Glossary

glossary forex binary optionsOn this page you’ll find an explanation of the forex terms which you’re going to encounter in the strategy articles as well as in the free e-book of the OFS Trading System.

The glossary has been classified in alphabetical sequence, so you can easily find the forex term you’re looking for. If an article about a specific subject has already been written, you’ll find a reference to this article.

The forex glossary:

entry

This is the price at which the forex trader is going to buy or sell the base currency of a currency pair.

currency pair

Read more about currency pairs in the forex strategy article “What are currency pairs?”.

forex charts

Read more about forex charts/ forex graphs in the forex strategy article “The different forex charts”.

Fundamental analysis

Learn about fundamental analysis by reading the forex strategy article “The analysis’s of a forex trader“.

Market sentiment

Learn about market sentiment by reading the forex strategy article “The analysis’s of a forex trader“.

order

This is the instruction from a forex trader to the forex broker concerning buying or selling the base currency of a currency pair under specific conditions.

pip

Read about the meaning of a pip in case of forex trading in the forex strategy article “What does a pip stand for?” You can read more information about the value of a pip in the forex strategy article “The value of a pip”.

resistance

Resistance levels are price levels which cannot be easily exceeded by the price itself. At such a moment the number of sellers is increasing in relation to the number of buyers.

retracement

A retracement is a correction within the current trend. In that case the price is going to move towards the opposite direction of the trend for a short while, after which the price is then returning towards the direction of the original trend.

risk/reward ratio

Read more about the meaning of the risk/reward ratio in the forex strategy article “Probability in case of a forex trading system“.

sentimental analysis

Learn about sentimental analysis by reading the forex strategy article “The analysis’s of a forex trader“.

set-and-forget system

A forex trading system, in case of which you don’t have to keep sitting behind your display to pass on your orders or to monitor your trade(s). It so happens that you’ll know your entry, your stop loss and your take profit level beforehand.

spread

You can read everything you want to know about spread with regard to forex trading in the forex strategy article “What does spread mean?”.

stop loss

A stop-loss order is being used to step out of the market when a price, which has been fixed beforehand, is being reached. A stop loss order is being used as a protection against big losses and margin calls. The price of a stop-loss order is always lower when one has bought the base currency of a currency pair and the price of a stop-loss order is always higher when one has sold the base currency of a currency pair.

support

Support levels are price levels which hinder the price to get below them. As it happens at that very moment the number of buyers would be increasing compared with the number of sellers.

take profit

A take profit order is being used to step out of the market when a price, which has been fixed beforehand, is being reached. A take profit order is being used to secure profits. The price of a take profit order is always higher when one has bought the base currency of a currency pair and the price of a take profit order is always lower when one has sold the base currency of a currency pair.

Technical analysis

Learn technical analysis by reading the forex strategy article “The analysis’s of a forex trader“.

time frames

Read more about the various time frames in the forex strategy article “The various forex charts”.

trade setups

There is a question of a trade setup when the conditions of a trading system are met and so conceivably a position could be opened.

trading platform

A forex trading platform is a software package, by means of which forex traders can carry out forex transactions via the internet.

trend

When the price of a currency pair is clearly going up or going down, we speak of a trend. When the price is going up, we speak of an uptrend and when the price is going down, we speak of a downtrend.

trend reversal

There is a trend reversal when the original trend is being broken through and the price is going into the opposite direction of the original trend.

win ratio

The ratio of the number of profitable trades in relation to the number of loss-making trades. In this case the amount of money that has been won or lost is not being taken into account.

Win ratio = Profitable trades : Loss-making trades

Be Sociable, Share!