Regulated Market
In order to protect investors, the market is oversighted and controlled in accordance with relevant laws and regulations by the government bodies.
Base Currency
A currency pair is the quotation of two different currencies, with the value of one currency being quoted against the other, such as EUR/USD.
Currency Pair
A currency pair is the quotation of two different currencies, with the value of one currency being quoted against the other, such as EUR/USD.
Exchange Rate
An exchange rate is the value of one nation's currency versus the currency of another nation or economic zone.
Trading volume
Volume is the number of shares or contracts traded in a security or an entire market during a given period of time.
Currency Appreciation
The increase of the value of one currency in relation to another currency.
Currency Futures
Currency futures can be used to hedge other trades or currency risks, or to speculate on price movements in currencies.
Bull Market
When a certain security, asset or market price is on the rising trend.
Bear Market
When the price of a certain security, asset or market is in a downward trend.
Slow Market
Because of the low volume of transactions, the selling price and the buying price are broad and the liquidity of trading instruments is low in the market.
central bank
A central bank or monetary authority is a monopolised and often nationalised institution given control over the production and distribution of money and credits. It also implements the government's monetary policy by changing interest rates.
monetary policy
The central bank manages the country’s money supply. Monetary policy based on economic theory shows that controlling the growth of money in the economy is the key of controlling prices and inflation. However, the central bank’s monetary capacity is severely limited by global financial flows, which forces them to use indirect tools to manipulate the exchange rate.
Monetary easing policy
By changing interest rates, money supply and deposit ratios, it moderately loosens monetary constraints.
Market intervention
Action taken by the central bank to influence its monetary value by entering the market. Coordinated intervention means that a number of central banks take action to control the exchange rate.
Bank Rate
The interest rate at which a nation's central bank lends money to a domestic bank.
Interbank Rate
The interbank rate is the rate of interest charged on short-term loans made between banks.
Floating Exchange Rate
The exchange rate is not fixed and adjusted according to the supply and demand of the certain currency relative to other currencies.
Forex Spot Rate
The current exchange rate at which a currency pair can be bought or sold.
Forward Rate
In trading where the settlement date is more than 2 business days after the transaction date, forward rates are used to express the value of one currency by the other currency. Forward rates are calculated from the spot rate and are adjusted for the cost of carry to determine the future exchange rate.
Cross rate
A cross rate is used to refer to currency quotes between two currencies that do not involve the U.S. dollar.
Currency devaluation
Currency devaluation is the deliberate downward official adjustment of the value of a country's currency relative to another currency.
Interest Rate Definition (IRD)
The difference between the interest applicable to the currency pair.
Foreign Exchange
Buying and selling foreign currencies in the global market.
foreign exchange market
Foreign exchange market is a market for international currency trading. About $3,000,000,000,000 USD currencies are traded in the global foreign exchange market every day, making foreign exchange greater than the sum of all bond markets. Currency markets exist in the form of spot, forward, futures and options markets.
Market making
When a dealer provides a selling price and a buying price that are ready to be bought and sold at any time, it is called market making.
Market maker
A market maker is an individual or company that is authorized by a national regulatory agency to create and maintain a market on a trading instrument.
Two-Way Quote
A two-way quote is a type of quote that gives both the bid and the ask price of a security, informing would be traders of the current price at which they could buy or sell the security.
Trading order
A trading order is a certain number of contracts that financial futures investors place orders to brokers and brokerage companies for futures trading.
Leverage
Leverage is provided by brokers to traders to maximise their purchasing power. In this way, they can trade a larger amount of money by only investing a small amount of money. Leverage is expressed in terms of leverage ratio. For example, when the leverage ratio is 1:100, the purchasing power of a trader will be magnified 100 times.
Liquidity
The tradable size of the currency pair in the market. A mobile market is always characterised by buyers and sellers in the market. Market liquidity could also refer to the extent to which a market allows assets to be bought and sold at stable prices.
Volatility
Volatility refers to the level of uncertainty surrounding price uncertainty of a certain security/currency pair.
Over the Counter
The traditional way of forex trading is "Over the Counter". It means that foreign exchange is traded on the phone or on electronic devices.
Working day
The days when banks in major financial centres open for business. For foreign exchange trading, the working day is limited to the days when the banks (in the case of intersections, all relevant currency centres) open for business within the two.
Risk Management
Investors' tools and strategies which are used to limit financial risk as much as possible.
Arbitrage trading
Arbitrage transaction can be carried out in the foreign exchange market. For example, investors can borrow low-interest currencies (such as Japanese Yen and Swiss Francs) from institutions such banks. After that, in the foreign exchange market, these low-interest currencies are replaced by high-interest-rate currencies (such as the Australian dollar, New Zealand dollar, and British pound).
Carry Trade
Investors loan money at a lower interest rate. In this way, they can buy assets that may generate higher returns.
Hedge
Investors use hedging transactions to protect themselves and reduce the risk of reverse market volatility. Hedging means making two offsetting investments. In this way, the losses caused by price fluctuations are minimised.
Round-Trip Trading
The way of trading that established buying and selling simultaneously.
Forex Scalping
Forex scalping is a trading strategy used by forex traders to buy or sell a currency pair and then hold it for a short period of time in an attempt to make a profit. A forex scalper looks to make a large number of trades and earn a small profit each time.
Fundamental Analysis
Fundamental analysis is a method of evaluating the intrinsic value of financial market by examining the impact of related economic, financial, and other qualitative and quantitative factors financial market prices (interest rate, unemployment rates, etc.).
Inflation
