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Glossary

Margin

The guarantee, which is required by the dealer to maintain an open locked position or locked position that the client intends to open. Each tool has its own margin.

Margin account

An account that allows leverage buying on credit and borrowing on currencies already in the account. Buying on credit and borrowing are subject to standards established by the firm carrying the account. Interest is charged on any borrowed funds and only for the period of time that the loan is outstanding.

Margin call

A call for additional funds in a margin account either because the value of equity in the account has fallen below a required minimum (also termed a maintenance call) or because additional currencies have been purchased (or sold short).

Margin Traiding

trading with the use of leverage. For instance, having a deposit of 100$ and 1:3 leverage allows a client to make deals with the total price of 400$.

Mark-to-market

The theoretical value of an open position at the current market price.

Market

An organized system of goods and assets trade. Price, supply and demand are the basic mechanisms of market. The market sets trade rules which are to be followed.

Market close

This refers to the time of day that a market closes. In the 24 hour-a-day foreign exchange market, there is no official market close. 5:00 PM EST is often referred to and understood as the market close because value dates for spot transactions change to the next new value date at that time.

Market Order

An order made by client for an immediate purchase or sale of a security at the price of the market.

Market rate

The current quote of a currency pair.

Market-maker

A person or firm that provides liquidity making two-sided prices (bids and offers) in the market.

Maturity

The date on which payment of a financial obligation is due.

Momentum

The tendency of a currency pair to continue movement in a single direction.

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