Forex Glossary (D)

Commonly used forex terms and their definitions.


Day Trader - Speculators who take positions in financial markets which are then liquidated prior to the close of the same trading day.

Day Trading - Refers to opening and closing the same position or positions within one day's trading.

Deal Date - The date on which a transaction is agreed upon.

Deal Ticket - The primary method of recording the basic information relating to a transaction.

Dealer - A firm or professional working within the firm that is in the business of acting as a counterparty or principle to foreign currency transactions.

Deflator - Difference between real and nominal Gross National Product, which is equivalent to the overall inflation rate.

Delivery Date - The date of maturity of the contract, when the exchange of the currencies is made; this date is more commonly known as the value date in the FX or Money markets.

Delivery Risk - A term to describe when a situation when a counter-party will not be able to complete his side of the deal, although willing to do so.

Depreciation - A fall in the value of a currency due to market forces rather than due to official action.

Desk - Term referring to a group dealing with a specific currency or currencies.

Details - All the information required to finalize a foreign exchange transaction, i.e. instrument, rate, dates, and point of delivery.

Devaluation - Deliberate downward adjustment of a currency against its fixed parities or bands, normally by formal announcement.

Directional Movement Indicator (DMI) - A technical indicator that plots a positive +DI line measuring buying pressure and a negative -DI line measuring selling pressure. The DMI pattern is bullish as long as the +DI line is above the -DI line. The Average Directional Index line is derived from this system and is based on the spread between the +DI and -DI lines.

Direct Quotation - Quoting in fixed units of foreign currency against variable amounts of the domestic currency.

Dirty Float - Floating a currency when the rate is controlled by intervention by the monetary authorities.

Doji - A candlestick formation with a body so small that the open and close prices are equal. A Doji occurs when the open and close for that day are the same, or very close to being the same.

Double Top - A reversal chart pattern displaying two prominent peaks. The reversal is complete when the support trough is broken. The double bottom is a mirror image of the top.


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