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Home » Forex Glossary

Forex Glossary

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Advance Retail Sales - United States

A monthly measure of retailers sales of goods to consumers in the United States. Essentially retail sales are determined by accumulating all sale receipts, in nominal dollars,... Read More »

Advanced Retail Sales

This statistic measures total sales in dollars at all retail outlets. Retail spending constitutes a particularly large percentage of consumer spending. As such, retail output... Read More »

American Option

An American option, as opposed to European-style options, can be exercised anytime between the its date of purchase and expiration date. Due to this level of freedom to exercise... Read More »

Annual Percentage Yield

Annual Percentage Yield, or APY for short, is the annual rate of return for compounded interest. It is often used for interest bearing savings accounts. credit cards and general... Read More »

Ascending Triangles

A chart pattern that is representative of a bullish commodity. The shape of the chart is what characterizes its name. The crests of the chart are bounded above by a horizontal... Read More »

Australian Economic Indicators

The following is a breakdown of key economic reports in Austrailia's Economic Indicators: Balance of Payments (Current Account, Trade Balance, Imports, Exports); GDP and Output... Read More »

Average Daily Volume

The daily quantity of shares or unites traded. After a certain period of time, usually in a year's time the number of shares are averaged. The average daily volume of the forex... Read More »

Average Directional Index (ADX)

The average movement of the DMI trend. Generally, an ADX trend is strong if the reading is above 40. The trend is weak if the reading is below 20. ... Read More »

Average Directional Index ADX

The ADX shows the actual strength of trends and are exemplified by two lines +DI and -DI. The relationship between these two lines indicate whether it is advantageous to buy or... Read More »

Average True Range

A country's comprehensive report on its economic transactions such as activity in the country's reserves, income earned overseas, goods and services traded internationally, as... Read More »

Balance of Payments (BOP)

An account of payments and net transfers made between two countries. One of the two countries is named the “home country,” and the BOP is recorded from the viewpoint of that... Read More »

Bank of Canada Rate Decision

A decision made by the Bank of Canada to alter or maintain its interest so as to maintain the Bank’s inflation target of 1 to 3 percent. An increase in the interest rate tends... Read More »

Bank of Canada Rate Decision

The Bank of Canada's decision is to either raise, lower or keep the current interest rate based on its target inflation rate of 1 to 3%. The decision that the bank has a tremendous... Read More »

Bank of England Meeting Minutes

When the Bank of England Monetary Committee meets to discuss and decide upon the national interest rate, detailed notes are taken indicating the minutes taken to discuss key subjects... Read More »

Basis Point

A basis point is often used to indicate small changes in financial rates and are measured as 1/100's of 1%. For instance one basis point will be 1.01%.... Read More »

Bear Market

A bear market is when prices in market investments have decreased over an extended period of time. Usually a bear market takes place in times of rapid inflation, rapid levels of... Read More »

Bear Spread

An option method that takes advantage of plummeting security values through buying postponed month futures contract or selling near-month futures contract.... Read More »

Bear Straddle

A bear straddle is when a short is exercised on a put and a call option.... Read More »

Bearish

The perception that either a market, a section of the market or a security will drop in value.... Read More »

Bearish Japanese Candlestick Patterns

A candlestick chart pattern wherein a bullish upward surge ultimately tops and almost immediately transforms into a bearish pattern tanking downward. In this pattern, one does not... Read More »

Bid Ask Spread

The amount by which the ask price exceeds the bid price. Put another way, it represents the difference between the price at which buyers are willing to buy and the... Read More »

Bollinger Bands Defined

A set of three lines that serve to act as a bound on the average movement of a commodity. One line tracks the average value of the commodity over time; the remaining two are placed... Read More »

Building Permits

The total number of new building projects authorized in a given period. As infrastructure development represents a sizable portion of investment spending, this number reflects developments... Read More »

