Sébastien Haller

The employment of financial analysis and trading techniques – such as attaching stops and limits – to reduce and/or control exposure to various types of risk.

After a decline, traders who earlier went short begin buying back.

Taking a short position in expectation that the market is going to go down.

A situation in which traders are heavily positioned on the short side and a market catalyst causes them to cover (buy) in a hurry, causing a sharp price increase.

Traders staying out of the markets due to directionless, choppy or unclear market conditions are said to be on the side lines or sitting on their hands.

A simple average of a pre-defined number of price bars. For example, a 50-period daily chart SMA is the average closing price of the previous 50 daily closing bars. Any time interval can be applied.

A rollover is the simultaneous closing of an open position for today’s value date and the opening of the same position for the next day’s value date at a price reflecting the interest rate differential between the two currencies. In the spot forex market, trades must be settled in two business days. For example, if a trader sells 100,000 Euros on Tuesday, then the trader must deliver 100,000 Euros on Thursday, unless the position is rolled over. As a service to customers, all open forex positions at the end of the day (5:00 PM New York time) are automatically rolled over to the next settlement date. The rollover adjustment is simply the accounting of the cost-of-carry on a day-to-day basis.

The process by which a trade is entered into the books, recording the counterparts to a transaction. The settlement of trades may or may not involve the actual physical exchange of the asset, but can be settled in cash instead.

The Securities and Exchange Commission.

The difference between the price that was requested, and the price obtained typically due to changing market conditions.