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what is the account balance ? | the amount of money in an account at the start of a business day including all deposits withdrawals and or other cash and cash equivalents credits minus debits if a trader has decided to close an open position the account balance will be changed in accordance to his her profit or loss amount | |
what is the accrued interest ? | the interest accumulated on a security from premiums and discounts that relate directly to deposit swap interest arbitrage deals over the period of each deal | |
what is the across the board ? | a market wide movement or trend that affects nearly all stocks and sectors the term originates from the big board used historically in the nyse for marking price movements | |
what is the active market ? | a market in which a lot of buying and selling is going on | |
what is the advancing market ? | a market in which prices are generally rising also referred to as a bull market | |
what is the aftermarket ? | trading of a company s stock after the market has closed | |
what is the aftermarket report ? | an aftermarket report is the initial report released by a company after it has begun trading on the public stock exchange typically before a company begins trading on the stock exchange an investment bank evaluates the company s worth and determines how to break down that value in shares that will be sold to the public after an initial sale of shares to large investors known as the primary market once the primary market sales have been made the company is able to be traded on a major stock exchange such as the new york stock exchange nyse or nasdaq this happens when some of the initial investors decide to sell some or all of their stock shares and any investor of any size can purchase them once the offerings appear on the secondary market the company releases an aftermarket report providing the name of the company its ticker symbol the offer date and offer and closing prices often aftermarket reports will provide additional information including financial data and ratios and a description of the company | |
what is the all time high ath ? | the all time high is the highest price any given asset has ever reached on the open market | |
how does one use an all time high | an asset reaching a new ath can provide both opportunities and pitfalls for traders if the asset is reaching a new ath on a regular basis traders can recognize the upward trend and invest accordingly however a strong technical and fundamental analysis is also necessary in order to determine when the asset price will hit its resistance and begin to drop again an all time high should not in and of itself be used to develop a trading strategy but it can and should be one of several tools taken into account | |
what is the annual percentage yield apy ? | the annual rate of return on an investment for example a 10 000 investment at 5 per year earns 500 a year and has an apr of 5 also referred to as the annual percentage rate or simply apr | |
what is the arbitrage ? | effecting sales and purchases simultaneously in the same or related securities in order to take advantage of price differentials between markets | |
what is the asian trading session ? | during the summer starts at 00 00 gmt and lasts to 9 00 gmt and during the winter starts at 23 00 gmt and lasts to 08 00 gmt also known as the tokyo trading session | |
what is the ask ? | in the over the counter market the term ask refers to the lowest price at which a broker is willing to sell a security e g currency stock index or commodity at any given time the ask price also known as the offer price will almost always be higher than the bid price the highest price a broker is willing to pay to buy a security at any given time brokerage firms typically make money on the difference between the bid price and the ask price this difference is called the ask bid spread | |
what is the aud ? | the official code for the australian dollar | |
what is the aussie ? | a nickname for the australian dollar | |
what is the bar chart ? | a type of chart widely used by traders and financial professionals which is represented by horizontal rectangular bars with lengths proportional to the magnitudes of what they represent the top of the bar is the highest point the price reached during a defined period and the bottom of the bar is the lowest a dash on the left hand side of the bar denotes the opening price and a dash on the right hand side the closing price for that period | |
what is the barnie ? | a nickname for the us dollar russian rubble usd rub pair | |
what is the base and quote currencies ? | in currency pairs the first currency is the base currency numerator and the second currency is the quote currency denominator the value of the base currency is always one therefore the quoted currency expresses the amount of the second currency compared to one base currency in the british pound sterling united states dollar currency pair gbp usd for example the value of the dollar is expressed in terms of one pound | |
what is the bear market ? | a market condition in which the prices of securities are falling 20 or more it is generally accompanied with widespread pessimism that in turn sustains the flow of negative sentiments its opposite is a bullish market in which the sentiment towards prices is positive | |
what is the bear bearish ? | a trader who believes that the price of a particular security will fall the opposite of bull bullish | |
what is the benchmark ? | a standard or average used for comparison or to indicate an overall trend of a certain stock bond commodity or other security | |
what is the best bid | the bid also known as the sell is the highest price that a bank or a brokerage is willing to buy an asset from a trader that is to say it is the most a trader can receive when he sells an asset or security along with the ask also known as the buy the bid is one half of a price quotation which is the indicative cost upon which the buyer and seller agree when trading forex and cfds the bid rate is always lower than the ask rate and the difference between the two is referred to as the spread each broker and bank has its own bid that is to say its own highest price that it is willing to pay for an asset and different banks may have different bids the highest bid offered by any bank or broker is known as the best bid | |
