Glossary



A 

Abnormal Market Conditions
a rapid or thin market.

Account history
a register of completed transactions, balance operations and cancelled orders in the customer’s account. 

Asian Session
between the hours of: 23:00 to 08:00 (Tokyo).

Ask
the price a seller or market-maker is willing to accept for a traded instrument; also known as the offer price; a price for establishing an open Buy position.
 
AUS 200
another name for the Australian Securities Exchange (ASX 200); 200 stands for top 200 (by market capitalisation) companies listed on the ASX.

Aussie
Aussie or Ozzie are nicknames for the AUD/USD currency pair.

Available Margin
also called free margin; a rest of funds in the customer’s account with the deduction of margin, floating profit/loss and rollovers summary. 

B
 
Balance
a summarised financial result of all funds deposited in, and withdrawn from the customer's account, and of all closed positions in that account.

Base Currency
the first currency in a currency pair (e.g. if EUR/USD rate is 1.3283 then one EUR is worth 1.3283 USD).

Base Rate
the given central bank country lending rate, which is used by banks to calculate the interest rate given to borrowers.

Basis Point
a unit that describes the minimum change in the price of a product.

Bear
slang for a trader who expect prices to decline; trader who is holding a short position.

Bearish / Bear market
slang for a downtrend market (price is declining). 

Bid
the price at which a seller or a market maker is willing to buy a traded instrument; a price for establishing an open Sell position.

BOC
Bank Of Canada (Canada’s central bank).

BOE
Bank Of England (UK’s central bank). 

BOJ
Bank Of Japan (Japan’s central bank).

Bull
slang for a trader who expect prices to rise; trader who is holding a long position.

Bull / Bullish Market
slang for an uptrend market (price is rising).
 
Bundesbank
Germany’s central bank; also referred to as BUBA.

Buy Limit
a pending order for establishing an open Buy position in the customer's account. In the event that the price on the specified instrument falls to the specified level; it can be only executed at the Ask price, and then placed below the current Ask price of the specified instrument.

Buy Position
an open position that represents expectation that the market price will increase (e.g. buying the base currency against the quote currency, or buying a contract for difference on an underlying security rate).

Buy Stop
a pending order for establishing an open Buy position in the customer’s account, in the event the price on the specified instrument rises to the specified level; can be only executed at the Ask price and placed above the current Ask price of the specified instrument.
 
C
 
Cable
slang for the GBP/USD currency pair.

CAC40
short name for the French Stock Exchange; 40 stands for top 40 companies (by market capital).

Candlestick Chart
one of the ways to view or present a chart. The Candlestick Chart indicates the opening and closing price in a chosen date range; if the close price is higher than the open price, then that area of the candlestick is not shaded, and vice versa if the open price is higher than the close price.

CBs
short for central banks.

Central Bank
usually a government organisation that manages a country’s monetary policy.

CFD (Contract for Difference)
an object of a electronic transaction based on the price fluctuation of an underlying asset (e.g. stock or futures contract).

Chart
a diagrammatic representation of historical quotes in the form of lines, bars or candlesticks.

Client Log-file
a text file located in the folder 'MetaTrader4/Logs' that is used for recording all requests from the client terminal; it is created in the form of separate daily files.

Client Terminal
the MetaTrader 4 (hereafter called MT4) program designed for customer trading, exercising supervision over customer accounts, obtaining real-time and historical quotes, news and other market information that we may have made available to our customers. Also commonly used for technical analysis, automated trading by expert advisors, and for customer feedback via the internal mail system.

Close
a request or instruction for closing a specified position at the current market price.

Close By
a request or instruction for closing two locked positions on the same instrument.

Commission
an amount of service payments charged to the customer’s account. 

Contract
a standard unit on the Forex market (e.g. 1 lot).

Contract Details
parameters of an instrument specified by us for customer trading and published on the our website.

Counterparty
one of the participants in a financial transaction. 

Currency Pair
traded instrument based on the change of the value of one currency against another currency.

