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Glossary |
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GLOSSARY OF TERMS
We give below some of the commonly accepted market terms we regularly use in our reports and recommendations
| to Short |
to Sell |
| Short position |
Sell/ Sold position |
| Position |
Trade/ Transaction/ Deal |
| to Long |
to Buy |
| Long position |
Buy/ Bought position |
| SL |
Stop Loss |
| TP |
Take Profit |
| Bearish |
thinking that the market will fall |
| Bullish |
thinking that the market will rise |
| Cable |
GBPUSD - harks back to the days when the GBPUSD rate used to be transmitted across the Atlantic via telegraph, prompting bankers, traders and businessmen to ask, "What's the Cable today?" |
| Jubbed |
To be "Jubbed" is to be stopped out of a trade at the worst rate possible, only to see the market move in the original hoped for direction thereafter. For instance, suppose we hold a Short Euro-$ position at 0.8520 with a SL at 0.8550. The market moves up, hits 0.8550 (stopping us out) and then moves down to 0.8500, our original hoped for Take Profit level. We end up feeling frustrated because we've been "Jubbed" out. This term owes its origins to the "legendary" currency trader Charles Jubbs of the City of London, who had an unerring ability to place his Stop Losses at the tops and bottoms of the market. We do not know whether Mr Jubbs really existed or not - but he exists today as part of trading folklore. |
MONEY MANAGEMENT
How much money you put on a trade forms a vital part of the entire trade. For instance, if we correctly forecast a fall in Euro from 0.8550 to 0.8420, but put only EUR 250,000/- on the trade, we'll earn USD 3,250/- on the trade. Contrast this with a trade where our forecast goes wrong, such that we lose 20 pips on a EURUSD trade, but we have put EUR 2,000,000/- on the trade. We end up losing USD 4,000/-.
We try to indicate our choice of amount by using the following terms:
| Tiny |
250,000/- of the uderlying currency |
| Small |
500,000/- of underlying |
| Medium |
750,000/- of underlying |
| Large |
1,000,000/- of underlying |
| Underlying currency |
The first currency in any conventionally quoted currency pair. Thus in EUR-USD, Euro is the underlying currency; in USD-JPY it is the US Dollar; while in EUR-JPY, it is again Euro |
These amounts can be scaled up or down (to the extent realistically possible) by the individual trader to his/ her liking.
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DISCLAIMER
These views/ forecasts/ suggestions, though proferred
with the best of intentions, are based on our reading
of the market at the time of writing. They are subject
to change without notice.Though the information sources
are believed to be reliable, the information is not
guaranteed for accuracy. Those acting in the market
on the basis of these are themselves responsible for
any profits or losses that might occur, without recourse
to us. World financial markets, and especially the
Foreign Exchange markets, are inherently risky and
it is assumed that those who trade these markets are
fully aware of the risk of real loss involved.
WARNING !!
Visitors should be aware that Foreign Exchange transactions and trading are or can be subject to laws, rules and regulations of the country in which the entity undertaking the transactions is situated. It is incumbent upon the Visitors to keep themselves informed and abreast of the Laws they are (or would be expected to be) subject to and governed by, and act in accordance thereto.
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