Forex Glossary

    • Ask Price

Ask price is the price that broker is willing to sell the first named (base) of a currency pair to the client.

 

    • Bid Price

Bid price is the price that broker is willing to Buy the first named (base) of a currency pair from the client.

 

    • Currency Pairs

The quotation and pricing structure of the currencies traded in the forex market: the value of a currency is determined by its comparison to another currency.

 

    • Spread

Spread is the difference between the current Bid and Ask prices of a particular trading instrument.

 

    • Margin Call

Margin call is a notification sent in a trading terminal stating that it is necessary to deposit or close a position(-s) to avoid Stop out. This notification is sent once Margin level hits certain percentage 
• Margin call level is determined by the broker. 
• Margin call level in MISHOV Broker is depends on the account type.

 

    • Stop Out

Stop out is a forced order closure issued if the margin level is less than certain percentage. The purpose is to avoid situations in which the client owes the company, otherwise their balance would be negative. Order(s) is closed by Stop out once Margin level hits certain percentage . 
Positions with more loss are closed first. If margin level goes above stop out level after that, no more positions will be closed. 
• Stop out level is determined by the broker. 
• Stop out level in MISHOV Broker is depends on the account type.

 

    • Leverage

The ratio of equity to loan capital is known as leverage. The terms financial leverage and credit leverage are also widely used. 
The size of the leverage ranges up to 1:100 in Mishov.

    • SWAP

Swap is an overnight (rollover) commission deducted or added (depending on the type of the order) to your balance for holding the position over night. It is added/deducted at 22:00 GMT+0. Swap rates differ from one currency pair to another and are based on the interest rates of the countries involved in each currency pair and whether the position is short or long. 
• Swap long is swap value in points for buy positions. 
• Swap short is swap value in points for sell positions. 
•Swap is calculating based on quote currency

Instruments  Mon Tue   Wed  Thur  Fri

FX

XAUUSD

XAGUSD

BRENT

CRUDE

 X1 X1  X3  X1  X1 

USDTRY

USDCAD

 X1 X1  X1   X3 X1 
 INDICES  X1  X1  X1  X1  X3

 

    • Margin

Margin is the amount of funds in account currency which is withheld by broker for order opening and keeping the order opened.

 

    • Equity

Equity is a key figure which counts results (profit/loss) of all the open orders, i.e. reflects amount of funds which is going to remain in the account if trader closes all the open orders at the moment.

 

    • Balance

Balance is the total financial result of all completed transactions and depositing/withdrawal operations on an account.

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