Swing Trading
Swing trading consists of combining technical signals and indicators in order to select promising trades that should reach an objective over a time span of a couple of days.
Symbol
The 3 letters used to identify a currency. These represent the country of origin and the name of the currency, e.g.. USD (US dollar); EUR (euro), JPY (Japanese Yen).
Systematic Trading
This trading style determines the choice of trades in a rigourous and quantified manner, using precise criteria. This approach reduces human intervention (sometimes eliminating it completely), so it also reduces the potential errors that can be made during the decision-making process due to emotions.
Take Profit Order
An exit trade order, which automatically closes an open position at a specific price, specified in advanced by the trader. When the price reaches this rate the trade closes at a predefined profit.
Technical Analysis
The technical approach uses tools, technical indicators, formulas and patterns on charts, in order to predict future trends and changes in currencies. It analyzes the trends and not the reasons why they happen.
Throwback
The opposite of a pullback. A throwback occurs after an upward breakout when price declines toward or comes very near the breakout price.
Ticks
Just as a pip is the smallest price movement (the y-axis), a tick is the smallest interval of time (the x-axis) that occurs between two trades. Most brokers will “group” sequences of data and calculate the open, high, low and close over regular time intervals (1-minute, 5-minutes, 1-hour, daily and so forth).
Time Frame
Traders can choose to look at the trading charts in different time frames. For example, say you choose to look at a 30 minutes chart – it means that each single candle represents the trading activity over a 30 minutes period. The most popular time frames are 15 minutes, 1 hour and 1 day frames.
Trading Account
Your capital available for use in trades on the online trading platform. Trading Book – A self-compiled journal for managing and following your trading activity, while writing down actions, thoughts, results and anything which can improve your future trading.
Trading Platform
Online software provided by the broker. Forex trading platforms are used for trading transactions, executing orders and managing your account. That is why it is important to choose the right broker.