Sunday, May 8, 2016

Forex trading terms and abbreviations

By Admiral Markets

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Dear Traders,

We professional traders are very fond of using different terms and abbreviations that you probably haven't heard of before.

For example – let me ask you a simple question.

What does Forex stand for?

The answer is Foreign Exchange.

And FX is an abbreviation of Forex and therefore the same definition.

Traders simply don't use full words for anything related to the Forex market.

Yet there's many different terms within the Forex trading industry, that you need to be fully aware of and understand.

One of these is being able to instantly tell which currencies have been paired together, when you are planning to trade one currency against another.

You are probably already aware of the acronyms for the major worldwide currencies like US Dollar, Euro and Sterling Pound.

But what about the wider array of other currencies?

In Admiral Markets trader's glossary[1] you can read the meanings, abbreviations and acronyms behind a huge number of terms whenever you choose.

But that's not all folks.

In this post you will find an alphabetical list of the most important abbreviations, slang and shorthand in Forex.

List of most used Forex abbreviations

  • 10 Yr – US 10 year Note
  • 30 Yr – US 30 year Bond
  • ADX – Average Directional Index (technical indicator)
  • ATR – Average True Range (technical indicator)
  • AUD – Australian Dollar (ISO code)
  • BB – Bollinger Bands (technical indicator)
  • BE – Breakeven
  • BoC – Bank of Canada
  • BoE – Bank of England
  • BoJ – Bank of Japan
  • BP – Basis Point
  • CAD – Canadian Dollar (ISO code)
  • CBOT – Chicago Board of Trade
  • CCI – Commodity Channel Index (technical indicator); also Consumer Confidence Index (economic indicator)
  • CFA – Chartered Financial Analyst
  • CFD – Contract For Difference
  • CFTC – Commodity Futures Trading Commission (regulatory)
  • CHF – Swiss Franc (Confederation Helvetia Franc)
  • CME – Chicago Mercantile Exchange
  • CNY – Chinese Yuan (ISO code)
  • COT – Commitments of Traders (market report)
  • CPI – Consumer Price Index (economic indicator
  • CSI – Commodity Selection Index (technical indicator)
  • CTA – Commodity Trading Advisor
  • DD – Drawdown also Due Diligence also Dealing Desk see NDD
  • DJIA – Dow Jones Industrial Average
  • EA – Expert Advisor
  • ECB – European Central Bank
  • ECN – Electronic Communication Network; also Electronic Currency Network
  • EMA – Exponential Moving Average (technical indicator)
  • ETF – Exchange Traded Fund
  • EUR – Euro (ISO code)
  • EW – Elliott Wave (theory)
  • FA – Fundamental Analysis
  • FCM – Futures Commission Merchant
  • FDM – Forex Dealer Member
  • Fed – Federal Reserve System
  • FF – Forex Factory
  • FIFO – First In, First Out
  • FOMC – Federal Open Market Committee
  • FX – Foreign Exchange
  • GBP – Great Britain Pound Sterling (ISO code)
  • GDP – Gross Domestic Product (economic indicator)
  • GMT – Greenwich Mean Time
  • HH – Higher High (chart)
  • HL – Higher Low (chart)
  • IB – Introducing Broker; also Interbank; also Interactive Brokers; also Inside Bar
  • IMF – International Monetary Fund
  • ISO – International Organization for Standardization
  • JPY – Japanese Yen (ISO code)
  • LONG – A position purchasing a particular currency against another currency
  • LH – Lower High (chart)
  • LL – Lower Low (chart)
  • LWMA – Linearly Weighted Moving Average (technical indicator)
  • MT4 – MetaTrader Version 4.00 (trading platform)
  • MA – Moving Average (technical indicator)
  • MACD – Moving Average Convergence Divergence (technical indicator)
  • MM – Market Maker also Money Management
  • MTF – Multiple Time Frame
  • NASDAQ – National Association of Securities Dealers Automated Quotation
  • NDA – Non-Disclosure Agreement
  • NDD – Non Dealing Desk
  • NFA – National Futures Association (regulatory)
  • NFP – Non-Farm Payroll (economic indicator)
  • NYSE – New York Stock Exchange
  • NZD – New Zealand Dollar (ISO code)
  • OCO – One-Cancels-the-Other (order type)
  • OHLC – Open, High, Low, Close (chart)
  • OTC – Over-the-Counter
  • P&F – Point and Figure (chart)
  • PA – Price Action
  • PB – Pin Bar abbreviation of Pinocchio Bar (chart)
  • PIP – Price Interest Point also Performance Index Paper
  • PP – Pivot Point
  • PPI – Producer Price Index (economic indicator)
  • PPZ – Price Pivot Zone
  • PSAR – Parabolic Stop and Reversal (technical indicator)
  • Quant – Quantitative Analysis
  • R/R – Risk/Reward (ratio)
  • RSI – Relative Strength Index (technical indicator)
  • RVI – Relative Vigor Index (technical indicator)
  • SAR – Stop and Reversal
  • SEC – Securities and Exchange Commission (regulatory)
  • SHORT – To sell a currency
  • SL – Stop Loss (order)
  • SMA – Simple Moving Average (technical indicator)
  • SMMA – Smoothed Moving Average (technical indicator)
  • S&P – Standard & Poor's
  • S/R – Support/Resistance
  • Stoch – Stochastic Oscillator (technical indicator)
  • STP – Straight Through Processing
  • TA – Technical Analysis
  • TF – Time Frame
  • TL – Trend Line
  • TP – Take Profit (order)
  • TS – Trailing Stop (order)
  • TSI – True Strength Index (technical indicator)
  • USD – United States Dollar (ISO code)
  • USDX -United States Dollar Index (ISO code)
  • UTC – Universal Time, Coordinated
  • WB – World Bank
  • XAG – Silver (ISO code)
  • XAU – Gold (ISO code)

Forex currency pairs slang

Traders also often simplify currency pair names using nicknames. The use of jargon is common amongst professionals that deal with something everyday, or even every hour and minute. It's a simplification and familiarisation – like talking to your friend Timothy as Tim.

  • EUR/USD – Euro or Fiber
  • EUR/JPY – Yuppy
  • GBP/USD – Pound or Cable
  • AUD/USD- Aussie or Ozzie
  • EUR/GBP – Chunnel
  • USD/CAD – Caddy, Loonie, The Funds or Beaver
  • USD/CHF – Swissy
  • USD/JPY – Yen or Ninja
  • GBP/JPY – Geppy, Dragon or Beast
  • NZD/USD – Kiwi

So where did all these pairs get their names from?

Check out the video below, where I try to explain the origins of Forex slang.

Do you know of any other term I've missed or simply want more explanation regarding specific Forex terms?

Let me know in the comments below.

Cheers and safe trading,

Nenad
Article by Admiral Markets

Source: Forex trading terms and abbreviations[2]


Admiral Markets is a leading online provider, offering trading with Forex and CFDs on stocks, indices, precious metals and energy.

References

  1. ^ Admiral Markets trader's glossary (www.admiralmarkets.com)
  2. ^ Forex trading terms and abbreviations (www.admiralmarkets.com)

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