Customer
a physical or juridical person; a signatory of the Customer Agreement with company.

Customer Account (Account)
our customer’s personal system register of transactions, orders and balance operations. 



Data Feed
a stream of quotes in company's MT4 trading platform.

Dealer
an ​company's employee responsible for accepting customer requests, executing customer orders and carrying out the liquidation of customer open positions in the event of a Stop Out.

Deficit
negative balance for a trade or payment (i.e. not enough money).
 
Demo Account
practice account.

Depo
money deposited on an account.

Dispute, Complaint, Claim
an event that occurs when our customers believe that ​company's actions or inactions are erroneous or contradictory to what is found in the Terms or/and the ​company Customer Agreement, and vice versa.

Dividend Adjustment
an adjustment that is applied when a share passes its ex-dividend date (including the ex-date of any special dividend) in the underlying stock market.

DJIA or Dow
short for the Dow Jones Industrial Average or US30.

Dove
refers to easier monetary policy or lower interest rates; opposite to hawkish.
 
Downtrend
declining price action, which can be described as lower-lows and lower-highs. 



ECB
European Central Bank.

ECN
Electronic Communication Network, which eliminates the third party in executing an order.Equity
a net worth of funds in the customer’s account.
 
EST/EDT 
New York City time zone (United States Eastern Standard Time/Eastern Daylight Time).

ESTX50
short for the Euronext 50 index.

European Session
between the hours of: 07:00 to 16:00 (London).

Exchange Execution
order execution mode where a transaction order is passed to an external gateway connected to an exchange or another liquidity provider.

Exotic pair
a less traded currency pair.

Expert Advisor
a program written in MQL4 (MetaQuotes Language 4) and executed by the Client Terminal for the purpose of automated trading in the customer’s account. 

Expiry
an instruction for cancellation of a pending order at a specified time and date.

Explicit Error
an event where the position opening or closing price significantly differs from the market price being actual at the moment of execution; an event where the execution of the customer’s order or request is inconsistent with the order or request by general meaning.
 


FED
The Federal Reserve Bank (USA central bank).

Fill
means the order has been successfully executed.

Fill or Kill
order type where if the order cannot be filled, then it will be cancelled (killed).
 
Floating Profit/Loss
a difference value between the customer account’s equity and balance.

FOMC
The Federal Open Market Committee is the policy-setting committee of the FED.

Foreign Exchange
''Forex (FX) is the global market for buying one currency and selling another.''

FRA40
other name of CAC 40.

FTSE 100
short name for UK 100 index.
 


G7
a group of seven nations including USA, Japan, Germany, UK, France, Italy and Canada.

G8
G7 + Russia.

Gap
significant difference between the two consecutive quotes; may be shown on charts as a blank field between bars or candles when the time period between the two quotes covers the bars or candlestick’s close time. 

GDP
Gross Domestic Product is the total value of a country's output, income, or expenditure produced within its physical borders.

H
 
Hawkish
refers to easier monetary policy or higher interest rates: opposite to dove.Hedge
combination of positions or a position that reduces the risk of your primary position

Hedged margin
companys' margin requirements for maintaining locked positions.

HK40 / HKHI
short name for Hong Kong Seng Index. 



Initial Margin (Margin)
company’ requirement for security collateral to open a position.

Instant Execution
a request execution type that means all quotes shown in the Client Terminal can be accepted by ​company for customer trading, with no preliminary requests for quotes.

INX
symbol for S&P 500 index. 

J

 
JPN225
short name for the NIKKEI index.



Kiwi
slang for the NZD/USD currency pair. 



Leverage
transaction size/margin ratio (e.g. 1:100 leverage means the customer needs to have 1% of the transaction size in his/her account as security collateral or margin).

LIBOR
The London Inter-Bank Offered Rate, which banks use as a base for international lending.

Locked Position
consists of equal long and short positions on the same instrument; locked positions require 50% of summarized margin for both positions. 

Login
customer account’s unique identification number.

London Session
between the hours of: 08:00 to 17:00 (London).

