A rapid or thin market.
The net amount held at any given time in an account, after factoring in all debits and credits.
A register of completed transactions, balance operations and cancelled orders in the customer’s account.
A sub-market of the London Stock Exchange (LSE), allowing smaller companies to raise capital with a more flexible regulatory system than is required for the main market of the LSE. CFDs in AIM-listed shares are not available.
The process of buying an asset (such as shares) and then immediately selling it so as to profit from the difference. Arbitrageurs can exploit tiny differences in the quoted price of an identical instrument across different markets using very large-sized trades.
The lowest price at which a seller is willing to sell an investment or asset at a given moment. Also known as the offer price.
Another name for the Australian Securities Exchange (ASX 200); 200 stands for top 200 (by market capitalisation) companies listed on the ASX.
Called free margin; a rest of funds in the customer’s account with the deduction of margin, floating profit/loss and rollovers summary.
A summarised financial result of all funds deposited in, and withdrawn from the customer's account, and of all closed positions in that account.
The first currency in a currency pair (e.g. if EUR/USD rate is 1.3283 then one EUR is worth 1.3283 USD).
The given central bank country lending rate, which is used by banks to calculate the interest rate given to borrowers.
A unit that describes the minimum change in the price of a product.
Slang for a trader who expect prices to decline; trader who is holding a short position.
Slang for a downtrend market (price is declining).
The price at which a seller or a market maker is willing to buy a traded instrument; a price for establishing an open Sell position.
Bank Of Canada (Canada’s central bank).
Bank Of England (UK’s central bank).
Bank Of Japan (Japan’s central bank).
Slang for a trader who expect prices to rise; trader who is holding a long position.
Slang for an uptrend market (price is rising).
Germany’s central bank; also referred to as BUBA.
A pending order for establishing an open Buy position in the customer's account. In the event that the price on the specified instrument falls to the specified level; it can be only executed at the Ask price, and then placed below the current Ask price of the specified instrument.
An open position that represents expectation that the market price will increase (e.g. buying the base currency against the quote currency, or buying a contract for difference on an underlying security rate).
A pending order for establishing an open Buy position in the customer’s account, in the event the price on the specified instrument rises to the specified level; can be only executed at the Ask price and placed above the current Ask price of the specified instrument.
Slang for the GBP/USD currency pair.
Short name for the French Stock Exchange; 40 stands for top 40 companies (by market capital).
One of the ways to view or present a chart. The Candlestick Chart indicates the opening and closing price in a chosen date range; if the close price is higher than the open price, then that area of the candlestick is not shaded, and vice versa if the open price is higher than the close price.
The wealth, either monetary or in assets, owned by an individual or company.
The cost incurred as a result of holding a position (e.g. The carry cost incorporated into the price of a commodity future consists of insurance costs, storage costs, interest charges and other related costs).
A strategy in which a trader sells a certain currency with a low interest rate and uses the funds to purchase a different currency yielding a higher interest rate, attempting to capture the difference between the rates. Common low yielding currencies include the USD and JYP and common high yielding currencies include the AUD and NZD.
The actual, underlying market on which derivatives contracts are based.
The price of an asset for immediate delivery. In other words, the actual price of an instrument right now. This term is often used for stock indices, whereas the synonymous term of spot is more often applied to forex and commodity prices.
Short for central banks.
Usually a government organisation that manages a country’s monetary policy.
An object of a electronic transaction based on the price fluctuation of an underlying asset (e.g. stock or futures contract).
An upward or downward trend on a chart where the boundaries are marked by two straight lines. A break above or below the channel lines signals a potential change in trend.
A diagrammatic representation of historical quotes in the form of lines, bars or candlesticks.
A text file located in the folder 'MetaTrader4/Logs' that is used for recording all requests from the client terminal; it is created in the form of separate daily files.
A request or instruction for closing a specified position at the current market price.Close By a request or instruction for closing two locked positions on the same instrument.
Selling a buy position or buying back a sell position, which closes the position, so that you no longer have any exposure to changes in the market price.
An equal and opposite transaction (for instance buying 1000 BT shares then selling 1000 BT shares) which results in the position automatically being closed.
The closing price is the last price for a tradable instrument at the time the market closes.
The MetaTrader 4 (hereafter called MT5) program designed for customer trading, exercising supervision over customer accounts, obtaining real-time and historical quotes, news and other market information that Wealth Way may have made available to our customers. Also commonly used for technical analysis, automated trading by expert advisors, and for customer feedback via the internal mail system.
