Forex Glossary (T)

Commonly used forex terms and their definitions.


Technical Analysis - An effort to forecast future market activity by analyzing market data such as charts, price trends, and volume.

Technical Correction - An adjustment to price not based on market sentiment but technical factors such as volume and charting.

Thin Market - A market in which trading volume is low and in which consequently bid and ask quotes are wide and the liquidity of the instrument traded is low.

Tick - A minimum change in price, up or down.

Tomorrow to Next - A swap, simultaneous buying and selling of a currency for delivery the following day and selling for the next day or vice versa. Also see "rolling".

Trade Date - The date on which a trade occurs.

Tradeable Amount - Smallest transaction size acceptable.

Trader - An individual who is on the other side of the trade with the dealer and whose objective is to profit from price movements.

Trailing Stop - A stop-loss level set above or below the current price that adjusts as the price fluctuates. For a long position, a trailing stop would be set below the current price and would rise as the price advances. Should the price decline and reach the trailing stop, then a stop-loss would be triggered and the position closed. As long as the price remains above the trailing stop, the position is held. Indicators such as the Parabolic SAR or moving averages can be used to set trailing stops.stops become markets orders when executed so the order may not be filled at desired price .As a result the initial risk can be estimated but not guranteed.

Transaction Date - The date on which a trade occurs.

Transaction - The buying or selling of currencies resulting from the execution of an order.

Trend - Refers to the direction of prices. Rising peaks and troughs constitute an uptrend; falling peaks and troughs constitute a downtrend. A trading range is characterized by horizontal peaks and troughs. Trends are generally classified into major (longer than a year), intermediate (one to six months), or minor (less than a month).

Trendlines - Straight lines drawn on a chart below reaction lows (in an uptrend) or above rally peaks (in a downtrend) that determine the steepness of the current trend. The breaking of a trendline usually signals a trend reversal.

Two-Way Price - Rates for which both a bid and offer are quoted.


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