Rollover or Swap
All open positions (at the end of a day of trading) must be rolled over to the next day. The interest rate differential between the two currencies will determine whether a credit or a debit is applied to the client’s account. This happens at midnight (meaning midnight wherever your broker is located – ex: you […]
RSI (Relative Strength Index)
A technical indicator that works on a 0 to 100 scale. The area below 30 signals a buying opportunity and the area above 70 signals a selling opportunity.
Safe Haven Currency
At times of uncertainty in the forex market, investors trigger the safe haven appeal by investing in Gold and other forex currencies. The most popular safe haven currencies are the Japanese Yen and the Swiss Franc. The major haven currency pairs are USD/JPY & USD/CHF.
Sanctions
Sanctions refer to the actions taken by a country or countries against other countries for political reasons, resulting in a loss of business and diminishing appeal of related currencies.Sanctions refer to the actions taken by a country or countries against other countries for political reasons, resulting in a loss of business and diminishing appeal of […]
Scalping
A strategy of buying at the bid and selling at the offer as soon as possible. Nothing to do with those monkeys who try to sell you concert tickets at three times the face value right outside of the venue.
Segregated Account
An account that is kept separate from your broker’s accounts. This type of account is only used for clients’ deposits and withdrawls. In the event that your broker declares bankrupcy, your money will be protected since it will not be linked to your broker’s balance sheet.
Sell Limit
A sell limit order is a type of pending order that allows a trader to put instructions in the trading software (MT4), to purchase a security at a specified price. It’s placed above the CMP (current market price) if a trader expects that the price will plunge back after soaring to a specific trading level. […]
Sell Stop
A sell stop order is a type of pending order that allows a trader to put instructions in the trading software (MT4), to purchase a security at a specified price. It’s placed below the CMP (current market price) if a trader expects that the price will plunge further on the breakage of a certain level.
Sentiment Analysis
A study to predict a crowd psychology or herding behavior to determine the direction of the price movement of a security. The crowd psychology is often derived from an expectation of an outcome. This type of trading strategy is called Trading the Market Sentiment.
Shooting Star
In the Candlestick Trading Strategy, a shooting star is a bearish reversal pattern that is formed after a bullish trend in the market. It’s identical to “Inverted Hammer” as it has a long upper shadow (wick), small lower body and little or no lower shadow (wick). Besides this, it exhibits the weakness in a buying trend […]