An amount of service payments charged to the customer’s account.
A physical good, such as food, metal or fuel, that is interchangeable with other commodities of the same type. The quality of a commodity may differ slightly, but it is basically uniform across all producers, as any commodities that are traded on an exchange must meet specific minimum standards. A commodity is any basic good that investors can ‘buy’ or ‘sell’. Some popular commodities include: crude oil, coffee, gold, natural gas, silver, corn, sugar, cotton and wheat.
An index that measures changes in the price of goods and services purchased by consumers. The figure measures the average change over time in the price of a sample of various common goods and services purchased by typical urban households.
A standard unit on the Forex market (e.g. 1 lot).
Parameters of an instrument specified by Wealth Way for customer trading and published on the Wealth Way website.
Contracts for difference (CFDs) are derivative products which enable you to trade on the price movement of underlying financial assets (such as indices, shares and commodities). A CFD is an agreement to exchange the difference in the value of an asset from the time the contract is opened until the time at which it is closed. With a CFD, you never actually own the asset or instrument you have chosen to trade, but you can still benefit if the market moves in your favour.
A position which has a strictly limited maximum loss by virtue of a guaranteed stop.
A measure of inflation that excludes items that are subject to volatile price movements. Vegetable prices are an example of items where prices fluctuate widely based on seasonal conditions. These products are excluded from the calculation as they can give a false measure of inflation because prices can diverge from the overall trend.
Any event initiated by a corporation which impacts its shareholders. For some events, shareholders may or must respond to the corporate action or select from a list of possible actions. Examples of corporate actions include dividend payments, mergers, rights issues and stock splits.
A pair of currencies traded in forex that do not include the US dollar, for example EUR/JPY.
An exchange rate between two currencies, both of which are not the official currency of the country in which it is quoted. Also refers to currency quotes that don’t involve the US dollar.
A situation where the bid price exceeds the offer price. This is usually indicative of an issue on the venue or of the market being in an auction period.
One of the participants in a financial transaction.
Traded instrument based on the change of the value of one currency against another currency.
A physical or juridical person; a signatory of the Customer Agreement with Wealth Way.
Our customer’s personal system register of transactions, orders and balance operations.
Charts that encapsulate the daily price movement of an instrument, for example a currency pair, index or share.
A stream of quotes in Wealth Way' MT5 trading platform.
Global economic statistics that are normally released at regular intervals, often monthly. The data can have a varying impact on the financial market, depending on factors such as when it‘s released and the level of economic insight it provides.
A market capitalisation weighted index of the top 30 companies listed on the Frankfurt Stock Exchange in Germany. This is referred to as the ’Germany 30’ on our website and trading platform.
An order to buy or sell an instrument that will expire automatically at the end of the day if it’s not executed on the day the order has been placed.
The process of entering and closing out trades within the same day or trading session.
The difference between the buying and selling price of a contract.
An Wealth Way's employee responsible for accepting customer requests, executing customer orders and carrying out the liquidation of customer open positions in the event of a Stop Out.
Negative balance for a trade or payment (i.e. not enough money).
Practice account.
Money deposited on an account.
The funds required to initiate and maintain an open spread betting or CFD trading position. Since spread bets and CFDs are traded on margin, the deposit is only a fraction of the full value of the trade and is not the total amount that can be lost on a trade.
A fall in the value of an asset.
An event that occurs when our customers believe that Wealth Way' actions or inactions are erroneous or contradictory to what is found in the Terms or/and the Wealth Way Customer Agreement, and vice versa.
An adjustment that is applied when a share passes its ex-dividend date (including the ex-date of any special dividend) in the underlying stock market.
Short for the Dow Jones Industrial Average or US30.
Refers to easier monetary policy or lower interest rates; opposite to hawkish.
The Dow is the second oldest stock market index in the US and the most widely used indicator of the overall condition of the US stock market. It measures the performance of a selection of 30 blue-chip, publicly owned companies in the US.
Declining price action, which can be described as lower-lows and lower-highs.
European Central Bank.
Electronic Communication Network, which eliminates the third party in executing an order.
Change in the economy that leads to changes in the market price of investments, such as shares, commodities or property.
A government-issued statistic that indicates current economic growth and stability. Common indicators include employment rates, gross domestic product (GDP), inflation and retail sales.
A virtual exchange for FX transactions.
Developed by RN Elliott, the Elliott Wave theory is a method of technical analysis based on the assumption of predictability, by identifying a certain flow and structure to the price movement of financial instruments.