how do forex traders use best bid | seeing the best bid and its counterpart the best ask enables traders to choose with which brokerage or bank they wish to trade forex and cfds so that they may see the highest potential earnings while minimizing their risks and losses as much as possible | |
what is the betty ? | a nickname for the euro russian rubble eur rub pair | |
what is the bid ? | in the over the counter market the term bid refers to the highest price at which a market maker or broker is willing to pay in order to buy a security e g currency stock index or commodity at any given time the bid price will almost always be lower than the ask price the lowest price a market maker or broker is willing to sell a security at any given time market makers and brokerage firms make money on the difference between the bid price and the ask price this difference is called the bid ask spread | |
what is the bid ask spread ? | the amount by which the ask price exceeds the bid price this is essentially the difference in price between the highest price that a broker is willing to pay for a security and the lowest price for which it is willing to sell the security the bid ask spread is also referred to as a bid offer spread a buy sell spread or simply as bid ask | |
what is bitcoin | bitcoin is the world s largest cryptocurrency and digital payment system it operates using blockchain technology which is a public ledger recording all transactions while bitcoin is completely unregulated which might make some investors think twice it has also proven to be extremely secure as no hackers have succeeded in compromising the blockchain technology | |
how does one use bitcoin | using a hashing algorithm miners can discover bitcoins although there is a limited number 21 million bitcoins that will ever be mineable of the bitcoins already on the market and in circulation they can be traded like any other asset and many forex brokers including fortrade com depending on regulation do enable traders to trade bitcoin cfds on their platforms | |
what is the bme ? | an abbreviation for bolsas y mercados espa oles the spanish company that runs the four major stock exchanges in spain | |
what is the boc ? | the central bank of canada | |
what is the boe ? | the central bank of the united kingdom | |
what is the boj ? | the central bank of japan also known as nippon ginko | |
what is the bond ? | a legal contract in which a borrower bond issuer such as a government credit institution or company issues a certificate by which it promises to pay a lender bondholder a specific rate of interest for a fixed duration and then redeem the contract at its principal value once it reaches maturity click here to learn about the government bonds fortrade offers | |
what is the bonus credit ? | the amount of money given to a trader by a broker for online trading purposes redeeming and withdrawing bonus credit typically requires the trader to meet certain trading volumes | |
what is brent crude oil | brent crude oil is crude oil that is drilled in one of the four oil fields in the north sea between england germany and scandinavia it is one of the two major benchmark oils in the world the other being wti west texas intermediate crude crude oil is defined as natural unrefined petroleum that can be refined into thousands of products known as petrochemicals the most common uses of refined crude oil include gasoline diesel fuel kerosene heating oil and kerosene because crude oil is a nonrenewable source and poses many dangers to the environment and world eco system in recent years much progress has been made in finding alternative energy sources including solar and wind which are safer and will never run out as a result it is difficult to know how much longer crude oil will be considered a critical commodity however for now it certainly is and many countries are major suppliers including the united states russia and saudi arabia like most commodities the price of brent and wti is driven primarily by supply and demand and is extremely vulnerable to external factors if for example members of opec organization of petroleum exporting countries decide to limit production of oil the global supply will dwindle and the price of brent and wti will rise alternately when oil rich countries opec and others produce excessive amounts of oil the supply outweighs the demand and the prices can drop | |
how do cfd and commodities traders use brent crude oil | while some traders purchase spot contracts on brent crude in which ownership of the oil changes hands at the moment of trade and the price reflects the cost of crude at that moment it is far more common for traders to purchase futures contracts with futures contracts the price agreed upon reflects what both the buyer and seller believe will be the price of brent crude at a predetermined future date those who trade on oil cfds are essentially predicting how the price of oil will move before the position closes | |
what is the broker ? | an individual agent or party who arranges transactions between buyers and sellers for a predetermined fees or commission rates | |
what is the btc btc usd ? | the currency code for bitcoin | |
what is the buck ? | a slang term for one million dollars | |
what is the bull market ? | a market condition in which the prices of securities are rising the general public s views on the market are positive its opposite is a bearish market in which the sentiment towards prices is negative | |
what is the bull bullish ? | a trader who believes that the price of a particular security will rise the opposite of bear bearish | |
what is the buy ? | taking a long position on a tradable security such as a currency pair stock index or commodity opposite of sell or short position | |
