Forex Money Signal Glossary For All The uestions You Have

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Candlestick Chart: A chart that displays the daily trading price range (open, high, low and close). A form of Japanese charting that has become popular in the West. A narrow line (shadow) shows the day's price range. A wider body marks the area between the open and the close. If the close is above the open, the body is white (not filled); if the close is below the open, the body is black (filled).

Carry (Interest-Rate Carry): The income or cost associated with keeping a foreign exchange position overnight. This is derived when the currency pairs in the position have different interest rates for the same period of time.

Central Bank:A bank, administered by a national government, which regulates the behavior of financial institutions within its borders and carries out monetary policy.

Chartist:A person who attempts to predict prices by analyzing past price movements as recorded on a chart.

Closing a Position:The process of selling or buying a foreign exchange position resulting in the liquidation (squaring up) of the position.

Closing Market Rate:he rate at which a position can be closed based on the market price at end of the day.

Commission:The fee that a broker may charge clients for dealing on their behalf.

Confirmation:Written acknowledgment of a trade, listing important details such as the date, the size of the transaction, the price, the commission, and the amount of money involved.

Correspondent Bank: The foreign banks representative who regularly performs services for a bank which has no branch in the relevant centre, e.g. to facilitate the transfer of funds. In the US this often occurs domestically due to inter state banking restrictions.

Counterpart:A participant in a financial transaction.

Cover:(1) To take out a forward foreign exchange contract. (2) To close out a short position by buying currency or securities which have been sold.

Cross-Rate:The exchange rate between 2 currencies where neither of the currencies are USD.

Currency: Money issued by a government. Coins and paper money. It is a form of money used as a unit of exchange within a country.

Currency Pair:The two currencies in a foreign exchange transaction. The “EUR/USD” is an example of a currency pair.

Currency Risk: The risk that shifts in foreign exchange rates may undermine the dollar or any other foreign currency value of overseas investments.

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