Terminology forex : Z

Zambia Kwacha

The currency of Zambia. Currency code (ZMK)

 

 

 

 

Zero Coupon Bond

A bond that pays no interest. The bond is initially offered at a discount to its redemption value.

 

 

 

 

 

Zimbabwe Zimbabwe Dollars

The currency of Zimbabwe. Currency code (ZWD)

 

 

 

 

 

 

ZEW Economic Expectations

Definition
A leading indicator of economic health based on surveyed institutional investors and analysts. The survey asks respondents to rate the 6-month economic outlook for the nation. A reading above 0.0 indicates optimism while a reading below 0.0 implies pessimism.
Importance
The indicator incorporates current economic conditions in constructing a 6-month outlook. Since investors and analysts are highly informed regarding economic conditions, changes in their sentiment can be a reliable forecast of future economic activity.
Market Impact
If the current reading is an improvement from the past figure or is better than forecasted, it could have a positive impact on the nation’s currency.
Relevant Links:
Center for European Economic Research – http://www.zew.de/en/

 

 

 

 

 

 

 

ZEW Survey

Release Schedule : 9:00 (GMT); monthly, in the first half of the same month.
Source of Report : Center for European Economic Research
Web Address : http://www.zew.de/en/
Address of Release : http://www.zew.de/en/publikationen/Konjunkturerwartungen/Konjunkturerwartungen.php3

Terminology forex : X AND Y

X:

 

Xenocurrency

A currency that trades in markets outside of its domestic borders. “Xeno” is a prefix meaning strange or foreign.

 

 

 

 

Y:

 

Yemen Rials

The currency of Yemen. Currency code (YER)

 

Yard

Slang for one billion dollars. Bill Gates has a lot of these

 

Yugoslavia New Dinars

The currency of Yugoslavia. Currency code (YUM)

 

 

 

 

Terminology forex : W

Weak Shorts

Refers to the group of investors who hold a short position and are quick to exit their positions at the first sign of strength in the underlying asset. This group of investors look to capture the gain on a move lower, but they are usually unwilling to take on as much as rick as other investors.

 

 

 

 

 

 

 

 

 

 

Westpac Consumer Confidence

Release Schedule : 0:30 (GMT); monthly
Source of Report : Australian Industry Group

Web Address : http://www.unimelb.edu.au/

Address of release : http://melbourneinstitute.com/research/macro/csi.html

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Whipsaw

Slang for a condition of a highly volatile market where a sharp price movement is quickly followed by a sharp reversal.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

World Bank

The World Bank is a group of international financial organizations around the globe aimed provide assistance to its 187 member countries. The World Bank was formed after World War II to help devastated Western European countries and provide them with capital.
As it grew, the World Bank has expanded to include other developing nations. Now, its basic goal is to combat poverty by providing member countries with sound financial advice, loans (such as low or no interest loans), and research.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Westpac leading Index

Definition
The Westpac Leading Index measures the growth of a composite index which includes nine (9) different economic barometers of Australia. The composite’s components are related to consumer confidence, housing, stock prices, money supply, and interest rate spreads. A coincident index, which measures the current activity, is also reported.

Importance

It is a tool that indicates the likely shape of the Australian economy’s health three to nine months ahead. A rise in the index points to a probable improvement in the country’s economic activity. Conversely, a decline in the figure suggests a likely downturn in the economy.

It can also be used as a good indicator of business economic cycle turning points.

Market Impact The report’s result does not have much short term impact on the movement of the AUD as most of the measured indicators are already issued prior to the composite’s release.

References

http://www.melbourneinstitute.com/research/macro/ecoact.html

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wedges

Wedges are a chart pattern used in technical analysis. A wedge is formed by taking two trendlines for the price behavior of an asset over time. If the trendlines converge–if, over time, the slope of the high price trendline exceeds the slope of the low price trendline, or if the slope of the low price trendline exceeds the slope of the high price trendline–then the pattern is a wedge, so named due to its wedge-like shape.There are two major types of wedges: rising wedge and a falling wedge. Rising wedges most commonly appear during a general downtrend in price, and represent a temporary reversal in the trend. Falling wedges most commonly appear during a general uptrend and represent the same reversal. Depending on which direction the price moves when it breaks through the lines of support and resistance established by the pattern, wedges generate either a strong buying or selling signal: a buying signal is generated if the prices break the upper resistance trendline, and a selling signal is generated if the prices break the lower support trendline.The interpretation of a wedge depends on whether the wedge is moving with or against the current trend. If a wedge is moving with the current trend, traders consider this a signal that the trend will reverse at the wedge’s conclusion. Conversely, if a wedge is moving against the current trend, the indication is that the trend will continue as it is.

 

Types of Wedges

Falling Wedge
Rising Wedge

Terminology forex : V

Value Date

Settlement date of a spot or forward contract. Also known as maturity date.

 

 

 

 

 

 

 

Vanuatu Vatu

The currency of Vanuatu. Currency code (VUV)

 

 

 

 

 

 

 

Venezuelan Bolivares

The currency of Venezuela. Currency code (VEB)

 

 

 

 

 

 

 

 

Vietnamese Dong

The currency of Vietnam. Currency code (VND)

 

 

 

 

 

 

 

 

Volatility

A measure of the amount by which an asset price is expected to fluctuate over a given period. Normally measured by the annual standard deviation of daily price changes (historic). Can also be implied from futures/options pricing, which is referred to as implied volatility.

 

 

 

 

 

 

 

 

Volcker Rule

The Volcker Rule, which is part of the Dodd-Frank legislation enacted in 2012, imposes limits on proprietary trading by commercial banks.

The Volcker Rule aims to prevent banks from using their own funds to make speculative bets in the markets. This way, the banks’ losses on their trades won’t directly restrict their ability to lend to consumers and businesses.According to the rule’s proponent and former Federal Reserve chairman, Paul Volcker, this trading activity is partly to blame for the 2008 financial crisis.

 

 

 

 

 

 

 

 

 

 

 

VIX

VIX stands for Volatility Index, which is usually dubbed the “fear index” since it gauges the expectations for asset price fluctuations for the next 30 days. More specifically, the VIX tracks the implied volatility of maturing S&P500 options.A rising VIX suggests that asset prices are expected to be more volatile or have larger fluctuatios, reflecting greater uncertainty or fear in the market. A falling VIX index, on the other hand, suggests the opposite.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Variation margin

Funds that a broker has to request from a client in order to have necessary margin deposited.

 

 

 

 

 

 

 

 

 

 

 

 

 

Value date

The date on which both sides to a transaction agree to exchange payments.

Terminology forex : U

U.S. Department of the Treasury

Formally established as an executive department by the 1789 Act of Congress, the Department of the Treasury serves as the treasury of the federal government and is the agency responsible for managing the money resources of the United States.
Responsibilities:
it primarily exists to promote economic prosperity and ensure the financial security of the U.S. Its mission is as follows:Maintain a strong economy and create economic and job opportunities by promoting the conditions that enable economic growth and stability at home and abroad, strengthen national security by combating threats and protecting the integrity of the financial system, and manage the U.S. Government’s finances and resources effectively It aims to accomplish this by: regulating national banks, determining international economic policy, collecting taxes, issuing securities, reporting the government’s financial transactions, and minting coins and bills.
Organization:
The Department of the Treasury is headed by the Secretary of the Treasury, who serves as a member of the cabinet.
It is composed of two major divisions: the Departmental offices and the operating bureaus. The Departmental offices are in charge of formulating policies for and managing the Department as a whole. On the other hand, operating bureaus are responsible for executing the functions and responsibilities designated to the Department.

 

 

 

 

 

 

U.S. Department of the Treasury

Formally established as an executive department by the 1789 Act of Congress, the Department of the Treasury serves as the treasury of the federal government and is the agency responsible for managing the money resources of the United States.
Responsibilities
It primarily exists to promote economic prosperity and ensure the financial security of the U.S. Its mission is as follows:
Maintain a strong economy and create economic and job opportunities by promoting the conditions that enable economic growth and stability at home and abroad, strengthen national security by combating threats and protecting the integrity of the financial system, and manage the U.S. Government’s finances and resources effectively.[1]
It aims to accomplish this by: regulating national banks, determining international economic policy, collecting taxes, issuing securities, reporting the government’s financial transactions, and minting coins and bills.
Organization
The Department of the Treasury is headed by the Secretary of the Treasury, who serves as a member of the cabinet.
It is composed of two major divisions: the Departmental offices and the operating bureaus. The Departmental offices are in charge of formulating policies for and managing the Department as a whole. On the other hand, operating bureaus are responsible for executing the functions and responsibilities designated to the Department.

 

 

 

 

 

 

 

 

 

Ukrainian Hryvnia

The currency of Ukraine. Currency code ( UAH )

 

 

 

 

 

 

 

 

 

 

 

Ultimate Oscillator

A technical indicator invented by Larry Williams that uses the weighted average of three different time periods to reduce the volatility and false transaction signals that are associated with many other indicators that mainly rely on a single time period.

 

 

 

 

 

 

 

 

 

Unemployment Rate – Australia

Release schedule : 1:30 ( GMT ); monthly, mid-month following the reporting month’s end
Source of report : Australian Bureau of Statistics
Web Address : http://www.abs.gov.au/

 

 

 

 

 

 

 

 

Unemployment Rate – Switzerland

Release schedule : 5:45 GMT; monthly, in the first week following the reporting month
Revisions schedule : Revisions only occur when seasonal adjustments are made
Source of report : State Secretariat for Economic Affairs
Web Address : http://www.seco-admin.ch/index.html?lang=en

 

 

 

 

 

 

 

 

 

United Arab Emirates Dirham

The currency of the United Arab Emirates. Currency code ( AED )

 

 

 

 

 

 

 

United States Dollars

The currency of the United States. One of the major currencies traded. Currency code ( USD )

 

 

 

 

 

 

 

 

 

 

 

Unsterilized Foreign Exchange Intervention

An attempt by a country’s monetary authorities to influence exchange rates and its money supply by not buying or selling domestic or foreign currencies or assets. This is a passive approach to exchange rate fluctuations, and allows for fluctuations in the monetary base.

 

 

 

 

 

 

 

 

 

 

 

 

Uptick rule

Regulation in which a security is not allowed to be sold short unless the previous trade to the short sale was at a price lower than the price at which the short sale was executed.

 

 

 

 

 

 

 

 

 

 

 

USDX

A measure of the value of the U.S. dollar relative to majority of its most significant trading partners. This index is similar to other trade-weighted indexes, which also use exchange rates from the same major currencies.

 

 

 

 

 

 

 

 

 

 

 

 

 

Uzbekistan Sums

The currency of Uzbekistan. Currency code ( UZS )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Uruguay Pesos

The currency of Uruguay. Currency code ( UYU )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Uptick

A new higher price quote than the previous quote.

