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Scalping

 

Buying or selling to try gain as many pips as possible and make cash gains, in a very short time interval.

Short Position

 

Being “short” on a currency is the same as selling that currency.

Slippage

 

When a broker does not execute a trader’s order to buy or sell at a certain level, but does this at another level. One reason may be highly volatile (changing) exchange rates.

Spot Rate

 

An indication of the exchange rate where the buying and selling rates are identical. A theoretical measure, which does not correspond to the real-life “bid ask spread”.

Spread

 

This is the difference between a buying and a selling price. Forex traders do best when they have the largest spread possible (in their favor) in their own trades, and when their broker offers the smallest spread possible.

Stochastic Oscillator

 

This is a “leading indicator” of a change in an exchange rate trend.

Stop loss order

 

A trading order telling a broker to close a position once pricing reaches a certain level, in order to limit loss.

Straddle

 

A trading technique using the equivalent of two stop loss orders to try to trade in a currency whose exchange rate is likely to go up to or down to a certain level, without any indication of which.

 

Support Level

 

The minimum level for the exchange rate of a currency. The rate does not decrease below this level.

Synthetic pair

 

A pair of currencies that can be traded in by combining two standard pairs, but that otherwise is not offered by a broker.