Bull

A bull market occurs when prices in investments appreciate higher than usual. Generally this occurs either during a boom or recovery in the economy, or by investor psychology.... Read More »

Bull Market

A bull market occurs when prices in investments appreciate higher than usual. Generally this occurs either during a boom or recovery in the economy, or by investor psychology.... Read More »

Bull Spread

A high-risk option trading strategy wherein the investor profits only if the underlying financial instrument increases in value over the investment horizon. Either put or calls may... Read More »

Bull Spread

An option method that chooses to take advantage of an increase in security value by either selling postponed month futures contracts or buying near-month futures contracts.... Read More »

Bull Straddle

A relatively low-risk straddle wherein the investor goes long in both a call and a put option of a given security. This trading strategy makes the most sense when the market... Read More »

Bull Straddle

A bull straddle is when a put or call option are exercised in a long position.... Read More »

Bullish

A term that is used to either describe the belief that a market, a section of the market or a security will appreciate in value or act in a positive manner.... Read More »

Bullish Divergence

A situation wherein a commodity’s price reaches a new high without an oscillator (or indicator) on that stock reaching a new high. This implies that the uptrend is ultimately... Read More »

Canadian Economic Indicators

The following is a breakdown of key economic reports in Canada‘s Economic Indicators: Balance of Payments GDP and Output Report Ivey Purchasing Managers Index (PMI) Manufacturing... Read More »

Central Bank

The Central Bank name is used to refer to any nation's preeminent authority in monetary manners.... Read More »

Churning

Also referred to as 'twisting' or 'overtrading', churning occurs when a broker overly trades in their client's account in order to gain as much commission as possible. Churning... Read More »

Contrarian

One who acts in contest to the general public. In terms of financial trading a contrarian might be inclined to sell a security, while the general market is buying.... Read More »

Dealing Desk

Also known as a 'trading desk' it is where securities such as commodities, futures, equities, and foreign exchanges can be bought or sold. A dealing desk can be usually found... Read More »

Directional Movement Index (DMI)

An index based on a scale of 100 that rates whether a particular financial instrument is experiencing a trend or not. ... Read More »

Economic Growth

Accounted in GDP growth, it occurs in times of great external occurrences. It is the great change in a country's output in goods and services over a period of time. ... Read More »

Economic Indicators from Japan

The following is a breakdown of key economic reports in Japan’s Economic Indicators: Balance of Payments (Japanese Trade Balance, Merchandise Trade Balance Monthly, Japanese... Read More »

Emerging Market

Emerging markets are those economies in developing countries. These markets are those that are currently new and inexperienced in the world market but possess great potential.... Read More »

Employment Reports

It establishes the labor and employment trends and is a contributing factor in various economic activities such as consumer spending.... Read More »

England's economic indicators

The following is a breakdown of key economic reports in UK’s Economic Indicators: Balance of Payments GDP and Output Report GDP Estimate British Industrial ProductionCBI Industrial... Read More »

Eurodollar

It is when a foreign financial establishment, usually in Europe, hold US dollars. It is usually in result of firms, outside the US, being paid for their goods or services from... Read More »

European Central Bank (ECB)

The European Central Bank determines and sets the monetary policy for the group of European countries that use the Euro currency. Like many central bank systems around the world... Read More »

European-style option

Unlike American options, the European-style option have certain restrictions in exercising their investments, such as being restricted to only exercise their investment in... Read More »

Existing Home Sales in the United States

It documents the sales of homes in the US that were previously owned. It is an important report that gives an indication about the current status of the housing market and the... Read More »

Export Price Index in the United States

The Export Price Index is the actual change in price over exported goods from the US. Within the index there is a headline percentage change in price that are either measured monthly... Read More »

Fannie Mae

Also recognizable as FNMA, it makes sure that all home-owners as well as potential home-owners in the US have available funds and finances to buying a home. In the secondary... Read More »