 

 

 

 

 

 

 

 

 

 

 

Unrealized gain/loss

Theoretical profit or loss of an open position determined by current market prices.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United Kingdom Pounds

The currency of the United Kingdom. One of the major currencies traded. Currency code ( GBP )

 

 

 

 

 

 

 

 

 

 

 

Unemployment Rate – United Kingdom

Release schedule : Quarterly
Source of report : U.K. Office of National Statistics
Web Address : http://www.statistics.gov.uk/
Address of release : http://www.statistics.gov.uk/instantfigures.asp

 

 

 

 

 

 

 

 

 

 

 

 

Unemployment Rate – Canada

Release Schedule : 7:00 AM ( EST ) on the first week of each month

Source of Report : Statistics Canada
Web Address : http://www.statcan.ca/start.html
Address of Release : http://www.statcan.ca/english/Subjects/Labour/LFS/lfs-en.htm

 

 

 

 

 

 

 

 

 

 

Unemployment Rate

Definition
The unemployment rate is basically the percentage of the people in the work force without jobs but is able and willing to work. It is measured by getting the ratio of unemployed people who are willing and able to work versus the total number of people in the work force.It is important to discern between people who are unemployed and those who are simply not working. Some people may be studying, working from home, handicapped or retired. These people are not part of the work force and are not included in the unemployment rate.
Importance
The unemployment rate is considered as a lagging indicator. This means that it only changes after the underlying economic conditions of a nation have already changed. The unemployment rate could cause moderate market volatility because it provides traders clues about future interest rates and monetary policies.
Market Impact
Lower than expected unemployment rates tend to appreciate currencies because traders believe that it could lead to higher interest rates. Alternatively, greater than expected unemployment rates could weaken currencies as it is expected to lead to lower interest rates.

 

 

 

 

 

 

 

 

 

 

 

 

Ulcer Index

An indicator developed by Peter G. Martin and Byron B. McCann that is used to measure the riskiness of investments such as securities, commodities, indexes, or mutual funds. It is created by factoring in the depth and duration of drawdowns from recent peaks. A large UI value indicates that the security represents undue risk and an investor who holds it will likely need to wait longer for the investment’s price to climb back to recent highs.

 

 

 

 

 

 

 

 

 

 

Ugandan Shillings

The currency of Uganda. Currency code ( UGX )

 

 

 

 

 

 

 

 

 

 

U.S prime rate

The interest rate at which U.S. banks will lend to their main corporate customers.

Terminology forex : T

Two-way price

Occurs when a buying and selling price is quoted for a transaction.

 

 

 

 

 

 

Tweezer Bottom

Two or more candlesticks with matching bottom. They can be composed of real bodies or shadows. These occur on consecutive or nearby candles. Indicates a bearish trend is ending, and perhaps a
reversal is in the works.

 

Tweezer-bottom

 

 

 

 

 

 

 

Turtle Channel

A trading band created by plotting the highest and lowest prices of an asset over a certain time period around the price of that asset.

 

 

 

 

 

 

 

 

Turkmenistan Manats

The currency of Turkmenistan. Currency code ( TMM )

 

 

 

 

 

 

 

 

 

 

Tunisia Dinars

The currency of Tunisia. Currency code ( TND )

 

 

 

 

 

TRIX

TRIX is a form of momentum indicator known as a technical analysis oscillator and was developed by Jack Hutson, the editor of Technical Analysis of Stocks and Commodities, in the 1980s.The purpose of
TRIX is to clearly and accurately demonstrate the derivative slope of a triple smoothed exponential moving average of closing prices in the market, the name Trix having itself been derived from the TRiple
EXponential nature of the indicator.Because the TRIX indicator oscillates around a zero line, the report is designed to automatically filter out stock or currency movements which in probability are insignificant to
the larger, overall trend of the market.With TRIX, just as with any other moving average indicator report, TRIX’s triple EMA nature is trend following and allows for easy recognition of the current trend movement.
Because of it’s zero line alignment up trends and down trends are easy to spot as crossing the zero line signals a change to the trend. This is especially useful as it allows the zero line to act as an active
signal line, so that the indicator showing a positive cross over the zero line may act as a buy signal and a negative, or downward cross over the zero line acting as a sell signal.

 

 

 

 

 

 

 

 

 

Triple Top

The Forex chart price trading pattern known as the Triple Top is a relatively rare reversal pattern that generally accurately indicates a move towards major reversal in the current direction of the trend or issue it
represents.The triple top pattern is similar in appearance to the head and shoulders patterns, in that it is represented by a series of three high highs and lows, except that with the triple top all three highs will be
of an approximate level ( as opposed to slightly ‘dipped’ middle high position of the head and shoulders chart pattern. )The appearance of the triple top indicates the existence of a uptrend, which is currently in
the process of transforming into an downtrend, the prolonged uptrend having run out of steam and traders interest having begun to decline.As with a triple bottom, it is generally thought that the longer a
particular trend takes to fully develop, the stronger the significant change in price once breakout occurs. Typically triple tops and bottoms take around four months to develop, and are considered one of the
slowest types of chart patterns to fully mature.With a triple top the support level can be imagined by drawing a line at the base level of the lows and usually traders choose to enter into short position once the
price level falls through this support level.

 

 

 

 

 

 

 

 

 

 

 

 

 

Trinidad, Tobago Dollars

The currency of Trinidad, Tobago. Currency code ( TTD )

 

 

 

 

 

 

 

 

 

 

 

 

Trend Channel

Trend channels are very useful tools in the Forex world as correct analysis can help you in correctly determining where your entry point or exit point of a trade should be.Although regular trend lines are able to demonstrate the direction that the price is moving, trend channels allow you to clearly see where the currency is trading at that particular point in time in comparison to
the overall trend and direction.If you were to look at a graph or histogram of the trend lines and draw a line along both the top of the trend line, across any accumulated highs, and another line at the bottom of
the trend line, laying directly below the low points then the area in between these two lines, represented by both the historical highs and lows would be considered the trend channel.Generally, the channel will
be shown to be sloped slightly upwards. If you were in position at the top of the trend channel trading off of the upper resistance line, then given the nature of the channel it is likely that a down trend is imminent,
making this a good place for an exit price. If however you are positioned on the upward trending lower support line then given the direction of the trend channel this would be considered a good entry point.

 

Ascending-trend-channel Descending-trend-channel

 

 

 

 

 

 

 

 

 

 

 

Treasury Notes

Government obligations with maturities more than one year, but less than ten years.

 

 

 

 

 

 

 

 

 

 

Treasury Notes

Government obligations with maturities more than one year, but less than ten years.

 

 

 

 

 

 

 

 

 

 

 

Transparency

Transparency refers to disclosure of information about activities. Transparent procedures include releases of meeting minutes, financial disclosure statements, budgetary reviews, and audits.For banks, transparency protects its clients against fraudulent activities. This involves open communication with its clients and ensures accountability.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transaction date

The date a transaction is executed.

 

 

 

 

 

 

 

 

 

 

Trailing stop

A type of stop loss order that moves relative to price fluctuations.In example, setting a 50-pip trailing stop on EUR/USD after buying it at 1.2550 would mean that if price rose to 1.2600, your stop would also rise
by from its initial level of 1.2500 to 1.2550 ( 50 pips ).Your stop will then stay at 1.2550 unless price moves another 50 pips in your favor. This means that your trade will remain open for as long as price doesn’t
go against you by 50 pips.Traders often makes use of trailing stops to lock in profits while minimizing their risk.

 

 

 

 

 

 

 

 

 

 

 

 

 

Trade Balance – Switzerland

Release schedule : 6:15 ( GMT ); monthly, one month after the reporting period

Revisions schedule : Few revisions
Source of report : Swiss National Bank
Web Address : http://www.snb.ch/e/index3.html

 

 

 

 

 

 

 

 

 

Trade Balance – Australia

Release schedule : 1:30 ( GMT ); monthly, near the end of every month
Revisions schedule : Monthly
Source of report : Australian Bureau of Statistics
Web Address : http://www.abs.gov.au/

 

 

 

 

 

 

 

 

 

 

 

Toshihiko Fukui

Toshihiko Fukui is the Governor of the Bank of Japan .A life long career bureaucrat, Mr. Fukui joined the Bank of Japan in 1958 and since then has

served there in a variety of posts. Although still governed
by the conservative instincts instilled by his career training, Mr. Fukui has instituted a series of important reforms of BOJ business practices. A clear example of new openness comes every time the Bank of
Japan announces policy decisions. Since late 2003, Governor Fukui has complemented announcements with press conferences. The central bank also publishes detailed minutes of policy meetings. Such
transparency was unthinkable just five years ago. Mr. Fukui has maintained the country’s ultra-accommodative monetary policy and is unlikely to change course anytime soon given the fact that Japan has
entered its 4th recession in the past 12 years.

 

Fukui

 

 

 

 

 

 

 

 

 

 

Tomorrow Next

The buying and selling of currencies to avoid delivery of the currency. Allows a trader to hold a position for a day without worrying about delivery.

 

 

 

 

 

 

 

 

 

 

 

 

Tick

A minimum change in price, up or down.

 

 

 

 

 

 

 

 

 

 

 

Three White Soldiers

A bullish reversal pattern consisting of three consecutive white bodies, each with a higher close. Each should open within the previous body and the close should be near the high of the candle.

 

Three-white-soldiers

 

 

 

 

 

 

 

 

Thomas Jordan

Thomas Jordan is the current chairman of the Swiss National Bank ( SNB ). He replaced former chairman Philipp Hildebrand in April 2012, after working as interim chairman at the start of the year while
Hildebrand was being investigated for a currency trading scandal.Prior to that, Jordan has served the SNB since 1997, starting from the economics department.As the Chairman of the SNB, Jordan is now the
Head of Department I ( Economic and International Affairs, and Legal and Property Services ). As the head of the central bank, traders watch out for his monetary policy remarks when he speaks at forums or
when he is scheduled to deliver speeches, as he could drop hints as to what direction the SNB will take with regards to monetary policy and interest rates.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tertiary Industry Index – Japan

Definition
Measures spending in the services sector of the economy. This sector consists of intangible goods such as public utilities, insurance, government, tourism, banking, retail, education, transportation, and social
services.
Importance
It can serve as a key indicator for domestic economic activity. Strong spending in the services sector usually translates to higher employment rates and can also be interpreted as a sign of higher consumer
spending in the future.
Market Impact
An uptrend in tertiary industry activity has a positive impact on the nation’s currency especially if more than half of the nation’s workers are employed in the services sector. This implies that tertiary industry
activity can be used as an indicator for current and future employment and consumption levels.
Schedule: 23:50 ( GMT ); 2-3 weeks after the reporting period
Source of Report: Ministry of Economy, Trade and Industry ( METI )
Web Address: http://www.meti.go.jp/english/index.html

 

 

 

 

 

 

 

 

 

Terms of Trade Index – New Zealand

Release Schedule : 22:45 ( GMT ); quarterly, over two months after the reporting period
Source of Report : Statistics New Zealand
Web Address : http://www.stats.govt.nz/default.htm

 

 

 

 

 

 

 

 

Tanzania Shillings

The currency of Tanzania. Currency code ( TZS )

 

 

 

 

 

 

 

 

 

Take Profit

An order used by currency traders to automatically close their position once a certain profit has been made. Although it halts any further advance in profit, it guarantees a specific profit after a level has been hit.

