Trading glossary

What is arbitrage in trading? It happens when you can take advantage of price difference - buy an asset at one place and immediately sell it in another market with profit.

What does ask price refer to in trading? It’s the price a seller asks from buyers in a market. When the asking price matches the bid price (offered by potential purchasers) usually a transaction happens.

What is an asset in trading? It’s a resource that can be possessed and exchanged between parties. A bond, currency, equity, commodity, or cryptocurrency - are some examples of assets. In practice traders exchange assets themselves (spot market) or contracts tied to assets (ie. futures market).

Traders can teach computer programs to make trade orders for them. The practice is called algorithmic trading. The orders can be executed by simple rules, ie. decision tree, or by deep learning algorithms that are able to teach themselves.

What is a base rate. Central banks, such as Fed, Bank of England or European Central bank, set the rate they charge commercial banks for loans. Higher base interest rates slows inflation, rises income from bank deposits, but also rise the cost of borrowing, and negatively influences the stock market.

Bull and bear are symbols of uptrend and downtrend. Bears are skeptical, they expect the prices of an asset (cryptocurrency or stock) to go down, or even collapse. They usually try to short the companies or cryptos at the right time. On the other hand, bulls are optimistic about the future price. They want to buy low and sell in future.

What does it mean that one currency is pegged to another? Usually currencies used in different countries can be freely exchanged between buyer and sellers. It is less common that they are pegged, tied to the price of another currency, usually at the 1:1 ratio. Cryptos can be pegged aswell. The most popular are stablecoins tied to US dollar, such as Tether, USD Coin, or Binance Coin. Pegging a currency is tricky, as the central bank (or stablecoin issuer) needs to control the price.

What is CPI? It’s one of the most popular tool to measure the inflation. It tracks the change of the prices customers pay for goods and services. It’s given in percentages. If it is too high central banks need to act and raise interest rates. The move can slo the economy down, but will help to curb inflation.

What is fundamental analysis? It’s one of the most popular approach to assessing the value of an asset. For companies it takes into account their cashflow, reserves, financial and market results, as well as future potential. Traders who can correctly measure the fundamentals of an asset can see market opportunities as the current market price may be lower or higher than the intrinsic value of a stock, commodity, or cryptocurrency.

You might have heard of futures. These are derivatives. Buyers and sellers agree to a transaction at a specific price at a specific time in the future. Futures are a good way to hedge current positions. They are also often more volatile than the spot market, as futures prices sometimes can drop to negative.

What is GDP? Gross domestic product is the sum of the value of the goods and services produced in a country (or region). Usually economists measure annual GDP to check if the economy is growing or shrinking, and to compare the economic power of a territory.

Some trades, positions or investmets are done to make profit, other to reduce ones exposure to risk. Companies, countries, and individuals can hedge making a move opposite to their main position. You may hedge by shorting futures of an asset you own (Bitcoin, Tesla stocks), or by investing in an asset which price usually moves inversely.

What is HFT? The use of computers introduced algorithmic trading and high frequency trading. Automatic algorithms can perform trades faster than humans, and find a better price, buy and sell faster than a trader acting manually. HFT strategies can lead to “flash crashes”, when algorithms make the same mistake at the same time.

What does IPO mean? The shortest definition is the stock exchange debut - the first sale of the equity in the public market. IPO turns a private owned company into a public company as anyone can buy a stake in it. Companies raise new investment capital through IPO, the owners decide to sell part of their firm. Before an IPO investment banks and owners asses the value of the company and propose a price per share. However, on the day a company goes public big price movements are very common.

If you borrow money, you are supposed to pay interest to the lender. The price of the credit is usually expressed by annual percentage rate (APR). A second meaning of interest is the stake a stockholder has in a company, also expressed as a percentage.

What is intrinsic value? In finance the term is used to describe the true value of an asset, which usually is different from the market price. Companies, commodities, or currencies are undervalued or overvalued as it is difficult to assess the intrinsic value. Traders try to do it using fundamental analysis.

What is a limit order? Traders can open orders at a more attractive price than the current one. If you want to buy an asset, you can place a limit order at a lower price. If you are selling at a higher price. The limit order will be fulfille only when the market reaches your desired level.

What is leverage in finance? It’s a method of making more profit without investing more money. Traders can open a position using margin, which can be just a fraction of the value of an order. The margin trading provider lends the missing funds to their clients. Leverage allows you to make much more money if you are on the right side of the market, but if the market goes against you, you can quickly loose the margin.

When trading different assets you will quickly realize, that in some markets transactions happen very often, an don the others you’d need to wait several minutes for a price to change. This is the concept of liquidity. Liquid assets can be bought and sold any time, while less liquid assets (ie. expensive yachts) need a specific buyer.

When the funds on a trading account fall below the level needet to keep a position open, the owner receives a margin call warning. Unless more money is added to an account, the position will be automatically closed. In the past brokers would literally call their clients to inform about the situation, that’s where the term derives from.

