FOREX
DICTIONARY
B
Bank Line
It is the limit of the loans that banks give to their customers. Interbank Money Market It is an interbank short-term fund trading market.Dec.
Band
The value of a currency against another currency may fluctuate within the price December permitted by the relevant state. This price December is called band.
Basic Analysis
It is one of the two universal methods used to make investment decisions. By examining all political, cultural, natural and political developments, he tries to understand their reflection on prices.
Bonds
It is the general name given to debt securities issued by the state or joint stock companies to the market in order to find borrowed money
C
Cable
The nickname of the GBP/USD pair in the jargon.
Candlestick Chart
Candlestick chart. It is one of the graphic representation types and is the most commonly used representation form in the application of technical analysis tools.
Current Account Deficit
The resulting fiscal deficit occurs when the total imports made in a country are more than the total exports.
CCI
CFDs are investment tools that let you trade on the market without owning the underlying asset. You're essentially betting on price movements rather than buying the actual investment. For instance, if you invest in a stock via CFDs, you don't own the stock; you're just speculating on its price change. This allows you to trade without dealing with the legal obligations of owning the asset.
Chart Formations
The special shapes that occur on the price chart form the formations.Triangle, flag, shoulder head shoulder head shoulder patterns signal that the current trend in prices is coming to an end and changing direction.
Compulsory Provision
Banks are obliged to block the deposits deposited to them by depositing a certain part of them to the Central Bank before making them available as loans. This rate is called the "compulsory provision rate" and is determined by the Central Bank.
Counter Currency
It is the second currency in the traded currency pair. In EUR/TL parity, the opposite currency is TL.
D
Dealers
It is the name given to the persons and institutions acting on their own name and account in the purchase and sale transactions.
Dealing Rates
Transaction prices. It is the area where the purchase and sale prices of currency pairs are reported.
Deflation
The name given to the continuous downward trend in the general level of prices.
E
Exotic
The general name given to the currency pairs that make up the least traded group in Forex.
Economic Indicator
These are data obtained using statistical methods that provide information and insight about the course of the economy of a country.
Economic Calendar
A periodic calendar showing the time and status of the announcement of important economic indicators and events.
Elliott Wave
The theory that claims that the market moves in a certain cycle that repeats itself.
F
Federal Funds Rates
(Federal Funds Rate)
It is the overnight interest rate that banks located in the United States pay in exchange for the capital they receive from the FED. It is also the financial policy instrument by which the FED controls the money supply in the country.
Fibonacci Numbers
0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55 a series of numbers that continues and goes as the sum of the two numbers before it. Technical analysis evaluations are created based on the ratio of the numbers Decoupled from each other.
Futures Trading
Spot (two business days) are transactions in which the maturity, amount and price of an asset (foreign exchange, interest, goods) that will be delivered at a later date exceeding the transaction date are determined from today and linked to a contract. Forward, future and options are examples of such transactions.
Fixed Exchange Rate System
These are systems in which a national currency is fixed to the value of a foreign currency or a basket of coins, and the perpetuation of this value is guaranteed by the monetary authority. Since the value of the national currency is determined in advance, it does not reflect the current supply and demand conditions.
Fibonacci Retraction
Used in technical analysis, (1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144,...) the support calculated by the numbers is the method of determining the resistance. It has emerged from the assumption that some of the significant upward or downward movements in the pairs will retreat. How much of the movement will be withdrawn, from which levels it will return, is determined by this method.
Futures Markets
Futures markets are the markets where contracts are bought and sold that contain the commitment to deliver a certain product at a later date, provided that its price is fixed from today.
Futures Contract
It is a contract that gives the parties to the contract the obligation to buy or sell a product or asset of standardized quality and quantity at an agreed price at a specified later date.
G
Gross National Product (GNP)
It is the value of the total goods and services performed by the citizens of a country within or outside the borders of that country in a certain currency.
Gross Domestic Product(GDP)
It is the total value of all goods and services produced in a country over a certain period of time in a certain currency.
Grand Supercycle
It is a contract that gives the parties to the contract the obligation to buy or sell a product or asset of standardized quality and quantity at an agreed price at a specified later date.
Gator Oscillator
A technical indicator developed by Bill Williams that helps to understand the trend.
H
Hedge
It is the name given to the process performed for hedging purposes.
Hedge Transactions
A hedge is an investment that occurs in opposite directions and open positions of an existing exchange. This can be a partial or full hedge and cannot terminate a position, although it has the same effect. Some investors are satisfied with this feature and use hedge's competencies (trading)as an open transaction rather than seeing it outside the stock market systems. It should be noted that a hedge has the same effect as closing or partially terminating a trade, except that it reveals an open position in the long or short term, behaves like an open trade, and must necessarily be terminated at a later date.
Hedging
It is a method of locking in the current profit or loss situation by opening transactions in the opposite direction with the same size as an existing position. It can be applied to save temporary time.
I
IMF (International Monetary Fund)
it is an international organization founded in the USA in 1946, which has tasks such as monitoring global financial markets, conducting audits on issues such as stock markets, pay plans, exchange rates, providing financial support to countries in financial difficulties. The IMF carries out its duties to ensure liquidity in the international foreign exchange market and to support free exchange rates.
Ichimoku
A technical indicator with a comprehensive and relatively mixed appearance that has been produced to monitor trend change. It is mentioned that it creates reliable methods when used properly.