Federal funds rate

When banks borrow money from one another, they are charged an interest rate that is determined by the Fed called the Federal Funds Rate. Banks are usually more inclined to borrow... Read More »

Federal Open Market Committee

They are the individuals that determine the discount rate, reserve requirements, and open market operations. The FOMC consists of seven governing board member of the Federal Reserve,... Read More »

Fibonacci Lines

Leonardo Fibonacci, an Italian mathematician, created a number sequence, Fibonacci numbers, which are a sequence of said numbers in which each number in succession is... Read More »

fill or kill

A transaction that is given to a broker to either quickly fill the transaction (fill) or completely stop it (kill). Investors usually demand this action when they want a security... Read More »

fixed-rate loan

A set rate that remains unchanged over the entire duration of the loan. This is often thought of as the most transparent loan type... Read More »

flat yield curve

Also referred to as the 'even yield curve', it displays short-term and long-term bonds' yield curve. ... Read More »

floating exchange rate

It is the currency exchange rate without the influence of the government, but the natural performance of the market. Some countries with floating exchange rates include the US,... Read More »

futures commission merchant

Equivalent to broker in securities market, a futures commission merchant is a firm or an individual who has the ability to approve transactions in futures options. Futures commission... Read More »

Ginnie Mae

Ginnie Mae stands for Government National Mortgage Association and it offers better mortgage loans in the secondary market for middle and low-income households.... Read More »

gold standard

A monetary system in which the nation's currency can be converted to gold by its holders. This is done by having the currency reserved by gold.... Read More »

good faith deposit

Referred to as 'earnest money', it is an initial deposit that guarantees the buyer or seller's intention to complete the transaction or purchase.... Read More »

Good Til Canceled

Referred to also as 'open order', it is an effective order to either buy or sell until the transaction is terminated or executed. Usually brokers allow a 30 to 60 day timeframe... Read More »

Gross Domestic Product

GDP is displayed as a percentage and is an annual measurement based on quarterly figures. It is calculated as follows: GDP = Private Consumption+ Private Investment + Government... Read More »

Gross Domestic Product (GDP) United States

As one of the most valuable economic measurements in the economy, GDP (which is measured in real and nominal terms) determines the value of goods and services produced in the US.... Read More »

Gross Domestic Product Euro-zone

As one of the most valuable economic measurements in the economy, GDP (which is measured in real and nominal terms) determines the value of goods and services produced in countries... Read More »

Gross National Debt

A country's total private and public outstanding debt.... Read More »

Gross National Product

The Gross National Product (GNP) is calculated as the GDP plus the income earned outside the country by the nation's citizens minus the income earned within the country by foreigners.

hawk

In an instance of inflation, hawks credits the effects of inflation to decrease purchasing power, cause hyperinflation, and an ambivalence in future prices. Hawks are rather pessimistic... Read More »

hawkish

Those that are "hawkish" are pessimistic in their views of the economies. They focus on the negative effects on inflation, rather finding specific solutions to offset high levels... Read More »

head and shoulders

A price chart in which three figures form a trend where the second figure's performance is higher than the first and third figure.... Read More »

hedge

It is a position in which it hopes to offset opposed performance in a security's value by making an investment in another security. The goal of a hedge position is to lower risk... Read More »

House Price Indexes in Australia

It is the change in house prices in the capital cities of eight of Australia's provinces. The index indicates inflation within the housing market and reflects the quarterly change... Read More »

housing starts

Housing starts is a quantitative measure of houses currently being constructed. This measurement can indicate the health of the housing market. For instance if the housing starts... Read More »

Housing Starts United States

Housing starts is a quantitative measure of houses currently being constructed in the United States. This measurement can indicate the health of the US housing and construction... Read More »

Housing Starts Canada

Housing starts is a quantitative measure of houses currently being constructed in Canada. This measurement can indicate the health of the Canadian housing and construction... Read More »

Housing Starts in Japan

Housing starts is a quantitative measure of houses currently being constructed in Japan. This measurement can indicate the health of the Japanese housing and construction markets... Read More »

