The GBP/USD currency pair which represents the British Pound against the US Dollar, is also called Cable in forex lingo. The term was coined in the reference to the transatlantic cable that was used to transmit the quotes between the UK and USA.
A chartist or a technical analyst is a trader who takes trading decisions based on the historical price movements and repeatable chart patterns.
A closing price is the last price a stock, currency, etc. was traded at before the market closed. Traders use the closing price of the previous days/weeks/months to have a better understanding of what might happen today.
Commission is the service fee that a broker charges a client in return for providing market access.
Commodities cover a wide variety of materials. There are different types of commodities:
- Agricultural, sometimes referred to as ‘Agro’, like coffee, corn, sugar etc.
- Energies like oil and natural gas
- Metals, Precious metals like Gold, Platinum and Palladium and base metals like Copper, Zinc etc.
Cost of Carry
Cost of carry or overnight fees is the interest a trader might have to pay in order to keep their positions open for the next day.
Consumer Price Index or CPI is a statistical indicator that measures that measures the monthly change in prices paid consumers on a specific basket of consumer goods and services.
When one currency increases in value against other currencies, this is called Currency Appreciation.
When one currency decreases in value against other currencies, this is called Currency Depreciation.
The policy of fixing the exchange rate of a nation’s currency to the currency of another country is called currency peg.