501. Sterling

Another name for the British Pound (GBP).

502. Stochastics Oscillator

The stochastics oscillator is a special type of oscillator used for technical analysis. Each type is derived from a different equation and focuses on different aspects of price action.

503. Stockbroker

An agent in the buying and selling of stocks or other securities

504. Stocky

Traders’ term for the Swedish Krona

505. Stop

A limit order to close a position when a given limit is reached. When long, the stop loss order is placed below the current market price. When short, the stop loss order is placed above the current market price.

506. Stop Buy

A buy order for a currency price that is above the current market, or current price. It becomes a market order when the specified price is reached. Stop-buys are used by traders to establish positions in markets which they perceive to be rising in value.

507. Stop Loss Order

A limit order to close a position when a given limit is reached. When long, the stop loss order is placed below the current market price. When short, the stop loss order is placed above the current market price.

508. Stop Loss Strategy

A trading strategy that involves setting limit orders at different price levels to avoid incurring further losses

509. Stop Losses

A limit order to close a position when a given limit is reached. When long, the stop loss order is placed below the current market price. When short, the stop loss order is placed above the current market price.

510. Stop-Buy

A buy order for a currency price that is above the current market, or current price. It becomes a market order when the specified price is reached. Stop-buys are used by traders to establish positions in markets which they perceive to be rising in value.

511. Straddle

An option strategy involving holding both a call and put with the same strike price and same expiry date

512. Strangle

Similar to a straddle, the strangle is a cheaper strategy since the strike prices of both the call and the put are far out of the money

513. Strike Price

The price at which the underlying asset can be bought or sold as specified in an option contract.

514. Sub-Account

Allows users to segregate their accounts into various sub-accounts to simplify various trading and hedging strategies.

515. Support Levels

A level or floor beneath which it is difficult for a currency to fall, characterized by strong buying pressure

516. Swap

A transaction that moves the maturity date of an open position to a future date. See Roll-Over.

517. SWIFT

See Society for Worldwide Interbank Telecommunications.

518. Swissy

Trader’s nickname for the Swiss Franc.

519. T-Bills

US government short-term obligations with 13-, 26-, and 52-week maturities.

520. T-Bonds

US government long-term obligations with 15-year or more maturities

521. T-Notes

US government medium-term obligations with 2- to 10-year maturities.

522. T/N

The process of not taking delivery of a currency by closing the position and reopening it with the current trade date so the settlement date is pushed forward to the next trade date (tomorrow). This is done indefinitely until the trade is closed.

523. Take Profits

A limit order that is placed above the market with a long position or below the market with a short position. When the market reaches the limit price, the position is closed thereby locking in a profit.

524. Take the Offer

A verbal order where a trader agrees to the price with which to sell a currency pair to a dealer

525. Technical Analysis

The use of historical rates, price charts, and other market data to forecast future prices

526. Technical Correction

A price adjustment based on technical factors like resistance and support levels, as well as overbought and oversold levels, instead of market sentiment.

527. Technical Indicators

Short-term trends that technical analysts use to predict future price movements of securities and/or commodities. Also called technicals, technicalities.

528. Technical Side

The use of historical rates, price charts, and other market data to forecast future prices by means of statistical analysis.

529. Technical Trader

An investor who uses technical analysis

530. Technicalities

Short-term trends that technical analysts use to predict future price movements of securities and/or commodities. Also called technicals, technical indicators.

531. TED Spread

Indicates the difference between the London Interbank Offered Rate (LIBOR) and short-term government debt in the form of three-month U.S. T-bills and expressed in basis points. Seen as a measure of perceived risk in the currency markets. See TED Spread for more information

532. The City

Located within greater London, UK, The City is one of the largest concentrations of financial and business institutions in the world, and is the largest currency trading center.

533. Thin Market

Also known as a thin market, where there is light trading

534. Tick

The smallest possible change in a price, either up or down. Also known as a pip.

535. Ticker

Streaming display of the current or recent historical price of a currency pair.

536. Tier One

The Bank of International Settlements’ measure of a bank’s financial strength. Tier One is the highest grade

537. Tom Next

The process of not taking delivery of a currency by closing the position and reopening it with the current trade date so the settlement date is pushed forward to the next trade date (tomorrow). This is done indefinitely until the trade is closed.

538. Tommorow Next

The process of not taking delivery of a currency by closing the position and reopening it with the current trade date so the settlement date is pushed forward to the next trade date (tomorrow). This is done indefinitely until the trade is closed.

539. Trade Date

The date on which a position is opened.

540. Tradeable Amount

The smallest transaction size allowed. For many brokers the tradeable amount is the round lot, which is usually 100,000 units of a particular currency. With forex brokers, it is 1 unit

541. Trading Margin Excess

Extra funds beyond the margin requirements for existing positions that can be used to enter new positions or increase existing positions.

542. Trading Model

A sophisticated program that provides you with expert buy/sell recommendations for trading currencies on the foreign exchange markets. A Trading Model, based on its evaluation of historical analyses, forecasts, and your trading profile, makes recommendations about currency positions by anticipating fluctuations in the foreign exchange markets and capitalizing on these movements.

