Forex - currency market where buyers and sellers carry out currency transactions

Broker - organization rendering lending services and traders support.

Bulls - traders relying on currency rate upturn.

Bulls market - market with up-directed rate tendency.

Currency quotation - it has two types:

• Direct quotation - number of currency units for 1 US dollar (dollar preceds the currency pair).
• Reverse quotation - number of currency units for 1 Euro, British pound or Swiss franc( Euro, British pound and the Swiss franc precede the currency pair).

Reference currency - currency which is put first in the currency pair designation.

(quoted currency) - currency written at the right in each currency pair (second).

Currency rate - price of monetary unit of one country expressed in monetary units of another one. Monetary price unit of one country expressed in monetary units of another one.

Currency pair - text record of currency quotation.

Up-directed trend - when each time the rate value advances compared to the previous one within the wave. The lower wave points are linked by a straight line - trend line.

Intraday trading - trading oriented to profit making within one day.

Deposit - money put into account for further transactions.

Diversification - strategy laid out for reducing the risks allocating the capital investments between different currency pairs. Unfavorable situation development with one of currency pairs can be compensated by successful deals in another currency pair.

Dealing - Non-cash trading.

Dealing center - company lending an access to the currency market by means of forming a pool of clients applications for opening positions.

Channel - a certain range of currency rate fluctuations.

Leverage - rate of credit given to a trader by broker.

Cross-rate - rate showing two currencies ratio without the US dollar.

Trend lines - strict lines drawn at the chart coming through the bottoms in the upside tendency and through the peaks - with the downside one. These lines determine the current trend. The trend line brreakthrough usually signals about the trend changing.

Margin trading - currency trading on security of a pledge (margin). With margin trading a reverse trade execution is obligatory.

Market-makers - large banks and financial companies setting the current level of currency rate or interest rates at the expense of huge transactions share in the whole market volume.

Bears - traders operating for a currency rate fall.

Bearish market - market with the down-directed tendency.

Down-directed trend - when each time the lower rate value is fixed. The trend line is shaped by means of linking the upper points of rate movement waves.

Order - any trade on a trading account.

Point or pips - minimal price chnaging which is different for all currency pairs.

Range - a distance between support and resistance levels.

Swap - amount charged or accrued for each opened trade after midnight.

Spread - difference usually expressed in points between the prices of seller and buyer. Low spread is beneficial for a trader.

Technical analysis - area of market analysis implying that market has a memory and the rate's future movement will be mostly impacted by pecularities of its previous behaviour.

Transaction - operation of opening/closing a position.

Trader - a person trading with currencies on Forex market with the purpose of deriving profit.

Trend - the current general tendency of price movement.

Support level - lower channel line.

Resistance level - upper channel line.

Figure - price changing by 100 points.
For example, the price change of EUR/USD from 1.770 to 1.870 - it is a figure growth.

Hedging - operation with the same financial instruments partly covering the loss risks while working with other financial instruments. For instance, trading with dollar futures the risks can be hedged by option contracts for EURUSD, and vice versa.

Chart, graph, diagram - graphic display of price change and another information through time.

Fundamental analysis - market analysis area where the forecasts are based on events of the financial world. As the main criteria are usually considred the economic situation in the currency's country, monetary policy and other "fundamental" aspects.

Interbank rates - currency rates quoted by large international banks to the same other banks. The difference between the rates of buying and selling the currency can be about 0.03-0.08%.