 

 

 

 

 

 

 

Taiwan New Dollars

The currency of Taiwan. Currency code ( TWD )

 

 

 

 

 

 

 

 

 

 

Tajikistan Somoni

The currency of Tajikistan. Currency code ( TJS )

 

 

 

 

 

 

 

 

 

Tankan Survey – Japan

Release Schedule: 23:50 ( GMT ); quarterly, on the first Monday after the period
Source of Report: Bank of Japan
Web Address: http://www.boj.or.jp/en/index.htm

 

 

 

 

 

 

 

 

Technical Analysis

Technical Analysis is one more system for investors to strategize their trading methods. These analysts examine price data of foreign exchange rates to determine if those prices will continue in the future.
Technical analysis involves the uses of charts as a tool to identify patterns or trends in a currency market.Although technical analysis is akin to fundamental analysis, it focuses on the effects of market
movements, rather than the causes. Investors who use this strategy will look at a currency’s past price to determine what might happen in the future.Technical analysis is not a method for those who prefer to
use intuition as part of their trading strategy.

 

 

 

 

 

 

 

 

 

 

 

 

 

Term Auction Facility

The program was first instituted on December 17, 2007. These auctions allow their participants to obtain ‘cheaper’ ( vs. the central banks’ determined discount rate ) funding. It is a program implemented by
the US Federal Reserve which was set up to help create liquidity in short term funding markets in light of the recent global financial crash. Funding became scarce during the height of the global recession as
banks scaled down their lending given the subject creditworthiness of the borrowers.Under the program, the Fed, along with other central banks, auctioned off collateralized loans to banks who had sound
financial standing. Through the TAF, financial institution can obtain 28-day and 35-day term loans through periodic auctions. As of now, the TAF remains to be a trial monetary tool.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Thai Baht

The currency of Thailand. Currency code ( THB )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Black Crows

A bearish reversal pattern consisting of three consecutive black bodies where each candle closes near below the previous low, and opens within the body of the previous candle.

 

 

Three-black-crows

 

 

 

 

TIBOR

Tokyo Interbank Offered Rate.

 

 

 

 

 

 

 

 

 

 

 

 

Timothy Geithner

Timothy Franz Geithner ( pronounced GUYT-NER ) is the current Secretary of the United States Department of the Treasury under the Obama administration.
Born in in New York in 1961, Geithner has studied Japanese and Chinese and has lived in East Africa, India, Thailand, China, and Japan. In 1983 he finished a bachelor’s degree in government and Asian
studies in Dartmouth College, then completed a master’s degree in International Economics and East Asian Studies from Johns Hopkins School of Advanced International Studies in 1985.
It’s GUYT-NER, dude
Geithner joined the Department of Treasury in 1988 where he worked for five Secretaries of the Treasury under three administrations. He served as director of the Policy Development and Review Department
at the International Monetary Fund from 2001 until 2003, before he became the Chief Executive Officer and ninth President of the Federal Reserve Bank of New York on November 17, 2003.
As President of the New York Fed, he served as the vice chairman and a permanent member of the Federal Open Market Committee ( FOMC ), where he was criticized for his lack of experience in regulatory
issues. He was also in charge of overseeing and extending credit to banks in New Jersey, New York, and a few in Conneticut.Today, as the 75th Secretary of Treasury, Geithner formulates domestic and
international financial, economic, and tax policies, and even broad fiscal policies that have general significance for the economy. He also manages public debt, and has a hand in manufacturing coins and
currency.

Tim_Geithner

 

 

 

 

 

 

 

 

 

Tonga Pa’anga

The currency of Tonga. Currency code ( TOP )

 

 

 

 

 

 

 

 

 

 

Tanzania Shillings

The currency of Tanzania. Currency code ( TZS )

 

 

 

 

 

 

 

 

 

 

Two-Way Quote

A quote in which the buy and sell price are given.

 

 

 

 

 

 

 

 

 

 

 

Tweezer Top

Two or more candlesticks with matching tops. They can be composed of real bodies or shadows. These occur on consecutive or nearby candles.

Tweezer-top

 

 

 

 

 

 

 

 

Tuvalu Tuvalu Dollars

The currency of Tuvalu. Currency code ( TVD )

 

 

 

 

 

 

 

 

 

Turnover

Total value of money of all executed transactions in a given time period.

 

 

 

 

 

 

 

 

 

Turkish Liras

The currency of Turkey. Currency code ( TRY )

 

 

 

 

 

 

 

 

 

 

True Strength Index

The True Strength index is a form of technical momentum indicator, similar to the Relative Strength Index that can help traders to identify when conditions of a particular security or currency have been either overbought or oversold.The True Strength Index is usually gained by incorporating the short terms purchasing momentum within the current market at that particular time with the known lagging benefits of the moving averages. Usually an EMA ( Exponential Moving Average ), preferably of twenty five days duration is then applied the difference occurring between the two prices, with a thirteen day EMA then applied to this result. The aim of this being to make the True Strength Index indicator more sensitive to any prevailing conditions in the market, before the data is smoothed.The True Strength Index is designed to an accurate indicator, with no or very little time lag and it is generally considered that an increase in the value shown by the True Strength Index also indicates an increase in the overall momentum of the direction of the price movement shown.

 

 

 

 

 

 

 

 

 

 

Triple witching

Triple withcing is the when contracts for stock options, stock index futures, and stock index options expire.
This happens once a quarter on the third Friday of March, June, September, and December

 

 

 

 

 

 

 

 

 

 

 

 

 

Triple Bottom

A Triple Bottom chart pattern is very similar in presentation to a head and shoulders bottom in that it contains three lows, albeit all occurring at an equal level. Like the head and shoulders bottom, the triple
bottom is also as a reversal pattern.The appearance of the triple bottom indicates the existence of a downtrend, which is currently in the process of transforming into an uptrend and is one of the patterns that
takes the longest to fully develop, with an average formation time of around four months, however, there is a strong train of thought which decrees that the longer a trend takes to develop, the stronger the
significance of the price move once breakout does occur.As the triple bottom is potentially easily confused with other, similar patterns, such as the double bottom, or head and shoulders bottom and because
true triple bottoms are quite a rare occurrence, many experts in the field have been known to advise to wait for signs of a breakout through the confirmation point before assuming that the emerging pattern is a
true triple bottom.Once the trend has been confirmed, a breakout should be accompanied by a burst in volume, although the majority of triple bottoms witness a pullback following breakout that result in a
fallback to the breakout price.

 

 

 

 

 

 

 

 

 

 

 

 

TRIN

Short for TRaders INdex. A technical analysis indicator calculated by taking the advances-to-declines spread and dividing that by the volume of advances to declines.

 

 

 

 

 

 

 

 

 

 

 

Trendline

A trendline is one of the basic components of most technical analysis patterns. To construct a trendline, simply connect either the high prices or low prices on an asset’s chart. The resulting line is the trendline.
There are two types of trendlines. An uptrend line is formed by connecting the low prices for an asset, where the more recent low price is higher than the previous low price. An uptrend line extends into the
future and can be thought of as a level of support for the asset’s price. A downtrend line is exactly the opposite, and is formed by connecting the high prices for the asset, where the more recent high is lower
than the previous high. A downtrend line can be thought of as a level of resistance for the asset’s price. Only two points are necessary to draw a trend line, but the more points are used in constructing the line,
the more traders tend to consider it as a valid indicator of an asset’s overall trend.Trendlines have a variety of uses in technical analysis, most fundamentally for their ability to predict levels of price support and
resistance. Trendlines are also used as components in a variety of specialized technical analysis charts, including trend channels and wedge patterns.

 

Descending-trendline Ascending-trendline

 

 

 

 

 

 

 

Treasury International Capital

Definition
The Treasury International Capital data is a set of reports that shows all flows of money into and out of the country for stocks and bonds. It is computed by getting the difference in value between foreign
purchases of stocks and bonds and the value of stocks and bonds sold by a country. If the TIC balance is positive, it means that more securities were sold than purchased by the nation.
Another name for the report is Net Foreign Purchases.
Importance
Demand for a nation’s securities is directly linked for the demand for that nation’s currency because the purchase of bonds and stocks require investors to buy the domestic currency. For example, foreign
investors must first convert their money into US dollars in order to buy US stocks and bonds.
Market Impact
The TIC flows report usually has a high market impact on its release. Traders generally view a surplus in TIC flows as positive for the domestic currency because large government holdings of a nation’s
currency show confidence in that currency. On the other hand, a deficit tends to be interpreted as bad for the domestic currency because it could mean that not enough money is coming in to fund government
spending.

 

 

 

 

 

 

 

 

Treasury Bills

Short-term obligations of a Government issued for periods of one year or less. Treasury bills do not carry a rate of interest, but are issued at a discount on the par value. Treasury bills are repaid at par on the
due date.

 

 

 

 

 

 

 

 

 

 

Transaction Risk

The exchange rate chance dealing with the time delay between entering a contract and settling it. The greater the time differential, the greater the chances the two exchange rates change.

 

 

 

 

 

 

 

 

 

 

 

Transaction cost

The cost of buying or selling a financial instrument.

