Indicates 100 pips in the FX market, starting at 000.
Confidence inspiring currency.
Hawk – Hawkish
An approach to monetary policy is said to be hawkish when it is thought that higher interest rates are needed, most commonly to fight inflation or to prevent rapid economic expansion.
Head and Shoulders
Price movements that appear to have a head and a shoulder. Often believed to indicate a price trend reversal. Price rises for some time, and flattens when profit is taken (shoulder). Rises again (to the head) until more profit taking causes it to fall back to the shoulder. A larger price drop is beleived to follow later.
Position/positions taken to reduce risk on your primary position.
Strategy used to offset ones market risk.
Hit The Bid
Sell at the currently offered market bid.
Hk50 – Hkhi
Hong Kong Hang Seng index.
The buyer and subsequent owner of a currency pair.
International Foreign Exchange Master Agreement.
Term to describe an environment where there is little traded volume. Can often create choppy market conditions.
International Monetary Market, which is a Chicago based currency futures market.
A currency that is forbidden, by the regulations, to be traded for other currencies.
Market maker’s price that can be used to indicate somethings price, but that cannot be traded on.
Abbreviation of the Dow Jones Industrial Average.
Total value of production output created by manufacturers, mines and other utilites. Can act as one of the leading indicators of employment and personal income data.
Condition of economy whereby the price of consumer products rise, lowering the purchasing power.
The rate by which prices are rising on consumer goods, often quotes as a percentage.
Initial Jobless Claims
Measures the number of people that filed for unemployment insurance for the first time during a one week period.
A form of deposit required to be given by both buyers and sellers when opening a position.
Initial Margin Requirement
The minimum needed margin for a newly opened position, that needs to be settled in cash.
Instant Funded Trading
Trading that occurs when the capital used is not ones own, but can be “traded” very rapidly after a decision has been made.
A form of trading whereby, for a small fee, and strict rules, you are able to gain access to trading capital that you otherwise would not be able to access.
Spec of the banks at which the funds will be paid when settlement is needed.
Specialist that acts as an intermediary between market-makers who want to improve their book positions without losing their anonymity.
The bid and offer rates that banks use when depositing between each other. This is the basis of interbank markets, ie LIBOR.
The cost of holding someone’s money, i.e. borrowing.
Interest Rate Differential
Difference between the interest rates that are applicable to a currency pair.
The action most often taken by CBs in order to effect the value of the domestic currency. The CB often comes into the market and acts as a large player buying up or selling large swathes or currency.
Broker that introduces customers to market makers in return for commission or spreads.
Symbol for S&P 500 Index.
Private companies initial public offering of stock onto the market for the public.
ISM Manufacturing Index
Index for the US manufacturing sector, based off of expectations for future productions, new orders, inventory, employment and delivers, by currency executives. Values above 50 indicate expansion, below 50 contraction.
Ism Non-Manufacturing Index
for the 80% of US economy not covered by the ISM Manufacturing Report. Values above 50 show expansion, and below 50 contraction.
Japanese Machine Tool Orders
Total value of orders places with machine tool manufacturers. Indicator of future industrial production. Strong data signals that the economy is in expansion.
Japanese currency unit. Third most traded currency.
Trader that commonly practices short-term, small trades for profits. Rarely holds positions overnight.
Name for the NEKKEI Index.
Keep The Powder Dry
Limit of your trades due to wild trading conditions. In rough trading conditions, sometimes best to wait until a clearer opportunity arises.
For a smaller country, this is the act of aligning their currency to that of a different, major trading partner.
Trader term for the New Zealand Dollar.
An option strategy that requires the underlying asset to reach a certain price point before a previously purchased option can activate. They are used to decrease premium costs of an underlying option, and are also good to trigger hedging activities.
An option strategy that nullifies a purchased option on an underlying asset when a price point is reached. When they are traded, the underlying asset option ceases existence, and so any hedging may need to be undone.