| En Term | En Description |
|---|---|
| Overbought | is the situation on the currency market in which the demand for an asset increases the asset’s value to a level that does not meet the fundamental factors. It is commonly believed that in the overbought zone traders should sell |
| Oversold | is the situation on the currency market in which the demand for an asset decreases the asset’s value to a level that does not meet the fundamental factors. It is commonly believed that in the oversold zone traders should buy |
| Retracement | is a price movement within the trend range but in the opposite direction from it. In technical analysis: a school devoted to the calculation and justification of different retracement levels, as well as their practical use in trading |
| Risk management | means using a strict set of rules in trading in order to limit losses |
| Pivot point | is the key point of support/resistance level calculated by taking the average of an asset’s previous high, low, and closing price |
| Rollover | is closure of an expired position at current market price and simultaneous opening of the exact same position; the method of carrying the position overnight |
| Principal value | is a trader’s initial capital, start-up capital |
| Pyramiding | is a method of increasing a position size in which each new position is less (greater) than the previous one |
| Scalping | is the method of short-term trading that suggests a large number of positions opened during a trading day fixing small amounts of profit or loss |
| Short position | is a situation where a trader sells a financial instrument |