Glossary G to M
Good Till Cancelled Order
Good Till Cancelled Order (GTC) is an order to buy or sell at a specified price. The order remains open until filled or until the client cancels.
Hedging – maintaining a market position which secures the existing open positions in the opposite direction.
Inflation
Inflation is a national economic condition in which prices for consumer goods rise, making currency have less purchasing power than previously.
Inter-Bank Rates
The rates banks and brokers quote other banks and brokers for trades between banks (interbank). In reality the true market price. The prices quoted for transactions in excess of GBP500,000 or equivalent.
Glossary Term K-P
Leverage
The amount by which the amount to be traded exceeds the margin required to trade. It can be expressed as a ratio or a multiple. For example, if the notional amount traded (also referred to as ‘lot size’ or ‘contract value’) is US$100,000 and the required margin is $2,000, the trader can trade with 50 times leverage ($100,000/$2,000) or 50:1. See Margin, Overleverage.
Margin
The minimum amount of funds required in a trader’s brokerage account in order to open a position (enter a trade) or to maintain an open position. See Leverage.
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