A net worth of funds in the customer’s account.
New York City time zone (United States Eastern Standard Time/Eastern Daylight Time).ESTX50 short for the Euronext 50 index.
The monetary unit of the eurozone, currently used by 19 European Union countries (Germany, France, Italy, Spain, Portugal, Belgium, The Netherlands, Luxembourg, Austria, Ireland, Finland, Greece, Cyprus, Malta, Slovakia, Slovenia, Estonia, Latvia and Lithuania).
Between the hours of: 07:00 to 16:00 (London).
The first trading day on which the buyer of a share is no longer entitled to payment of the current dividend.
A marketplace in which securities, commodities, derivatives and other financial instruments are traded. The core function of an exchange - such as a stock exchange - is to ensure fair and orderly trading, as well as efficient dissemination of price information for any securities trading on that exchange. Exchanges give companies, governments and other groups a platform to sell securities to the investing public. An exchange may be a physical location where traders meet to conduct business or an electronic platform.
Order execution mode where a transaction order is passed to an external gateway connected to an exchange or another liquidity provider.
A limit order to execute at the current market price or worse. If the order is not filled in its entirety down to the specified order level then any remaining balance will be cancelled.
Stockbroker who offers clients an inexpensive trading facility without advice, research or recommendations pertaining to investment style or policy.
A less traded currency pair.
A program written in MQL4 (MetaQuotes Language 4) and executed by the Client Terminal for the purpose of automated trading in the customer’s account.
The last date that a particular contract can be traded.
An instruction for cancellation of a pending order at a specified time and date.
An event where the position opening or closing price significantly differs from the market price being actual at the moment of execution; an event where the execution of the customer’s order or request is inconsistent with the order or request by general meaning.
The level of an investment which is at risk. The higher the exposure, the bigger the potential loss or gain.
The premium (or discount) of a futures contract against its underlying spot/cash instrument that normally consists of an interest and dividend component. The fair value represents the rational pricing of a futures contract such that no arbitrage opportunity exists between the futures and cash.
The Federal Reserve Bank (USA central bank).
Technical analysis ratios used in trading to identify future price movements – named after mathematician Leonardo Fibonacci. The most popular Fibonacci tools are retracements and extensions.
Means the order has been successfully executed.
Order type where if the order cannot be filled, then it will be cancelled (killed).
CFD and spread betting share positions carried overnight will incur financing costs for the full consideration of the position. If you open a position with a 5% margin, overnight finance will be based on 100% of the balance. Clients who hold a long position will pay interest; clients who are short may receive interest.
Fiscal policy refers to governments’ spending policies, which have a significant impact on the overall economy. The policy affects government revenue and spending. When a government runs a deficit (spends more than it earns), it is putting more into the economy than it is taking out, adding to gross domestic product (GDP).
The difference between the bid and offer price that a broker can adjust according to market conditions. Also known as dynamic spread, floating spread or variable spread.
A difference value between the customer account’s equity and balance.
The Federal Open Market Committee is the policy-setting committee of the FED.
''Forex (FX) is the global market for buying one currency and selling another.''
A forward trade (or contract) is the price of an asset for delivery at a defined future date, which is also the date of expiry. Most forward trades can be closed prior to the expiry date, to limit any loss or take a profit, for example.
Other name of CAC 40.
Funds on the trading account which may be used to open a position. It’s calculated as account value less necessary margin.
Short name for UK 100 index.
This involves analysing and valuing financial assets based on factors such as news, financial statements and earnings forecasts, company strategy and risk assessments, demand and supply forecasts, projections of future economic growth, industry developments and government policy. In fundamental analysis, an investor uses real data to evaluate a stock’s value rather than using charts and technical analysis to make trading decisions.
A future rate is notionally an agreement to conduct a transaction at some specified time in the future, with the price agreed now. A futures CFD will automatically expire at a specified time in the future, whereas a spot or cash CFD has no such expiry time. Often the price of a future contract will differ from the cash price.
A group of seven nations including USA, Japan, Germany, UK, France, Italy and Canada.
G7 + Russia.
Significant difference between the two consecutive quotes; may be shown on charts as a blank field between bars or candles when the time period between the two quotes covers the bars or candlestick’s close time.
Gross Domestic Product is the total value of a country's output, income, or expenditure produced within its physical borders.
