Forex Dictionary - Glossary of Terms & Definitions | Forexstepbystep.com

Forexstepbystep.com

Home Professional Indicators MT4 Indicators MT4 Templates MT5 Indicators MT5 Templates Tradingview Indicators Interactive Book Dictionary Contact Us

Welcome to our Forex Dictionary, your comprehensive trading glossary designed to enhance your understanding of the foreign exchange market. This resource provides clear definitions of key terms and concepts essential for both novice and experienced traders. From foundational terms like "pip" (the smallest price movement in Forex markets) and "leverage" (the use of borrowed funds to increase potential returns), to more advanced concepts such as "carry trade" (a strategy that involves borrowing from a currency with a low interest rate and investing in one with a higher rate), our dictionary covers a wide array of terminology.

You’ll find explanations of market participants, including "brokers" (intermediaries that facilitate trades) and "market makers" (firms that provide liquidity by quoting both buy and sell prices). We also explain various trading strategies, such as "scalping" (short-term trading to exploit small price changes) and "swing trading" (holding positions for several days to capture price shifts). In addition to trading techniques, our glossary encompasses risk management terms like "stop-loss order" (an order to sell a security when it reaches a certain price) and "margin" (the collateral required to open and maintain a leveraged position).

Furthermore, we delve into market analysis methodologies, including "fundamental analysis" (evaluating economic indicators and news) and "technical analysis" (using charts and indicators to predict future price movements). Each term is crafted to impart vital knowledge, aiding traders in making informed decisions while navigating the complexities of Forex trading. Whether you’re looking to familiarize yourself with essential jargon or seeking insights into more sophisticated concepts, our Forex Dictionary serves as an invaluable tool for improving your trading fluency and overall market comprehension. Start your journey today and empower yourself with the terminology that drives the Forex markets. Happy trading!

Browse the glossary using this index

Special | A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z | ALL

K

Keltner Channel

The Keltner Channel is a technical analysis tool that consists of a central moving average line (typically the Exponential Moving Average, or EMA) surrounded by two bands. These bands are calculated using the Average True Range (ATR) to account for volatility, with the upper band set above the EMA and the lower band set below it. Traders use the Keltner Channel to identify trends, potential reversal points, and overbought or oversold conditions. When prices consistently touch the upper band, it may indicate an uptrend, while touching the lower band might suggest a downtrend.

Kiwi

The New Zealand Dollar (NZD) is commonly referred to as the "Kiwi," named after the native bird of New Zealand, which is a national symbol. The NZD is often used in global currency markets and is known for its relatively high interest rates compared to other developed economies, which can attract international investors.