Claws&Horns Analytics

Glossary

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Name	Description
AC	AC stands for Accelerator/Decelerator Oscillator and it is a technical analysis indicator used to identify buying or selling opportunities. The indicator consists of a zero line and green/red bars represented on a chart: the green bar going above the zero line is a signal to buy, while the signal to sell is shown by the red bar going below the zero line.
Account currency	The currency in which all account deposit/withdrawal operations are denominated.
Backwardation	A state of backwardation occurs when the current price of a particular commodity is higher than the forward price (the price agreed on by seller and buyer of an asset). Factors that can lead to backwardation are, for instance, natural disasters that seriously affect both current and projected prices.
Balance	The state of the trader's trading account, taking into account all completed transactions and operations, as well as account replenishment and withdrawal.
Cable	Refers to the GBP/USD exchange rate. The term originates from the mid-1800s, when the rate was being transmitted via a transatlantic cable.
Candlestick Chart	Similar to bar charts but with greater visual detail, candlestick charts show the high, low, opening and closing price for a particular period of time. To highlight the open-close relationship, candlesticks widen and fill the interval between open and close prices.
DAX 30	A German market-value weighted stock index including thirty blue chip stocks.
Day Order	A buy or sell order that expires automatically at the end of the trading day on which it was made.
E-payment	E-payment is a subset of an e-commerce transaction, including electronic payment for buying and selling goods or services offered via the Internet. The most common types of e-payment are credit cards, debit cards and prepaid cards.
EBITDA	An indicator that reflects profit before taxes, interest, and amortization.
Factory Orders	The Factory Orders report, released by the US Census Bureau, measures dollar volume of new orders, shipments, unfilled orders, and inventories reported by domestic manufacturers. Although the monthly report figures do not affect markets, they help forecast inventories calculations in the quarterly Gross Domestic Product report.
FED (Federal Reserve System)	Federal Reserve System (FED) is the central banking system of the USA.
G10	Refers to the G7 member states, completed with four further countries (Belgium, the Netherlands, Sweden and Switzerland), and aims to coordinate fiscal and monetary policies for the sake of a stable global economic system.
G7	Stands for Group of Seven, and refers to the worldwide leading industrial nations that meet to discuss global economic issues. The G7 members are Canada, France, Italy, Japan, the United Kingdom and the United States.
Hard Currency	As opposed to soft currency, hard (or strong) currency is currency that investors have confidence. In terms of economics, it refers to a globally traded currency, which is stable. Due to its stability and reliability, investors have confidence in hard currency.
Hawks and Doves	The terms indicate that a politician belongs to one of two directions of monetary policy. "Hawks" are lobbying for high interest rates in the economy, while "pigeons", on the contrary, and are in favor of lowering rates and easing monetary policy, for example, launching "quantitative easing".
Ichimoku Kinko Hyo	The IKH, also called ichimoku, is a candlestick charting technique that provides a clearer picture of potential price action, as it indicates market movement with its entry and exit points. It is used to determine market trends, support and resistance levels, and to create sale and purchase signals.
IFO	It stands for Institute for Economic Research (Institut für Wirtschaftsforschung). Based on the feedback of over 7,000 German business leaders, the German IFO business survey is considered to be a leading economic indicator for both Germany and Europe. It provides assessment of the current and upcoming economic climate, based on latest economic data.
J Curve	A term used to describe the expected effect of devaluation (i.e. reduction of currency value in terms of the goods and services with which that currency can be exchanged) on a country’s trade balance. It is expected that import bills rise before export orders start increasing.
Jawboning	Strategy used by monetary authorities to step into the market by suggesting that an intervention is possible and by commenting in the media about its preferred currency level. This tactic can be also seen as a precursor to official action in the form of direct buying (to push prices higher) or selling (to push prices down).
Kairi	An indicator used in technical analysis charts and showing the difference in percentage between the current closing value and a moving average. The Kairi can also serve as a trend indicator or as an overbought/oversold signal.
Kerb market	A term that refers to trading in commodity markets. Kerb market refers to a market where trading takes place outside official opening hours: after-hours if trading is undertaken after closing time, or sunshine if trading is prior to the official opening time.
Ladder option	An option on which the strike price (i.e. price at which a security is bought or sold) can be moved to a more favorable level as soon as the original strike price is reached.
Leverage	Leverage is what allow small investors to trade big lots. Forex brokers have leverage of 100:1 or 200:1. This means you can use $100 to trade $10,000 (100×100) or $20,000 (100×200). The leverage depends of the broker.
