Glossary Of Terms

On this page, you will find short descriptions and meaning on some of the most commonly used terms when trading in Forex. We hope this will help give you a better understanding and you can always refer back to this glossary for terminology that you don't understand.

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

S

Sell Limit Order - An instruction by the client to execute a deal only at a specified price limit.

Selling Short - When a currency has been sold with an objective to buy back at a lower price.

Settlement - A finalized deal where physical exchange have taken place.

Short Position - An investment which results in profit because of a decline in market price. When the base currency in the pair is sold, the position is refer as "short".

Short Squeeze - The force on short traders to cover their positions as a result of the pressure from increasing prices.

Slippage - It's the experience of not getting your expected price after you place an order to execute a trade. This can happen in Forex Trading when the market price is moving too fast or you simply have an unreliable broker to handle your executions.

Spot Market - The Market where traders buy and sell currencies with 2 days delivery.

Spot Price - The market price value of a currency at this very moment.

Spread - The differentials between the bid and ask prices of a pair.

Square - The purchase and sales are in balance so there are no opening positions for dealers.

Sterling - This is a slang used to refer the "British Pounds".

Stop Order - An instruction to buy or sell a financial instrument after it reaches or exceeds a specified market price.

Support - The impact on the price level after intensive buying from participants on the market.

Support Levels - The level of buying pressure on any given currencies.

Swap - A financial contract or transaction which moves the maturity date of an opening position to a later date.