Australia is one of the most active countries in the forex trade market. Over 450,000 million traders rigorously trade through platforms like mt5 in Australia. Successful Australian traders make turnover close to billions of dollars on a trading day. It is a hub for international currency market traders, and new traders are entering the market due to convenient platforms like MT5. There is much to learn. However, the dictionary of terminology utilised frequently by traders is available here. This post defines essential terminologies.
ECN Traders or Broker
It showcases a category of brokers in Australia. Brokers use Electronic Communications Networks (ECNs) to connect their clients with liquid fund processors.
The exchange value or rate is the price at which one can exchange a currency for another. It represents the foundation on which the exchange rate in the fx market.
The phrase describes initiating a deal and seeing it through to completion.
The word “exposure” describes the value one invests in a currency and the market risks associated with it.
The term “fill price” refers to the cost of finishing a transaction and its fulfilment.
Fill or Kill
An order referring to ‘fill or kill’ might be used if a trader has a particular figure in mind regarding a currency transaction. In other words, the transaction is cancelled if that is not completed at the set rate.
Floating Exchange values
An exchange value not presently set is known as a floating exchange rate. The demand and supply of a certain currency in Australia, among other currencies, coupled with variables, usually affect the fluctuation of exchange rates.
Forex Graph or Chart
A forex graph is a computerised chart akin to a daily chart, which emphasises points and value changes associated with two paired currencies. Generally, fx charts may be expanded to include periods ranging from days to years. The mt5 in Australia provides comprehensive forex charts that Australian traders can study to make informed decisions.
It is a well-known investing method predicated on the notion that rapid transaction execution—buying and trading a currency—increases the likelihood of gain rather than price fluctuations. When it comes to the currency market, the “small and frequently” strategy is what forex scalping typically represents.
Forex Signal System
An fx signal system, undoubtedly the most commonly promoted currency trade service, involves sending clients forex signals based on the market action. This command, which may be sent out in various ways, can manually or automatically initiate a deal. For instance, it can inform traders when it is the right moment to purchase or sell a specific currency pair like AUD/USD.
Forex Spot Rate
The exchange rate at which currency pairs may be traded is determined by the forex spot rate in the market.
Forex trading Robot
Although not precisely a “robot” per se, a currency trading robot is a bit of software created to function as a coach. It’s automatic and ought to advise traders whether to purchase or sell particular currency pairs.
Gearing or Leverage
Gearing is the practice of investing with a total value greater than the minimum capital held in an investor’s brokerage account. It is represented as a percentage or as a proportion.
It refers to buying a share, an asset, or a currency intending to trade with the assumption that the value would rise.
Aspiring traders must educate themselves on fundamental terms used in the foreign currency trading market before they begin trading.