Forex Dictionary N-P

N

Nano-lot: 100 units of the currency pair you wish to trade.

Net position: The total of profits and losses on the open positions.

Neural network: The computer systems and algorithms that identify market chart patterns.

Neutral markets: The stagnation period when the currency pair fails to move in either direction.

Nfa: National futures association, a regulatory authority of USA that focuses primarily on qualifications, financial conditions and fair business practices.

Nzd: New Zealand Dollar

O

Oco: “One cancels other”. This is a type of advanced order where one order that’s executed will cancel the other pending order.

Offer: price at which you can buy the currency pair. It includes the spread and is the same as the ASK price.

Ohlc: Short form for describing “Open, high, Low, Close” price of the currency pair.

Open Position (Trade) — a trade where you have bought or sold a currency pair and the trade is yet to close.

Order — order for a broker to buy or sell the currency with a certain rate.

Overnight Interest: See “Carry trade”

Overnight trade: A trade that lasts more than a day and stretches beyond twelve-past-midnight. Swing trading usually calls for holding overnight positions which can also run over many days or many weeks.

P

Pair: See “Currency pair”

Pending order: An order set in advance with the broker to automatically execute a trade as soon as the selected price level is reached.

Perfect market: A stage when the market moves with a slow and highly predictable pace within the expected boundaries.

Pip— a pip is the last digit in the currency pair rates. The term pip is used in Forex markets to define the minimal measure of the price movement. Let’s consider following example: the Euro/USD trading changes from 1.5000 to 1.5001, so it means that the currency pair changed by one pip. Therefore the pip is nothing but the minimal measure used to define the change in the exchange rate of the currency.

Pivot points: The primary support and resistance levels calculated by using last high, low and open price.

Ponzi schemes: These schemes, as Originated by a man called ‘PONZI’ are scam-schemes that promise high returns to lure the investors but in reality, their money is never really invested in the markets. The investors are paid back a percentage from the new depositor’s money till the time the company fails to find newer depositors. At this time, the company winds up its operations with no notice, no refunds and disappears overnight.

Profit (Gain) — positive amount of money gained for closing the position.

Profit target: Profit target is the price level where you expect the current price of the currency pair traded to move. It is usually calculated before opening the position and is set as a pending order with the broker at the time of opening the trade.

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