Glossary

 
Ask/offer price The price at which the investor can buy the foreign currency (in most cases with double listing).
Account Statement Document (in printed or electronic form) stating the completed business transactions and the status of the client account over a specified time period.
Bid price The price at which the investor can sell the foreign currency (in rare cases with double listing).
Base currency The currency that is in the first position in the currency pair (as a numerator) - this is the “commodity”, i.e. it is bought or sold for the second currency in the currency pair. The amount of the business transaction is shown in the base currency.
Basis point 1/100: percentage points (is used in relation to the interest rates of the central bank)
Balance Amounts that are displayed in the investor’s account without consideration of the business transactions carried out by the investor at the current point in time.
Currency pair Two currencies that serve as the basis for listings on Forex.
Closed position Market position according to which reclaim takes place and the corresponding profit and loss statement is carried out.
Close price The final price in a specified time period.
Closed position  Status after a deal that was executed through the conclusion of a counter deal over the same amount on the same value date.
Chart  Graphic display of the price changes (of the rate) of a specific financial stock.
Cross-Rate Exchange rate of two currencies, neither of which is the US dollar. For example: EURO / GBP.
Confirmation Oral, written or electronic confirmation of the conclusion of the deal.
Deposit The funds going into the trader's account.
Derivative Order whose price changes with the price of the associated or underlying commercial papers, futures contract or other physical instruments. The most widely used derivative instruments are options.
Day trading Opening or closing of one or several positions in the course of the day's trading.
High Highest price paid in the course of a trading period.
Hedging Strategy for neutralising the risks arising from carrying out business transactions by opening complementing, opposing positions and the same number of losses as similar financial stocks.
Last  Price of the last business transaction - mid-value from the last bid and ask rates.
Long position Trading position that grows profit with increasing market prices.
Lot Amount and number of business transactions. The business volume is given in whole numbers or as a fraction of lots.
Leverage  Relationship between the business volume and the legal portion provided.
Low price The lowest price in a particular time period.
Long position Trading position that grows profit with increasing market rates. Example: when an individual participating in the market purchases the base currency of the currency pair when opening a position, it is called taking a long position.
Margin Amount or determined number of commercial papers that the investor has to deposit with the stockbroker for the credit for execution of investments.
Margin account Account over which the investor receives credit from the stockbroker or trader for executing the business transaction.
Margin level Value that describes the status of the account. This is calculated from the relationship between financial capital and the deposit.
Order Commissioning the brokers with the buying or selling of a lot of a specified instrument in a specified amount at a predetermined exchange rate.
Open The first price in a particular time period.
Open position A deal that has not been voided by a counter deal over the same amount on the same value day.
Pip The smallest size of price changes of a currency. Normally to two or four decimal places.
Profit When the trade proceeds exceed the associated expenditure.
Position Type of contract with an uncompleted business transaction. When backing a price increase the position is called a long position; and if a falling rate is backed it is a short position.
Range The highest and lowest sell prices realised for the relevant products in the course of the corresponding time period. This is shown as a price spread.
Rate The price of a currency expressed in units of another currency.
Risk Liability for changes with uncertain probability. Is predominantly used in a negative sense in order to show the probability of adverse changes arising.
Spread Difference between bid and offer price.
Stop-limit order Order for the purchase or sale of a lot of a specified instrument in a certain amount but only when the price has reached a predefined level. The combination of a stop order and a limited order is quite usual.
Stop-loss order An order to buy or sell a currency at a predetermined or worse (lower or higher) price. This kind of order is usually issued in order to limit losses in case the market develops adversely to expectations.
Support Price level at which the active buying-in can trigger or stop a tendency towards lowering of prices.
Swap Simultaneous selling and buying of a contingent or a specified currency with different value dates. Usually the swap takes place with the transfer of an open position on the following day. Swapping an open foreign exchange position means that the position's status is upheld (amount and signature) for a certain time into the future.
Spot A transaction that is carried out immediately although the financial resources transfer usually only takes place two days after completion of the aforementioned business transaction.
Stop out Account status with which the investor loses the possibility of accessing his account due to which one or several open positions being forced to close at whatever the next preferred rate is in order to achieve a positive account status.
Short position Position that grows profit with decreasing market prices. When an individual participating in the market sells the base currency of the relevant currency pair when opening a position, it is called taking a short position.
Trend Prevailing price development direction. Increasing high and low prices indicate an upward trend, whereas falling high and low prices indicated a downward trend.
Trading session A coherent time-frame during which trading operations can be carried out on the basis market.
Tick Singular price change due to market-determined primary traders, which is communicated in the form a new buy and sell price.
Quote The established market rate from two figures (bid and offer) of which one gives the buying price and the other the selling price of a certain financial stock at the current point in time.
FIBO Time, FT The time of the Company (FIBO Time, FT) is the time at which the Company's trading platform and its mobile versions operate. It meets Eastern European Time (EET).