Currency Pair
Every Forex trade involves the simultaneous buying of one currency and the selling of another currency. These two currencies are always referred to as the currency pair in a trade.
Day Trading
Refers to a style or type of trading where trade positions are opened and closed during the same day, that way a portfolio is held in cash during the hours that the market is closed. The idea is to make small profits using high leverage, and making many transactions so as to maximise overall profits.
Dealer
Someone who acts as a principal or counterpart to a transaction. Principals take one side of a position, hoping to earn a spread (profit) by closing out the position in a subsequent trade with another party. In contrast, a broker is an individual or firm that acts as an intermediary, bringing buyers and sellers together […]
Demo Account
A free trading account for practice (with no real money transactions involved). Fantastic for beginners who wish to get familiar with Forex trading. Nowadays most brokers allow their users to open demo accounts in order to try their Forex trading platforms before depositing real money.
Derivatives
A derivative is an agreement between two or more parties whose value is driven by an underlying financial security or asset. It aims to mitigate the risk faced by investors in the shape of variations in forex exchange rates, bonds, stocks, indexes, and commodities
Direct Market Access
Direct Market Access (DMA) – An investor who has direct access to the financial markets can intervene directly in the order book of each market and place orders in real-time at current prices (see the “No Dealing Desk” definition). The investor can therefore visualize the market’s depth by observing the market’s trends.
Discretionary Trading
A trading style that gives the trader complete freedom, as he or she defines his or her strategy according to his or her own criteria. The trader’s main difficulty will be controlling his or her emotions in order to make rational and carefully considered decisions.
Doji
A common type of candlestick. It is characterized by a lack of body and with long shadows. Usually it resembles a cross/inverted cross. In many cases, Dojis alert traders to a change in the balance of power in the market between buyers and sellers.
Dollar Index
The Dollar Index is an index that measures the value of U.S. Dollar against the basket of peers currencies. Its ticker symbol is USDX, DXY. It incorporates six currencies to calculate the index using weighted geometric mean. Euro (EUR), Japanese Yen (JPY), Pound Sterling (GBP), Canadian Dollar (CAD), Swedish Krona (SEK), Swiss Franc (CHF).
Double Bottom
Double Bottom is a technical analysis term. It refers to the chart pattern that resembles a “W”. It’s formed when a price drops and rebounds consecutively from a particular level. This pattern is bullish in nature as it demonstrates a weakness in a selling trend and pre-indicates a potential buying trend in the market. It […]