Forex FAQ

Forex (Forex, sometimes FX, from the English. FOReign EXchange - currency exchange) - the market of interbank foreign exchange at free market prices (the quotation is formed without any restrictions or fixed value). Usually, a combination of "Forex" (born Forex market, FX-market). The term Forex is usually used to refer to mutual exchange, not the totality of foreign exchange transactions.

In English-speaking environment commonly referred to as Forex currency market and currency trading (English trades currencies).

In Russian the term is commonly used Forex in a narrower sense - I mean extremely speculative currency trading by commercial banks or dealing centers, which is using leverage, that is, margin trading currency.

Scalping - a method in excess of short-term trading in financial markets currencies, equities and derivatives.

The essence of scalping is that profits are a small price fluctuations, instantly capturing even a small profit or loss. At the same time a sufficient amount of profit is achieved by a large number of transactions.
Scalping as a trading method requires a fairly substantial experience in the financial markets, because the risk is very high due to lack of time scalper thorough financial and technical analysis. In this fundamental analysis of macroeconomic processes for the scalper is not particularly interesting.

Pipsovanie - is trading at big lots, the minimum change of course.

This trading system has many drawbacks-not, but it also is one of the most profitable. Everyone knows that the rate of change literally every minute - it swings the price of a few points - even for small intratreydinga, but pipsovaniya scalp or even from such a small price change can make a profit.
The fact is that not many traders have sufficient funds to trade in a more serious, such as ekstratrend. With this trading strategy, traders 'cook' your deposit , to trade at a higher level.

Margin (margin in professional slang) - a pledge that allows a temporary use of loan money or goods that are used to commit the speculative exchange transactions in margin trading. From simple credit margin is characterized in that amount of money received (or the value of goods produced) usually exceeds the amount of collateral (margin). Usually margin (margin requirement) can be expressed as a percentage (%) as the ratio of collateral to the amount of the transaction (for example, 25%) or as the ratio of shares (eg, 1:4). In spread betting margin can be 3-5%, thus increasing the gain and loss.

Margin trading (born Margin trading) - the holding of speculative trading with money and / or goods provided by the merchant on credit secured by a specified amount - the margin. From simple credit margin is characterized in that amount of money received (or the value of goods produced) is usually several times the size of collateral (margin). For example, for the right to contract for the purchase or sale of 100 thousand euros for U.S. dollars, typically requires the broker to deposit no more than two thousand dollars. This allows the trader to increase the volume of transactions for the same capital. In addition, when margin trading is usually allowed to sell goods taken on credit from the alleged subsequent purchase of similar goods and repayment in kind (product) form. This operation is called a short position or selling without a coating (not covered by sales). This mechanism provides the technical ability to make a profit when prices fall.

Lot - a stock trading unit transactions on the Exchange, a consignment, a certain quantity of one kind.

There are 3 types of lots (depending on size):

A standard lot = 100 000 units;
Mini lot = 10,000 units;
Micro lot = 1000 units.

Mini and micro lots are available to traders who open mini deposits (an average of $ 200 to $ 1,000). Standard lots can trade the trader , deposits are much larger (the size of deposit requirements differ depending on the broker).

Carry trade - one of the strategies of action investors in the stock and currency market (forex). The term literally translates as "buy and hold."

The strategy is based the fact that different states have different deposit interest rates relative to funds in their national currencies.

Strategy carry trade is borrowing in local currency of the country set low interest rates , conversion, and investing them in the national currency states have established high interest rates .

Advisors (experts) in the terminal program, developed in a programming language MetaQuotes Language 4 ( MQL 4) to help automate analytical and trading processes. They allow you to quickly perform technical analysis of price data and based on the received signals to control trading activities. At advisers can be given to the routine work of technical analysis and execution of all transactions. Advisor can perform analytical and trading operations for any financial instruments and period regardless of whether the corresponding graph is open or not.

Script is a program written in MetaQuotes Language 4 ( MQL 4) and is designed for single execution of any actions. The script can perform both analytical and trading functions. Unlike advisers, scripts are executed on demand, rather than ticks. In other words, if the adviser works almost always, the script, having worked once, on their own ends.

Indicator is a custom software developed independently by the user in MetaQuotes Language 4 and provides a technical indicator. Technical indicator is a mathematical conversion price and / or volumes to predict future price changes. The use of indicators allows you to answer questions about whether the current trend will continue and where will the trend reversal. Indicators are intended to make the complicated process of making trading decisions on a simple and understandable. Based on algorithms indicators are trading tactics and develop expert advisors.