543. Trading Platforms

A software application used for trading forex, usually over the Internet

544. Trailing Stop Loss

Similar to a stop loss in that it limits potential losses in an open order. But unlike a simple stop loss where the threshold does not change, a trailing stop loss can be instructed to automatically adjust the limit price closer to the market price when the market price moves in your favor.

545. Transaction

Buying or selling a currency pair

546. Transaction Cost

The cost involved in buying or selling a currency pair. Some consider the transaction cost to be the actual value of the contract, while others feel it is the price of facilitating the trade, such as commissions and spreads.

547. Transaction Date

The date on which a position is opened or closed.

548. Treasury Bills

US government short-term obligations with 13-, 26-, and 52-week maturities

549. Treasury Bonds

US government long-term obligations with 15-year or more maturities

550. Treasury Notes

US government medium-term obligations with 2- to 10-year maturities.

551. Trend

The current direction of the market, whether up or down or sideways (which is sometimes referred to as non-trending or trading market).

552. Trend Lines

Lines, arcs, or other visual cues plotted on a line chart used to predict possible future market directions. Trend lines are often projected from historical points on the graph that are considered significant (retracements, highs, lows, and so on).

553. Two-Tier Market

A dual exchange rate system in which only one of the rates is open to market pressure, as with the pre-1995 South African Rand.

554. Two-Way Price

When both a bid and ask price are provided for a currency pair

555. Two-Way Quotation

When both a bid and ask price are provided for a currency pair.

556. Unconvertible Currency

A currency that cannot be exchanged for another because of foreign exchange regulations.

557. Uncovered

A position whether long or short that is subject to market fluctuations and thus profits or losses. See also Closed Position

558. Under-Valuation

When a currency is below its purchasing power parity it is considered undervalued.

559. Undervalued

When a currency is below its purchasing power parity it is considered undervalued.

560. Unit

A widely used quantity of currency. One unit of USD is equal to one United States dollar, while one unit of EUR is one euro. For JPY, one unit is equivalent to one yen. One unit is the smallest trade size typically for any trade.

561. Unrealized P/L

A hypothetical valuation of the current position and the resultant profit or loss if the position were to be liquidated at that moment.

562. Uptick

A trade that must be executed at a price higher than the previous trade. Certain rules on the New York Stock Exchange require this during sessions of extreme volatility

563. US Dollar

The currency of the United States of America.

564. US Prime Rate

The interest rate at which banks in the US will lend to their most valued customers

565. US Treasury

The department within the United States government that is responsible for issuing Treasury bills, notes, and bonds

566. Valuation

The process of determining the value of an asset or company.

567. Value Date

The settlement date for a currency contract, usually two business days. For USD/CAD it is one business day.

568. Volatility

Measure of how much the price of a currency changes over time.

569. Vostro Account

An account of a foreign bank held at a domestic bank where the foreign bank has no branches. It is used for cash management purposes. Vostro means yours in Latin. See Nostro Account.

570. Warrants

A certificate, usually issued along with a bond or preferred stock, entitling the holder to buy a specific number of securities at a specific price, which is usually above the current market price at the time of issuance, for a specific period of time.

571. Wealth Creation Business

A professional service that includes a combination of investment advice, tax services, and estate planning

572. Whipsaw

Refers to when a position is taken and a stop loss is created. The market moves down to trigger the stop loss and then turns around. In this way, the trader suffers two losses: the loss associated with the stop loss which was put below the position’s entry level, and the loss of not being able to participate in the subsequent rise of the currency pair.

573. Whisper Number

Analyst predictions about earnings or economic indicators. They’re considered whispers because they are not made public, but inevitably become public through leaks. Some people call them rumors and attribute as much credibility to them as they do rumors.

574. Wholesale

The sale of services, goods, or commodities in large quantities to individual clients.

575. Wire Transfer

Electronic transfer of funds from one bank to another

576. Working Day

When the banks in the country of origin for a particular currency are open for business. For currency pairs, this is compounded by the fact that both banks must be open.

577. World Trade Organization

A global organization of countries that trade with one another and set rules by which trading is conducted

578. World Trade Organization

A global organization of countries that trade with one another and set rules by which trading is conducted.

579. WTO

A global organization of countries that trade with one another and set rules by which trading is conducted

580. Yard

Traders’ term for a billion as in a billion dollars.

581. Yield

The return on an investment. The yield is usually calculated in percentage terms.

582. Yield Curve

A curve that shows the relationship between yields and maturity dates for a set of similar bonds, usually Treasuries, at a given point in time.

583. Z-Score

In statistics, the distance a data point is from the mean, measured in standard deviations.

584. ZAR

Currency symbol for the South African Rand

585. Zero-Bound

A policy where interest rates are at or very near to zero percent. The major implication of a zero-bound economy is that Central Banks cannot use further interest rate cuts to stimulate an economy – in this situation, Central Banks typically turn to an alternate monetary tool known as quantitative easing