Interbank
The name of the money clearing system created by banks connected to each other by an electronic network.
L
Leverage
Leverage is a mechanism that allows you to carry out financial transactions in excess of your principal. Since leveraged transactions involve higher risk than unleveraged transactions, investors should be well informed about leverage and should know the risks as well as the profit opportunities. Leverage and risk are interrelated. A high leverage ratio can increase both the amount of gain and loss.
Lot
LOT is used as a trading unit in forex markets. The standard lot size is 100,000 units. 100,000 units is often abbreviated as 100K. The mini lot, which is a sub-unit of this, refers to a size of 10,000 units (10K). The concept of micro lot, which is a unit below the mini lot, represents a transaction of 1,000 units.
Leverage Ratio
It is the ratio that determines up to how many times the amount of collateral you deposit to trade.
Long
The name given to the purchase position in foreign resources.
Liquidity
The name given to the ability of any financial instrument to be converted into cash in a short time. If the liquidity of the financial instrument is high, it means that it can be easily converted into cash.
Leverage System
It is the ratio that determines up to how many times the amount of collateral you deposit to trade.
M
MACD
It is a technical indicator developed by Gerald Appel. It is calculated by subtracting the 26-period exponential moving average from the 12-period exponential moving average. By comparing these two moving averages, it is determined whether the trend will continue in the pair. The distance between the moving averages gives information about the momentum of the movement in the pair.
Margin Call
It is the capital increase request made by the broker, intermediary institution, bank or the financial institution to which the investor is affiliated, in order for the investor not to close his/her open positions or to open new transactions in cases where the investor incurs losses.
Moving Average
It is a technical indicator obtained by calculating the average of prices in a certain time interval. The indicator placed on the pair gives an idea about whether prices will move in the current direction and is also used as support - resistance levels.
MACD Histogram
It is an indicator created by displaying the difference between the MACD line and the MACD signal line in the form of a histogram. The intersections and deviations between the two lines are more easily observed.
Major
It is the name given to the group consisting of the most traded currency pairs in Forex.
Money Market
Markets where short-term (90 days or less for international markets), highly liquid financial instruments are traded.
Monetary Policy
It refers to the decisions taken to affect the availability and cost of money in order to achieve objectives such as economic growth, employment growth and price stability.
P
Parity
It is the name given to the investment instrument created based on the ratio of two countries' currencies to each other. It is traded in the form shown as EUR/USD, which expresses the swap ratio of two different values. eliminates the price risk for companies in terms of creating a risk.
Price Channel
The name given to the shape formed when the price of the investment instrument moves between two horizontal border lines that can be clearly determined on the chart.
R
Recession
It is the situation where economic growth in a country is slow or negative in a certain period of time.
Reserve Currency
It refers to the foreign exchange and gold assets held in the portfolios of central banks and international financial institutions. Accordingly, for a payment instrument to qualify as a reserve currency, its value against other currencies should be stable, it should belong to a country with a large share in world trade, and it should be easily traded in foreign exchange markets.
Risk - Return Ratio
It is the ratio obtained by dividing the potential return of a transaction by the potential risk of loss. For example, if a purchase transaction opened at a price of 100 is expected to be closed at a price of 120 (profit expectation 20) and this price is expected to fall to a maximum of 90 (loss expectation 10), the risk - return ratio is 20:10 or 2:1. Generally, the higher this ratio, the more profitable trades are made. The risk-return ratio for stop loss and take profit orders is determined with the help of support and resistance levels.
S
SAR
The SAR indicator, named after the initials of the words Stop And Reversal, is a technical indicator introduced to the market by Welles Wilder in 1978. It is often used for trend following.
Sell Signal
One of the indicators used in technical analysis is that it indicates that prices may decline. For example, if the RSI indicator breaks the 70 level downwards, it is interpreted as a sell signal.
Sell Price (Ask)
The price at which market participants are willing to sell.
Stop Loss
This term, which can also be expressed as stop loss, determines how much loss we can bear in our open position. In English, the Stop Loss plan can be abbreviated as SL in order programmes, forums and blogs.
Shoulder Head Shoulder
It is a pattern formed by the pair at the end of uptrends in a certain time interval. The pattern mainly consists of three peaks. The first and last peaks form the "Shoulders", while the middle peak forms the "Head". While the shoulders are almost at the same level, the peak forming the head is higher than the shoulders. The low point levels of the parts of the pattern that form the shoulders form the "Neckline". A downward break of the neckline means that the uptrend is over and the pair will change direction.
T
Trend Line
A technical analysis tool that can describe the price movement of an investment instrument for a certain period on a chart in a linear line.
Take Profit
This order type, which can be translated as take profit, is placed at the point where you will close your position without taking more risk when prices move in the direction of profit. Thus, you will realise your profit on the chart and add it to your capital by monetising it.
Technical Analysis
It is the analysis made to predict the price movements in the market with the help of tools such as graphic formations, indicators and support and resistance levels.
V,Z and W
Value date
It is the name given to the process of fulfilling an agreed transaction with a physical mutual exchange. In a way, we can look at it as closing the account by fulfilling the obligations.
Zig Zag
A technical indicator that visually facilitates the movement of the market and tries to define the progress within certain zigzags by detecting peaks and troughs.
Wedge Formation
It is a pattern that occurs when prices are increasingly squeezed between two borders with a slope. It is considered to produce a buy or sell signal.