Gearing is a measure of leverage used, usually expressed as a percentage. A highly leveraged trade would require a small initial outlay in comparison to the notional value of the trade, and can be seen as high risk. Small price movements create amplified gains or losses, and therefore losses can exceed deposits made.
An order type that will expire if not filled by the end of the day. See also Order to open, Good-till-cancelled, Fill.
Unlike good-for-day orders, GTC orders remain active on the account waiting for a fill unless cancelled before being filled. See also Order to open, Good-for-day, Fill.
A slang term for the US dollar.
GDP is the value of goods and services produced in a country including exports, minus imports made. It’s a measurement of a country’s overall economic activity, and can also be a gauge for its standard of living.
A stop-loss order is an order to buy or sell when the market reaches the 'stop' price, which allows you to limit your losses. Unlike a standard stop-loss order, a guaranteed stop-loss order (GSLO) is unaffected by slippage or gapping and guarantees the price your trade will be closed out at. There is a premium to pay when placing the GSLO with us; however we will refund this in full if the trade is closed out without the GSLO being executed.
Refers to easier monetary policy or higher interest rates: opposite to dove.
Combination of positions or a position that reduces the risk of your primary position
Wealth Way' margin requirements for maintaining locked positions.
short name for Hong Kong Seng Index.
Positions that are held open past 17:00 New York time will incur holding costs. These holding costs will be calculated based on the total size of the position.
A market with relatively less aggregate volume in the order book. In an illiquid market, a small amount of business often moves prices by a disproportionate amount, and bid and offer prices can be far apart.
The difficulty of changing your assets in cash because of a lack of demand for the asset you're trying to sell. As a market maker, we provide liquidity by constantly quoting a bid and offer spread.
An index, such as the FTSE 100 or S&P 500, gauges the prosperity or value of a section of the stock market. It is calculated from the prices of selected stocks, usually using a weighted average. It is not possible to invest directly in an index; instead investors trade in funds or other products that track the movement of an index.
A monthly economic indicator that measures changes in output for the UK’s industrial sector, including manufacturing, mining and utilities.
Increase in the general price of goods and services.
A measure of inflation that occurs in a given period (a year or calendar quarter for example). The inflation rate shows us how quickly the general price of goods and services is rising.
The process by which a company is floated on the stock market for the first time. Offering shares to the investment public is a way of raising capital for further expansion. Also known as New issue.
Wealth Way’ requirement for security collateral to open a position.
A request execution type that means all quotes shown in the Client Terminal can be accepted by Wealth Way for customer trading, with no preliminary requests for quotes.
FX rates quoted to each other by international banks.
Cash adjustments made to reflect the economic effect of owing or receiving the notional amount of equity controlled by a spread bet or CFD position.
Trading where positions are opened and then closed out within the same trading day.
symbol for S&P 500 index.
Japanese candlestick charts are similar to bar charts in that each ‘candle’ shows the opening price, closing price, high price and low price for the period. The candles are either green or red, depending on whether the closing price is higher than the opening price (green) or below it (red). The main body, or ‘wax’, represents the range between the opening and closing price and the ‘wicks’ show the highs and lows.
Short name for the NIKKEI index.
Slang for the NZD/USD currency pair.
The last day on which you may trade in a particular market. This may or may not coincide with the settlement date for that market.
Transaction size/margin ratio (e.g. 1:100 leverage means the customer needs to have 1% of the transaction size in his/her account as security collateral or margin).
The London Inter-Bank Offered Rate, which banks use as a base for international lending.
A limit order is an order to buy or sell a product at a specific price. A limit order to buy at a target price with Wealth Way is executed at the target price or lower, when the buy price is equal to or lower than the target price. A limit order to sell at a target price with Wealth Way is executed at the target price or higher, when the sell price is equal to or higher than the target price.
A trade which has a strictly limited maximum loss.
Line charts are created by connecting a series of data points, usually past price closes, with a line. They are the most basic type of charts used in financial markets.
A liquid market has sufficient volume of two-way business for a large transaction to occur with little or no impact on price. Such a market will normally exhibit tight bid-offer spreads.
The level of continual buy and sell activity making up market demand and indicating the ease with which investors can undertake transactions.
A liquidity provider is an individual or institution which acts as a market maker in a given asset class. In the world of Forex the majority of global liquidity is provided by a number of big name investment banks (referred to as Tier 1 liquidity providers).
Consists of equal long and short positions on the same instrument; locked positions require 50% of summarized margin for both positions.
An ongoing journal of your trading activity.
Customer account’s unique identification number.