IFO

IFO is a monthly survey that asks German companies a variety of questions on the German business climate as well as any expectation they have for the following 6 months. IFO uses... Read More »

Industrial Production United States

It is a monthly measure of the total number of output manufactured in the utility, mining and manufacturing industries. Because the figure is a monthly measure and external factors... Read More »

inverted yield curve

Also referred to as 'negative yield curve' it is a rare scenario in which short-term interest rates produce higher yields than long-term interest rates. When this happens it is... Read More »

ISM Manufacturing in United States

It is a measurement where US executives in the manufacturing unit are surveyed to acquire their expectations in future inventories, production, deliveries, new orders and employment.... Read More »

ISM Non-Manufacturing in United States

It quantifies the employment trends, prices and new orders within non-manufacturing industries. They do this by surveying executives in the purchasing and supplying industries.... Read More »

Japanese Auto Sales

The quantity of automobiles that are sold in Japan on a monthly basis. This number is based on the quantity of newly registered automobiles. Despite only contributing 5% of total... Read More »

Keltner Channel

It displays the moving trend of stocks and relates them to two bands, the lower and higher moving average band. This measures the volatility in price and can indicate when to... Read More »

Leverage

The amount of debt that an investor acquires to finance its investments. A high amount of leverage allows the possibility of a higher return on investment but also a higher... Read More »

limit

It is a command to close trading when a security is at a specific price, at the advantage of the trader. The purpose of a limit is to ensure profits in the unlikely event that... Read More »

limit entry

It is a transaction order to buy or sell a security at a favorable price. For example if you would like to buy a security, then you must set a limit entry below the current value.... Read More »

Limit Order

A market order that an investor makes to his broker to buy or sell a specified number of shares at a set price or better. The set price is the limit price. Because... Read More »

limit order

It is a command made to a broker to buy or sell a specified quantity of shares at a specific price or better. The purpose of making a limit is to establish profits without the... Read More »

liquidity

Liquidity can be used to refer to two different areas: liquid market and liquid asset. A liquid market is a situation in which investors in the market are willing to trade securities... Read More »

liquidity risk

When an asset is hard to sell, then that asset is said to have liquidity risk.... Read More »

London Inter-Bank Offer Rate

The London Inter-Bank Offer Rate (LIBOR) is an interest rate that is charged when a loan is made to and from a large international bank.... Read More »

Long and Short Selling

Different positions that you may take in a security. Going long means buying a security. Going short means selling a security. ... Read More »

long straddle

Also referred to as a 'bull straddle' it is when a call or put option is exercised in a long position.... Read More »

Machine Orders in Japan

As one of the best tools used to understand business capital spending, machine orders (Japan) calculates the value of Japanese machinery orders made around the world. As the figure... Read More »

macroeconomics

The detailed study of a country's economy. It focuses on every aspect of the inner workings of the economy like employment, unemployment rate, inflation, GDP, and economic growth.

managed account

Also referred to as 'controlled account' or 'discretionary account' it is where the owner of an account allows the broker to buy and sell securities.... Read More »

management fee

It is a payment fee for the services of a mutual fund's manager. The fee is generally determined by the percentage of assets the manager is taking on.... Read More »

margin

It is a deposit that is used as collateral. The trader makes this deposit in 'good faith' in order to hold position of a security. It is the same thing as a leverage but the only... Read More »

margin account

This specific account is one in which cash is lent to a brokerage's client in order to buy securities.... Read More »

margin call

Also referred to as 'federal margin call', 'Reg. T Call' or 'house call' it is either a call from a broker to a client or a clearinghouse to a member .... Read More »

margin requirement

In a margin account it is a money deposit required when the owner is about to short sell or buy on margin. This is a requirement by the Federal Reserve Board's Registration T.... Read More »

mark-to-market

It is the daily documented worth or price of an account or security.... Read More »

market if touched order

It is an authorized market order in the scenario where a security's favorable specified price is achieved.... Read More »

market maker

It is when a financial institution such as a bank or brokerage firm possess a established ask and bid price by being continually prepared and amenable to trade at the currently... Read More »

market order

Also known as the 'market' it is an order to a broker to either buy or sell a security at the most favorable and current available price.... Read More »

market price

Known as the 'market value' it is the most recent ask and bid price or sale price of a security.... Read More »

