July 23, 2008
Performance Update for the actual public account. (EA Shark 4.0 Ultimate Build 02)
Actual Profit/Loss: +23.79 % since 2008.06.09
To receive the login data, please send us a short email to: office@forexeasystems.com
July 21, 2008
Performance Update for the EA SHARK
Actual Profit/Loss: +975.25 % since January 2007
Apreciation:
A currency
appreciates when it strengthens in price.
Ask Rate:
The rate at which traders can currently buy
a particular currency.
Asset Allocation:
Investment practice that divides funds among
different markets to achieve diversification
for risk management purposes.
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Balance of Trade:
The value of a country's exports minus its
imports.
Bar Chart:
A type of
trading
chart consisting of four significant
points: the high (1) and the low (2) prices,
which form the vertical bar; the opening (3)
price, which is marked with a little
horizontal line to the left of the bar; and
the closing (4) price, which is marked with
a little horizontal line to the right of the
bar.
Base Currency:
The currency in which an investor keeps his
book of accounts. In the Forex market, the
US dollar is normally considered the base
currency for quotes. Exceptions are British
Pound, Euro, and Australian Dollar.
Bear:
A person who thinks that market prices will
decline
Bear Market:
A market that is characterized by declining
prices.
Bid Rate:
The rate at which traders can currently sell
a particular currency.
BID/ASK Spread:
The difference between the Bid and the Ask
price, and the most widely used measure of
market liquidity. Narrow
spreads
usually signify high liquidity.
Broker:
An individual or a company that handles
investors' orders to buy and sell currencies.
Some brokers charge commission for this
service.
Bull:
A person who thinks that market prices will
rise.
Bull Market:
A market that is characterized by rising
prices.
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Cable:
A slang used among traders to indicate GBP/USD
exchange rate.
Call Rate:
Overnight inter-bank interest rate.
Candlestick Chart:
A type of
trading
chart that consists of four major
prices: high, low, open and close. The body
of the candlestick bar is formed by the
opening and closing prices. To indicate that
the opening is higher than closing, the body
of the bar is left blank. If thee instrument
closes below its opening, the body is filled.
Central Bank:
A government or quasi-governmental
organization that manages a country's
monetary policy. An example is the Federal
Reserve, which is the US Central Bank.
CFD (Contract for Difference):
An agreement between two parties to exchange,
at the close of the contract, the difference
between the opening price and the closing
price of the contract, multiplied by the
number of (shares) specified in the contract.
Closing Price:
The last price of a contract at the end of a
trading session.
Commodity:
Any commodity approved and designated by the
Board for trading in the Exchange hall under
the rules of the Exchange.
Contract:
An agreement to buy or sell a specified
amount of a particular commodity as
specified by the Exchange. The contract
specifications detail the amount and grade
of the product and the date on which the
contract will mature and become deliverable
if it is not liquidated earlier. Also, a
term of reference describing a unit of trade
for a commodity future. Unit of trading for
a financial or commodity future. Also,
actual bilateral agreement between the
parties (buyer and seller) of a futures or
options on futures transaction as defined by
an exchange.
Contract Month:
typically identifies the month and year in
which a futures contract expires. Also
called the delivery month.
Convertible Currency:
A currency that can be freely exchanged for
another or for gold without special
authorization from the appropriate authority.
Commission:
A transaction fee charged by a broker.
Corrections:
Counter-trend price movements that are
largely the result of profit-taking. These
are technical moves that must occur, and
their correction distance can often be
measured prior to occurrence by Fibonacci
correction ratios.
Counter Party:
A party or bank with whom a deal is made.
Credit Checking:
Credit is an important consideration when
making trades. As large sums of money change
hands it is important to check that the
counter-party is capable of making the trade.
Once the price has been agreed then the
credit is checked. If the credit is not good
then no trade takes place.
Cross Rate:
An exchange rate between two currencies. It
is usually made up from the individual
exchange rates of the two currencies,
measured against the US$.
Currency:
Any form of money issued by a government or
central bank and used as legal tender as a
basis for trade.
Cycles:
Variation where a point of observation
returns to its origin. Certain price
movement patterns are believed and observed
to have recurrence according to Fibonacci
sequential numbers, and thus can be
predicted accordingly. It is most often used
to provide an estimate of timing of a
suspected turn of market movements, or a
trend reversal.
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Day Trading:
It is a term that refers to opening and
closing the same position/positions within
one day’s trading.
Dealer:
An individual who acts as a principal or
counterpart to a transaction. Principals
take one side of a position, hoping to earn
a spread
(profit) by closing out the position in a
subsequent trade with another party. In
contrast, a broker is an individual or firm
that acts as an intermediary, putting
together buyers and sellers for a fee or
commission.