 

 

 

 

 

 

 

 

 

 

 

 

 

Trading Styles

There are many different styles of trading that may be used in Foreign Exchange trading. Forex styles do tend to differ from those utilized with the stock markets but it is still advised that you try out a few before
settling on one as you may well discover that one style or another may be much better suited to your abilities or personality than another.
The best person to consult with regards to the differing trading styles of Forex is your Forex mentor or other foreign exchange( FX ) traders you may be in contact with, as the vast majority of traders will be
more than happy to pass on the tips and tricks they have learned over the years.In addition to this, for those who are choosing to enter into the Forex world from home or via the internet only, there are many
books and courses, both online and in the real world that can enable you to choose the style that works for you.There are also a great many websites specially designed to appeal to the lone Forex trader.
The majority of these contain forums and message boards where experienced currency traders and those new to the game are able to interact and swap advice on successful approaches to trading styles,
as well as offer support and assistance regarding any other questions that may arise.
Types of Trading Styles:
Day Trading
Discretionary Trading
Mechanical Trading
Position Trading
Scalping
Swing Trading

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trade Balance – Japan

Release schedule : 23:50 ( GMT ); monthly, in the second week after the reporting month.
Revisions schedule : Few revisions
Source of report : Ministry of Finance, Customs Office ( Japan )
Web Address : http://www.mof.go.jp

 

 

 

 

 

 

 

 

Trade Balance

Definition:
Trade balance measures the ratio of exports to imports for a given country’s economy. If exports are higher than imports ( a trade surplus ), the trade balance will be positive. If imports are higher than exports (
a trade deficit ), the trade balance will be negative.
Contents
Importance:
Knowing the exchange rate is obviously critical for any foreign exchange trader, but information on the net exports in a country can help to predict future trends in inflation and foreign investment, and thus can
give clues to the future behavior of any given currency market.
Background:
Trade balance is derived primarily from three factors:
The price of goods in a country
Tax and tariff levies on imported or exported goods
The exchange rate between two currencies.
This last factor is fundamental to foreign exchange trading. Since the trade balance depends so heavily on the current state of exchange rates between two countries, trade balance is a key coincident
indicator for the state of a foreign exchange asset market.
There are a number of measures for trade balance, but one of the chief sources of information on the state of trade in the US is the International Trade report released monthly by the Census Bureau and the
Bureau of Economic Analysis. This report is released around the third week of every month and details the performance of several exported goods and services in various sectors of the economy.

Terminology forex : S


S&P

Standard and Poor’s ( S&P ) is currently one of the Big Three players in the credit rating industry.
In 1941 Standard Statistics ( publisher of sovereign debt and bonds ratings ) merged with Henry Varnum Poor, the publisher of “History of the Railroads and Canals of the United States,” which is one of the first attempts at compiling financial details of the U.S. railroads.Today, S&P is not only known for its ratings, it’s also closely watched for its ratings on market indices ( ex. S&P 500, S&P/Case-Shiller home price index ).

 

 

 

 

 

 

 

 

Safe haven

These are Assets that are considered relatively low-risk investments and are usually bought up in times of uncertainty. They are typically low-paying but are deemed stable by market participants.
Two of the most popular safe haven assets in the forex market are the U.S. dollar and the Japanese yen. Oftentimes, when risk aversion is in play, these two currencies rally against their counterparts.

 

 

 

 

 

 

 

 

  Same day transaction

A transaction in which the transaction matures in the same trading day.

 

 

 

 

  Sao Tome, Principe Dobras

The currency of Sao Tome, Principe. Currency code ( STD )

 

 

 

 

 

 

 

 

 

 

Scalping

Scalping or short-term trading involves making dozens or hundreds of trades a day, trying to scalp a small profit from each trade by exploiting the bid-ask spread.Scalping works because not all currency pairs remain on the move at all times. Scalpers generate profits from these non-moving pairs or turn around and sell for a profit those pairs that fluctuate in the positive direction. This way, they receive a small profit. This profit quickly adds up.Some advantages to scalping include less exposure to risk ( because it doesn’t have the time in one position to be effected ), easier-to-obtain moves and more opportunities to realize a small profit. Of course, there are no perfect strategies. Many Forex trading platforms prohibit scalping and will charge a fee for making more than ten trades in a one day. Therefore, it would benefit the trader to find out if this practice is allowed on their particular platform.However, for a short-term trading strategy to be profitable, it requires larger capital. Leverage is also necessary to magnify profits from small price moves.It is important to have an exit strategy set up before trying to scalp, as it would only take one large loss to eliminate an entire day’s positive profits. Utilizing a one-minute chart will give the trader a better idea of what trades to make and which to shy away from.

 

 

 

 

 

 

 

 

 

 

 

 

Seborga Luigini

The currency of Seborga. Currency code ( SPL )

 

 

 

 

 

 

 

 

Services PMI – United Kingdom

Release schedule : 8:30 ( GMT ); monthly, on the first working day after the reporting month.
Revisions schedule : Minor revisions are made monthly, going back 2 or 3 months.
Source of report : Chartered Institute of Purchasing and Supply and NTC Research
Web Address : http://www.cips.org
Address of release : http://www.cips.org/Page.asp?PageID=177&CatID=42

 

 

 

 

 

 

 

 

 

 

  Settlement Period

Time allotted in which it takes the two parties of a transaction to satisfy the transaction’s obligations.

 

 

 

 

 

 

 

 

Seychelles Rupees

The currency of Seychelles. Currency code ( SCR )

 

 

 

 

 

 

 

 

 

 

Sharpe ratio

Derived by William Sharpe in 1966, the Sharpe ratio describes how much excess return you receive for the added volatility that you tolerate for holding on to a risky asset.
It is calculated this way:
S( x ) = ( rx-Rf )/StdDev( x )
where:
x = investment
rx= ave. rate of return of x
Rf= best available rate of return of a risk-free security ( ie. Currencies )
StdDev ( x ) = standard deviation of rx
Robopip uses the Sharpe ratio to measure the risk tolerance of a system.
It helps him solve for the additional compensation above a certain level that the system should yield for each additional unit of risk. Basically, the higher the ratio, the better the system is.

 

 

 

 

 

 

 

 

 

 

 

 

 

Spot Trade

The transaction of a currency or commodity for immediate delivery.

 

 

 

 

 

 

 

 

 

  Spinning Top

Candlesticks that have small bodies with upper and lower shadows that exceed the length of the body. A very good reversal signal and can be any color. Spinning tops signal indecision. The smaller the body, the less direction the market has.

Spinning-top

 

 

 

 

 

 

 

 

 

 

 

Spain

Spain, officially the Kingdom of Spain, is located in Southwestern Europe, bordering the Mediterranean Sea, North Atlantic Ocean, Bay of Biscay, and Pyrenees Mountains.In 1999 Spain joined the European Monetary Union ( EMU ) and adopted the euro in place of its former currency, the peseta.

Economy
Spain hasthe fourth largest economy in the euro zone and the 13th largest in the world.
The Spanish economy is highly dependent on its services and industry sector. Germany and France are Spain’s largest import and export partners.
In late 2007 a significant decline in consumer spending and an oversupply in the housing market took its toll on the construction industry. After almost 15 years of positive GDP growth, Spain officially entered into a recession in Q2 2008.The government tried to revive the economy through stimulus spending, extended unemployment benefits, and loan guarantees. Unfortunately, the efforts only resulted to a government budget deficit more than three times the size of the euro zone’s limit. It also didn’t prevent the unemployment rate from rocketing above 20%. Spain soon became vulnerable to debt contagion from other financially troubled euro zone economies.Meanwhile, the Spanish banks’ high exposure to the collapsed real estate market also took its toll on Spain’s growth prospects. The government restructured the savings bank sector and provided capital to institutions, but in Q2 2012 the Spanish government was left with no choice but to formally ask the European Union for bailout money for the banking sector.
Financial Leaders
Head of State: King Juan Carlos I
President of the Government: Mariano Rajoy
Minister of Economy and Competitiveness: Luis de Guindos
Minister of Finance and Public Administration: Cristobal Montoro
Bank of Spain Governor: Luis Maria Linde

 

 

 

 

 

 

 

 

 

 

 

  South Korean Won

The currency of South Korea. Currency code ( KRW )

 

 

 

 

 

 

 

Somalia Shillings

The currency of Somalia. Currency code ( SOS )

 

 

 

 

 

 

 

 

 

Society for Worldwide Interbank Telecommunications

Belgian-based company that provides the global electronic network for settlement of most forex transactions. Also known as SWIFT.

 

 

 

 

 

 

 

 

 

SNB Quarterly Monetary Policy Assessment

Release schedule : Whenever the bank feels like it
Source of report : Swiss National Bank
Web Address : http://www.snb.ch/e/index3.html
Address of release : http://www.snb.ch/e/publikationen/publi.html

 

 

 

 

 

 

 

 

  Singapore Dollars

The currency of Singapore. Currency code ( SGD )

 

 

 

 

 

 

 

 

 

 

Shōichi Nakagawa

Definition:
The current Minister of Finance of Japan
Shōichi Nakagawa was born in Hokkaidō, Japan in 1953. He graduated from the law faculty of the University of Tokyo in 1978. Nakagawa has previously held the posts of Minister of Economy, Trade and Industry and Minister of Agriculture, Forestry and Fisheries.

 

 

Shoichi_Nakagawa

 

 

 

 

 

 

Short position

A position in which the base currency is sold. It is beneficial when a price declines.

 

 

 

 

 

 

 

 

Shadow

When referring to candlesticks:
The thin lines poking above and below the body display the high/low range and are called shadows. The top of the upper shadow is the “high”. The bottom of the lower shadow is the “low”.

 

 

 

 

 

 

 

 

Settlement Risk
The chance that one of the two parties of a transaction cannot fulfill the terms of the transaction. May lead to principal risk.

 

 

Candlestick-anatomy

 

 

 

 

 

Settlement

Actual physical exchange of one currency for another.

 

 

 

 

 

 

 

 

 

 

Sentiment Analysis

Sentiment Analysis is the art of not following the bandwagon. It effectively focuses on identifying the patterns of movement investors take on a subjective basis. The theory goes that when a crowd is leaning too far in one direction, it is a sign that a change is about to occur.Traders who utilize sentiment analysis look to investors to see what they are talking about, and how they are reacting to the market. In order to see what investors are talking about, those who research investor sentiment conduct surveys asking them what they believe the current market outlook is. They then act contrary to the results: if less than 25% of the investors surveyed are confident in the future profitability of a market, sentimental analysts will often increase a bet in the market with the expectation that a buying opportunity might be near.
To find out how investors are feeling, sentiment analysts look for indicators such as proprietary bank flow, COT data, and other special research like MarketVane. If the actions of investors seems to indicate that a currency will rise, those who use sentiment analysis will often sell, preparing for a fall in price instead.

 

 

 

 

 

 

 

 

 

  SDR

Special Drawing Right. A standard basket of five major currencies in fixed amounts as defined by the IMF.

 

 

 

 

 

 

 

 

 

 

 

 Saudi Arabia Riyals

The currency of Saudi Arabia. Currency code ( SAR )

 

 

 

 

 

 

 

 

 

 

 

 

 

Samoa Tala

The currency of Samoa. Currency code

 

 

 

 

 

 

 

 

 

  Saint Helena Pounds

The currency of Saint Helena. Currency code ( SHP )

 

 

 

 

 

 

 

  Sadakazu Tanigaki

Sadakazu Tanigaki is the Japan Finance Minister, taking office on September 20th, 2004.
Mr. Tanigaki has previously held positions as the chairman of the National Public Safety Commission and Industrial Revival minister in Prime Minister Junichiro Koizumi’s previous cabinet.