what is a buy limit order | when a trader sees a financial instrument that he wishes to purchase but only at a price lower than where it currently stands he may place a buy limit order which would instruct his broker to automatically open the position if and when the price reaches what the trader is willing to pay for it in essence it is the trader s way of instructing his broker to open a position at a better rate than the current market price the advantage to a buy limit order is that the trader decides how much he is willing to pay for an asset and not have to spend more than that amount the disadvantage is that if the price drops close to his limit yet without touching it before shooting back up he will not have spent anything but he will have missed the opportunity to earn a profit when the asset price reversed direction | |
how do traders use a buy limit order | imagine a trader sees that the stocks of a company that he has been following are trading at 35 per share and he believes that when the price hits 29 it will rise again he might place a buy limit order for 100 shares of that stock at 30 if and when the price reaches 30 his broker will automatically open the position and if his prediction was accurate he can earn a nice profit on his 100 shares if the price reaches 32 without hitting reaching as low the limit level of 30 the limit order will not be triggered please note no brokerage including fortrade can guarantee that a buy limit order will be filled at exactly the price requested by the trader rather the broker will execute the order at the requested price and the position will be opened at the first available price in the market from that time when conditions are especially volatile there may be slippage which is a change in price between the time that the broker executes the order to open a position and the time the position is open thus resulting in a lower profit for the trader | |
what is the cable ? | a slang word for the british pound sterling united states dollar currency pair gbp usd it is also used simply to refer to the gbp | |
what is the cad ? | the official code for the canadian dollar also known as the loonie or the funds | |
what is a candlestick chart | one of the more effective charts for tracking what the price of a financial instrument has been doing and to indicate what it is likely to do in the foreseeable future is the candlestick chart each candlestick is a rectangular block that represents a particular time period of trading for the asset day traders generally use charts in which the candlesticks represent 1 or 5 minutes while long term traders are more likely to measure with candlesticks that represent daily weekly or even monthly periods analysts and traders are able to gather all of the raw data they need about how an asset price behaved in a given time period if the candlestick is green or white the asset price rose during the time period with the bottom of the colored rectangle representing the opening price and the top representing the closing price a red or black candlestick means that the asset price fell with the top representing the opening price and the closing price at the bottom of the rectangle a long rectangle indicates that there was a great deal of price movement on the asset while a smaller shorter candle indicates that traders were not particularly active on the asset during the time frame in question at the top and bottom of the rectangle are straight lines known as wicks or shadows the upper wick represents the highest point the price reached during the trading period and the bottom wick shows the lowest that it reached the length of each wick combined with the size of the rectangle provides insight as to how the trading went during the session for example a long upper wick would show that buyers controlled trading for much of the session driving the price up before giving in to the sellers who were able to bring the price down by closing time | |
how do forex and cfd traders use a candlestick chart | traders and analysts use the candlestick chart to recognize movements and trends trading in a stock price and together with other technical tools attempt to discern how the price will move in the coming sessions and to predict if and when it will reverse its direction accurate predictions help traders to decide when the best time is to buy or sell their shares for maximum profit or when to best cut their losses | |
what is the cap weighted index ? | a stock index in which each stock is weighted according to its market capitalization as a result companies with a larger market cap have more influence on price movements than companies with a lower market cap nasdaq 100 the uk s ftse 100 france s cac 40 and spain s ibex 35 are examples of cap weighted indices | |
what is the cash and carry trade ? | an arbitrage trading strategy in which a trader holds a long position in a security or commodity together with a short position in a future contract on the same security or commodity in this case the security is held up until the future s delivery date thus covering the short position through the previously placed investment in the long position | |
what is the cboe ? | an abbreviation for chicago board options exchange the largest market in the world for the trading of exchange traded securities and options | |
what is the central bank cb ? | a government or quasi governmental institution that manages and controls a country s or group of countries monetary policy its responsibilities normally include issuing notes and coins managing the country s credit system and supervising over its commercial banking system prominent central banks include the federal reserve bank the bank of england boe the european central bank ecb the bank of japan boj and the people s bank of china pbc | |
what is the centralised market ? | a national or local exchange in which securities and financial instruments are traded at fixed prices without the influence of any competing market the quoted prices of the securities listed on the market represent the only price that is available for traders looking to buy or sell a certain security major centralised markets around the globe include stock markets such as the tse security and commodity markets such as the cme and the ase the foreign exchange market in contrast is a decentralised market since there is no single physical place where investors can go to trade on currencies | |