Between the hours of: 08:00 to 17:00 (London).
When the pair’s base currency is bought, the position is deemed long.
In the context of CFDs or spread betting, longer-term trading refers to strategies where the average duration of open positions would be between a week and several months.
Slang for Canadian dollar, which is also known as Funds.
A transaction size unit in MT5, where: 1 lot is equal to a contract on 100000 base currency units for currency pairs; 1 lot is equal to one unit of an underlying security for stock CFDs.
An amount of base currency units or underlying asset units that is specified by Wealth Way' contract as a transaction size per 1 standard lot.
The most heavily traded currency pairs in the FX market, including: EUR/USD, USD/JPY, GBP/USD and USD/CHF.
A summarized value of the customer’s account funds that is reserved as security collateral for maintaining that customer’s open position; in accordance with Wealth Way’ margin requirements.
A broker's request to an investor using margin to deposit additional funds. Margin calls occur when an account's funds fall to a specific value calculated by the broker, or if one or more of the products bought, effectively with borrowed money, decreased in value past a certain point.
An equity/margin percentage ratio.
The daily adjustment of an account to reflect accrued profits and losses often required to calculate variations in margins.
A customer trading service utilising the leveraged technique, which allows the customer to make transactions exceeding his/her account deposit.
Market capitalisation refers to the value of a company’s shares. The figure is reached by multiplying the number of shares that have been issued by the current share price. Investors find the MCAP figure useful for determining the size of a company.
Order execution mode where a transaction is processed at the best price available on a trade server.
The time when instruments become available for customer trading after weekends, holidays, regular closing intervals or server downtimes.
An electronic instruction for opening a position in the customer’s account, at the current market price.
In the context of CFDs, this refers to strategies where the trader is prepared to hold positions open for longer than one day but where the average duration of open positions would be no more than a few weeks.
A request for modification of a pending order level; a request for placement, cancellation or modification, or Stop Loss & Take Profit levels on an open position or pending order.
The bid plus the offer, divided by two.
The action of central banks to set interest rates and control the amount of money in an economy, with the aim of keeping inflation and unemployment at acceptable levels.
The graphical representation of a smoothed-out price action over a set period of time. Moving averages can help identify a trend, points of entry and potential target levels for stops.
A chart indicator used in technical analysis to indicate a potential bullish or bearish trend reversal.
A software platform designed for online trading, which is the technology base for Wealth Way' customer trading services; consisting of MT5 Client Terminal (customer terminal), MT5 Server, MT5 Data Center, MT5 Multiterminal, MT5 Mobile and MT5 Smartphone.
A request or instruction to close all locked positions in a customer's account
The NASDAQ is the second largest stock exchange in the US and traditionally lists many technology companies, such as Microsoft. The movements of the NASDAQ can have a significant effect on UK markets, particularly the techMARK index of technology, media and telephony companies.
A company that is floated on the stock market for the first time. Offering shares to the investing public is a way of raising capital for further expansion. Also known as Initial Public Offering (IPO).
The largest and oldest stock exchange in the US.
Between the hours of: 08:00am to 05:00pm (New York time)
A price-weighted index of the top 225 shares listed on the Tokyo stock exchange.
An execution model that allows you to trade directly with numerous market liquidity providers in order to get the most competitive bid and ask prices.
A notable economic indicator normally released on the first Friday of every month by the US Department of Labor. It presents the number of people on the payrolls of all businesses, with the exception of agricultural, local government, private household and non-for-profit. The monthly figure can change significantly, and often leads to a high level of volatility in FX pairs such as EUR/USD, around the time of the release. Generally, a high reading is seen as positive (or bullish) for the US dollar, while a low reading is seen as negative (or bearish).
The opposite of a rapid market; where there are no market data errors.
Lets you place a sell limit and sell stop order on the same stock at the same time. When either order is executed the other will automatically be cancelled. Also applies to a buy limit and buy stop order.
A current market price is made up of a level at which you can sell and a level at which you can buy. The level at which you can buy is always the higher of the two prices and is called the offer.
The price at which the seller is willing to sell at.
The act of buying or selling financial instruments via the internet using a broker like Wealth Way’ online trading platform.
A long or short position which has not been closed out by an equal and opposite position.
An electronic instruction for opening or closing a position in the customer’s account on a specified instrument, in the event its price reaches the specified level.