 

 

Tanigaki

 

 

 

 

 

 

 

 

Shooting Star

A single candle pattern that can appear in an uptrend. It opens higher, trades much higher, then closes near its open. It looks just like the Inverted

Hammer except that it is bearish. A shooting star can mark a top but is often retested.

 

Shooting-star

 

 

 

 

 

 

 

 

 

 

 

Short Squeeze

A short squeeze happens when there is excess demand and a lack of supply for a particular financial security.What happens is that due to the excess demand, prices continue to rise rapidly. Traders holding short positions try to cover their positios ( i.e. close their positions ), which can only be done by by buying. With more and more traders looking to buy, we normally see an extended rally as prices go higher and higher. In this sense, all the “shorts” are squeezed.In the forex market, a short squeeze normally happens after a strong sharp move and we see a reversal.For example, EUR/USD went on a long term down trend. At a certain point, some traders may feel that the euro is undervalued, making it a good investment. As more and more buyers enter the market, traders holding short euro positions decide it would be best to close out their positions or potentially suffer losses. This leads to more and more traders buying the euro, and all the short positions getting squeezed out of the market.

 

 

 

 

 

 

 

 

 

 

Sierra Leone Leones

The currency of Sierra Leone. Currency code ( SLL

 

 

 

 

 

 

 

 

 

 

 

 

Slippage

The difference between the expected fill price and the actual fill price.
High probably of slippage may occur in highly volatile markets ( i.e. during news or economic releases. )

 

 

 

 

 

 

 

 

 

 

 

Slovenia Tolars

The currency of Slovenia. Currency code ( SIT )

 

 

 

 

 

 

 

 

 

 

 

SNB Three-Month Target Libor Rate

Release schedule : Whenever the bank feels like it
Source of report : Swiss National Bank
Web Address : http://www.snb.ch/e/index3.html
Address of release : http://www.snb.ch/e/geldpolitik/geldpol.html

 

 

 

 

 

 

 

 

 

 

 

 

Solomon Islands Dollars

The currency of the Solomon Islands. Currency code ( SBD )

 

 

 

 

 

 

 

 

 

 

 

South African Rand

 

The currency of South Africa. Currency code ( ZAR )

 

 

 

 

 

 

 

 

 

 

 

Sovereign Debt

Sovereign debt is a financial liability of a national government. Sovereign debt usually refers to bonds which are denominated in foreign currencies. National governments are usually forced to take on sovereign debt when inflation is high or when exchange rates are unstable. Because the debt needs to be paid in a foreign currency, there is the risk that the national government cannot pay the debt come repayment time, which makes the yield of sovereign debt expensive.

 

 

 

 

 

 

 

 

 

 

 

Speculating

In the financial world, speculating can be described as the act of making an investment in a financial asset, hoping to make a profit when the asset appreciates ( or depreciate, when short selling )over time. In layman’s terms, a speculator will aim to “buy low and sell high ( or sell high and buy back at a lower price when shorting! ).
In the forex markets, retails traders are speculating when they try to make profit when one currency appreciates versus another currency.

 

 

 

 

 

 

 

 

 

 

 

Spot price

Also known as the current market price.

 

 

 

 

 

 

 

 

 

 

 

 

 

Spread betting

Spread betting is a type of speculation on the outcome of an event that involves betting on the price movement of an asset. A spread betting broker quotes prices for the bid and offer/spread, traders bet whether the underlying stock price will be lower than the bid or higher than the spread. In spread betting the investor doesn’t own the underlying stock, he just speculates on the price movement of the stock.

 

 

 

 

 

 

 

 

 

 

 

 

Sri Lanka Rupees

The currency of Sri Lanka. Currency code ( LKR )

 

 

 

 

 

 

 

 

 

 

Sovereign Debt

Sovereign debt is a financial liability of a national government. Sovereign debt usually refers to bonds which are denominated in foreign currencies. National governments are usually forced to take on sovereign debt when inflation is high or when exchange rates are unstable. Because the debt needs to be paid in a foreign currency, there is the risk that the national government cannot pay the debt come repayment time, which makes the yield of sovereign debt expensive.

 

 

 

 

 

 

 

 

 

 

 

Sterling

Slang for the British Pound. Currency code ( GBP )

 

 

 

 

 

 

 

 

 

 

 

 

Stochastic

Stochastic is an indicator used in technical analysis. Stochastic compares closing prices in a market to the high and low prices for that market over a certain period of time.Stochastic is calculated by taking the lowest low price and the highest high price for a number of previous trading periods, usually fourteen. The difference between the current closing price and the lowest low is divided by the difference between the highest high and lowest low, and the result is multiplied by 100. The product, expressed as a percentage, is considered to be the stochastic oscillator. Three varieties of this oscillator exist–fast, slow, and full–each applying a different transformation to the value of the basic stochastic oscillator.Stochastic can be used to determine when a market is overbought or oversold. According to technical analysis, when the stochastic oscillator rises above 80%, the market is overbought, and when the oscillator drops below 20%, the market is oversold. Thus stochastic can be thought of as strong selling or buying signals, respectively.When using stochastic, foreign exchange traders need to take into account the fact that the forex market, being a twenty-four hour market, has no closing prices. Forex traders typically use the price at the time of the New York Stock Exchange’s close as the forex market’s closing price, since the volume of trading drops off shortly after the close of the NYSE.

 

 

 

 

 

 

 

 

 

Stop order

An order sent to a broker which becomes a market order when the market reaches the specific price stated. In volatile ( or fast ) markets, slippage may occur.Stop orders are normally used to take the trader out of a trade in the event the market goes against his/her position.

 

 

 

 

 

 

 

 

 

  Sudan Dinars

The currency of Sudan. Currency code ( SDD )

 

 

 

 

 

 

 

 

 

 

Support

A level at which a currency has trouble falling below.

 

 

 

 

 

 

 

 

 

 

 

 

 

Support levels

Indicates a certain price high and low at which a given exchange rate will correct itself.

 

 

 

 

 

 

 

 

Surplus

Excess in the balance of trade, balance of payments, or government budgets.

 

 

 

 

 

 

 

 

SVME Manufacturing PMI

Release schedule : 7:30 ( GMT ); monthly, on the first business day of the following month
Revisions schedule : Revisions for the past few releases usually occur every month.
Source of report : Swiss Association of Purchasing and Materials Management
Web Address : http://www.svme.ch/
Address of release : Unknown

 

 

 

 

 

 

 

 

 

  Survey of Manufacturing – Canada

Release Schedule : 8:30 AM ( EST ); monthly, in the middle of each month
Source of Report : Statistics Canada
Web Address : http://www.statcan.ca/start.html
Address of Release : http://www.statcan.ca/english/Release/index.htm

 

 

 

 

 

 

 

 

  Suriname Guilders

The currency of Suriname. Currency code ( SRG )

 

 

 

 

 

  Supply and Demand

Supply refers to the amount of an asset that is available while demand is the quantity of an asset that people are willing to buy.As supply of an asset increases, its value declines. Conversely, as supply of an asset decreases, its value rises. As demand for an asset increases, its value rises. Conversely, as demand for an asset decreases, its value declines.Since this principle applies to the currency market, plenty of traders look at supply and demand for a particular currency at a given point in time to figure out whether that currency’s value will rise or decline.One way to gauge supply and demand is to picture a seesaw with all the fundamental factors affecting that currency. For example, when an economic report either increases demand or reduces supply for the US dollar, place that fundamental factor on the left side of the seesaw. When an economic event either decreases demand or increases supply for the US dollar, place that fundamental factor on the right side of the seesaw. If there are more factors on the left side, then the seesaw would tilt upwards and the US dollar’s value should rise. On the other hand, if there are more factors on the right side, then the seesaw would tilt downwards and the US dollar’s value should drop.
This way, traders are able to take note of all the recent fundamental factors that are affecting a particular currency. This is helpful in assessing whether that currency is performing relatively well.

 

 

 

 

 

  Strategists

Strategists are traders who anticipate upcoming reports and their impact on price action. They usually trade the news and come up with trade setups based on whether they think the actual figures will come in worse or better than expected. Because of that, strategists are a good source of trade ideas, especially for short-term trades.

 

 

 

 

 

 

 

 

Stop-loss order

A limit order in which a trade is closed when a specified price is reached causing a loss. Used to limit amount of losses in trades.

 

 

  Stocks

Stocks or equities refer to partial ownership of a company’s assets and profits. If you own a stock of a particular company, you are entitled to a proportional share of its profits. Stocks of companies can be bought and sold in stock markets, such as the New York Stock Exchange.

 

 

 

 

 

 

 

 

Stick Sandwich

 

A bullish reversal pattern with two black bodies surrounding a white body. The closing prices of the two black bodies must be equal. A support price is apparent and the opportunity for prices to reverse is quite good.

Stick-sandwich

 

 

 

 

 

 

 

Stagflation

Definition
As the name suggests, stagflation is a period in time when there is a combination of high inflation and economic stagnation. In essence, it is characterized by rising unemployment and declining business production while the prices of goods and services get higher. Both stagnation and inflation magnify each other, causing economic conditions to worsen further.Currency Impact One of the worst things that can occur to a currency is the effect of stagflation. It leaves very little room for central banks to move because it cannot raise interest rates enough to combat rising prices. When prices rise disproportionately to interest rates, the value of the domestic currency depresses. This, in turn, reduces the purchasing power of consumers. As such, foreign exchange markets usually see stagflation as negative for the domestic currency.

 

 

 

 

 

Squawk box

A speaker connected to a phone on a broker’s desk.

 

 

 

 

 

 

 

Swaziland Emalangeni

The currency of Swaziland. Currency code ( SZL )

 

 

 

 

 

 

  Sweeping

The process of converting Profits and Losses in another currency into U.S. dollars at the end of each trading day.

 

 

 

 

 

 

 

Swissy

Slang for the Swiss franc. Currency code ( CHF )

 

 

 

 

 

 

Swiss Industrial Production

Release schedule : 7:15 ( GMT ); quarterly
Revisions schedule : Revisions can be significant
Source of report : Swiss Federal Statistical Office
Web Address : http://www.bfs.admin.ch/bfs/portal/en/index.html

 

 

 

 

 

 

Symmetrical Triangle

A Symmetrical Triangle is a method of pattern trading based on a continuation pattern. Continuation patterns also include Ascending Triangles, Descending Triangles, Wedges, Flags, Rectangles and Pennants and are essentially technical patterns that are expected to lead to the continuation of an existing trend. Continuation patterns are considered a powerful trading tool as they usually result in extremely low risk trading opportunities and spectacular returns.A Symmetrical Triangle is most often known as a bullish continuation pattern whose technical targets are derived by adding the largest vertical height of the triangle to the ultimate breakout level, however Symmetrical Triangles can also be regarded as neutral. The Symmetrical Triangle in reverse ( or downtrend ) would be classed as bearish.Generally a Symmetrical Triangle results when there is an area of indecision within the marketplace where buyers are attempting to push prices higher but are met with resistance by sellers, the market reaches a pause as the direction of prices is questioned, typically because the forces of both sellers and buyers are equal.A series of rallies and sell-offs continues, each one smaller than the last and the triangle gradually eases upward. Eventually the area of indecision is resolved and the formation explodes, usually with an increase in volume.

