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Friday, August 29, 2008
FOREX GLOSSARY
Hard Currency
A currency whose value is expected to remain stable or increase in terms of other currencies.
Head and shoulders
A pattern in price trends which chartists consider indicating a price trend reversal. The price has risen for some time, at the peak of the left shoulder, profit-taking has caused the price to drop or level. The price then rises steeply again to the head before more profit-taking causes the the price to drop to around the same level as the shoulder. A further modest rise or level will indicate that a further major fall is imminent. The breach of the neckline is the indication to sell.
Hedge
A position or combination of positions that reduces the risk of your primary position
Hedge Ratio
The number of futures or options required to hedge a given exposure in the cash market.
High/Low
Usually the highest traded price and the lowest traded price for the underlying instrument for the current trading day
Hit the bid
Term used to describe the action of a seller of a currency pair when wanting to sell at the market bid side.
Holder
Buyer of a currency pair.
A currency whose value is expected to remain stable or increase in terms of other currencies.
Head and shoulders
A pattern in price trends which chartists consider indicating a price trend reversal. The price has risen for some time, at the peak of the left shoulder, profit-taking has caused the price to drop or level. The price then rises steeply again to the head before more profit-taking causes the the price to drop to around the same level as the shoulder. A further modest rise or level will indicate that a further major fall is imminent. The breach of the neckline is the indication to sell.
Hedge
A position or combination of positions that reduces the risk of your primary position
Hedge Ratio
The number of futures or options required to hedge a given exposure in the cash market.
High/Low
Usually the highest traded price and the lowest traded price for the underlying instrument for the current trading day
Hit the bid
Term used to describe the action of a seller of a currency pair when wanting to sell at the market bid side.
Holder
Buyer of a currency pair.
Labels: Forex Glossary
