Common Terms

ASK

Purchase price. In the currency quotation, it is indicated on the right. For example, in quotation GBP/USD 1.6882/1.6887 the purchase price is 1.6887. The seller price at which the client can buy the currency (or another asset) from the dealer.

BID

Sale price. In the currency quotation, it is indicated on the left. For example, in quotation GBP/USD 1.6882/1.6887 the sale price is 1.6882. The price at which the trader can open a deal to sell (the price of the buyer, the price of demand).

COMMODITIES

Common commodity or product that is sold on the market, for example oil, millet, paper, flowers or manganese, which is sold most often in the form of futures on commodity exchanges. Not every product is a commodity, in order for it to become such it needs interchangeable products in whole or in part.

BUY/ GO LONG

Acquisition of various types of assets on the financial market for further investment or resale. The term is used to refer to the position of the buyer, which can be expressed for the purpose of further investment or speculation to generate income. Among the most common assets are as follows: currency pairs, stocks, futures.

The purchase operation is carried out by the order BUY (buy). Closing a long position is carried out by the order SELL (sell).

SELL/GO SHORT

Implementation of a financial instrument, which is borrowed from a broker. The reason for entering a short position is the confidence of the player in the fall of prices for the sold securities.  This operation is made for the investment. Since the trader is not the owner of the asset, the essence of the operation is to sell with the further redemption of the asset at a lower price to get income. After the transaction is completed by the trader, the broker takes the asset back.

Operation of the short sale is carried out by order of SELL SHORT. The closing of a short position (repurchase of securities) is carried out by the order CLOSE SHORT.

STOP LOSS

The automatic method to limit losses of any trade. Stop Loss is set to strictly limit your losses to a pre-calculated amountthat you are willing to accept as a loss. Stop loss allows you to exit the market before it is too late, while the loss is still small and did not consume your deposit.

The size of the limiting SL rate can be adjusted at any time, which is especially useful at times of market decline or growth when you plan to increase profits.

TAKE PROFIT

The automatic way to get fixed profit from any transaction. Take Profit setting determines the target profit level. When the price reaches this level, the trade is automatically closed and you exit the market, taking profit.