Standard lot
In forex trading, a standard lot refers to the 100,000 units of a base currency. For example, one standard lot of the EUR/USD means the investors have bought 100,000 Euros
Statistical Arbitrage
In financial markets, the statistical arbitrage is also known as StatArb. In contrast to the simple arbitrage, the traders make the decision to buy or sell based on the mis-pricing of assets. The traders use mathematical modeling techniques or different trading strategies to identify the price inefficiencies in the market.
Stochastic
A technical indicator that shows oversold and overbought areas on the chart. The area below 20% surface implies oversold conditions and the area above 80% surface implies overbought conditions. Stochastic is considered as a relatively good buying and selling alerts provider.
Stock Index
The stock index is an average value of diverse stock prices listed and traded on the stock markets. It is considered as one of the main indicators to gauge the performance of the overall stock market of an economy. For instance, the S&P 500 is a stock index that represents the performance of the NYSE […]
Stop Loss
A stop loss is an easy protection mechanism that you add to your order (either when you place your order or soon afterwards). Example: you want to buy EUR/USD at 1.3100, but want to make sure you don’t lose your shirt if the market goes south, so you would place a “stop loss” at 1.3000 […]
Stop Out
This is equal to the minimum required margin (expressed as a %) needed to keep positions open. For example, if the Stop Out level is 20%, the amount of funds in your account (Account Equity) must be equal to 20% of the margin used in order to hold the positions open. If insufficient funds are […]
Straight Through Processing (STP)
In STP mode, transactions are entirely computerised and immediately processed on the market. Brokers are only paid through the spread.
Supply/ Demand Ratio
The difference between the supplied amounts of goods and services and the demand for them. As the demand rises or the supply drops, the value of goods or services (e.g.. currency) goes up.
Support Level
The bottom barrier of a trend (Sellers’ floor). It is the level at which a current downtrend is expected to stop as the price finds “support”.
Swaps
Swap is a fee that is charged by a broker from the client on the overnight positions. A forex swap is the interest rate differential in the two currency pairs that an investor is trading, and it is determined according to either your position that is long or short. For instance, if a currency pair […]