McClellan Oscillator

This measurement is generally used for short to intermediate-term trading and emphasizes overly bought or sold markets based on the market indexes, such as the NYSE. It peovides... Read More »

McClellan Summation Index

Similar to the McClellan Oscillator, it is also identifies market breath and is used for intermediate to long term trading. It is the cumulative total of the McClellan Oscillator... Read More »

medium-term

Also referred to as 'intermediate-term', it is 2 to 10 year period for bonds.... Read More »

naked call

Known also as an 'uncovered call', it is a short call on an option. In a naked call the writer does not own the quantity of shares that it is exercising.... Read More »

naked option

A situation in which either a call option is sold or a put option is purchased and the trader does not own the asset or is not in an offsetting position. It is also known as an... Read More »

naked put

Also referred to as an 'uncovered put' it is were a short is made on a put option but the writer does not possess a short position in that security on the specific put that was... Read More »

National Futures Association

The National Futures Association (NFA) is a self-regulated agency created in 1981 that is involved in the futures industry. The NFA operates in the private-sector.... Read More »

negative carry

It is the situation in which a loss is incurred (with the exception of a tax advantage) when the cost of borrowing money is far greater than the profit made possible by the investment.

New Zealand Economic Indicators

The following is a breakdown of key economic reports in New Zealand’s Economic Indicators: Balance of Payments (Current Account - New Zealand, Non Resident Bond Holdings, Terms... Read More »

Non Farm Payroll (NFP)

This report measures the job loss, job creation, wages, and the quantitative hours worked.... Read More »

online broker

Like a broker, an online broker offers online trading services to customers.... Read More »

online trading

The act of financial trading (buying and selling securities) online. Popularity in online trading began in the mid-1900s where internet technology experienced rapid growth in technology.... Read More »

open position

A position on a security where it is not yet closed.... Read More »

OTC

This acronym stands for Over-the-Counter, and it refers to securities that are unable to make listing requirements and thus it is not traded on the exchange.This is why these securities... Read More »

OTC or Over the Counter Trading

A market for trading stocks, bonds, futures, or options that pairs individual investors without involving trading on some formal centralized exchange system (e.g., NYSE,... Read More »

over the counter market

Refers to securities that are unable to make listing requirements and thus it is not traded on the exchange. This is why these securities are also called 'unlisted'. These particular... Read More »

overbought

Used to describe a stock that is either too expensive or has increased too much.... Read More »

overbought/oversold indicator

It is a tool used to determine if price trends move suddenly or distant than normal. Overbought and oversold indicators together determine if prices have suddenly moved upward... Read More »

oversold

It is a technical analysis term used to refer to an under priced stock or a stock that has occurred a massive fall in value.... Read More »

pegging

When prices or exchange rates are held over a certain period of time.... Read More »

Pending Home Sales - United States

It is a measurement that indicates advanced trends in the US housing market by tracking residential housing contract activity within existing single-family homes. On the report... Read More »

Performance of Manufacturing Index (PMI) New Zealand

PMI measures the New Zealand Manufacturing sector's business sentiment by constructing a monthly survey of each of the manufacturing sector's different units. These units include... Read More »

Personal Consumption Expenditure (PCE) United States

It is the measurement of total consumer spending each month. It calculates this by accumulating expenditures on consumer products, durable goods, and other services. This tool... Read More »

personal income

It is an individual's personal earnings from wages, passive incomes, dividends, and interest on investments.... Read More »

