Forex Account historyThe Forex Account history window is where the client can access reports that show in detail the activity as a client of PAXFOREX. The client can customize report to a specific time period.
Aggregate DemandTotal demand for goods and services in the economy. It includes private and public sector demand for goods and services within the country and the demand of consumers and firms in other countries for good and services.
Aggregate risk
Aggregate Supply
Application
Appreciation
Arbitrage
Asset Allocation
Ask
“At best”
“At or Better”
Authorized Agent
Back OfficeThe customer support area for PAXFOREX in charge of Forex Account setup, funds transfers into and out of the customer Forex account, trade reconciliation issues, customer inquiries, and other activities that do not directly involve the buying or selling of a currency pair.
Balance of PaymentsA systematic record of the real economic transactions during a given period for a particular country. Countries are either in a balance of payment excess or balance of payment deficit. Prolonged balance of payment deficits could lead to restrictions in capital transfers, and or decline in currency values.
Balance of Trade or Trade Balance
In general terms, the value of exports less imports for a particular country. A balance of trade deficit is when a country imports more than it exports. A balance of trade surplus is when a country exports more than it imports. If a country is in a prolonged trade deficit condition, the currency versus its trading partners should decline or weaken making the cost of imports more expensive and exports cheaper for the trading partners.Bank line
Line of credit granted by a bank to a customer, also known as a "line".
Banking day (or Business day)
Bank of Japan or BOJ
The central bank of Japan.Base currency
The first currency in a currency pair. In the currency pair EURUSD, the Base Currency is the EUR. When entering a contract with PAXFOREX, the base currency remains constant at a contracted lot value amount. For example, if a lot is 100,000, the customer who transacts to buy 1 lot of EURUSD at a currency rate of 0.9900 would be contracting to exchange 100,000 EUR for $99,000 USD.Base Rate
A term used predominantly in the UK for the rate used by banks to calculate the interest rate charged to borrowers. Top quality borrowers will pay a small amount over base rate while lesser quality credits will pay a rate much higher than the base rate.Basis point
A measure used for describing interest rates, equal to one hundredth of a percentage point (0.01%).Bear market
A situation whereby there exists prolonged period of generally falling prices for a particular investment product.Bear Squeeze
The condition in the market where investors or traders who are short an investment product are forced to cover their position because a rising market condition, has inflicted losses on the Forex account.Bear
An investor who believes that price of an investment product is going to fall.Best-Efforts Basis
The execution of an order at the next available price taking into consideration the volume available to buy or sell at that price and the quantity and volume of orders that precede the customers order.Bid
The price at which PAXFOREX (or another counterparty) offers to buy the currency pair from a customer.Big Figure
The price of a financial instrument / security expressed in terms of whole quote amount, instead of including any decimal values. For example, a financial instrument is trading at 210.52 would have big figure of 210. Many traders do not include the big figure when providing quotes, especially for currencies, because they assume other traders already know them. The big figure is also called a handle.Bond
A debt investment in which an investor loans money to an entity (corporate or governmental) that borrows the funds for a defined period of time at a fixed interest rate. Bonds are used by companies, municipalities, states and U.S. and foreign governments to finance a variety of projects and activities.Break or Break out
Term used to describe a sudden or rapid fall in instruments pricing away from a consolidated range.Broker
An agent, who executes orders to buy and sell currencies and related instruments either for a commission or on a spread.Brokerage
Commission charged by a broker.Bull market
A prolonged period of generally rising prices for a particular investment product.Bull
An investor who believes that prices of particular investment products are going to rise.Bundesbank
The Central Bank of Germany.Business Day
Any day on which commercial banks are open for business other than Saturday or Sunday in the principal financial center of the country in whose currency a position is taken.Buy Limit
Specifies the highest price at which the purchase of the Base Currency in a Currency Pair can be executed. The limit price in a Buy limit order should be BELOW the current BID price.Buy Stop
A Buy Stop is a Stop Order that is placed ABOVE the current Ask price and is not activated until the market Ask price is at or above the Stop Price. The buy stop order, can be execute at the not requested price.CableA term used in the foreign exchange market for the US Dollar vs. British Pound rate.
CarryThe interest cost of financing securities or other financial instruments held.
Cash
Cash on Deposit
Central Bank
CFD
CFTC
Chartist
Client or Customer
Closed position
CME
Commodity
Commission
Confirmation
Consumer Price
Conversion Rate
Correspondent Bank
Counter Currency
Counterparty
Country risk
Cover
Credit Risk
Cross Currency Contract
Currency
Currency Pair
Customer Forex Account
Daily Cut-off (or Close of Business Day)The single point in time that signifies the end of that Business Day. The Trade Date of any Contract entered into after the Daily Cut-off shall be considered executed on the next Business Day. The Daily Cut-off will occur at a time selected on any Business Day solely by PAXFOREX and may be changed at the discretion of PAXFOREX.