Deficit:
A negative balance of trade or payments.
Derivates:
Derivatives are trades that are derived from
some other existing products, such as shares,
bonds, currencies and commodities.
Derivatives can be traded through an
exchange or out of Exchange (Over The
Counter or OTC). OTC derivatives carry more
credit risk as they are traded direct with
the counter-party rather than through an
Exchange. Examples of derivative instruments
include Options, Interest Rate
Swaps,
Caps, and floors.
Divergence:
When two or more indicators fail to pattern
after price trends, they are often observed
to be an omen of major market corrections or
trend reversals. It shows up nearly without
a fail on all formations of double-tops/bottoms,
much more so in case of triple-tops/bottoms.
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Economic Indicator:
A government issued statistic that indicates
current economic growth and stability.
Common indicators include employment rates,
Gross Domestic Product (GDP), inflation,
retail sales, etc.
Euro:
The currency of the European Monetary Union
(EMU). A replacement for the European
Currency Unit (ECU).
EuroDollars:
US dollars on deposit with a bank outside
the United States, even if this bank is a
subsidiary of a U.S. bank. Consequently this
deposit is outside the jurisdiction of the
United States.
ECB:
The Central Bank for the new European
Monetary Union.
Expiration Date:
The last day of trading for a futures
contract.
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Federal Reserve (Fed):
The Central Bank for the United States.
Fill or Kill:
A client order that is a price limit order
that must be filled immediately or cancelled.
Flat/Square:
To be flat or square is to be neither long
nor short, or to have no positions, or if
all the positions held cancel each other
out.
Floating Interest Rate:
An interest rate that fluctuates as market
rates move.
Foreign Exchange Market:
the buying and selling of foreign currency.
Most FX is quoted against US$. If other
currencies are traded (e.g. CHF) then it is
known as a cross rate.
Forex (see Foreign Exchange Market):
An abbreviation of Foreign Exchange Market.
Forward:
A deal that will commence at an agreed date
in the future i.e. a 3 month GBP/$ will
commence 3 months from the deal date.
Front and Back Office:
The `front office` usually means the trading
room, while the `back office` is where
settlement of trades takes place.
Fundamental Analysis:
A cause-and-effect study of market behavior
based on factors of news, events, economy
and politics.
Futures:
Futures is a way of trading financial
instruments, currencies or commodities for
forward value dates or delivery.
Futures Contract:
A futures contract is a legally binding
standardized agreement made to buy or sell a
commodity or financial instrument sometime
in the future.
Fx (see Foreign Exchange Market)
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GTC (Good Till Cancelled):
An order left with a Dealer to buy or sell
at a fixed price. The order remains standing
until it is cancelled by the client.
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Hedging:
The practice of undertaking an investment
activity in order to protect against loss in
another. An example of this is selling short
to nullify a previous purchase, or buying
long to offset a previous short sale.
High/Low:
High/Low is the highest traded price and the
lowest traded price for an underlying
instrument for a current trading day.
Hedge:
A position or a combination of positions
that reduces the risk of the trader's
primary position.
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Indicated and firm
Prices:
An "indicated price " is one that is not a
"firm price". An "indicated price" is for
information purposes and would need to be `firmed
up` in order to transact a deal.
Inflation:
An economic condition whereby prices for
consumer goods rise, eroding purchasing
power
Initial Margin:
It is the
deposit
required before a client can transact any
deal.
Instrument:
Contract to be traded.
(IRS) Interest Rate Swap:
It is a transaction whereby two
counter-parties exchange fixed and floating
interest with each other. This transaction
can be regarded as two parallel loans, one
fixed and one floating. The floating is set
against LIBOR, and the difference between
the two rates is paid in the appropriate
direction on each rollover. In a single
currency Interest Rate Swaps, no principal
changes hands, only Interest.
Introducing Broker:
A person or organization that solicits or
accepts orders to buy or sell futures
contracts or forex but does not accept money
or other assets from the customers to
support such orders.
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Leverage:
The ability to control large amounts of
currency/commodity with a comparatively
small amount of capital.
Libor:
LIBOR stands for London Inter-Bank Offer
Rate. It is a reference point used in IRS
transactions for setting the floating side
of derivative deals. It is used as the
reference point for most trades around the
globe.
Limit Order:
It is an order given to sell at an agreed
price sometime in the future.
Liquid - Illiquid Market:
A Liquid Market is a situation when a "close"
spread
is obtained between the bid and the offer
price. It can also mean that the number of
institutions trading in the market is high.
An Illiquid Market is the opposite of a
liquid market.
