More Terms

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8.
Base Currency
In terms of foreign exchange trading, currencies are quoted in terms of a currency pair. The first currency in the pair is the base currency. The base currency is the currency against which More…
9.
Basis Point
One hundredth of one percent, or 0.0001.
This is also known as a PIP.

.
Carry Currencies
High interest rate currencies.
2.
Carry Grid
A grid of positions (including open orders, take profits, and stop losses) built on a carry trading strategy.
3.
Carry Positive
A carry trade where you are long the high interest currency and short the low interest currency. Excluding the volatility of the currency pair, this strategy is profitable based on the




8.
Clearing House Interbank Payment System
An international wire system used by major banks.
9.
Closed Position
A transaction that offsets the number of units in a previous open position. In the case of a long position, selling the exact number of units so that your exposure in the market is zero. More…
10.
Closing a Position
The process of selling or buying a foreign exchange position resulting in the liquidation (squaring up) of the position.
11.
Closing Market Rate
The rate at which a position can be closed based on the market price at end of the day.
12.
CME
Chicago Mercantile Exchange.
13.
Commission
The fee that a broker may charge clients for dealing on their behalf. See also: Broker
14.
Commodities Exchange
An exchange where various commodities and derivatives products are traded, including wheat, barley, sugar, maize, cotton, cocoa, coffee, milk products, pork bellies, oil, metals, and so on. More…