An ABS is pretty much the same thing as a mortgage-backed scalping forex definitions, except that the securities backing it are assets such as credit card debt, loans, leases, a company’s receivables, royalties, etc. Arbitrage: The simultaneous purchase and sale on different markets, of the same or equivalent financial instruments so as to profit from price or currency differentials.
Ask Price: The ask is the price the market is prepared to sell a specific currency pair in the Forex market. At this price, traders can purchase the base currency. It is displayed on the right portion of the quotation. The ask price is also called the offer price. Base Currency: The base currency is the 1st currency of a currency pair.
It indicates how much the base currency is worth when measured against the other currency. CHF rate is equal to 1. 6215, then 1 dollar is worth 1. 1 per the second currency quoted in the pair. Benchmark: A benchmark is a reference index that allows you to measure and compare the performance of a security or a stock portfolio. For example, an index such as the FTSE 100 is a benchmark. Ask Spread: The spread is the difference between the bid and ask price.
Bid Price: The bid is the price the market is willing to buy a specific currency pair. At this price, a forex trader can sell the base currency. It appears on the left of the quotation. 32, the bid price is 1.
Binary Option: a type of option where the payoff is either some fixed amount of some asset or nothing at all. Learn more about binary options here. Break-even: The break-even point is the price at which you have neither achieved a profit nor suffered a loss. Breakout: A breakout happens when the price bursts out of a congestion pattern such as a trading range, flag or pennant, or goes through some other support or resistance level. Oftentimes, the term “breakout” is used to describe upward movements, while “breakdown” is used to describe downward breakouts. Broker: A person or a company that acts as a “middleman”, pairing together sellers and buyers for a commission or a fee.