The Language of Forex Flashcards
what does ninja mean?
ninja is a nickname for the USD/JPY currency pair
what does ‘single currency’ mean?
EUR (euro)
what does ‘loonie’ mean?
CAD (canadian dollar)
what does ‘swissie’ mean?
CHF (swiss franc)
what does ‘aussie’ mean?
AUD (australian dollar)
what does ‘kiwi’ mean?
NZD (new zealand dollar)
what does ‘greenback, buck’ mean?
USD (U.S. Dollar)
what does ‘sterling, pound sterling’ mean?
GBP (great british pound)
what does ‘cable’ mean?
GBP/USD (british pound/us dollar)
what does ninja mean?
USD/JPY (US dolla/japanese yen)
what does ‘chunnel’ mean?
EUR/GBP (euro/british pound)
what does yuppy mean?
eur/jpy (euro/japanese yen)
what does guppy mean?
gbp/jpy (great british pound/japanese yen)
what does barnie mean?
USD/RUB (us dollar/russian ruble)
what is QE ?
quantitative easing
- the central bank’s monetary policy to print and inject more money into the economy
what is bid & ask?
purchase and selling pice related to the base (domestic) currency
hawkish & dovish statements?
central bank announcements that usually hint at interest rate increases (hawkish) or cuts/decreases (dovish)
yard?
a billion units of any currency
gap?
a market move where price skips several levels without any trades occuring
thin market?
condition when prices are not as liquid as expected
speculator?
individual trader taking large risks in hope of making a quick gain
day trader?
opening few trades a day and closing them that evening
scalper?
a trader who aims for small but fast short-term gains (usually intra-day)
uptick?
a new price quote at a price higher than the preceding quote
rate hike?
an interest rate rise
surge
a very quick and sudden price movement in an upward direction
plunge?
a very quick and sudden price movement in a downward direction
volatility?
how much a price fluctuates over a period of time
whipsaw?
highly volatile market with sharp price movements, usually trading sideways with no trend
safe haven assets?
currencies, commodities or bonds that rise during periods of high uncertainty (e.g., gold, japanese yen, swiss franc, bitcoin)
commodity currency?
a currency that is based on a commodity export economy (e.g., AUD exporting minerals, CAD exporting oil, NZD exporting dairy & meat
‘going long’?
opening a bullish (buying) trade
going short?
opening a bearish (selling) trade
babysitting a trade?
holding a losing trade open for a long time
swing trading?
moving quickly to take advantage of potential swings in asset prices, by holding or shorting an asset overnight or longer
position trading?
betting on long-term gains by keeping a position open for several months to years, without being too concerned about short-term price movements
scalping?
trading with many short-term positions (seconds - minutes) for repeated small profits
hedging?
maintaining a position that reduces the risk of your primary position
currency rallying?
a price that recovers after a period of its decline
plunging?
a price that’s sinking or falling from its previous value
keeping the power dry?
limiting your trades until trading conditions become clearer
getting whacked?
losing against a swift, sharp trade
melting account?
making losses too large to continue trading
what does the following statement mean?
“USD/CAD - dovish BOC hurts the loonie”
bank of canada reports an interest rate cut, therefore canadian dollar depreciates against US dollar
what does the following statement mean?
“AUD/USD - jobs report ruined the rally”
bad australian employment report stopped recent AUD/USD uptrend
what does the following statement mean?
“NZD/USD - signs of recovery for the roller coaster kiwi”
new zealand dollar recovers against US dollar after an extended exchange rate fall