Personal Income - United States

Measures the employee earnings in the US. Personal income is calculated by the pre-tax income earned by employment, investments, and transfer payments. Although Personal Income... Read More »

Philadelphia Fed Survey - United States

A report made by the Philadelphia Fed where they survey Third Federal Reserve District manufacturers on general business conditions. When the Philadelphia Fed Survey is high it... Read More »

Pivot Points

Calculating pivot points involves averaging high, low, and closing equity prices to detect new resistance and support levels.  Day traders use pivot points usually in addition... Read More »

PMI

PMI is an acronym that stands for Private Mortgage Insurance and it is mortgage insurance provided by nongovernmental insurers and safeguards the lender from loss if the borrower... Read More »

PMI Services (Survey) in Germany

Measures the German Service sector's overall performance by interviewing German executives on the performance and rank of sales, employment and the overall market. This particular... Read More »

point-and-figure chart

A chart figure that displays price movements without the duration of time. ... Read More »

position trader

A position trader is one who trades commodities in a long-term buy and hold approach. Long-term can be defined as 5 to 7 months in terms of commodity trading.... Read More »

positive carry

A situation in which the return of an initial investment is greater than the original cost of financing the investment.... Read More »

Price Channel

It is a continuation pattern that can slope in either direction while being bound by an upper and lower trendline. Within these boundaries the price action is confined as the price... Read More »

price divergence

A situation in which indications of a trend will diverge from the price action. When traders in the market recognize a price divergence, they often change their position against... Read More »

price fixing

Determining the price of a good or service rather than allowing the price determined by market forces.... Read More »

price gap

Also referred to as a 'gap', it is the significant movement in a security's price or commodity between two trading rounds.... Read More »

price index

Refers to any index, such as the Consumer Price Index or Producer Price Index, that records and analyzes inflation through gauging price changes.... Read More »

prime broker

A prime broker is an individual who acts as a settlement agent, offers custody for assets, gives financing for leveraging, and creates a daily account statement for their clients.

Producer Price Index (PPI) - United States

Tracks the changes producers and manufacturers charge their goods or services, as well as how the prices charged are distributed through the production process. The PPI can indicate... Read More »

range trading

Range trading is a tactic that includes buying when prices veer toward lower support levels and selling when prices veer to upper resistance levels. It is a strategy that is benchmarked... Read More »

Relative Strength Index

A momentum indicator that indicates sharp indicator moves which is caused when a new data point is added just as the last is dropped. The RSI is calculated as follows: RSI = 100... Read More »

resistance

A situation in which a currency pair's price becomes stagnant or falls, making it difficult for it to trade above a certain price level.... Read More »

Retail Prices Index (RPI) - UK

Gauges the price change in goods and services for household consumption in the United Kingdom. The Retail Price Index (RPI) is calculated by sampling such retail goods as food,... Read More »

roll over

The interest earned by traders or the daily interest charged for positions in the spot Forex market. All currency pairs have an attached interest rate and depending on the currency... Read More »

RSI | Relative Strength Index

An index used by investors to determine whether a particular security is being overbought or oversold. The index is calculated using empirical records of the security’s... Read More »

sell order

An order from a broker, bank, market marker, or a financial institution to sell a security, commodity or currency. In the FX market if a trader makes a sell order on a specific... Read More »

short

A position in which a trader sells a currency pair in an attempt to profit from a currency pair's falling prices.... Read More »

slippage

It is the difference between the expected filled price of the trader and the actual price filled. In the FX market, this may be caused by an ineffective broker, increased liquidity,... Read More »

speculation

It is a strategy where investors select certain investments, that are prone to risk, in hopes to gain a profit from price fluctuations. The decisions that speculators make are... Read More »