what is the cfd ? | a contract for difference i e an open ended contract with no fixed settlement date that can be closed out by the holder on demand for which the amount of the cash settlement represents the difference between the underlying asset s price agreed at the outset of the contract and its market price at the date of the settlement of the contract | |
what is a cfd rollover | when traders hold cfd positions whether long buy or short sell the brokerage has in place predetermined dates that the contracts are closed traders may on these dates close out their positions buying or selling as the case may be and either pocket their earnings or incur their losses depending on the price movement of their cfd in the event that a trader does not specifically close his position the brokerage will automatically rollover the position to the next trading period charging or crediting the trader with the difference between the closing price on the old contract and the opening bid on the new one | |
how does cfd rollover affect forex traders | traders should look at the brokerage s rollover dates before opening a position on a cfd rollover dates are generally every three months on sunday mornings any positions not closed by the end of the trading day on the previous friday are automatically rolled over on sunday morning traders who see that their positions are profitable and believe that they will continue to be so will usually not touch the position and allow it to rollover in the hope that they will earn greater profits on the other hand if a trader sees that the position has not been profitable and does not believe it will turn around the coming trade period may opt to close the position before the rollover a trader may also close out the position if it has been profitable but he does not have confidence that it will continue to be so | |
what are champagne stocks | champagne stocks are stocks whose value have risen very high very quickly very often unexpectedly so champagne stocks can come from any sector of any industry a prime recent example would be the stock of american airlines group which dramatically increased between september 2013 and the end of 2014 by more than a staggering 233 the term champagne stock derives from the idea that stockholders are so excited by huge earnings over a short period of time that they will open a bottle of champagne to celebrate also the sudden rise of stock prices brings to mind the image of a champagne cork popping and shooting upwards | |
how does one use champagne stocks | champagne stocks can be extremely profitable for traders who get in on them early enough the danger is that just as the value of a champagne stock can rise so dramatically the proverbial bubble could also burst and the stock could just as quickly depreciate knowing exactly the optimal time to buy and to sell requires a keen understanding of market trends as well as excellent fundamental and technical analysis | |
what is the chf ? | the official currency code for the swiss franc | |
what is the chunnel ? | a nickname for euro to british pound eur gbp currency pair | |
what is the client account ? | a setup to conduct currency and cfd related transactions on a recognized market which the customer presently has or may have at any time in the future the setup typically includes confirmation of transactions listing of holdings open and or pending positions cash and cash equivalents | |
what is the close a position ? | the process of closing an active trade by either selling a long position also referred to as simply buy or covering a short position also referred to as simply sell | |
what is the closed trades ? | a list of recently closed trades | |
what is the closing price | the closing price also known as the closing quote is the price of an asset in the trading market at the end of the trading day it is important to note that the closing price of one day is not necessarily the same as the opening price of the same asset on the following day fluctuations in the asset value can and often do continue even when the markets are closed while the asset is not being traded | |
how does one use the closing price | the closing price is the primary indicator for a trader on what the currency pair has done on the day that you are weighing a long or a short position by examining the closing price along with the day high and the day low traders can gauge the volatility of the currency and develop a strategy to either buy sell or avoid the currency altogether | |
what is the cme ? | an abbreviation for chicago mercantile exchange one of the largest and most influential options and futures exchanges in the world | |
what is the cny ? | the official currency code for the chinese yuan when traded in hong kong sign often interchangeable with rbn renminbi the people s republic of china official form of currency | |
what is a commodity | commodities are agricultural products or raw materials that can be bought sold or traded commodities are broken down into four basic groups energy such as gasoline crude oil and natural gas agriculture such as wheat coffee sugar and corn livestock such as pork bellies and cattle metals such as gold silver and copper commodity prices are heavily dependent on supply and demand and as such are often greatly influenced by weather natural disasters and geopolitical events as a result strong fundamental analysis is crucial to successful commodities trading | |
how does one use commodities | traders can trade on the price of a commodity most commonly as a futures contract this is a contract in which a trader purchases shares of the commodity at a future time but in which a certain price is guaranteed in the event that external factors such as weather related disasters or geopolitical events affect the price of the commodity for traders of cfds on commodities investments are based on how the trader believes the price of the commodity will behave in a pre determined time frame | |