The right, but not the obligation, to buy (‘call option’) or sell (‘put option’) a specific amount of a given stock, commodity, currency, or index at a specified price (the ‘strike price’) during a specified period of time. For the holder, the potential loss is limited to the price paid to acquire the option. When an option is not exercised, it expires.
An instruction by a customer to a broker/trader to buy or sell should a specified price be reached. The order remains valid until executed or cancelled by the customer.
When bid and offer prices match, new incoming orders are automatically logged against orders on the book. FTSE 100 stocks have been traded on an electronic order book since 20 October 1997
A price specified by the customer in the order placement request as an instruction for opening a position in his/her account, at this price and under conditions determined by the order type.
A leading indicator in chart analysis which shows a potential trend reversal before it occurs.
Out-of-hours – or extended hours – trading usually refers to trading on an index outside of its main opening hours. At Wealth Way, you can trade on the UK 100, Germany 30, France 40 and Euro 50, 24-hours-a-day from Sunday evening to Friday evening.
Describes any transaction that is not conducted via an exchange.
An electronic instruction for opening a position in the customer’s account, in the event the price of a specified instrument reaches a specified level; the customer is enabled to use pending orders that include Buy Limit, Sell Limit, Buy Stop and Sell Stop.
The time which the Wealth Way server is synchronized with; a time zone which is used for recording any events into the server log-file; Wealth Way MT5 is currently synchronized with London time (GMT+0; daylight saving time - GMT+1).
Normally used in reference to forex rates, a 'percentage in point' is generally, though not always, the fourth decimal place, i.e. 0.0001. Traditionally a pip was the smallest point by which a forex rate could move, but this is no longer the case.
Used in technical analysis, pivot points use the previous period’s high, low and close to calculate the current period’s support and resistance levels.
A minimum price change (e.g. 0.0001 for EUR/USD); also called a Pip.
A collection of investments owned by an individual or company.
An open trade that you have in the market.
The amount of equity that a CFD trader is required to pay in order to open a new position
The size of a position within a particular portfolio. It’s also associated with a risk management technique where an investor calculates the size of each new position so that the maximum likely loss on the position does not exceed a certain amount or a certain percentage of their capital.
A two-way quote consisting of Bid and Ask prices; a position’s opening or closing price; an order level.
An event where the current Bid price is above the previous Ask price and vice versa.
A statistic that measures changes in the price of finished goods and services sold by producers.
Abbreviation of profit and loss; an account compiled at the end of an accounting period to show gross and net profit or loss. In spread betting and CFD trading, it shows money gained or loss incurred on a position.
An indicator of economic activity created through surveys completed by mangers in a number of manufacturing companies. It provides a picture of economic conditions within the manufacturing sector, and is often used by investors to predict future GDP numbers for a country's economy.
A measure adopted by central banks to stimulate an economy when traditional monetary policy measures (like cutting interest rates) have failed. The central bank electronically creates funds in its own bank account to purchase previously-issued government bonds, plus private sector and distressed assets (so companies can raise capital). This serves to create more tradable and liquid markets to help stimulate the economy.
A type of future with periodic expiries spaced three months apart. Prices are normally quoted for the next two or three quarter months.
An electronic message about the current price displayed in the Client Terminal, which consists of demand price (Bid) and supply price (Ask).
The second currency in a pair (for example USD is the counter currency in GBP/USD).
Where the price moves within a defined boundary.
Market conditions characterized by significant price changes in short periods of time that frequently cause wide gaps between consecutive quote values; commonly occurs immediately before and/or after important events (e.g. key economic reports on any G7 countries, press conferences by G7 financial ministers or central banks’ chairmen, central bank’ decisions on interest rates, market interventions, political or natural force majeure such as war or terrorism).
The base currency value in the quoted currency for a currency pair; the underlying asset value for a CFD.
The amount of money you have made or lost on a position once it has been closed. Realised profit or loss will add to or subtract from your account cash balance.
A chart indicator used in technical analysis. It identifies when trends are coming to the end of their current direction, as well as overbought and oversold market conditions.
A requote occurs when you request to execute an order at a specific price that is no longer available and you’re offered a different quote. This can happen during fast-moving markets.
A term used in technical analysis indicating a price level at which analysis suggests a predominance of selling – and hence a greater likelihood that the price will fail to break through the level.
This figure represents the total of durable and non-durable goods sales by retailers to consumers. Services are largely excluded from this statistic.
An additional issue of shares by a company to existing shareholders at an advantageous, discounted price, usually in order to raise new funds for further development or to finance a new acquisition. A two for five rights issue at 145 cents means that the existing shareholder has the right to acquire a further two shares for every five currently held at a new cost of 145 cents per share acquired.