MACD	An indicator used in technical analysis to assess and predict price fluctuations in stock and foreign exchange markets. It shows the relationship between two moving averages.
Make a Market	A dealer makes a market by providing a two-way quote (a bid and ask price) in which they stand ready to buy or sell. In this way, dealers are also known as market makers.
Naked Position	A long or short position in the market that has not be hedged (i.e. risk has not been minimized) or covered. In unhedged positions gains and losses are considerably higher.
NAPM Index	The NAPM (National Association of Purchasing Manager) index measures the entire economy in general, and the condition of the manufacturing sector in particular. It calculates data of new orders, production, employment, deliveries and inventory, by summing up the surveys of over 250 companies in all 50 US states.
Official Cash Rate	Official Cash Rate (OCR) is the interest rate set by the Reserve Bank of Australia and New Zealand, and used to influence the general level of interest rates in banking and the economy. Changes to the cash rate, also called official interest rates, flow on to variable home loan, personal loan and credit card rates within weeks.
On Balance Volume (OBV)	As one of the first technical indicators to measure positive and negative volume flow (i.e. the buying and selling pressure), the OBV is used to predict price movements, or to confirm price trends.
Par	The official value of a currency. In finance, par value means stated value. The term ‘at par’ is used when two currencies are exchanged at equal value.
Parabolic SAR	Originally called Parabolic Time/Price System and referring to a price- and time-based trading system, SAR (stop and reverse) is an indicator used in this system. The SAR indicates price changes over time; it stops and reverses at the same time when a price trend reverses and moves above or below the indicator.
Quantitative Analysis	A technique used to analyze an observed behavior by applying complex mathematical and statistical modeling, measurement, and research.
Quantitative Easing	A monetary tool used by central banks to encourage spending within an economy. One of the most well-known instances of quantitative easing remains the Bank of Japan's attempts to fight domestic deflation in the early 2000s. Interest rates during this time got close to zero and further cuts could not be implemented. As a result, the Bank of Japan flooded commercial banks with excess funds to promote lending and by extension, encourage spending.
Real Interest Rates	It is approximately the nominal interest rate (before adjustment for inflation) minus the inflation rate (rise in the general level of prices of goods and services in an economy).
Real-time Data	As opposed to historical data, real-time data refers to live prices.
Scale Down/Up	To buy or sell scale down refers to purchasing or selling at regular price intervals in a declining market, while to buy or sell on scale up means the same but at regular price intervals as the market advances.
Scalping	It is a technique of short-term trading with which a trader enters and exits trades minute by minute, making as many trades as possible during one given day. Scalpers usually do not gain more than a few pips per trade, and to make more profit they need to use vey high leverage.
Take a Position	Buying or selling securities in order to establish a long position (in the hope that prices will go up) or a short position (with increase in value as market prices fall).
Take-Profit Order	It is basically the same as a stop-loss order, but works in a reverse way. After the price reaches the set value, client’s position is automatically closed with a fixed profit. For instance, if you open a long position, you open a buy position up at ask price and close it at bid price. Here you can set stop-loss over the ask price and take profit under the bid price.
UNCTAD	Stands for United Nations Conference on Trade and Development, which promotes trade, investment and development opportunities of developing countries by fostering their integration into world economy.
Under Capitalization	Refers to the situation where a trader does not own sufficient funds for the size of his transactions. It is one of the main causes of a margin call.
Value Date	The date on which two contracting parties exchange the currencies that are being bought or sold.
Value Spot	The settlement for two working days from the date the contract is entered into; also referred to as cash transaction.
Watered Stocks	Shares with overvalued assets as a result of inflated accounting values.
Weak Hands	When used in the context of delivery of commodities on futures contracts, it usually means that the party will most likely not retain ownership of the commodity. It can be also used with regard to futures positions, referring to positions held by small speculators.
X	The fifth letter of a NASDAQ (National Association of Securities Dealers Automatic Quotation System) stock symbol defining it as a mutual fund.
XMI	Applies to derivative products. It is the quotron symbol for MMI (Major Market Index).
Y	The fifth letter of a NASDAQ stock symbol defining it as an ADR (American Depositary Receipt).
Yankee Bonds	Foreign bonds issued in the United States by foreign bank and corporations, denominated in US dollars.
ZBA	Short form for zero balance account. It is a checking account with zero balance maintained by funds transfers from a master account in amounts only large enough to cover checks presented.
Zero Coupon Swap	An interest rate swap (agreement in which two parties make interest payments to one another for a set period) where the floating rate payments are periodically made, while the fixed rate payments are paid in a single payment.