Positive/bullish divergence occurs when the price of a security makes a new low while the momentum indicator starts to climb upward. Negative/bearish divergence happens when the price of the security makes a new high, but the indicator fails to do the same and instead moves lower. Divergences frequently occur in extended price moves and frequently resolve with the price reversing direction to follow the momentum indicator. Divergence of MAs A technical observation that describes moving averages of different periods moving away from each other, which generally forecasts a price trend. Dividend The amount of a company’s earning distributed to its shareholders – usually described as a value per share. DJIA or Dow Abbreviation for the Dow Jones Industrial Average or US30.

Going long The purchase of a stock, commodity or currency for investment or speculation – with the expectation of the price increasing. Going short The selling of a currency or product not owned by the seller – with the expectation of the price decreasing.

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Good for day An order that will expire at the end of the day if it is not filled. Good ‚til cancelled order forex definition An order to buy or sell at a specified price that remains open until filled or until the client cancels.

It is a live trade as opposed to an order. Dealer An individual or firm that acts as a principal or counterpart to a transaction. Principals take one side of a position, hoping to earn a spread by closing out the position in a subsequent trade forex definition with another party. In contrast, a broker is an individual or firm that acts as an intermediary, putting together buyers and sellers for a fee or commission. Dealing spread The difference between the buying and selling price of a contract.

Margin

Gold (gold’s relationship) It is commonly accepted that gold moves in the opposite direction of the US dollar. The long-term correlation coefficient is largely negative, but shorter-term correlations are less reliable. Gold certificate A certificate USD ZAR of ownership that gold investors use to purchase and sell the commodity instead of dealing with transfer and storage of the physical gold itself. Gold contract The standard unit of trading gold is one contract which is equal to 10 troy ounces.

GER30 An index of the top 30 companies listed on the German stock exchange – another name for the DAX. Given Refers to a bid being hit or selling interest. Giving it up A technical level succumbs to a hard-fought battle. GMT Greenwich Mean Time – The most commonly referred time zone in the forex market. GMT does not change during the year, as opposed to daylight savings/summer time.

How Does The Forex Market Work?

Deficit A negative balance of trade or payments. Delisting Removing a stock’s listing on an exchange. Delivery A trade where both sides make and take actual delivery of the product traded. Delta The ratio between the change in price of a product and the change in price of its underlying market. Depreciation The decrease in value of an asset over time. Derivative A financial contract whose value is based on the value of an underlying asset.

Dove Dovish refers to data or a policy view that suggests easier monetary policy or lower interest rates. Downtrend Price action consisting of lower lows and lower highs. DXY$Y Symbol for the US Dollar Index. National central banks play an important role in the foreign exchange markets. They try to control the money supply, inflation, and/or interest rates and often have official or unofficial target rates for their currencies.

How Much Leverage Is Right For You In Forex Trades

Some of the most common underlying assets for derivative contracts are indices, equities, commodities and currencies. Devaluation Bitcoin Cash price When a pegged currency is allowed to weaken or depreciate based on official actions; the opposite of a revaluation.

Good ‚til date An order type that will expire on the date you choose, should it not be filled beforehand. Greenback Nickname for the US dollar. Gross domestic product Total value of a country’s output, income or expenditure produced within its physical borders. Gross national product Gross domestic product plus income earned from investment or work abroad. Guaranteed order An order type that protects a trader against the market gapping. It guarantees to fill your order at the price asked. Guaranteed stop A stop-loss order guaranteed to close your position at a level you dictate, should the market move to or beyond that point.

The Three Different Types Of Forex Market:

Discount rate Interest rate that an eligible depository institution is charged to borrow short-term funds directly from the Federal Reserve Bank. Divergence In technical analysis, a situation where price and https://umarkets.net/ momentum move in opposite directions, such as prices rising while momentum is falling. Divergence is considered either positive or negative ; both kinds of divergence signal major shifts in price direction.

It is guaranteed even if there’s gapping in the market. Gunning/gunned Refers to traders pushing to trigger known stops or technical levels in the market. Day trader Speculators who take positions in commodities and then liquidate those positions prior to the close of the same trading day. Day trading Making an open and close trade in the same product in one day. Deal A term that denotes a trade done at the current market price.