Major Currencies: most popular currencies (USD, EUR, JPY, GBP, CHF, CAD, NZD, AUD)

Minor Currencies: all other currencies (major currencies excluded)

Base Currency: the first currency quoted in a currency pair

Quote Currency: the second currency quoted in a currency pair

Pip: smallest increment of a currency rate

Bid Price: the price at which you can sell the base currency

Ask Price the price at which you can buy the base currency

Spread: the difference between bid price and ask price

Quote Format: standard format of a quote is: Base Currency/Quote Currency; Ask Price/Bid Price

Cross Currency: a currency pair that does not contain USD

Direct Currency: a currency pair USD is the Quote Currency

Indirect Currency: USD is the Base Currency

Margin: Client’s contribution as a percentage of the transaction value to open a position

Leverage: The possibility of large investments with a small personal contribution. The leverage is calculated as a percentage between the margin and the transaction value

Margin Call: broker's demand to deposit additional funds to fulfil the minimum margin requirements

FX: Forex Exchange

Exchange Rate: price of one currency in terms of the other

Over the Counter (OTC): process of buying or selling financial products without being in the exchange location; the process takes place between the investor and the broker directly

Short Position: the selling of a currency pair expecting the price will go down

Long Position: the buying of a currency pair expecting the price will rise

Bar Chart: representation of the price activity over a given period of time showing simultaneously the opening and closing prices and the highest and lowest prices traded

Candlesticks Chart: A price chart displaying the high, low, open, and close for a security each day over a specified period of time

Line Chart: chart connecting a series of past prices together with a line

Commission: transaction fees charged by the broker

Fundamental Analysis: evaluation of the market by examining economic, financial and other qualitative and quantitative features

Technical Analysis: analysis of statistics generated by the market activities to predict market evolution

Pending Order: used to prepare requests to open positions on specific market prices

Stop Order: order to buy or sell once the price has climbed above or dropped below a specific stop price

Limit Order: order to buy at no more or sell at no less than a specific price

Stop Loss Order: order to minimize losses if the market starts to move in an unprofitable direction

Take Profit Order: order to close the open position when the market has reached the profit level predefined by the trader

GTC (Good ‘til cancelled): order to buy/sell at a set price that remains active until you decide to cancel it

GFD (Good for the day): order to buy/sell at a set price that remains active until the end of the day

OCO (One-Cancels-the-Other Order): order stipulating that if one part of the order is executed, then the other part is automatically cancelled