Inflation is a quantitative measure the rate at which the average price level of a basket of selected goods and services in an economy increases over a period of time with a decrease in the purchasing power of a nation’s currency. Sometimes, it also refers to excessive movement of such price levels.
Technical Analysis
Traders use technical tools to evaluate prices by analysing market/historical data through charts and technical indicators.
Resistance (Resistance Level)
Technical analysts predict prices that could lead to resistance. Resistance levels can be short lived if new information comes to light that changes the overall market’s attitude toward the asset
Technical Correction
Price adjustments which are not based on market sentiment, but on technical factors such as trading volume and chart.
Depth of Market
DOM is a window that shows the number of open buy and sell orders for a certain financial instrument at different prices.
Backstage
Software programs undertaking clearing and managing transactions.
No Dealing Desk
The direct access to the interbank market without involving any processing platform.
Foreign exchange trading
Trading in the foreign exchange market always occurs in the currency of the benchmark quote. "Buying USD/JPY" means buying USD/selling JPY.
Margin
Amount of currency required to maintain an open position in the account.
Margin Call
The notice which reminds investors that they need to deposit more funds in the trading account. In this way, there can be enough margin in the account to maintain the current established position.
Lots
The standard unit of the number of transactions. In the foreign exchange market, a standard lot equals 100,000 units of a certain currency.
Market Order
An order to execute a trade instantly at the best effective price.
Pip
The smallest unit of change in the exchange rate. Under most circumstances, the currency pair quote is accurate to four decimal places. The last decimal place shows the smallest price change.
(Ask)
The trader accepts the price of buying the financial product.
(Bid)
The price at which a trader is prepared to sell a certain financial product; the price that investors are willing to buy.
Middle Rate
The median average price between the ask and bid in trading market.
Spread
The gap between the bid and the ask prices of a currency pair.
Contract price
The agreed exchange rate of currency pairs. Currency pairs can be exchanged at the exchange rate on the settlement date.
Position
Popular terms in the financial and business world. It refers to the amount of funds the investor owns or borrows. It is a market agreement that promises the initial part of a sale and purchase contract. Buyers who buy the contract hold long positions and are in the hope of increase. The sellers hold short positions and are in the hope of decrease.
Long position
Long position generally refers to investors who evaluate a certain security or market price to be in the bullish in the financial market and then buy commodity contracts. Investors earn profits after the price rising.
Execution
mplement and complete a transaction.
Fill
Close an order.
Fill Price
The price of a fill when the transaction is completed.
Market Execution
An order that requires a current quote to be filled.
Limit Price
Specific price mentioned in the limit order.
Buy Limit Order
An order to execute a trade at a specific price or below the current price. "Limit price" refers to a specific price.
Limit Order
Order settings for executing trades at a specific or better price.
Stop Loss Order
When an order is bought or sold when a certain price is reached, such an order is set to limit the position loss.
(T/P)Take Profit Order (T/P)
Once a specific price is reached, the order is closed.
Fill or Kill
When an investor wants to execute a trade at the particular price, they set a deal or cancel the order. This means that if the order is not executed at the specified price, it will be terminated or cancelled.
Open Position
Open a position in a financial product (currency pair/security, etc.). It may make profits or even loss.
Closed Position
When a position is closed, the transaction is completed.
Profit Taking
Close the position and make a profit.
Yield
Yield refers to the earnings generated and realized on an investment over a particular period of time, and is expressed in terms of percentage.
Stop Loss
When the loss of an investment reaches a predetermined amount, it should be timely out of the position to avoid a greater loss.
Slippage
Slippage refers to the difference between the expected price of a trade and the price at which the trade is executed. A strong investment platform could often reduce the slippage on the platform, for big traders can get a better price and a larger trading vol-ume from the quotation banks.
Overnight Position
Hold the position which has not been closed until the second trading day.
Mark-to-Market
The holding position is evaluated based on the value of the current market value.
Rollover Rate
In the foreign exchange market, overnight interest is the interest paid or earned for the overnight position.
Day Trade
A transaction that opens and closes a position within the same trading day.
Closing Market Rate
This is the final price of a financial product on a particular trading day, candlestick chart or time period.
Drawdown
A drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund. A drawdown is usually quoted as the percentage between the peak and the subsequent trough.
Forex Chart
Draw a digital chart of currency/price volatility and help investors make informed trading decisions.
Daily Chart
The chart that shows the intraday fluctuations of a certain financial commodity price.
Bar chart
A type of chart. It consists of four significant points: the high and low prices, forming the vertical lines; the opening price, marked with the horizontal lines to the left of the bar chart; and the closing price, marked with small horizontal lines to the right of the bar chart.
Candlesticks
One type of chart, including four main prices: high price, low price, opening price, and closing price. The main body (base) of the candle consists of the opening price and the closing price.
Resistance
When a certain financial product finds a price level that is difficult to break through, the price may start to fall due to the resistance level.
Delivery date
For foreign exchange contracts, it is the date on which the contracting parties exchange currency that is being bought or sold. For spot transactions, it is the two forward business banking working days of the country or region where the bank is providing the offer, and the spot delivery date is determined.
Delivery on the same day
The settlement date is the same day as the trading day.
Next day delivery
The settlement date is the business day after the trading day.
Extension
The scheduled date or period that is deferred and extended.
ECN Broker
A broker that provides customers with direct connectivity to liquidity services using an electronic communication network (ECN).

Start trading with CWG today

On Forex, popular Equity Indices and Commodity CFDs

Or. not ready yet? Try a demo account