what is compounding | compounding is when an investment increases exponentially in value over time the growth is exponential because both the principal investment and the interest continue to earn interest for example if a person invests 20 000 in a company and earns 25 interest on that investment in the first year at the end of the year his investment will be worth 25 000 the following year it is the full 25 000 that earns the same interest bringing its value to 31 250 the following year that means with compounding the net amount earned from interest every year is higher than the previous year | |
how does one use compounding | compounding is a primary tool in money management the longer you leave an investment in without cashing it out the more money you are able to earn from your initial investment the biggest advantage of exponential earning rather than linear earning is that if the earning was linear the net increase would remain the same every period that is to say if a person earns 2 000 in interest per year then that is the increase no matter how much money is in the investment at the time compounding on the other hand ensures that the more an investment is worth every year the higher the net increase will be as a result investors are encouraged to leave both the principal and the interest earned in the investment and watch it grow more quickly than if they kept only the principal | |
what are cross currency pairs | foreign currencies are always traded in pairs the value of one currency compared to a counterpart cross currency pairs also known as minor currency pairs are pairs that do not include the u s dollar but do include at least one of the world s other three major currencies that is to say that the japanese yen british pound or the euro are at least one if not both of the currencies included in the pair cross currency pairs are not to be confused with the seven major currency pairs all of which include the u s dollar against one of the six other most liquid currencies in the world | |
how does one use cross currency pairs | depending on how volatile and liquid a market a trader wishes to invest he might find that the cross currency pairs are a safer investment than a major pair as is the case with all other currency pairs the rates can be influenced by several factors including economic announcements geopolitical events and even global weather the fortrade website offers several cross pairs from which traders can choose | |
what is crude oil | crude oil is one of the most important commodities traded on the open market it is unrefined petroleum that is used to make diesel gasoline and other fossil fuels because crude oil is a nonrenewable source in recent years much progress has made in finding alternative energy sources including solar and wind which will never be in danger of running out as a result it is difficult to know how much longer crude oil will be considered a critical commodity however for now it certainly is and many countries are major suppliers including the united states russia and saudi arabia crude oil prices generally reflect wti west texas intermediate oil which is primarily drilled in the united states and the european brent crude the third major benchmark is the opec basket like most commodities the price of crude oil is driven primarily by supply and demand and is extremely vulnerable to external factors at times for example members of opec organization of petroleum exporting countries have decided to limit production of oil causing the global supply to dwindle and the price of oil to rise alternately when oil rich countries opec and others are producing excessive amounts of oil the supply outweighs the demand and the prices can drop | |
how does one use crude oil | while some traders purchase spot contracts on crude oil in which ownership of the oil changes hands at the moment and the price reflects the cost of crude at that moment it is far more common for traders to purchase futures contracts on oil with futures contracts the price agreed upon reflects what both the buyer and seller believe will be the price of oil at a predetermined future date those who trade on oil cfds are essentially predicting how the price of oil will move before the position closes | |
what is the difference between brent crude and wti crude | brent crude and wti west texas intermediate crude are the two primary benchmarks for global oil prices when a price of oil per barrel is quoted it is generally referring to one of these two oils and the prices of brent and wti tend to be fairly close to one another the primary differences between the two are location brent crude is drilled in one of the four oil fields in the north sea between england germany and scandinavia wti is drilled from oil wells in the united states transport because brent is drilled from the ocean and is water borne it is less expensive to transport as opposed to the more expensive wti which is transported through pipelines gravity and sweetness brent is considered to be a light oil as measured by density and a sweet oil as measured by sulfur content wti is lighter and has even less sulfur sweeter supply approximately 60 of the world s oil supply comes from brent oil like most commodities the price of brent and wti is driven primarily by supply and demand and is extremely vulnerable to external factors if for example members of opec organization of petroleum exporting countries decide to limit production of oil the global supply will dwindle and the price of brent and wti will rise alternately when oil rich countries opec and others produce excessive amounts of oil the supply outweighs the demand and the prices can drop | |
how do cfd and commodities traders use crude oil | most trading on crude oil is in futures contracts where both the buyer and seller agree on the price that they believe will be the price of oil at a predetermined date those who trade on oil cfds are essentially predicting how the price of oil will move before the position closes brent contracts are traded on major exchanges such as ice international exchange while wti contracts are traded on the new york mercantile exchange | |
