Gross Domestic Product (GDB)
The total value of all goods and services produced in the market (excluding imports). GDP helps to measure the standard of living in the market. Negative data implies a weakened economy.
Hanging Man
A hanging man is a bearish reversal pattern that is formed after the bullish trend and can be seen in candlestick patterns. The formation of a candle is identical to the hammer – it has a long lower shadow (wick), small upper body and little or no upper shadow (wick). It shows the weakness in […]
Head and Shoulders
Considered as a relatively reliable and accurate chart pattern for long term trading. Built of 3 peaks, while the second peak (the head) is the highest (or lowest, in case of an upside head and shoulders). The other 2 peaks are about the same height – the shoulders. A head and shoulders pattern is a […]
Hedging
Hedging is the process of managing trades solely to mitigate the risk of loss due to market fluctuations. For example, selling & buying of EUR/USD if the trend is reversed.
IF DONE Order
A Contingent or ‘If Done’ order is an order that is not activated until another separate order is executed. The contingent order facility enables you to attach orders to an already existing order so that you do not have to watch the markets at every moment of the day. The first order is a limit […]
Inflation
An increase in the prices of goods and services in the market. Due to inflation, a soda can that used to cost 10 cents 20 years ago, costs 1 dollar today. Inflation weakens a currency’s performance. The central bank is responsible for controlling inflation through the manipulation of interest rates and the money supply.
Interest Rate
The market rate at which the buyer (or borrower) has to pay the seller (or loaner) for continuing to hold the currency. Interest rates impact the performance of all currencies in the Forex market. Rising interest rates cause currencies to strengthen, falling interest rates cause currencies to weaken.
Interest Rate Differential
A differential measuring the gap in interest rates between two similar interest-bearing assets. Traders in the forex market use interest rate differentials (IRDs) when pricing forward exchange rates. Based on the interest rate parity, a trader can create an expectation of the future exchange rate between two currencies and set the premium (or discount) on […]
Intraday Position
A position that is opened and closed anytime during a regular day of trading (unlike an overnight position).
Intraday Trading
A trading strategy for very short terms. Dynamic activity in which traders open and close positions in a matter of hours up to a single day tops.