When placing a stop order you want to execute a trade when the price is less attractive for you than the current one. Why would you want to do it? To stop loss. If you are holding an asset, you may want to sell if the price goes down before it crashes for good.

In forex trading, FIFO (First In, First Out) is a rule requiring that you exit your first (or oldest) open trade if you have multiple trades of the same pair and size open. This can impact hedging strategies where you aim to open opposite positions (BUY and SELL) on the same instrument for risk management. If FIFO is enabled on your platform, opening a new position in the opposite direction will close the oldest position of the same size, preventing simultaneous BUY and SELL positions. To maintain both positions,, you need to disable the FIFO option, available in the Symbols panel next to the trade calculator.

Rollover is an automated process engineered to transfer your position to the next available contract on futures-based CFDs, such as BUND or TNOTE. It's free of charge and enables you to hold your position open past its expiration date without the need to close and reopen it at a new rate manually. More details, examples and upcoming rollover dates can be found here.

決済逆指値は注文した時点の価格よりも明らかに収益性が低い価格のオープン ポジショで決済する注文のことです。決済逆指値は注文に対して設定するリミットポイントです。このリミットポイントに達すれば、注文は決済されます。相場があなたの意に反する際、損失をできるだけ抑えたい場合に役立つのが特徴です。決済逆指値は今の買いに対する売り呼値よりも低いか、または今の売りに対する買い呼値よりも高いかで常に設定されます。

決済指値は注文した時点の価格よりも明らかに収益性が高い価格のオープン ポジションで決済する注文です。決済指値に達したら、注文は決済されます。

トレードサイズとは、使用したい資金の額ではなく、オープンしたいポジションのサイズを指します。それは証券によって異なります。

スプレッドは、買い呼値と売り呼値の差です。 買い呼値は、通貨ペアを売ることができるレートであり、売り呼値は、通貨ペアを購入できるレートです。 当社のプラットフォームで、幅広いシンボルをフレキシブルなスプレッドで取引することができます。 これにより、取引の価格透明性が向上します。

マージンコールは、口座の有効証拠金が80％の証拠金維持率を下回ったときに起こる警告です。これは、口座には、提供された証拠金だけが残されており、ストップアウトや強制閉鎖を防ぐために、より多くの資金を入金する必要があることを意味します。 トレーディング・プラットフォームは、30％の証拠金維持率に設定されているストップ・アウト・レベルで取引ポジションを決済し始めます。

通貨ペアを購入している場合は、ロングポジションを開きます。売っている場合は、ショートポジションを開きます。 たとえば、1ロットのEUR / USDを購入すると、100,000ユーロのロングポジションを開くことになります。 AUD / CADの10ロットを売る場合は、1,000,000米ドルのショートポジションを開くことを意味します。

スリッページは、市場で価格の隙間である場合、または特定の価格で利用可能な流動性が枯渇した場合に発生します。 市場の隙間は通常、価格が数ピップを飛び越えて、その間の価格で取引がない急速に変化する市場で起こります。 同様に、各価格には一定の流動性があります。 例えば、価格が50で、50で利用可能な100万がある場合、3百万の注文があったら、3百万は50の価格で利用可能な100万を超えるため、3百万の注文の結果がスリッページになります。

トレーリングストップは決済逆指値注文の一種です。 市場価格（ロングポジションの場合）を下回る、または市場価格（ショートポジションの場合）を超えるパーセンテージレベルに設定されています。

ビットコインは2009年に作成されて、主に「サトシ・ナカモト(中本哲史)」の自己発行の論文に基づいている仮想通貨です。ビットコインは、中央当局と発行者の必要性を回避しながら、非常に低コストで迅速な支払い（および小額決済）を可能にします。

「注文数量」という用語は、取引したい標準ロットの数を指します。 1.00は1標準ロットまたは100,000単位の基本通貨を意味するので、0.10は1ミニロットまたは10,000単位の基本通貨を指します。 0.01は、1マイクロロットまたは1,000単位の基本通貨を指します。

外国為替ブローカーは、お互いに取引する銀行のネットワークである、あなたと銀行間デスクとの間の仲介者です。 通常、銀行の流動性プロバイダーとしての役割を果たす外国為替ブローカーは、銀行から価格を提供します。SimpleFXは複数の銀行を価格設定に使用しており、迅速な実行と最善の価格相場を提供します。

現物市場は、金融商品の現在の価格を扱う市場を指します。

証拠金は、トレーダーがそのポジションを開くことを可能にするためにブローカーがデポジットとして必要とするトータルのトレードサイズのパーセンテージです。 この金額は手数料や取引費用ではありません。これは、取引に向けて預金として口座内に置かれている口座の有効証拠金の一部です。 証拠金要件は、想定元取引サイズのパーセンテージを基づいて計算され、取引条件において事前にブローカーによって決定される。