Day OrderAn order that if not executed on the specific day is automatically canceled.
Deal Blotter
Deal date
Deal Ticket
Dealer
Dealing Desk
Depreciation
Depth of market
Details
Devaluation
Discretionary Income
Domestic Rates
“Done”
Down tick
EasingA decline in interest rates initiated by the central.
ECUEuropean Currency Unit.
Either way market
Equity
Euro
Euro Rates
Eurocurrency
Eurodollars
European Union
Exchange
Exchange control
Exotic
Expiration date
Fast marketThe rapid movement of prices or rates in a market caused by disequilibria in supply and demand conditions from buyers and /or sellers. In such circumstances rates or prices may not be readily available to clients until orderly markets resume.
Fed Fund RateThe short term (overnight) rate pegged by the Federal Reserve Bank used to conduct monetary policy and affect changes in the money supply that causes changes in the level of activity in the United States economy.
Fed Funds
Fed
Federal Open Market Committee
Federal Reserve Board
Federal Reserve System
Fill or Filled
Firm quotation
Fiscal Policy
Fixed dates
Fixed exchange rate
Fixing
Floating exchange rate
Floating Profit/Loss
FOMC
Foreign Exchange
Forex
Forward Deal
Forward Rate
Free Margin
Fundamentals
Futures contract
FX
G7The seven leading industrial countries, being US , Germany, Japan, France, UK, Canada, Italy.
G10G7 plus Belgium, Netherlands and Sweden, a group associated with IMF discussions. Switzerland is sometimes peripherally involved.
Going long
Going short
Good till canceled (GTC order)
GTC
“Hit the bid”Term used to describe the action of a seller of a currency pair when wanting to sell at the market bid side.
HolderBuyer of a CFD on foreign exchange, CFD on spot metals, CFD on stocks, CFD on futures and other financial derivatives.
Indicative quoteA market-maker's price which is not “firm” or “firm quotation.”
Initial margin requirementThe minimum Margin Balance necessary to establish a NEW Open Position. PAXFOREX reserves the right to change the Initial Margin requirement at its sole discretion. The Initial Margin requirement can be expressed as a percentage or can be calculated by the Leverage Ratio. For example, a $100,000 position in USDCHF would require $200 of margin given a 0.2% Margin Requirement. Expressed as a leverage ratio, if 1:500 leverage ratio is used a $100,000 position would require the same Initial Margin ($100 000/1:500 = $200).
Interbank Market
Intervention
Intra day position
Intraday trader
Introducing Broker
KiwiSlang for the New Zealand dollar.
LeverageThe control of a large speculative position through the use of a small amount of capital.
Limit orderA Limit Order is a Customer Order to Buy or Sell a specific amount of a Currency Pair at a specific user defined price. A Limit Order does not guarantee execution; rather it guarantees only that if execution occurs, it will be at the stated Limit Price. Note that sometimes the market briefly touches a limit price, only to immediately retreat back away from the limit price level with very little if any volume traded. Under such circumstances the Limit Order may not have be executed and the limit order will remain in effect, until that time when the order can be executed or until the Customer cancels the order. A Limit Order specifies that execution should be attempted after the market reaches or goes through a set price level - the limit price. Once issued, the limit order will be held pending until the limit price is reached. Once the market hits or goes through the limit price, the order is triggered and the PAXFOREX dealer attempts to execute the order at the Limit Price.
Limit Price
Liquidation
Liquidation Level
Liquidation Level Excess/Deficit
Liquidity
Long
Loss in Excess of their Margin Deposit
Lot
Maintenance MarginThe minimum margin, which an investor must keep at PAXFOREX to maintain an open position.
Maintenance Margin Excess/ DeficitRemaining funds against which a trader can maintain/hold a position(s) until a Margin Call is triggered. Maintenance Margin Excess/Deficit = Forex Account Value/Maintenance % * Margin. It is represented graphically as the top of the red level in the PAXFOREX Margin Monitor.
“Make a market”
Margin
Margin Call
Margin Level
Mark to Market
Market maker
Market order
Market Watch
Maximum Trading Leverage Ratio
Moving Average
Net Interest Rate DifferentialThe difference in interest rates from the countries of two different currencies. For example, if the spot next rate for the Euro is 3.0 % and the spot next rate in the US is 1.25%, the interest differential is 1.75% (3.0% - 1.25% = 1.75%).