Long Position
when the pair’s base currency is bought, the position is deemed long.
 
Loonie
slang for Canadian dollar, which is also known as Funds.

Lot
a transaction size unit in MT4, where: 1 lot is equal to a contract on 100000 base currency units for currency pairs; 1 lot is equal to one unit of an underlying security for stock CFDs.

Lot Size
an amount of base currency units or underlying asset units that is specified by ​company contract as a transaction size per 1 standard lot.



Margin
a summarized value of the customer’s account funds that is reserved as security collateral for maintaining that customer’s open position; in accordance with ​company’ margin requirements.

Margin Level
an equity/margin percentage ratio.

Margin Trading
a customer trading service utilising the leveraged technique, which allows the customer to make transactions exceeding his/her account deposit.
 
Market Execution
order execution mode where a transaction is processed at the best price available on a trade server.

Market Opening
the time when instruments become available for customer trading after weekends, holidays, regular closing intervals or server downtimes.

Market Order
an electronic instruction for opening a position in the customer’s account, at the current market price. 

Modify
a request for modification of a pending order level; a request for placement, cancellation or modification, or Stop Loss & Take Profit levels on an open position or pending order.

MT4  
a software platform designed for online trading, which is the technology base for​ company' customer trading services; consisting of MT4 Client Terminal (customer terminal), MT4 Server, MT4 Data Center, MT4 Multiterminal, MT4 Mobile and MT4 Smartphone.

Multiple Close By
a request or instruction to close all locked positions in a customer's account



New York Session
between the hours of: 08:00am to 05:00pm (New York time)

Normal Market Conditions
the opposite of a rapid market; where there are no market data errors.



Open Position
a contract for buying or selling an instrument within the customer’s account; the first part of a complete transaction and an obligation to make an equal counter transaction afterwards; also treated as the customer’s obligation to satisfy ​company’ margin requirements and to maintain, without notice or demand from ​company, a sufficient account balance at all times that continuously meets ​company’ margin requirements and the equity/margin minimum ratio specified by ​company (e.g. a minimum ratio of 30%).

Order
an electronic instruction for opening or closing a position in the customer’s account on a specified instrument, in the event its price reaches the specified level.

Order Level
a price specified by the customer in the order placement request as an instruction for opening a position in his/her account, at this price and under conditions determined by the order type.

Over The Counter (OTC)
describes any transaction that is not conducted via an exchange. 



Pending Order
an electronic instruction for opening a position in the customer’s account, in the event the price of a specified instrument reaches a specified level; the customer is enabled to use pending orders that include Buy Limit, Sell Limit, Buy Stop and Sell Stop.

Platform Time Zone
the time which the ​company server is synchronized with; a time zone which is used for recording any events into the server log-file; MT4 is currently synchronized with GMT+2 or GMT+3 during Daylight Savings.

Point
a minimum price change (e.g. 0.0001 for EUR/USD); also called a Pip. 

Price
a two-way quote consisting of Bid and Ask prices; a position’s opening or closing price; an order level.

Price Gap
an event where the current Bid price is above the previous Ask price and vice versa.



Quote
an electronic message about the current price displayed in the Client Terminal, which consists of demand price (Bid) and supply price (Ask).

Quoting
providing the customer with quotes that company may accept for buying or selling instruments in his/her account. 



Rapid Market
market conditions characterized by significant price changes in short periods of time that frequently cause wide gaps between consecutive quote values; commonly occurs immediately before and/or after important events (e.g. key economic reports on any G7 countries, press conferences by G7 financial ministers or central banks’ chairmen, central bank’ decisions on interest rates, market interventions, political or natural force majeure such as war or terrorism).

Rate
the base currency value in the quoted currency for a currency pair; the underlying asset value for a CFD.

Request
an electronic instruction for opening or closing a position, placement, cancellation or modification of an order that is given by the customer via the Client Terminal; a query for a two-way quote. 