what are cryptocurrencies | cryptocurrencies also known as digital currencies are virtual currencies that many analysts and experts believe will eventually replace paper money the cryptographic technology hence the name cryptocurrencies makes the currencies extremely hard to counterfeit which makes the currencies very enticing because the digital currencies are decentralized and not regulated by any government agencies anywhere in the world they have an independence that many traders like however no regulation also makes transparency a potential issue for other traders | |
how does one use cryptocurrencies | different cryptocurrencies can be obtained in different ways for example bitcoins the most widespread digital currency can be mined by users although there is a limited number of new coins available for mining at any given time once they have been mined they can be traded on forex exchanges for fiat currencies or used as a form of payment online currently more than 100 000 vendors and companies accept digital currencies as a valid form of payment and as these cryptocurrencies increase in value that number seems likely to grow many forex brokers including fortrade com depending on regulation provide traders with the option of trading cfds of the larger cryptocurrencies such as bitcoin ethereum dash and litecoin | |
what is the currency pair ? | the exchange of one currency unit against another currency unit the currency that is quoted denominator is referred to as the base currency and the currency used as reference is called the counter currency or quote currency numerator the result of a currency pair is its exchange rate click here to see a complete list of currency pairs available for trading | |
what is the daily change | the daily change represents the fluctuation of any given security over the course of a trading session it is measured very simply by comparing the price of the security at the end of a trading session to its closing price at the end of the previous session | |
how does one use the daily change | the importance of the daily change is quite straightforward it enables traders to track how much money they have earned or lost during a day s trading it is used together with the daily changes of previous and subsequent days to determine long range trends of the security thus providing traders with an excellent technical analysis tool for building trading strategies | |
what is the day high ? | the highest price at which a security or financial instrument has traded during the day | |
what is the day low ? | the lowest price at which a security or financial instrument has traded during the day | |
what are derivate markets | derivatives are contracts whose values are based on underlying assets and are determined by the rise and fall of that underlying asset prime examples of this include futures contracts and contracts for difference cfds derivative markets are markets on which these derivatives can be traded most derivatives are traded over the counter otc and are not regulated by government authorities which means they are far riskier than the derivatives that are traded on regulated exchanges | |
how do derivate markets affect forex traders | the most commonly traded derivatives are futures contracts in which the buyer and seller mutually agree on a price that reflects what they believe will be representative of the asset at a predetermined future date other derivatives include cfds forward contracts options and interest rate swaps | |
what is the derivative ? | a financial instrument or security whose value is derived from and is dependent on the value of another underlying asset or financial instrument such as an exchange rate commodity stock index bond or mortgage contract the main use of derivatives is to lower risk for one party while offering a potentially high return at a higher risk to another party there are four main types of derivatives contracts forwards options futures and swaps | |
what is the derivative markets ? | markets for buying and selling derivative instruments there are two major types of derivative markets regulated futures and option markets and over the counter markets | |
what is the desktop trading platform ? | a downloadable software through which traders can access financial markets open edit and close online trading positions and receive live streaming of quotes graphs and other technical indicators via a pc or mac desktop or laptop computer | |
what is the deutsche b rse group | the deutsche b rse group owns and operates all seven stock exchanges in germany the largest of which is the frankfurt stock exchange since 1997 the frankfurt stock exchange has used a completely electronic trading platform called xetra which was developed by the deutsche b rse group and has since been adopted by several other european exchanges the deutsche b rse group has approximately 600 companies listed with a combined domestic market capitalization of over 1 7 billion since 2014 it has been a member of the u n sustainable stock exchanges initiative the deutsche b rse group oversees the german stock exchanges and is regulated by the european securities and markets authority the federal financial supervisory authority and the trading surveillance office | |
how do forex traders use deutsche b rse group | as with any stock exchange the most obvious use of the deutsche b rse group is for forex and cfd traders to see the market prices for all financial instruments on the group s stock exchanges while banks and brokers each provide their own bid and ask prices for assets exchanges allow traders to see the general range of what each price should be by watching whether the exchanges operated by the deutsche b rse group are bullish or bearish traders gain a strong tool for developing a trading strategy | |
what is the deutsche bundesbank ? | the central bank of the federal republic of germany equivalent to the federal reserve bank and the most important member of the european system of central banks escb | |
