FOREX DICTIONARY

Accumulation Index: It is an indicator created based on the relationship between transaction quantities and price change. It follows the trade and price balance and gives information about whether the current trend will continue.

Adx (Average Directional Index): It is a technical indicator developed by Welles Wilder, which is part of the indicator system that shows movement in a certain direction.

Purchase (Bid) Price: The price at which market participants are willing to make a purchase.

Bank Line: It is the limit of the loans that banks give to their customers.

Interbank Money Market: It is an interbank short-term fund trading market.

Band: The value of a currency against another currency may fluctuate within the price band permitted by the relevant state. This price band is called band.

Basic Analysis: It is one of the two universal methods used to make investment decisions. By examining all political, cultural, natural and political developments, it tries to understand their reflection on prices.

Bonds: It is the general name given to debt securities issued by the state or joint stock companies to the market in order to find borrowed money.

Cable: The nickname of the GBP/USD pair in the jargon.

Candlestick Chart: Candlestick chart. It is one of the graphic representation types and is the most commonly used representation form in the application of technical analysis tools.

Current Account Deficit: The resulting fiscal deficit occurs when the total imports made in a country are more than the total exports.

CCI: CFDs are investment tools that let you trade on the market without owning the underlying asset. You're essentially betting on price movements rather than buying the actual investment.

Chart Formations: The special shapes that occur on the price chart form the formations. Triangle, flag, shoulder head shoulder patterns signal that the current trend in prices is coming to an end and changing direction.

Compulsory Provision: Banks are obliged to block the deposits deposited to them by depositing a certain part of them to the Central Bank before making them available as loans. This rate is called the "compulsory provision rate" and is determined by the Central Bank.

Counter Currency: It is the second currency in the traded currency pair. In EUR/TL parity, the opposite currency is TL.

Dealers: It is the name given to the persons and institutions acting on their own name and account in the purchase and sale transactions.

Dealing Rates: Transaction prices. It is the area where the purchase and sale prices of currency pairs are reported.

Deflation: The name given to the continuous downward trend in the general level of prices.

Exotic: The general name given to the currency pairs that make up the least traded group in Forex.

Economic Indicator: These are data obtained using statistical methods that provide information and insight about the course of the economy of a country.

Economic Calendar: A periodic calendar showing the time and status of the announcement of important economic indicators and events.

Elliott Wave: The theory that claims that the market moves in a certain cycle that repeats itself.

Federal Funds Rate: It is the overnight interest rate that banks located in the United States pay in exchange for the capital they receive from the FED. It is also the financial policy instrument by which the FED controls the money supply in the country.

Fibonacci Numbers: 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55 — a series of numbers that continues and goes as the sum of the two numbers before it. Technical analysis evaluations are created based on the ratio of the numbers decoupled from each other.

Futures Trading: Spot (two business days) are transactions in which the maturity, amount, and price of an asset (foreign exchange, interest, goods) that will be delivered at a later date exceeding the transaction date are determined from today and linked to a contract.

Fixed Exchange Rate System: These are systems in which a national currency is fixed to the value of a foreign currency or a basket of coins, and the perpetuation of this value is guaranteed by the monetary authority.

Fibonacci Retraction: Used in technical analysis, the support calculated by Fibonacci numbers is the method of determining the resistance.

Futures Markets: Futures markets are the markets where contracts are bought and sold that contain the commitment to deliver a certain product at a later date, provided that its price is fixed from today.

Futures Contract: It is a contract that gives the parties to the contract the obligation to buy or sell a product or asset of standardized quality and quantity at an agreed price at a specified later date.

Gross National Product (GNP): It is the value of the total goods and services performed by the citizens of a country within or outside the borders of that country in a certain currency.

Gross Domestic Product (GDP): It is the total value of all goods and services produced in a country over a certain period of time in a certain currency.

Grand Supercycle: It is a contract that gives the parties to the contract the obligation to buy or sell a product or asset of standardized quality and quantity at an agreed price at a specified later date.

Gator Oscillator: A technical indicator developed by Bill Williams that helps to understand the trend.

Hedge: It is the name given to the process performed for hedging purposes.

Hedge Transactions: A hedge is an investment that occurs in opposite directions and open positions of an existing exchange.

Hedging: It is a method of locking in the current profit or loss situation by opening transactions in the opposite direction with the same size as an existing position.

IMF (International Monetary Fund): It is an international organization founded in the USA in 1946, which has tasks such as monitoring global financial markets, conducting audits on issues such as stock markets, pay plans, exchange rates, providing financial support to countries in financial difficulties. The IMF carries out its duties to ensure liquidity in the international foreign exchange market and to support free exchange rates.