Symmetrical-triangle

 

 

 

 

 

 

 

 

Syria Pounds

The currency of Syria. Currency code ( SYP )

 

 

 

 

 

 

  Swiss National Bank

The Swiss National Bank conducts the country’s monetary policy as an independent central bank. In so doing, it creates an appropriate environment for economic growth. The National Bank is obliged by the Constitution and statute to act in accordance with the general interests of the country. Its policy goal is price stability, while taking into account the economic situation.The Swiss National Bank is the central bank in the Swiss banking system. In addition to regulating the Swiss money supply and influencing the national interest rate–functions performed by any of the world’s major central banks–the Swiss National Bank plays a larger role than most national banks in attempting to influence the exchange rates between different national currencies, and is thus a key player in the foreign exchange market.Fixed exchange rates between national currencies were standard until the United States’ move away from the gold standard in 1971, which led to the present system of variable exchange rates beginning around 1973. In response to this, the Swiss National Bank–which remained mostly gold-backed for much of its history, until a recent large-scale gold sell-off near the start of the millennium–began attempting to maintain the stability of the Swiss franc by directly buying and selling foreign currencies through “swap” transactions, in which foreign currency is purchased at the beginning of a “swap” period and sold back at the conclusion of a “swap” period for a comparable exchange rate.Because the Swiss National Bank takes such an active role in influencing foreign currency exchange rates, the actions of the Bank should be carefully watched by any currency traders and appropriate measures taken in response. Additionally, the Bank’s willingness to deal with many forms of currency makes it an ideally stable point on which to base new investments in a variety of currency asset markets.

 

 

 

 

 

 

 

 

 

 

Swiss Francs

The currency of Switzerland. One of the major currencies traded. Currency code ( CHF )

 

 

 

 

 

 

 

Swing Trading

Traders who can react quickly to market changes, including at-home and day traders, benefit from swing trading, which is a trade strategy that involves holding a position for longer than a day. If a trade seems to be going sour, swing traders can exit the market before losing too much money.Swing traders usually maintain a position for 3-10 days, taking advantage of any positive swings in the market. They flow with the market, taking little trades here and there.In fact, swing trading sits squarely in the middle between day trading and trend trading in terms of the length of time invested in a position. These traders stick around just long enough to see how the wind will blow before deciding to stay and see a trend through or go on to more profitable pastures.

 

 

 

 

 

 

 

 

 

 

 

 

  Swap

The simultaneous buying and selling of the same amount of a given currency at a forward exchange rate.

 

 

 

 

 

 

 

Swedish Kronor

The currency of Sweden. Currency code ( SEK )

 

 

 

Swap

The simultaneous buying and selling of the same amount of a given currency at a forward exchange rate.

Terminology forex : R

Rally

An increase of price after a period of decline.

 

 

 

 

 

  Rate

The price of one currency in terms of another currency.

 

 

 

 

 

 

 

Raw Materials Price Index ( RMPI )

Release Schedule : 8:30AM ( EST ) roughly 30 days after the reporting month
Source of Report : Statistics Canada
Web Address : http://www.statcan.ca/start.html
Address of Release : http://www.statcan.ca/english/Release/index.htm

 

 

 

 

 

  Rectangles

A Rectangle is a method of pattern trading based on a continuation pattern. Continuation patterns also include Ascending Triangles, Descending Triangles, Wedges, Flags, Symmetrical Triangles and Pennants and are essentially technical patterns that are expected to lead to the continuation of an existing trend. Continuation patterns are considered a powerful trading tool as they usually result in extremely low risk trading opportunities and spectacular returns.The rectangle pattern generally reflects a consolidation period, usually of four to six weeks duration. This pattern regularly features well defined support and resistance levels, which are to be distinguished by horizontal lines.Upon breakout the Rectangle is most likely to continue the existing trend, however a failure to do so will deflect the rectangle from a continuation pattern to a reversal pattern leading to a downward trend, this is a relatively easy pattern to spot however as it will show in a minor sideways trend.If the rectangle continues to follow an uptrend, with breakout occurring on the upside then the rectangle is referred to as bullish, is the trend is reversed with the breakout occurring on a downtrend, or continuing in the original trend then the rectangle will be called bearish.

 

 

 

 

 

 

 

 

  Relative Strength Index

Relative Strength Index, sometimes shortened to RSI, is a price oscillator used in technical analysis to show changes in the strength of prices.
he Relative Strength Index is considered a popular tool and is a relatively easy one to interpret. This price following oscillator is depicted as a basic graph and ranges from zero to one hundred.
By far one of the most popular methods of analyzing the Relative Strength Index is to look for an area on the graph that shows a divergence away from the current trend, in particular seeking an area of divergence in which the currency price seems to be aiming to create a new high, but where the Relative Strength Index has as yet failed to reach a level on par with it’s previous price high.
This sort of divergence can often be considered a good indication of an impending price reversal to the current trend and when the RSI does reverse and falls in a down trend that extends below its most recent low, the RSI could then have been considered to have completed what is known as a ‘failure swing’. Such a swing is generally considered to be a confirmation of an impending reversal in the price of the currency in question.

 

 

 

 

 

 

 

 

  Request a New Term

Can’t find what you’re looking for?
That’s not possible, look again. The remote possiblity always exists that we have somehow missed a term or subject that just needs to be covered in Forexpedia. If this is the case, and you have nothing to offer on the subject/term, feel free to make a request below. But wouldn’t it be so cool to start your own article? We definitely want the information to be relevent and concise, but remember, Forexpedia is community driven. There is help if you need it.What that really means is if your stuff is just terrible, you’ll have people to back it up and make it better. Ummm, yea, that’s what that means.Put your request here! It’s easy:Register for a FREE Babypips.com account Log into Babypips.com and then head over to the Forexpedia Main PageUse the Quick Links section to come back to this page, Request for Existence Click the edit tab above, and make your requestThat’s it!And don’t forget to sign your name with the request! Add this to the end of your request: ~~~~. That gets you this: Forexgump 10:07, 8 January 2007 ( CST )Start the list below this line. Please do not edit anything above this line.[example] History of the US Dollar Bill –Forexgump 23:11, 6 November 2006 ( EST )[example] Your article on Gastro-intestinal Gravitational Physics is lacking… –Forexgump[example] What is a Stop Loss? –Forexgump 23:11, 6 November 2006 ( EST )They keep talking about buying or selling on the fix, profit taking after the fix. Euro selling is fix related? Just who is doing these fixes and why are they doing them? What exactly is a fix anyway? [User: Scalplady]Hey Scalpady – You would be better served in the BabyPips Forums with your question. Hop over to the Forums and start a new thread! Watch the feedback roll in! -ForexgumpWho’s next?There are some basic terms used throughout the sit that would be good to explain for completeness: convergence, divergence, consolidation, etc Daraknor 09:14, 14 April 2007 ( CDT )Term Defined -Consolidation definedTerm Defined -Divergence defined Yes, I have only been trading a minute. However, I feel that I want to use the Fibonacci Fan method. But I like to use “entry orders” to do so. What Brokerage companies execute “entry order” efficiently? Many will tell you how to set them but generally don’t execute the order ever or until afer the fact and the market has evolved and you have a different set of variables. -goingforex GoingForex, thanks for the question. You will be better served researching the forums for an answer to your question, and you might even consider starting your own thread. Although creating the term “entry order” is a possibility, I believe you are looking for a more timely response. Thanks! – Forexgump 13:31, 23 April 2007 ( CDT )
What do the terms hawkish and dovish mean? marksfxTerms Defined – hawkish and dovish. Enjoy!–Forexgump 06:08, 1 April 2009 ( UTC )
Shadows – Can anyone tell me what this term means? I have seen it used several times and can not find a definition of it. Thank you.
Term Defined – Shadows defined. PhreakNIK 22:34, 28 July 2009 ( UTC )draw down Term Defined – Drawdown defined. Pipstradamus 18:41, 18 May 2010 ( UTC )Ddinnov- Please can you explain a bit about “Confluence”?Guvernor – “Comdoll”

 

 

 

 

 

 

 

 

 

 

 

Reserve Bank of Australia

The Reserve Bank of Australia’s ( RBA ) main responsibility is monetary policy. Policy decisions are made by the Reserve Bank Board, with the objective of achieving low and stable inflation over the medium term.The Reserve Bank of Australia is the institution responsible for managing Australian currency policies. The Reserve Bank was founded in 1911, but achieved its present form in 1960 when the bank’s function shifted toward regulation and away from commercial banking.The Reserve Bank of Australia, like many central banks, has the power to increase or decrease the money supply in Australia. Unlike the US Federal Reserve, the Reserve Bank of Australia prints and destroys money directly, rather than working with other government institutions. The Reserve Bank also buys and sells treasury bonds to primary traders, which raises money for government operations as well as pumping money into the economy ( or removing an excess of money ) at critical junctures. The Reserve Bank also has the power to regulate nationwide interest rates, as well as to adjust the asset holdings of individual commercial banks, meaning that this Reserve Bank plays a heavy role in Australian financial affairs.
The Reserve Bank of Australia also publishes a number of reports on both a monthly and an annual basis. Traders in the Australian currency market consider these reports extremely accurate and useful in developing an idea of the state of the Australian economy at any point in time.Since trade balances depend on a nation’s money supply, the Reserve Bank of Australia’s actions play a large role in determining the behavior of the Australian currency market, a fact which many foreign exchange traders take advantage of by closely watching the Reserve Bank’s actions and taking appropriate actions.

 

 

 

 

 

 

 

 

 

 

 

  Reserve Requirement Ratio ( RRR )

The reserve requirement ratio ( RRR ) or cash reserve ratio ( CRR ) is the percentage of customer deposits and other liquid assets that commercial banks must store, within it’s own institution or with the central bank.The RRR is set by the central bank to ensure that commercial banks have enough assets to pay its depositors in case of unusually high withdrawals.
Some central banks use RRRs for monetary policy. Decreasing the RRR tends to stimulate economic activity as banks have more assets to loan out to borrowers.
Alternatively, increasing the RRR decreases the money available to potential borrowers, which could lead to a decline in economic activity and higher purchasing power of the money circulating in markets.