Spot Forex Market

A trading market for cash wherein goods are sold for specified amounts of cash. These markets behave somewhat like futures markets except that the spot contracts take effect... Read More »

spread

The price difference between a security's sell (bid) and buy (ask) price. All markets including foreign exchange, futures and equity markets have a spread. The size of the... Read More »

stop entry

As one type of Entry Orders it is an order to penetrate the market at a somewhat unfavorable price. A stop entry price will be placed below the current price, if a currency pair... Read More »

stop order

It is a position to make a close order on a security after the specified price is achieved.... Read More »

stop-limit order

A hybrid of a limit order and a stop order, it is an order to sell or buy a specified quantity of a security at a particular price. However this can only be done after that particular... Read More »

stop-loss

A position to close when the market veers toward a specific value against your position. Traders make a stop-loss position in order to prevent any more loss on their securities... Read More »

support

A situation in which it is difficult for a currency pair's price to fall. The price action at support generally stall before breaking below or move in the opposite direction. When... Read More »

Swiss Economic Indicators

The following is a breakdown of key economic reports in Switzerland’s Economic Indicators: Balance of Payments (Trade Balance); GDP and Output Report (Gross Domestic Product... Read More »

technical analysis

An investigative approach to foresee the market's price trends. Analysts may do this by analyzing price patterns, indicator signals, sentiment readings, open interest and volume.

Trade Balance - United States

The nominal gap between exported goods and services, and imported goods in the United States. It is a significant figure of the US Balance of Payments and its headline figure is... Read More »

Trading Liquidity

The forex market is the most liquid of all financial markets with over $2 trillion in daily trading volume For a currency pair or security to be liquif, it has be able to... Read More »

Trading on Margin

A specific type of leverage wherein the investor borrows cash in order to finance his investments. Margin refers to the specific percentage equity that the investor... Read More »

Trading Order Types

A market order is one where an investor’s order is executed immediately at the best available price. An entry order is one wherein an investor requests to buy or sell at a specified... Read More »

Trading Stops

A market order made by an investor to a broker to sell a financial instrument only when it reaches a specified price. The purpose of the specified price is to limit... Read More »

trailing stop loss

It is apart of the stop-order loss, in which the trader's stop position gains to their advantage at the same time the market moves at its advantage. This specific order prescribe... Read More »

Trailing Stops

A special stop loss order where as the market moves in the favor of the open position, the stop moves up to lock in profits. Example Trade You buy EUR/USD at 1.5492(1)... Read More »

trend

Rates and prices' overall pattern of activity in the market.... Read More »

Understanding what at best means in trading

An expression is often used to describe the most favorable scenario, but not necessarily the perfect situation.... Read More »

Unemployment Rate - United States

The percentage of the population that is unemployed in the United States. It is the most commonly used measurement in determining the US labor market's performance. The unemployment... Read More »

United States Economic Indicators

The following is a breakdown of key economic reports in US’ Economic Indicators: Balance of Payments (Current Account Balance - United States, Trade Balance - United States,... Read More »

University of Michigan Consumer Sentiment Index - United States

As one of the most significant indicators of American consumer's opinion of the economy, the University of Michigan Consumer Sentiment Index surveys the consumer's opinion on such... Read More »

Using the Ichimoku Cloud

A signal tool that provides support/resistance levels, trend movements, varying exit and entry points. If the cloud lies above the price action, then the trend is bullish. However... Read More »

Volume

The quantity of trade units of a security during a certain time. To verify a change in trade units both the buyer and seller must be included in the transaction. Usually trade... Read More »

What is a Margin Call

If you want to purchase securities but cannot cover the total cost, buying in a margin account allows you to tap into additional funds credited by your broker.  You will half... Read More »

Whatis a PIP?

More than just a famous Dickens character, a pip is the smallest increment of price in the forex market. It is 1/100th of 1%.It is the fourth decimal place out for all major... Read More »

Wholesale Inventories - United States

Quantifies the level of unsold goods stocked my wholesalers. When a wholesaler has a high number of inventories, then that indicates that consumer demand is plummeting whereas... Read More »

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