TERMS OF TRADING

Posted by Ninjaa Trader at 17:21In the Futures market transactions (Futures Market) online there are so many terms that we have mastered so that we really understand and be able to develop a strategy in the transaction. Many terms in trading must be known traders, especially beginners: These terms are:
1. Trader
Transactors Futures Market.
2. Broker
Intermediary transactions Futures Market. A trader always use the services of a broker to execute transactions in the futures market.
3. Commodities
Object traded. For example: Gold (XAUUSD), Silver (XAGUSD), Stock Indices (Hang Seng, Nikkei, Kospi), Foreign Currency (GBPUSD, EURUSD, USDJPY, etc.).
4. Order
Request transaction. Order two kinds, namely an order to buy (buy) and sell orders (sell). Example: If we want a position to buy gold, then we buy position XAUUSD. But, if we want to sell gold positions, then we sell position XAUUSD.
5. Bid / Ask
Couple selling / purchasing price. If we want to sell the position, then we use the Bid price. If we want a buy position, then we use the Ask price. Example: The price of GBPUSD 1.5250 / 03, that is to say, if we want to sell GBPUSD, then use the Bid price 1.5250 and if we want to buy GBPUSD, then use the Ask price 1.5253.
6. Spread
The difference between the selling price and the purchase price. Example: The price of GBPUSD 1.5250 / 03, it means the difference between bid and offer price is 3 pips.
7. Account
Account. There are several types of accounts in the transaction Derrivative Market, namely:
- Micro Account. The minimum transaction is 0.01 lot.
- Mini Accounts. The minimum transaction is 0.1 lot.
- Regular Account. The minimum transaction is 1 lot.
We need to know also that in online transactions, there are two other terms, namely:
- Demo Account. Transactions conducted using simulated funds.
- Real Account. Transactions are conducted using real funds.
8. Deposit
The amount of money we deposited into the customer account.
9. Equity
The amount of funds that are ready to be used as margin or collateral.
10. Open Position
Transactions that are running. Example: we do buy XAUUSD $ 1,600.00 for 1 lot. That is, we have an open position XAUUSD buy 1 lot at $ 1,600.00.
11. Floating
The potential profit or loss of an Open Position. Example: GBPUSD sell 1 lot at 1.5900. Current price 1.5800, which means that we have a floating / potential profit of 100 pips.
12. Close Position
Measures to close the transaction positions that we have. Example: we do sell GBPUSD position 1 lot at 1.5900. Then the price at 1.5850 and we are close / liquidate positions. That means, we get a profit of 50 pips.
13. Free Margin
The rest of the funds that we have to be able to open new transaction other than the transaction in progress.
14. Margin Call
Warning that comes from the broker that is caused by the margin that we have can not be used to open new positions again.
15. Inject
The act of adding funds to your account so that we can carry out the transaction back.
16. Take Profit
Realize profits. Example: If we have a buy position of 1 lot at 1.5900 GBPUSD, then the price is now 1.5950. that is, we get a potential profit of 50 pips. It is not to be an advantage if we do not close our profit position. The act of closing the transaction is called Take Profit. Take Profit is characterized by increasing our equity balance.
17. Stop Loss
Measures to realize losses. Example: If we have a buy position of 1 lot at 1.5900 GBPUSD, then the price is now 1.5850. that is, we get a potential loss of 50 pips. It has not been a loss if we do not close our loss position. The act of closing the transaction is called a Stop Loss. Stop Loss is characterized by reduced our equity balance.
18. Swap
The interest we pay or we get from our open transactions. Interest is calculated from Monday to Friday but on Wednesday to Thursday's interest expense tripled, so that interest expense in one week is seven times.
19. The Commission
The amount of money we have to pay each of our transaction.
20. Over Night
Transactions that are left open to change today.

 source: http://blog.tradersakti.com/2015/11/istilah-istilah-dalam-trading.html