Closing an expiring futures position and reopening the position in the next tradeable future. In forex, the value of the process is measured by the interest rate differential between the two currencies. There’s usually a small cost for rolling over positions.
Shows how your open positions are performing: the unrealised money that you would gain or lose on your open positions if they were closed at prevailing market prices.
An electronic instruction for opening or closing a position, placement, cancellation or modification of an order that is given by the customer via the Client Terminal; a query for a two-way quote.
A market capitalisation weighted index of the top 500 companies listed in the New York stock exchange (NYSE) or the NASDAQ. Often used as a gauge of sentiment for the US market.
A trading strategy that involves placing short-term trades, sometimes less than a minute long, usually to try and capture small price movements.
A distinct subset of a market whose components share similar characteristics. Stocks are often grouped into different sectors depending upon the company's business. For example the FTSE 100 has banking, oil & gas and pharmaceutical sectors.
A pending order for establishing an open Sell position in the customer’s account, in the event the price on the specified instrument rises to the specified level; can only be executed at Bid price and placed above the current Bid price of the specified instrument.
An open position, which represents expectation that the market price will decline (e.g. selling the base currency against the quote currency or selling a contract for difference on an underlying security rate).
A pending order for establishing an open Sell position in the customer’s account, in the event the price on the specified instrument falls to the specified level; can only be executed at Bid price and placed below the current Bid price of the specified instrument.
This is practice of selling shares that you do not own in the hope that the share price falls before you have to settle the contract. If the price does fall you can then buy the shares at the lower price and pocket the difference.
The MT5 server that transmits requests from the Client Terminal to dealers, sends (i.e. news, quotes, execution confirmations) to the Client Terminal and records all messages related to the customer trading process; it maintains mutual liabilities between Wealth Way and our customer, which are formalised in the Wealth Way Customer Agreement, contract details and margin requirements.
A text file generated by the MT5 server that is used for recording all events related to customer trading and platform performance, including all dialogues between client terminals and dealers.
A price gap between the first quote of the current market session and the last quote of the previous market session.
The process of a position closing against a specified market level once the position has gone beyond its last dealing time.
A form of trading where the initial transaction is to sell, for example a CFD position taken in anticipation of a falling market. The position is closed with a buy trade. The trader will profit if the price falls and lose if it rises. When trading FX it refers to selling the base currency against the quote currency.
A parameter of Expert Advisor that sets-up the maximum difference between the requested price and the dealer’s price, that is acceptable to Expert Advisor for opening a position in the customer’s account; a difference between the order’s price and its actual price execution.
An incorrect quote generated by the server because of a data feed error; commonly looks like a significant price gap returning close to the previous level on the next price update, with no signs of rapid market around; Wealth Way has the discretion, but not the obligation, to remove such errors from its quotes database.
A partial position closing (e.g. closing 0.5 lots of 2 lots).
The price quoted for immediate settlement or delivery of a currency, index, commodity or share (that is payment for and delivery of a product). It’s the current price at which a commodity or currency can be bought or sold at that specific time.
An exchange rate for immediate settlement.
The difference between Bid and Ask price, which is evaluated in points.
Spread charts show the buy and sell prices plotted into a dual line chart format. A blue line represents the buy price and an orange line represents the sell price; the shaded area is the difference between the two, or ‘the spread’.
A chart indicator used in technical analysis to determine potential trend reversals, indicating an overbought or oversold market condition.
A market on which securities are traded.
Stock indices are a compilation of a number of stocks into one total price, allowing investors to easily follow the performance of certain groups of stocks.
An exchange member firm which provides advice and dealing services to the public as well as trading on its own account.
Stop-entry orders allow you to enter a transaction at a selected target price and within a set time period. A stop-entry order to buy is an order at a price above the prevailing market price. A stop-entry order to sell is an order at a price below the prevailing market price. Stop-entry orders are usually subject to slippage.
An order for closing a specified open position at a specified level, in the event the price moves in an unfavourable direction; can only be executed at Bid price and placed below the current Bid price with reference to Buy positions; can be only executed at Ask price and placed above the current Ask price with reference to Sell positions.
An order to close a position when prices pass a certain point. A stop order can be attached to an existing position (known as a stop loss) or used to initiate a new position (see Order to open).
A compulsory closing of the customer’s open positions by Wealth Way, in the event the customer’s account does not satisfy Wealth Way’ margin requirements.
