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Cable is a slang term used among forex traders referring to the exchange rate between the U.S. dollar and the British pound sterling. This term supposedly derives from the advent of the telegraph in the mid-19th century. The pound was the dominant currency at the time, and transactions between the pound and dollar were executed via transatlantic cable.
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Canadian Dollar. The currency of Canada. It is subdivided into 100 cents.
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A monthly economic report, that is released by Markit and is based on a survey of about 400 purchasing managers in China. A reading above 50 indicates expansion of the manufacturing sector and the economy in general, whereas a reading below 50 indicates contraction.
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A price charting method that originated in Japan in the 18th century. A standard Candlestick chart contains a series of multiple individual candlestick data points. Colour schemes are used to illustrate the real bodies of the candles, which is the difference between a lower close than the open (red) and a higher close than the open (green).
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The capacity utilization rate measures the proportion of a country's resources used by manufacturers, mines and utilities. A high reading is positive for the country's currency whereas a low reading is negative. This report is released by the Federal Reserve.
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Capital expenditures represent major investments of capital that a company makes to maintain or, more often, to expand its business and generate additional profits.
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Capital gain is an increase in the value of a capital asset (investment or real estate) that gives it a higher worth than the purchase price. The gain is not realized until the asset is sold.
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The result of selling a capital asset at a lower price than the purchased price.
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A charge for the storage of physical commodities.
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The amount of money going into and out of a business.
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The Consumer Confidence Index (CCI) is a monthly release from the Conference Board, a non-profit business group that is highly regarded by investors and the Federal Reserve. CCI is a distinctive indicator, formed from survey results of more than 5,000 households and designed to gauge the relative financial health, spending power and overall confidence of the average American consumer.
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A moving average type where more weight is assigned to the middle of the period (time span). Used in cycle analysis.
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A state's financial institution that oversees monetary policy and manages a state's currency, inflation and interest rates.
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A Central Bank buys or sells its currency in the foreign exchange market in order to raise or lower the value of its currency in respect to another currency
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A CFD is a financial derivative which allows traders to speculate on a number of assets without owning them. It is basically an agreement between an investor and an investment institution. When the agreement expires, the parties exchange the difference between the opening and the closing prices of a particular financial asset.
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The US Commodity Futures Trading Commission was created in 1974 with the aim of fostering open, transparent, competitive, and financially sound markets.
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A technical analysis tool, similar to the concept of a trendline. At times prices fluctuate between two parallel lines, the basic trendline and the channel or return line. Channels may be used to trigger buy/sell signals and calculate price targets.
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A Graphical representation of price using a candlestick, bar or line chart.
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An individual who uses charts or graphs of a security's historical prices or levels to forecast its future trends.
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Swiss Franc. The currency of Switzerland and Liechtenstein. It is subdivided into 100 Rappen.
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The Chicago Purchasing Managers' Index is a monthly survey where purchasing managers (in Illinois, Indiana and Michigan) are asked to rate employment, production, new orders, prices, supplier deliveries and inventories. A reading above 50 is bullish for the US Dollar while a reading below 50 is bearish. This report is released monthly by ISM-Chicago Inc.
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A sideways market.
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A monthly report that measures unemployment in the United Kingdom. Released by the United Kingdom's Office of National Statistics (ONS).
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Funds in an account that are available for withdrawal or investment.
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Part of the MT4 Trading Platform that allows traders to receive live incoming prices, open and manage orders, perform technical analysis, write, back test and optimize trading robots, and develop indicators and scripts.
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When a position is closed, the transaction has been completed - whether the position was long or short, or whether it was profitable or incurred losses.
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Otherwise known as closing price, this is the final rate that a security is traded at on a specific day, candle or timeframe.
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The final price at the end of a period (i.e. timeframe).
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Chinese Yuan Renminbi. The currency of the People's Republic of China. It is divided into 10 jiao and 100 fen.
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An asset offered by the borrower to the lender to secure the loan.
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An amount the trader is charged by the broker for facilitating a trade.
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The US Commodity Futures Trading Commission was created in 1974 with the aim of fostering open, transparent, competitive, and financially sound markets.
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A commodity is a basic good used in commerce that is interchangeable with other commodities of the same type
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The Consumer Price Index (CPI) is a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food and medical care. It is calculated by taking price changes for each item in the predetermined basket of goods and averaging them. Changes in the CPI are used to assess price changes associated with the cost of living.
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A US report that indicates the number of individuals on unemployment benefits. A high reading is negative for the US Dollar, whereas a low reading is positive. This report is released monthly by the US Department of Labour.
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A board of trade designated by the CFTC to trade futures or options contracts on a particular commodity. Commonly used to mean any exchange on which futures are traded.
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The principle of contrarian trading assumes that when the larger majority of traders agree on the direction of the market then they are usually wrong. A true contrarian will therefore trade in the opposite direction.
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The tendency for prices of physical commodities and futures to approach one another, usually during the delivery month.
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A US economic indicator used to measure inflation based on measurement of price movements of a representative shopping basket of goods and services, excluding food and energy. A high reading is positive for the country's currency whereas a low reading is bearish. Released monthly by the Bureau of Labour Statistics.
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A US Monthly report that measures the change in the overall value of initial orders for manufactured goods except transportation items. Released by the Census Bureau.
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U.S. aggregate retail sales excluding automobile and gasoline sales, which are excluded due to their volatility. The figures are released monthly by the U.S. Department of Commerce about two weeks after the end of the reference month. As consumer spending accounts for more than two-thirds of the U.S. economy, the core retail sales data is an important indicator about the health of the overall economy.
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A temporary interruption of the prevailing trend in the opposite direction.
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In Elliott Wave Theory, a corrective wave is a wave against the trend. Waves 2, 4 and a-b-c are considered corrective.
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The average cost of a "basket" of products and services.
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The second currency in a currency pair quotation. Also called quote currency.
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To close out a short position by buying currency or securities that have been sold short.
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Risk of loss that may arise on outstanding contracts should a counterparty default on its obligations.
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The exchange rate between two currencies that do not involve the US Dollar.
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Unrefined petroleum found in liquid form and composed mostly of hydrocarbons, organic compounds and small amounts of metal.
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Crude Oil Inventories is a weekly report that measures the change in Crude Oil stocks (i.e. barrels). It includes domestic and Customs-cleared foreign crude oil stocks held at refineries, in pipelines, in lease tanks and in transit to refineries. The report is released by the Energy Information Administration.
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Digital currency in which encryption is used to regulate the generation of units of currency. It operates independently of the traditional banking system. Bitcoin, Ethereum and Litecoin are among the most popular cryptocurrencies.
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Currency is a generally accepted form of money, including coins and paper notes, which is issued by a government and circulated within an economy.
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Currency appreciation is an increase in the value of one currency in terms of another.
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A currency pair is the quotation and pricing structure of the currencies traded in the forex market
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A currency peg is a country or government's exchange-rate policy of attaching, or pegging, the central bank's rate of exchange to another country's currency.
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A technical analysis tool that draws vertical lines at equal intervals on the price chart to forecast future cycles.
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The independent public supervisory authority responsible for the supervision of the investment services market and transactions in transferable securities carried out in the Republic of Cyprus.