Sell Limit
a pending order for establishing an open Sell position in the customer’s account, in the event the price on the specified instrument rises to the specified level; can only be executed at Bid price and placed above the current Bid price of the specified instrument.

Sell Position
an open position, which represents expectation that the market price will decline (e.g. selling the base currency against the quote currency or selling a contract for difference on an underlying security rate).

Sell Stop
a pending order for establishing an open Sell position in the customer’s account, in the event the price on the specified instrument falls to the specified level; can only be executed at Bid price and placed below the current Bid price of the specified instrument. 

Server
the MT4 server that transmits requests from the Client Terminal to dealers, sends (i.e. news, quotes, execution confirmations) to the Client Terminal and records all messages related to the customer trading process; it maintains mutual liabilities between ​company and our customer, which are formalised in the ​company Customer Agreement, contract details and margin requirements.

Server Log-file
a text file generated by the MT4 server that is used for recording all events related to customer trading and platform performance, including all dialogues between client terminals and dealers.

Session Gap
a price gap between the first quote of the current market session and the last quote of the previous market session. 

Slippage
a parameter of Expert Advisor that sets-up the maximum difference between the requested price and the dealer’s price, that is acceptable to Expert Advisor for opening a position in the customer’s account; a difference between the order’s price and its actual price execution.

Spike or Data Error
an incorrect quote generated by the server because of a data feed error; commonly looks like a significant price gap returning close to the previous level on the next price update, with no signs of rapid market around; Our team has the discretion, but not the obligation, to remove such errors from its quotes database.

Split Close
a partial position closing (e.g. closing 0.5 lots of 2 lots). 

Spread
the difference between Bid and Ask price, which is evaluated in points.

Stop Loss
an order for closing a specified open position at a specified level, in the event the price moves in an unfavourable direction; can only be executed at Bid price and placed below the current Bid price with reference to Buy positions; can be only executed at Ask price and placed above the current Ask price with reference to Sell positions.

Stop Out
a compulsory closing of the customer’s open positions by us, in the event the customer’s account does not satisfy ​company margin requirements. 

STP
Straight Through Processing, i.e. passing all transactions electronically to the execution venue without human intervention

SWAP
an amount of overnight adjustments paid or charged to the customer’s account at 23.59 in the platform’s time zone, in accordance with values specified in ​company contract details; it is a daily settlement for margin trading services.

Swissy
slang for the Swiss Franc.
 
Symbol
an object of an electronic transaction (e.g. currency pair, stock CFD, futures CFD); an instrument within MT4.



Take Profit
an order for closing a specified open position at a specified level, in the event the price moves in a favourable direction; can be only executed at Bid price and placed above the current Bid price with reference to Buy positions; can be only executed at Ask price and placed below the current Ask price with reference to Sell positions.

Thin Market
periods of low trading activity and amounts of quotes per time, as compared to normal market conditions (e.g. periods between 21.00 and 00.00 GMT and before Christmas holidays).

Ticket
a unique identification number of a position, order or balance operation in the customer's account.

Trailing Stop
a built-in option of the Client Terminal that automatically adjusts a Stop Loss order level by a specified amount of points, if the favourable price motion exceeds this amount; it only works with the Client Terminal connected to the server.

Transaction
an operation consisting of two equal counter trades in a specified instrument.

Transaction Size
lot size multiplied by the amount of lots. 



U-Shaped Recovery
a chart shape showing a gradual price rise back to its previous peak, after gradual decline.

UK OIL
short name for Brent Crude Oil.

UK100
short name for the FTSE 100 index. 

Uptick
a new price quote, at a price higher than the previous quote.

US OIL
short name for WTI Crude Oil.

US30
short name for the Dow Jones index. 



V-Shaped Recovery
a chart shape showing recovery that involves a sharp rise to a previous peak, after a sharp decline.

Value date
the future date on which counterparts to a financial transaction agree to determine the value of a product’s price; for a spot foreign exchange trade this date is normally two business days after a transaction is agreed.

Volatility
measure for fluctuation of price of a financial instrument over time; delegate to an active market that represents trading opportunities.