Market Sentiment
Market Sentiment refers to the overall crowd psychology or “mood of the market” at a particular time. It can be bullish (positive), bearish (negative) or relatively neutral. Market sentiment can have an impact on particular stocks, commodities or currency pairs. Sentiment often leads markets to move away from what might be considered fair value. A […]
Micro lot
In forex trading, a micro lot refers to 1/100th of a standard lot (100,000) or 1,000 units of the base currency. Usually, this is the smallest trading volume that one can trade in the forex market.
Mini lot
In forex trading, a mini lot refers to 1/10th of a standard lot (100,000) or 10,000 units of the base currency. The pip value is equal to $1 for the mini lot.
Money Management
Controls how much of your money you risk when you enter a trade. A good money management approach is to always risk a fixed percentage of your equity, not higher than 10% per position. Smart money management is exactly what prevents us from losing all of our capital at once.
Moving Averages
An affective technical indicator which connects price averages over different periods of time. It points out a possible trend’s direction.
OCO (One Cancels the Other Order)
A designation for two orders whereby if one of the two orders is executed then the other one is automatically cancelled.
Open Market Operations
Open Market Operations (OMO) is a tool of monetary policy that refers to the buying and selling of bonds and government securities in the open market to control the money supply in the economy. For instance, a Central Bank buys the government securities if it intends to increase the money supply in the economy and […]
Order
A trade execution
OTC (Over the Counter)
Non-regulated mutual agreement market where transactions are done outside of the markets, directly between buyers and sellers. The OTC market is less transparent than an organised market since the prices are determined by the market makers.
Overbought
This is when a market displays excessively high prices, due to prior heavy buying of a currency.