what is the dividends ? | a dividend is a way of a company to distribute a percentage of its net earnings to its shareholders the dividend amount is decided by the company s board of directors and can be issued as a cash payment shares or other assets most commonly the dividend is determined in terms of money per share which means that each shareholder will get a dividend respectively to his holdings for example in case you own 1 000 shares and the dividend announced is 3 per share you will get 3 000 other common way of quoting a dividend is terms of percentage of current market price which is also known as yield for example if you hold 1 000 shares the current market price is 100 and the dividend announced is 2 it means you will get 2 for every share you hold which are 2 000 other ways to pay a dividend are shares giving out shares instead of cash property interim and more when a dividend is paid the company s value is immediately effected for the simple reason that the cash it is giving out as a dividend will no longer belong to the company so its share price decreases in the rate of the dividend payment the change in the share s price is taking place in the ex dividend date as a result fortrade needs to credit debit the clients holding the dividend paying share during the ex date in order to cover for the paid dividend and making sure that all of our shareholding clients will receive the dividend and won t be effected by fake declines of the share s price the term fake refers to market price movements that are not a result of real market conditions but a result of a synthetic conditions like dividend payout all client holding a dividend paying share in a short position during the ex dividend day will be debited in the size of the dividend for example if you hold 1 000 shares in a short position in an opening price of 110 while the current market price is 100 and the paid dividend is equal to 2 per share the share price will drop in 2 in the ex dividend day meaning that you will earn more money in your short position due to the fake share price movement so fortrade will have to charge that exact amount with no further fees or commission to your commission p l before the ex dividend day 1 000 110 100 10 000 shares amount opening price market price before the dividend payout p l after the ex dividend day assuming there were no other real market effects on the share price 1 000 110 98 12 000 shares amount opening price current market price dividend charge 1 000 2 2 000 shares amount dividend paid per share final p l calculation 1 000 110 98 2 000 10 000 shares amount opening price current market price dividend amount all client holding a dividend paying share in a long position during the ex dividend day will be credited in the size of the dividend for example if you hold 1 000 shares in a long position in an opening price of 90 while the current market price is 100 and the paid dividend is equal to 2 per share the share price will drop in 2 in the ex dividend day meaning that you will lose money in your long position due to the fake share price movement so fortrade will have to credit you with that exact amount with no further fees or commission to your commission p l before the ex dividend day 1 000 100 90 10 000 shares amount market price before the dividend payout opening price p l after the ex dividend day assuming there were no other real market effects on the share price 1 000 98 90 8 000 shares amount current market price opening price dividend credit 1 000 2 2 000 shares amount dividend paid per share final p l calculation 1 000 98 90 2 000 10 000 shares amount current market price opening price dividend amount all dividends credits charges will appear in the commission column of the position | |
what is the devaluation ? | an official change in the price of a security or financial instrument especially in regards to a currency where it means a decrease in the value of its exchange rate the opposite of revaluation | |
what is the dis ? | the ticker symbol for walt disney co click here for more details | |
what is the dkk ? | the official currency code for danish krone | |
what is the downtrend ? | a situation in which each successive peak or trough on a security s price chart is lower than the ones preceding it the opposite situation is an uptrend | |
what is the downward trend ? | a downward trend opportunity refers to events in which our research department believes the technical analysis of an underlying product indicates that it may decrease in price it is your decision to trade if you feel you agree we always recommend you to consider other external sources and only open a trade if it is appropriate for you visit our research analysis page for more information | |
what is the economic calendar | an economic calendar is a detailed list of economic events including financial policy statements as well as regular weekly monthly and quarterly economic reports and economic indicators that are expected to have an effect on trading markets the events appear on the calendar in chronological order and are all rated on a scale of 1 3 as to how large an impact the event is expected to have on the markets finally when an economic report is scheduled the calendar includes analysts predictions as to what the numbers of the report will be and whether they will represent a rise or fall from the previous report the economic calendar can help traders predict if the markets will be bullish or bearish active or quiet and by doing so enable traders to develop strong strategies based on the scheduled events and the fundamental analysis made possible by the calendar click here to visit the economic calendar on fortrade com | |
how does one use the economic calendar | by watching the economic calendar and having an idea what to expect from various economic reports and policy statements traders have a very powerful tool for fundamental analysis of course as with every aspect of forex trading nothing is foolproof analyst predictions may be wrong or the reaction of the markets to the events in the economic calendar may be other than anticipated due to unforeseen external circumstances that being said the economic calendar remains a very effective tool at a trader s command and it should be checked daily and followed closely |
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