Straight Through Processing, i.e. passing all transactions electronically to the execution venue without human intervention
The price at which a contract can be exercised or settled against in reference to options trading.
A price level that the market doesn’t fall below for some time. When prices fall to a support level the weight of buying outweighs selling and prices tend to be pushed up again. A number of different trend troughs often occur at a support level.
A technique used in technical analysis to indicate a price floor at which you would expect the price to 'bounce' off. A price point where it is anticipated buyers will enter the market and 'support' the price. The opposite of this is resistance.
An amount of overnight adjustments paid or charged to the customer’s account at 23.59 in the platform’s time zone, in accordance with values specified in Wealth Way contract details; it is a daily settlement for margin trading services.
slang for the Swiss Franc.
An object of an electronic transaction (e.g. currency pair, stock CFD, futures CFD); an instrument within MT5.
An order for closing a specified open position at a specified level, in the event the price moves in a favourable direction; can be only executed at Bid price and placed above the current Bid price with reference to Buy positions; can be only executed at Ask price and placed below the current Ask price with reference to Sell positions.
A technique used to try and predict future movements of a security, commodity or currency, based solely on past price movements and volume levels. It examines charts and historical performance to forecast prices by analysing market data, such as historical price trends, averages and volumes.
Periods of low trading activity and amounts of quotes per time, as compared to normal market conditions (e.g. periods between 21.00 and 00.00 GMT and before Christmas holidays).
A single price movement which can be either positive or negative.
A unique identification number of a position, order or balance operation in the customer's account.
In foreign exchange, the cost of holding a position overnight. Short for tomorrow-next, it normally incorporates the interest considerations in simultaneously holding and owing the notional and base currencies as well as being influenced by the relative availability of the associated currencies.
This statistic reveals the difference between a country’s exports and imports of goods and services, such as cars, electronics, textiles, banking and insurance.
The size of the underlying position that you are trading. Governs how much you make or lose on a trade for every point of movement in the price of the market.
A built-in option of the Client Terminal that automatically adjusts a Stop Loss order level by a specified amount of points, if the favourable price motion exceeds this amount; it only works with the Client Terminal connected to the server.
An operation consisting of two equal counter trades in a specified instrument.Transaction Size lot size multiplied by the amount of lots.
The costs you incur when trading financial products. These costs include commission (on shares), financing and spreads.
The date a trade occurs.
A bond issued by a government. Bonds issued by the UK government are called gilt-edged stocks, commonly referred to as gilts.
The general direction in which prices tend to move.
A straight line drawn across a chart that indicates the overall trend. In an upward trend, the line is drawn below, and acts as a support line; the opposite holds true for a downward trend. Once the asset breaks the trend line, the trend is considered to be invalid.
When both a bid (sell) and offer (buy) rate is quoted for a transaction.
A chart shape showing a gradual price rise back to its previous peak, after gradual decline.UK OIL short name for Brent Crude Oil.
Short name for the FTSE 100 index.
A term used in derivatives trading, such as with CFDs. A derivative is a financial instrument whose price is based (derived) from a different asset. The underlying is the financial instrument (e.g., stock, futures, commodity, currency, index) on which a derivative's price is based.
This statistic represents the number of individuals who filed for unemployment insurance for the first time during the past week. This is the US’s earliest jobs-related economic data release.
A new price quote, at a price higher than the previous quote.
Short name for WTI Crude Oil.
Short name for the Dow Jones index.
A chart shape showing recovery that involves a sharp rise to a previous peak, after a sharp decline.
The future date on which counterparts to a financial transaction agree to determine the value of a product’s price; for a spot foreign exchange trade this date is normally two business days after a transaction is agreed.
Measure for fluctuation of price of a financial instrument over time; delegate to an active market that represents trading opportunities.
A chart shape showing a change of sharp decline, rise, decline and ending with another sharp rise; the middle part of the shape can be lower than two price peaks on each side.
An alternative, well-known term for the New York Stock Exchange (NYSE), the largest stock exchange in the US.
Slang for a very high volatility market where price is moving similar to a ‘whipsaw’ at work; the price movement is followed by a sharp and quick reversal movement.
Stop or Limit orders that have been placed but not filled yet.
Symbol for the Silver Index.
Symbol for the Gold Index.
Slang trading term for a billion units.
Any measurable event that recurs annually; a popular way to compare the performance of investments.
The percentage based income return on an investment.
Polish unit of currency.
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