Liquidation:
The closing of an existing position through
the execution of an offsetting transaction.
Long(Long Position/Going Long):
It is a market position where the client has
bought a financial instrument he previously
did not hold/own . If a trader is "long USD"
that means that he owns USD. It is the
opposite of "short".
Lot:
The term used to describe a designated
number of contracts, e.g., a five lot
purchase.
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Managed Account -
Discretionary Account:
An arrangement by which the holder of the
account
gives written power of attorney to a person,
often his broker, to make trading decisions.
Margin:
Margin is the
deposit
withdrawn from
the
client account as collateral to cover
for losses if any that may result from
trades that the client makes. It is returned
to the client account when a trade is closed.
Margin Call:
It is a demand for additional funds from the
client to bring the client’s margin deposits
to a required minimum level to cover for a
possible adverse movement in price in the
market.
Mark to Market:
It is a method that values the client’s
books at the end of each working day i.e. to
debit or credit on a daily basis the
client’s margin account based on the close
of that day’s trading session. It protects
against the possibility of contract default.
Market Maker:
Market Maker is a "principal" that supplies
prices to create a market by supplying an
offer and a bid price, there by running a
trading book.
Market Risk:
Exposure to changes in market prices.
Minimum Price Fluctuation:
The smallest increment of price movement
possible in
trading
a given contract, often referred to as a
tick. The minimum unit by which the price of
a commodity can fluctuate.
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Offer:
The price or rate that a trader is prepared
to sell at.
Offset:
Taking a second futures position opposite to
the initial or opening position.
OCO Order:
Where the execution of one order
automatically cancels a previous one.
Open Position:
A deal that has not been settled by being
reversed by an opposite deal.
Order:
An order is an instruction to make a trade.
(OTC) Over the Counter Market:
A market where financial products such as
foreign currencies, stocks and other items
are bought and sold outside an exchange
market, by telephone and other means of
communication.
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Pips:
The term used in the currency market to
characterize the smallest incremental move
an exchange rate can make. The value of a
pip depends on the currency pair. One pip/basis
point equals for instance 0.0001 for EUR/USD,
GBP/USD and USD/CHF, and 0.01 for USD/JPY.
Position:
A position is a market commitment expressed
by buying or selling.
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Quote:
An indicative market price, normally used
for information purposes only.
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Rate:
The price of one currency in terms of
another, typically used for dealing purposes.
Resistance Level:
A price level at which you expect selling to
take place.
Risk:
Exposure to uncertain change, most often
used with a negative connotation of adverse
change.
Roll Over:
It is a situation where a deal is rolled
forward to another value date based on the
differential of the interest rates of two
currencies involved.
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Settlement:
The process by which a trade is entered into
the books and records of the counterparts to
a transaction. The settlement of currency
trades may or may not involve the actual
physical exchange of one currency for
another.
Short:
It is a market position where a client sells
a currency that he does not already own. If
a trader is `short $` then he sold at a
certain price level expecting to buy later
when the price level declines.
Speculator:
A market participant who tries to profit
from buying and selling futures contracts by
anticipating future price movements.
Spot:
It usually refers to a cash market price for
a financial instrument/commodity.
Spread:
The difference in prices between bid and
offer rates.
Sterling:
Slang for British Pound.
Stock Index:
An indicator used to measure and report
value changes in a selected group of stocks.
Stock Market:
A market in which shares of stock are
brought and sold.
Stop Order - Stop Loss Order:
It is an order to sell or buy when the
market reaches a particular price.
Support Level:
The bottoms
representing the price level where selling
decreases and buying increases. Downward
price movements are expected to slow down
when coming close to support levels. A
strong support can turn the market tide
either into upside correction or upward
trend reversal.
Swaps:
Swaps
are used to exchange one currency for
another and then back again for a fixed
period of time. The swap rate calculation
indicates the interest rate differential
between two underlying currencies.
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Tick:
The smallest allowable increment of price
movement allowed for a product during a
trading session.
Trend:
The general direction of a moving market, as
shown by acceding to descending peaks and
bottoms of price movements.
Ticker:
A ticker is a table and or a graph or both,
showing a trade by trade history of a said
instrument.
A ticker shows direction of a market
movement. There are tickers for day trading
showing a days movements and historic
tickers showing long term movements.
Traders like to use graphs as they show
direction of market movement in an easy to
understand format.
Take Profit:
An order to close a position when a
particular price is reached to ensure a
profit.
Technical Analysis:
An effort to predict future market activity
by analyzing the movements in a market
through chart study, moving averages, price
trends, and volume.
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Volume:
The number of contracts made during a
specified period of time.
Yard:
Slang for a billion.
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