Bid to sell Forex positions can result in positions being prematurely closed if a market event causes the Bid/Ask spread to widen for a short duration.

Stop if Offered Order

Stop if Offered orders are commonly used to sell the specified instrument in a falling market. If the price level specified is actually offered in the market, the order will be filled at the price bid by the bank. For example, if you bought USDJPY at 132.00, with a Stop Offer at 131.50, the position  would be closed (USD vs. JPY would be sold) if the Offer price hits or breaches 131.50 (in other words, if 131.50 is offered). We recommend the use of Stop if Offered orders only to sell Forex positions. The use of Stop if Offered to buy Forex positions can result in positions being prematurely closed  if a market event causes the Bid/Ask spread to widen for a short duration.

Stop limit order (Futures)

In Futures trading, a Stop limit is a variation of a stop order, with a lower/higher limit price to suspend trading if the price falls/rises too far before the order is filled. This effectively restricts trading to a defined price range.

Stop order

Stop orders are commonly used to exit positions and to protect against trading losses.Stop orders to sell are placed below the current market level and are executed when the Bid price hits or breaches the price level specified.Stop orders to buy are placed above the current market level and are executed when the Ask price hits or breaches the price level specified.If the Bid price for sell orders (or the Ask price for buy orders) is hit or breached, the order becomes a market order and is filled as soon as possible at the price obtainable in the market. Note that this price may differ from the price you set for the order. In the case of Futures, the order will be filled if possible, and any remaining volume will remain open as an market order. In the case of CFDs, the order will be filled completely if the volume in the market allows for it. In the case of a partial fill, the remaining portion of the order will remain open as an order.

Stop order – Forex

Forex Stop orders are commonly used to exit positions and to protect investments in the event that the market moves against an open position. Stop orders to sell are placed below the current market level and are executed when the Bid price hits or breaches the price level specified. Stop orders to buy are placed above the current market level and are executed when the Ask price hits or breaches the price level specified.

Stop-loss order

A stop order that will execute and close a position to limit losses in case of an adverse market movement.  When a stop order is executed, it becomes a market order and is filled as soon as possible at the price obtainable on the market. Note: This price may differ from the price you set for the order.

Straight through processing (STP)

Your order is routed directly to the exchange.

Strike price

The instrument price specified for an option contract. The specified price (together with other factors such as the option duration and the market volatility) will affect the price for the option contract.

Summary

The combined trading status and activity for your account(s), i.e. your account value, securities and equity, net positions, and the closing amount (total profit and loss over all your positions). The available margin and the margin required for your open positions is also found here, as are an overview of your open positions.

Support

The price level at which the fall of a price is expected to slow or turn when market participants begin to buy the instrument.The opposite of 'support' is 'resistance'.

Swap

An order to spot trade (e.g. buy) a Forex instrument as well as to conduct the opposite transaction (e.g. sell) at a fixed price on a later date. If the first transaction is on a future date, the transaction is a forward-forward contract. Other variations are overnight and tomorrow/next day (tom/next) swaps.

Swap price

A price adjustment, added to the opening price of the position, for forwarding a Forex trade beyond the original value date. It is a function of the interest rate differential between the two trading currencies and may be in your favour or against you.

Symbol

A combination of letters used to uniquely identify a traded instrument. This is also called the 'ticker symbol'. For example:For the Forex instrument dollar-yen, the symbol is USDJPY.An example of a CFD symbol is VOLVb:xome.For Futures, an example is JYZ5.For Stocks, an example is MAERSKa:xcse.

Trailing Stop

A Trailing Stop Order is a stop order that has a trigger price that changes with the spot price. As the market rises (for long positions) the stop price rises according to the proportion set by the user, but if the market price falls, the stop price remains unchanged. This type of stop order helps an investor to set a limit on the maximum possible loss without limiting the possible gain on a position. It also reduces the need to constantly monitor the market prices of open positions.

Transactions not booked

Trades, commissions etc. that have not yet been booked. For example trades executed today, will be booked next business day.

Unrealised margin P-L

The unrealised profit/loss on your positions in margin based products.

Unrealised value of positions

The sum of Non-margin positions (value of collateral), Unrealised margin profit/loss (unrealised value  of all open positions) and Cost to close (commissions and fees).

Used for margin requirements

The amount currently used to cover your positions, combining Cash balance and the value of un-booked Forex Spot and Forward positions as well as the implied value of un-booked Forex Option positions.

Value date

The date when the settlement of funds for a trade transaction will take place in your account.

Variable currency

In Forex, it is the currency that the investor pays with or receives when trading. For example, in EURUSD the variable currency is USD, i.e. 1 unit of EUR is worth a variable amount of USD. When you buy EUR, you pay with USD, and when you sell EUR you receive USD. The other currency (EUR in the example above) is called the base currency.

View

A View is a single tab in your Workspace, including trade and information modules. You can add, change or delete these Views to suit your own requirements. For example, you may want a View set up for trading specific instruments such as DollarYen, and that includes the Chart, Trade and analysis modules specifically for DollarYen. You will also typically want a view dedicated to a summary of your account.

Yield

The increase in the value of a company's stock value plus the dividend paid out per share from one year ago.

 

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