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Equity the
secure part of the client account, considering the
open positions, bound with the balance and floating
rate (profit/loss) by the following formula: Balance
+ Floating rate + Swap, i.e. the funds on the client
account less the current amount for the open
positions, plus the current earnings for the open
positions.
Free margin the
funds, which are not used for the security of the
opened positions. It is calculated by the formula:
Free Margin = Equity Margin.
Margin The required equity
that an investor must deposit to collateralize a
position equal to 1% (when leverage = 1:100) of an
open position deposit.
Margin level determines the
condition of an account. Calculated according to the
formula: (Equity / Margin) * 100%.
Base currency currency unit in
which an account, balances, commission fees and
payments are designated and calculated.
Balance the total financial
result of all fully executed transactions and
deposits/withdrawals to/from an account.
Broker the firm that provides
crediting services and trader support.
Bulls traders that count on
currency rate escalation.
Bull market market that tends
toward escalating rates.
Currency pair The two
currencies that make up a foreign exchange rate. For
Example, EUR/USD.
Rising trend every time the
highest value of a curve appears, compared to
previous rate values. The lowest curve points are
connected by a straight line trend line.
Intraday trade trade oriented
at gaining profit within one day.
Dealing non-cash currency
trading.
Dealing centre company that
provides access to the money market.
Account history list of
complete transactions and non-trading operations for
a trading account.
Client physical or legal party
executing operations with the company.
Client terminal MetaTrader
4.xx software product lets the client get
information about financial market trades in real
time terms (quantity defined by the company),
perform technical analysis of markets, operate,
set/change/cancel orders and receive messages from
the dealer and the company as well.
Trend lines These are straight
lines, with a positive slope, drawn on a graph
through low points when tendencies are rising, and
with a negative slope, drawn through the high points
when tendencies are on the decline. These lines
define the current trends. Trend line gaps usually
signal tendency changes.
Client log file file, created
by the client terminal, which records all requests
and orders sent from the client to a dealer with 1
second accuracy.
Server log file file, created
by the server, which records all requests and orders
received from the client to a dealer, as well as the
processing result, with 1 second accuracy.
Margin trading using borrowed
money to buy securities, with the expectation of
increasing profits. Margin trading can bring big
returns, but is also risky.
Market-makers major banks and
financial firms that pledge to provide liquidity by
accepting the other side of a trade in a currency,
security or futures contract.
Initial margin - The initial deposit of
collateral required to enter into a position as a
guarantee on future performance.
Non-trading operation
depositing or withdrawing funds from a trading
account, or extending credit.
Normal market conditions
condition of a market that meets the following
requirements:
- absence of noticeable breaks in relation to the
trading platform quotes;
- absence of rushing price dynamics;
- absence of essential price gaps.
Trade operation volume number
of lots multiplied by lot size.
Open position the first part
of a complete transaction result; at the opening
position, the client accepts the following
obligations:
- to close reverse trading of equal amount;
- to maintain equity no lower than 10% of the
necessary margin.
Market opening trade
re-opening after a weekend, holidays or after a rest
interval during trading sessions.
Pending order the client
instructs the dealer to buy or sell once the price
reaches the order level.
Complete closed transaction
consists of two opposite and equal trading
operations (opening and closing positions): buying
followed by selling or selling followed by buying.
Quote tread a block of
numerical data which describes the price value at
the certain time period.
Pips (points) The smallest
unit of price for any foreign currency, also
referred to as points.
Lot Size a number of assets,
products or base currency defined in the contract
per one lot.
Developer MetaQuotes Software
Corp. is the trading platform developer.
Accounting currency currency
unit in which deposit/withdrawal operations are
performed.
Range the distance between
levels of support and levels of resistance.
Swap money resources reduced
or added to a clients account for passing a
position overnight.
Adviser a trading account
management algorithm in a form of a program based on
MetaQuotes Language 4. This program sends requests
and orders to a server using the client terminal.
Spike surge of non-market
quotation at the significant distance from the
current price (usually exceeding spread) and sharp
throwback. Sometimes spikes have a peculiarity of
recurrence during a certain period of time from
several minutes to several hours. According to the
InstaForex Public Offer Agreement, all positions
opened and closed by non-market quotations are
destined to cancellation and it guarantees the
protection of funds against spikes.
Contract specifications main
trading terms (such as spread, lot size, minimal
trading operation quantity, change in trading
operation volume move, initial margin, lock margin
etc.) for each instrument.
Spread The difference in pips
between the Bid and the Ask quote.
Account a special personal
account opened with the company by a client. This
account is used to offset the obligations of the
client and dealer, resulting from the deals
concluded under the present agreement.
Ticker unique identification
number given to every opening position or pending
order within the trading platform.
Trading operation When a
client buys or sells any instrument.
Trading platform the set of
software and technical resources that support
financial market trading information to be received
in real time; processes trading operations, takes
into account mutual obligations between the client
and the dealer, and observes conditions and
restrictions as well. For the purposes of the
present regulation, it consists of the Server and
Client terminals.
Trading Account unique
personalized stock-taking operations register on the
trading platform, where complete closed
transactions, opened positions, non-market
operations and orders are reflected.
Transaction trade operations
where money resources move from base currency into
quoting currency and vice versa.
Trader person, who trades
currency on the Forex market in order to earn
profit.
Trend current general
direction of price movement.
Order level price given in
order.
Support level lowest channels
borderline.
Resistance level highest
channels borderline.
Figure price change for 100
pips. For example, price change EUR/USD from 1.3770
to 1.3870 this means figure increase.
Force major circumstances
occurrences which could not be foreseen or
prevented. These include: natural disasters; wars;
acts of terrorism; government actions, actions of
executive and legislative government authority,
hacker attacks, and other unlawful acts toward
servers.
Hedging operation that
protects an asset or liability against a fluctuation
in the foreign exchange rate.
Price prior to non-market quoting
closing price of minute bar, prior to minute bar
with non-market quoting. Price Gap either of the
following situations:
Present quoting Bid is greater than prior
quoting Ask;
Present quoting Ask is less than prior quoting
Bid.
Market opening price gap
either of the following situations:
Market opening quote Bid is greater than market
closing quote Ask;
Market opening quote Ask is less than market
closing quoteBid.
Obvious mistake
opening/closing client positions or executing client
order at a price that greatly differs from price
quoted per instrument in present flow quoting at the
moment of processing. Or some other dealer activity
or inactivity that deals with mistaken determination
of market prices at the present moment. |