 

 

 

 

 

 

 

 

  Retail Sales

Definition:
An estimate of the total sales of goods by all retail establishments in the U.S. ( Sales of services are not included ) for month prior to the release of the report. Data are presented in nominal, or current, dollars, meaning they are not adjusted for inflation. However, the data are adjusted for seasonal, holiday, and trading-day differences between the months of the year.
Background
The report is generated from the receipts provided by participating randomly-sampled retailers. The report is expressed both in millions of dollars and as a percentage change from previous months, and data is broken down into a wide variety of retailer categories. Sales are categorized by type of establishment, not by type of good. Additionally, the report is usually made available with automotive sales excluded from estimates of total spending, since automotive sales vary widely from month to month and tend to skew data.
The use of the Retail Sales report in trading is clear, since the report provides extremely specific data about which industries and commodities consumers are spending most of their money on. However, one major drawback of the report is that it only reflects sale prices without taking into account inflation within the prices of certain volatile industries ( gas and other energies in particular. ) The report also doesn’t provide any data on service industry sales, making the Personal Income and Spending report more useful in this area. Still, traders consider the Retail Sales report one of the most generally useful of the economic indicators, with a wide range of applications for various asset markets.
Importance
Personal consumption expenditures ( PCE ) represent roughly two-thirds of GDP. By monitoring retail sales, policy makers are able to make an assessment of the likely growth of PCE for the current and future quarters.
Source
U.S. Department of Commerce, Bureau of the Census
Frequency
Monthly
Availbility
Advance estimate released during the second week of the month for the immediately preceding month.

 

 

 

 

 

 

 

 

 

 

  Retail Sales – Euro-zone

Release schedule : 9:00 ( GMT ); monthly, one month following the reporting month
Revisions schedule : Data is revised monthly to adjust for previously unavailable data from some member countries
Source of report : Eurostat
Web Adress : http://ec.europa.eu/eurostat
Address of release : http://ec.europa.eu/comm/eurostat
Long-term indicators > Industry, Trade and Services > European Business – Selected indicators for all activities ( NACE divisions ) > Wholesale and retail trade; repair of motor vehicles, motorcycles and personal and household goods > Retail trade, except of motor vehicles and motorcycles; repair of personal and household goods

 

 

 

 

 

 

 

  Retail Sales – United Kingdom

Revision schedule : Quarterly
Source of report : U.K. Office of National Statistics
Web Address : http://www.statistics.gov.uk/
Address of release : http://www.statistics.gov.uk/instantfigures.asp

 

 

 

 

 

 

 

 

 

 

 

 

Retail Trade ( Retail Sales ) – New Zealand

Release Schedule : 22:45 ( GMT ); monthly/quarterly, 2 weeks after each reporting period, with a more in-depth report released every Quarter
Source of Report : Statistics New Zealand
Web Address : http://www.stats.govt.nz/default.htm
Address of Release http://www.stats.govt.nz/products-and-services/info-releases/rts-info-releases.htm

 

 

 

 

 

 

Reverse Repo

A reverse repurchase agreement involves the purchase of securities with the promise to sell them at a higher price at a future date. For the buyer of the securities, it is a way to lend money and get paid with interest in the future. The securities serve as collateral for the loan. Conversely, for the seller of the securities, the reverse repo is a way to borrow money and pay back with interest later on.
Such agreement is a financial instrument which is often used to raise short-term capital. Government securities are often used as collateral for reverse repo agreements.
Central banks typically make use of reverse repo agreements to drain the reserves in the banking system before adding them back later on. For instance, the Fed uses a reverse repo to sell securities in exchange for US dollars in order to mop up the excess liquidity in the markets. In this case, reverse repos could serve as an alternative to tightening monetary policies such as raising interest rates or the reserve requirement.

 

 

 

 

 

 

 

 

 

 

 

  RICS House Price Balance – United Kingdom

Release schedule : 23:30 ( GMT ); Monthly, in the middle of the following month.
Revision schedule : Few or no revisions
Source of report : Royal Institution of Chartered Surveyors ( RICS )
Web Address : http://www.rics.org/
Address of release: http://www.rics.org/Property/Residentialproperty/Residentialpropertymarket/market_surveys.htm

 

 

 

 

 

 

 

 

 

 

 

 

  Rising Wedge

A rising wedge is a common chart pattern in technical analysis. The rising wedge is formed by drawing two ascending trendlines, one representing high prices and one representing low prices for an asset. The slope of the trendline representing the highs is lower than the slope of the trendline representing the lows, indicating that low prices are increasing more rapidly than high prices are. The resulting shape forms a gradually narrowing wedge, giving this pattern its name.Because the trendlines that describe the rising wedge are ascending, rising wedges are occasionally falsely thought of as continuation patterns for an overall upward trend. The seeming upward trend in asset prices invites bullish traders to begin investing in the asset, while bearish traders continue selling off their holdings and maintaining the strong upper line of resistance. ( This is reflected in the smaller slope of the upper trendline in the pattern. ) Since prices refuse to break the upper level of resistance, buying pressure gradually decreases, the lower level of support is broken, and the asset usually enters a strong downward trend. Thus a rising wedge should be taken as a strong sell signal and an indication that a market reversal is imminent

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk appetite

Risk appetite is a gauge of how “risk-hungry” traders are. If risk sentiment is up and times are good, risk appetite picks up and trader are more willing to invest in higher-yielding and/or potentially more volatile assets.In the forex market, this normally means that traders are more willing to invest in currencies that have higher interest rates ( i.e. Australian dollar, British pound ), equities and commodities.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Capital

Amount of money a person is willing to lose.

 

 

 

 

 

 

 

 

 

Rollover

Rollover is the interest paid or earned by a trader for holding a position overnight. Since every currency trade involves borrowing one currency to buy another, interest rollover charges are part of FX trading. Interest is paid on the currency that is borrowed, and earned on the one that is bought.For example, let’s say you have a long AUDJPY position. Assuming the AUD has an interest rate of 4.50% while the JPY has an interest rate of 0.10%, you will earn interest on the currency you bought and pay interest on the currency you borrowed. In the case given above, you will be earning 4.50% interest on the AUD minus the 0.10% interest of the JPY.Take note, however, that rollover only happens on positions that are held beyond 5 pm EST. In addition, many retail brokers adjust their rollover rates on a variety of factors like account leverage and interbank lending rates. It would be best to check with your broker for information regarding rollover.

 

 

 

 

 

 

 

 

Round trip

The buying and selling of a specified amount of currency.

 

 

 

 

 

 

 

 

 

 

 

 

Rwanda Rwanda Francs

The currency of Rwanda. Currency code ( RWF )

 

 

 

 

 

 

 

 

 

 

 

 

 

Range

The difference of the highest and lowest price in a given trading period.

 

 

 

 

 

 

 

 

 

  Rate of Change

Rate of change ( ROC ) is an indicator used in technical analysis. The basic logic behind ROC is the same logic that underlies momentum: the change in price levels over time, or the slope of the trendline. However, ROC differs from momentum in the focus traders place on the time period used to calculate ROC, while the value of momentum depends much more on the trendline chosen by the technical analyst than on the time period used.ROC is calculated by taking the current closing price, dividing it by the closing price some x number of periods ago, and multiplying the difference by 100. The resulting value for ROC is expressed as a percentage. The typical value of x is ten, although different results can be obtained by using greater or lesser values.Of special concern to foreign exchange traders is the lack of closing prices in the twenty-four hour forex market. Because of this, the closing price used in calculating ROC is commonly taken to be the closing price of the New York Stock Exchange, as once the NYSE closes, the volume of trading tends to drop off.ROC can be used to generate buy and sell signals in much the same way as momentum. If ROC is rising, short-term buying pressure is indicated; if ROC is falling, short-term selling pressure is indicated.

 

 

 

 

 

 

 

 

 

 

 

 

Recession

The newspaper definition of a recession is when the GDP rate declines by 2 or more consecutive quarters. The problem with this definition is that it makes it more difficult to say whether the economy is in a recession or not. This definition does not take into account other macroeconomic factors like unemployment.Economists say that other factors like industrial production, consumer confidence and capacity utilization should be taken into account when stating whether a recession is in place. Declines in these macroeconomic factors help give a stronger signal that a recession in place.The key economic variable to look at is the GDP rate, as it is a measure of the economic activity of the entire economy. If there is a continuous decline in GDP, it is a strong signal that a recession is in place. Other macroeconomic variables can be looked to support this claim.

 

 

 

 

 

 

 

 

 

 

  Referendum

The process of asking the general public to vote on a political decision. It is also known as a “plebiscite,” or a vote on a ballot question.

 

 

 

 

 

 

 

 

 

 

 

Relative Vigor Index

Definition:
Relative Vigor Index ( RVI ) is a technical indicator used to establish the level of energy, or vigor within the current market. When the market is up ( bull ), the closing price is generally of a higher level than the opening price of the market, with the opposite being true for a down ( bear ) market. By using the Relative Vigor Index to analyze the movements in price level between the open and close of the market, and by comparing this to results gained during subsequent and preceding days, we are able to ascertain the overall vigor of the market as so to better predict the outcome of certain trends.
RVI = ( Close-Open ) / ( High-Low )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Request Term

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  Reserve Bank of New Zealand

The Reserve Bank of New Zealand is New Zealand’s central bank, and its overall purpose is to maintain the stability and efficiency of the financial system.
The Reserve Bank of New Zealand is the institution responsible for managing New Zealand’s money supply and for preventing inflation or other severe economic problems within New Zealand. The Reserve Bank, established in 1939, differs from other major reserve banks ( including the US Federal Reserve ) in that it is entirely government-owned and centralized, and the Reserve Bank thus takes a much stronger hand than non-centralized reserve banks in regulating monetary activities.The Reserve Bank is directly and solely responsible for printing and destroying New Zealand currency. Since the Reserve Bank is willing to accept even non-legal tender as viable assets ( including severely damaged currency or coins and bills that have been withdrawn from active circulation ), this makes the New Zealand money supply slightly more stable than in some other countries, albeit harder to track precisely.The Reserve Bank also ensures a high measure of control over other New Zealand banks by requiring a quarterly disclosure statement from all banks operating in the country, giving the institution information about the financial health of individual banks as well as detailed data about each bank’s activities. The Reserve Bank also sets the Official Cash Rate ( OCR ), which can be adjusted at eight regular intervals throughout the year, as well as at unscheduled times in the event of an emergency. Due to the Reserve Bank’s policy of lending unlimited amounts of money to individual New Zealand banks at above or below the OCR, no bank can charge an interest rate higher than the OCR without being undercut by Reserve Bank funds, making the OCR an unusually stable interest rate nationwide.

 

 

 

 

 

 

 

 

 

 

 

  Resistance

An estimated price level at which people will sell.

