 |
 |
OCO Order |
| One Cancel the Other
Order |
|
A One Cancels the Order is a Stop and
Limit orders set simultaneously, whereby once either one is
executed, the other is canceled. For example, an OCO may be
place to close an existing position either with a Limit
(take profit), or with a protective Stop (stop loss).
[learn More...] |
|
|
NIRD |
|
Net Interest Rate Differential
|
|
The difference in interest rates from the
countries of two different currencies. For example, if the
spot next rate for the Euro is 3.25% and the spot/next rate
in the US is 1.75%, the interest differential is 1.50%
(3.25% - 1.75% = 1.50%).
[learn More...] |
|
|
PIP |
|
The smallest measure of movement for a
foreign exchange rate.
[learn More...] |
|
|
Rollover |
|
The smallest measure of movement for a
foreign exchange rate.
[learn More...] |
|
 |
|
According to a recent BIS study on the spot
market, the most heavily traded products are: EUR/USD
(28%), USD/JPY (17%), and GBP/USD (14%).
The US currency was involved in 89% of transactions, followed by
the Euro (37%), the Yen (20%) and Sterling (17%). Although
trading in the euro has grown considerably since the currency's
creation in January 1999, the foreign exchange market is thus
still largely dollar-centered. |
|
|
|
|
|
Currencies without barriers
In the beginning Foreign Exchange was a privileged market which access was reserved to
institutions only which had to exchange the world's major
currencies.
It
was only until the recent years that Forex, thanks to the growth of the
phenomenon of online trading and to the application of the concept of Over
The Counter trading (OTC), has become easily accessible to a widespread
variety of daily traders and speculators.
Its exponential growth has of
course translated in an unbelievable market liquidity around the clock,
to the point that no matter at what time, there is always a buyer or a
seller counterpart. Market liquidity, price stability, world wide
accessibility allow traders to open or close a position at a fair market
price. These have been among the main reasons of the success of Foreign
Exchange on such a vast scale.
|
 |
|
|
|
|