NettingThe method of settling under which only the differences in the traded currencies are settled at the close.
OCO Order (One Cancel the Other Order)A One Cancels the Order is a Stop and Limit orders set simultaneously, whereby once either one is executed, the other is canceled. For example, an OCO may be place to close an existing position either with a Limit (take profit), or with a protective Stop (stop loss).
OfferThe price at which a dealer is willing to sell. The Offer is also called the Ask or Ask Price.
Offered market - Temporary situation where offers exceed bid.
Old Lady
Omnibus Forex Account
Open position
Option
Order(s)
OTC Margined Foreign Exchange
Overnight
PAXFOREX Demo Forex AccountPAXFOREX maintains a demo Forex account that is a full feature replica of the Forex Trading account used by authorized PAXFOREX margined clients to enter into contracts to buy and sell CFD on foreign exchange, CFD on spot metals, CFD on stock, CFD on futures and other financial derivatives from PAXFOREX. The demo Forex account allows potential PAXFOREX clients to get used to the actual Forex trading platform's functionality and features without risking their capital by executing contracted trades. Since, the Froex demo account does not involve actual deals or contracts, any profit or loss generated by using the Forex demo account do not accrue nor are they an obligation of the demo customer. It is strictly for demonstration purposes only.
FOREX Trading AccountThe Forex Account used by authorized PAXFOREX customers to trade CFD on foreign exchange, CFD on spot metals, CFD on stocks, CFD on futures and other financial derivatives for the purpose of speculating on the direction of the currency / stock / future / metals rates movements. Any transactions done on the Forex Trading Account is a legally binding contract that the client is responsible for as per the Customer Agreement and other documents presented and signed by the client.
PAXFOREX Risk Disclosure document
PAXFOREX software
Pip
Position
Principal
Profit Taking
QuoteConsists of the Bid and Ask for a currency pair, stocks, CFDs contract and etc.
RangeThe difference between the highest and lowest price of a future recorded during a given trading session.
RateThe price of one currency in terms of another, normally against USD.
Realized PL
Regulated Market
Resistance Point or Level
Right hand side
Risk Capital
Running a position
SecuritySecurity is a financial instrument representing financial value. It’s broadly categorized into:
- Debt securities such as:
o Banknotes and bonds
- Derivatives contracts:
o like forwards, futures, options.
- Equity securities
o stocks
Same day transactionA transaction that matures on the day the transaction takes place.
Sell Limit
Sell Stop
Settlement date
Short
Short Covering
Sophisticated Foreign Exchange Investor
Sovereign risk
Speculative
Spot
Spot price/rate
Spot Settlement Basis
Spread
Square
Squawk Box
Sterling
Stop loss order
Stop Price Level
Stocks
Stop out level/ Margin Call
SWAP or Rollover
SWAP credit
SWAP Debit
SWIFT
Swissy
"Take the Offer"A verbal market order whereby the customer wants PAXFOREX to pay the Ask or Offer price for a customer desired amount of lots.
Technical CorrectionAn adjustment to price not based on market sentiment but technical factors such as volume and charting.
Thin market
Tick
Tomorrow next (Tom next)
Trade date
Trading Platforms
Transaction date
Transaction
Two-Way Quote
Uncovered positionAnother term for an open position.
Underlying instrument / assetIt could be an instrument such as foreign currency, bonds, or shares or stocks or a commodity such as gold, crude oil, coffee, or even sugar. Whatever the underlying asset involved, it is by nature valuable on its own and very easy to sell.
Unrealized PL
Up tick
US Dollar
Value DateFor exchange contracts it is the day on which the two contracting parties exchange the currencies which are being bought or sold. For complete description see the chapter on trading. For a spot transaction it is two business banking days forward in the country of the bank providing quotations which determine the spot value date. The only exception to this general rule is the spot day in the quoting centre coinciding with a banking holiday in the country(ies) of the foreign currency(ies). The value date then moves forward a day. The enquirer is the party who must make sure that his spot day coincides with the one applied by the respondent. The forward months maturity must fall on the corresponding date in the relevant calendar month If the one month date falls on a non-banking day in one of the centers then the operative date would be the next business day that is common. The adjustment of the maturity for a particular month does not effect the other maturities that will continue to fall on the original corresponding date if they meet the open day requirement. If the last spot date falls on the last business day of a month, the forward dates will match this date by also falling due on the last business day. Also referred to as maturity date.