 

 

 

 

 

 

 

 

 

 

 

 

Retail Sales – Canada

Release Schedule : Released mid-month at 8:30AM Eastern Time
Revision Schedule: Monthly ( with the next report )
Source of Report : Statistics Canada
Web Address : http://www.statcan.ca/start.html
Address of Release : http://www.statcan.ca/english/Release/index.htm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Retail Sales – Japan

Release schedule : 23:50 ( GMT ); monthly, one month after the reporting period
Revisions schedule : Little or no revisions
Source of report : Ministry of Economy, Trade and Industry ( Japan )
Web Address : http://www.meti.go.jp/english/index.html
Address of release : http://www.meti.go.jp/english/statistics/index.html

 

 

 

 

 

 

 

 

 

 

 

 

Revaluation

An increase in price due to central bank activity.

 

 

 

 

 

 

 

 

 

 

 

 

  Reward-to-risk ratio

The reward-to-risk ratio measures a trade’s expected returns against its predetermined risk of loss.
The ratio is computed by dividing the profit that a trade is expected to yield by the loss that the trade may incur.
For instance, let’s say that trader ABC expects to make $100 by buying EUR/USD. If he places his stop loss in such a way that he stands to lose just $25, the trade’s reward to risk ratio is 4:1 ( 100 / 25 ).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Rightmove House Prices Index

Definition: The Rightmove house prices index measures the change in prices of homes for sale based on sellers’ asking prices. Investors use it to gauge the health of the housing industry as rising house prices often indicates a healthy demand for homes.Because it is based on asking prices and not actual selling prices, it tends to have a relatively weaker impact on the markets compared to other housing prices reports.
fequency: Monthly
Availability: It is usually published three weeks into the current month and is the U.K.’s earliest report on housing inflation data.
Source: Rightmove ( http://www.rightmove.co.uk/ )

 

 

 

 

 

 

 

 

 

  Risk

A chance in which an effect will occur. Mainly used as a negative effect.

 

 

 

 

 

 

 

 

 

 

  Risk aversion

Risk aversion refers to when traders unload their positions in higher-yielding assets and move their funds in favor of safe-haven currencies. This normally happens in times of uncertainty and high volatility.In the forex market, currencies who have relatively higher interest rates are regarded as higher-yielding currencies. These are seen as “riskier” assets. Thus, in times of risk aversion, traders tend to unwind their positions in these currencies.In turn, traders end up parking their assets in less risky, “safer” currencies, like the U.S. dollar or the Japanese yen. These currencies are regarded to be safer because of the size of their capital markets and liquidity.

 

 

 

 

 

 

 

 

 

 

 

 

Risk management

The process and ability to limit and eliminate various types of risk.

 

 

 

 

 

 

 

 

 

  Romanian Lei

The currency of Romania. Currency code ( ROL )

 

 

 

 

 

 

 

 

 

 

  Russian Rubles

The currency of Russia. Currency code ( RUR )

 

Terminology forex : Q

Quantitative Easing

Definition
Central banks’ method of increasing money supply by printing new money and purchasing government securities. The process works as follows:
1. The central bank creates a pre-determined amount of money and uses it to buy government bonds in the market.
2. Because this reduces the supply of government bonds, their prices go up. This means that their yields are reduced.
3. The banks that sold the bonds back to the government now have more money to lend. Additionally, since the yield on bonds is lower, banks can also lower lending rates and stay profitable. Lower lending rates encourage consumers and businesses to borrow. These spur activity in the credit market and boost economic activity.
Currency Impact
Higher money supply encourages spending and thus stimulates economic activity. However, an increase in the amount of money in circulation results to a devaluation of the currency. Prices of goods and services will rise, giving rise to inflationary concerns. Depending on the scale of quantitative easing, the rise in prices could erode the value of the currency and undermine the increase in economic activity.

 

 

 

 

 

 

 

Qatar Rials

The currency of Qatar. Currency code (QAR)

 

 

 

 

 

Quote currency

The second currency in a currency pair.

 

 

 

 

 

 

 

Quantitative Analysis

Essentially, the trading concept of Quantitative Analysis involves the process of applying a business or financial technique that seeks to understand behavior within the currency market by applying a complex system of mathematical and statistical modeling, along with measuring of market values and research.Generally this is made possible through the method of applying a series of numerical values to certain variables, with which quantitative analysts try to replicate reality mathematically and so predict changes and moves with the markets.There are many reasons for employing a quant (as quantitative analysts are often affectionately known) as quantitative analysis itself can be carried out for a number of reasons, such as a performance evaluation, measurement, or valuation of a certain financial instrument. For example in foreign exchange terms for a certain trading pattern or style, while it can also be used to quite accurately to predict certain real world events such as changes in the price of shares and turning points in inflation.In broader terms, however, quantitative analysis is more simply a way of measuring and interpreting certain things and events and can be used for more common paced tasks as calculating simple financial ratios such as earnings gained per share, or for more complicated reasons such as to calculate option pricing or discounted cash flow.While there is no doubt that although quantitative analysis is indeed a powerful tool for evaluating investment potential, it’s really only one side of the story and its counterpart, qualitative analysis must also be utilized in order to gain the full picture.

 

 

 

 

 

 

 

 

 

 

 

Quote

Informs every market individual of market prices.

Terminology forex : O

Offer

The price a dealer is willing to sell a currency.

 

 

 

 

 

 

Offsetting transaction

A transaction that cancels or eliminates all market risk in an open position.

 

 

 

 

 

 

 

Oman Rials

The currency of Oman. Currency code (OMR)

 

 

 

 

 

 

One cancels the other order

An order in which one order will cancel when another order is executed. Also known as OCO.

 

 

 

 

 

 

Open position

An active trade that has yet to be closed.

 

 

 

 

 

 

 

Order

A request for a trade to be executed.

 

 

 

 

 

 

 

OsMA

OsMA is the abbreviation used to express a function of Oscillator within technical analysis, OsMA standing for Oscillator – Moving Average (or sometimes Oscillator – Moving Average of Oscillator.)
Oscillator itself is an indicator that allows the demonstration of the relationship between any two given set periods of the Moving Average, which may then be either expressed as a percentage or as a number. There are two forms of oscillator, the price oscillator and the volume oscillator.
Oscillator itself is a useful trend indicator and allows the discovery of short-term conditions that may have been either oversold or overbought. When the value of the oscillator begins to approach the upper extreme levels the asset can then be deemed to have been overbought, shows an example of oversell when it approaches the lower extremes.
OsMA, on the other hand allows a clear demonstration of the variance of the oscillator from its moving average, in which case the main line of the MACD then serves as the oscillator, with the signal line of the MACD becoming the moving average.

 

 

 

 

 

 

Overnight position

A position that stays open until the next trading day.

 

 

 

 

 

 

Over the Counter

A market conducted directly between dealers and principals via a telephone and computer network rather than a regulated exchange trading floor.
Stocks of small companies, bonds, and other securities that aren’t traded over a formal exchange can be traded over the counter. In over-the-counter markets, dealers, also known as market makers, buy and sell securities from their own inventories. As such, if an investor wanted to buy or sell a certain security, he would contact a dealer of the particular security and ask for appropriate bid or ask price.
In the U.S., the OTC Bulletin Board (OTCBB) is a popular electronic inter-dealer quotation system through which over-the-counter securities are traded. The OTCBB, and other inter-dealer quotation networks such as Pink Quote, is regulated by the Financial Industry Regulatory Authority (FINRA).
Forex trading also takes place in over-the-counter markets as transactions are executed outside of a centralized exchange. This is what allows forex traders to trade 24 hours a day as trading isn’t limited by the market hours of a formal exchange such as the New York Stock Exchange. Instead, traders are able to buy and sell currencies through a network directly connecting various banks, dealers, and brokers.

 

 

 

 

 

Outright Forward

Foreign exchange transaction involving either the purchase or the sale of a currency for settlement at a future date.

 

 

 

 

 

 

Organization of the Petroleum Exporting Countries

The Organization of the Petroleum Exporting Countries, also known as “OPEC,” is an intergovernmental organization of 12 oil-exporting countries that coordinates the petroleum policies of its members. Its mission is also to ensure the stabilization of the oil markets to secure a regular and efficient supply of petroleum to consumers, income to producers, and a fair return on capital to industry investors.

 

 

 

 

 

 

Operation Twist

Operation Twist pertains to the Federal Reserve’s action to sell short-term US Treasury bonds and invest the proceeds into long-term US Treasury bonds.
In September 2011, the Federal Reserve implemented Operation Twist in order to lower long-term interest rates. Lower interest rates would hopefully increase household and business borrowing and spending, therefore boosting the economy.

 

 

 

 

 

 

 

Open order

An order that will be executed when a specified market price is reached.

 

 

 

 

 

 

 

 

One Cancels Other Order

The execution of one order automatically cancels a previous order. Also referred to as OCO or “one cancels the other”.

 

 

 

 

 

Oil

Oil is a substance that is used for power and energy in order to run all the machines that we humans use. It is normally referred to as petroleum. It is important for consumers because they depend on oil for everyday activities. Naturally, companies also need oil to run their machinery and keep up production.However, like other commodities on the market, not all regions can produce the same amount of oil. Thus, the oil market is created in order to match supply and demand of oil. Oil is traded through the purchasing and selling of oil futures. Futures are contracts that carry an obligation between two parties to make a transaction in the future at a predetermined price and date. Such contracts are standardized in terms of quality, quantity and transaction date and are traded on regulated futures exchanges. The main exchange markets for crude oil are the New York Mercantile Exchange (NYMEX) and the Intercontinental Exchange (ICE). These exchanges are regulated by the Financial Services Authority (FSA) in the UK and the Commodity Futures Trading Commission (CFTC) in the US. The different types of oil that are produced also affect the way it is traded and where it is traded. As it is, when people talk about oil, they normally refer to crude oil, which is the type most traded the most on international markets.The biggest consumers of crude oil are (in millions of barrels per day):United States = 20.5 China = 6.5 Japan = 5.4 Germany = 2.6 Russia = 2.6 Canada = 2.3 – This shouldn’t come as a surprise – these nations all rely heavily on manufacturing and industrial production, and energy consumption. At the same time, the US, Canada, Russia and China are also some of the leading producers of crude oil. Of course, the biggest producer in the world is Saudi Arabia, with neighboring countries like Kuwait, Iran, UAE, and Iraq also being major producers of oil.There are several factors that influence the trading of oil. For one, global demand plays a major role in determining the price of oil. If demand is high and business is booming, production may pick up, which could lead to an increase in the demand of oil. The weather can also play a crucial role as it can affect the dynamics of supply and demand. Natural disasters could hinder the production of oil, which in turn could cause oil prices to rise. Of course, politics always plays a major role in crude oil – the wars in the Middle East are an example of this. Oil trading can also be influenced by how investors view the state of the dollar. Take note, oil is sometimes used as a hedge against inflation. Also, always remember that the crude oil is bought and sold in US dollars, the movement of the USD can affect the pricing of oil.

 

 

 

 

 

 

 

 

Offered market

Situation in which offers are greater than bids.