Ichimoku: A technical indicator with a comprehensive and relatively mixed appearance that has been produced to monitor trend change. It is mentioned that it creates reliable methods when used properly.

Interbank: The name of the money clearing system created by banks connected to each other by an electronic network.

Leverage: Leverage is a mechanism that allows you to carry out financial transactions in excess of your principal. Since leveraged transactions involve higher risk than unleveraged transactions, investors should be well informed about leverage and should know the risks as well as the profit opportunities. Leverage and risk are interrelated. A high leverage ratio can increase both the amount of gain and loss.

Lot: LOT is used as a trading unit in forex markets. The standard lot size is 100,000 units. 100,000 units is often abbreviated as 100K. The mini lot, which is a sub-unit of this, refers to a size of 10,000 units (10K). The concept of micro lot, which is a unit below the mini lot, represents a transaction of 1,000 units.

Leverage Ratio: It is the ratio that determines up to how many times the amount of collateral you deposit to trade.

Long: The name given to the purchase position in foreign resources.

Liquidity: The name given to the ability of any financial instrument to be converted into cash in a short time. If the liquidity of the financial instrument is high, it means that it can be easily converted into cash.

Leverage System: It is the ratio that determines up to how many times the amount of collateral you deposit to trade.

MACD: It is a technical indicator developed by Gerald Appel. It is calculated by subtracting the 26-period exponential moving average from the 12-period exponential moving average. By comparing these two moving averages, it is determined whether the trend will continue in the pair. The distance between the moving averages gives information about the momentum of the movement in the pair.

Margin Call: It is the capital increase request made by the broker, intermediary institution, bank or the financial institution to which the investor is affiliated, in order for the investor not to close his/her open positions or to open new transactions in cases where the investor incurs losses.

Moving Average: It is a technical indicator obtained by calculating the average of prices in a certain time interval. The indicator placed on the pair gives an idea about whether prices will move in the current direction and is also used as support - resistance levels.

MACD Histogram: It is an indicator created by displaying the difference between the MACD line and the MACD signal line in the form of a histogram. The intersections and deviations between the two lines are more easily observed.

Major: It is the name given to the group consisting of the most traded currency pairs in Forex.

Money Market: Markets where short-term (90 days or less for international markets), highly liquid financial instruments are traded.

Monetary Policy: It refers to the decisions taken to affect the availability and cost of money in order to achieve objectives such as economic growth, employment growth and price stability.

Parity: It is the name given to the investment instrument created based on the ratio of two countries' currencies to each other. It is traded in the form shown as EUR/USD, which expresses the swap ratio of two different values. eliminates the price risk for companies in terms of creating a risk.

Price Channel: The name given to the shape formed when the price of the investment instrument moves between two horizontal border lines that can be clearly determined on the chart.

Recession: It is the situation where economic growth in a country is slow or negative in a certain period of time.

Reserve Currency: It refers to the foreign exchange and gold assets held in the portfolios of central banks and international financial institutions. Accordingly, for a payment instrument to qualify as a reserve currency, its value against other currencies should be stable, it should belong to a country with a large share in world trade, and it should be easily traded in foreign exchange markets.

Risk - Return Ratio: It is the ratio obtained by dividing the potential return of a transaction by the potential risk of loss. For example, if a purchase transaction opened at a price of 100 is expected to be closed at a price of 120 (profit expectation 20) and this price is expected to fall to a maximum of 90 (loss expectation 10), the risk - return ratio is 20:10 or 2:1. Generally, the higher this ratio, the more profitable trades are made. The risk-return ratio for stop loss and take profit orders is determined with the help of support and resistance levels.

SAR: The SAR indicator, named after the initials of the words Stop And Reversal, is a technical indicator introduced to the market by Welles Wilder in 1978. It is often used for trend following.

Sell Signal: One of the indicators used in technical analysis is that it indicates that prices may decline. For example, if the RSI indicator breaks the 70 level downwards, it is interpreted as a sell signal.

Sell Price (Ask): The price at which market participants are willing to sell.

Stop Loss: This term, which can also be expressed as stop loss, determines how much loss we can bear in our open position. In English, the Stop Loss plan can be abbreviated as SL in order programmes, forums and blogs.

Shoulder Head Shoulder (SHS): It is a technical pattern that indicates the possible reversal of a price trend.

Spread: The difference between the buying and selling prices of a trading instrument is called the spread. The lower this difference, the better it is for investors.

Signal Line: In technical analysis, it is the line that serves to generate buy and sell signals. In many indicators, the signal line is formed by calculating the moving average of the main line.

Support Line: It is the line formed by the points where the price of the investment instrument hits the same level during its downward movement.

Resistance Line: It is the line formed by the points where the price of the investment instrument hits the same level during its upward movement.