Circle "black talk" to understand

1. Leverage ratio: Determine the amount of margin to be paid. If 100:1 is selected, only 1/100 of the transaction amount is required for margin.

2. Margin: guarantee the performance of the contract and the guarantee of trading losses, equivalent to 2.5-5% of the transaction volume, which will be returned after the customer closes the position. If there is a loss, it will be deducted from the margin.

3, overnight interest: When a trade is pushed to the next delivery date, there is a delay. Any extension of a position creates a hedged or covered spread, which is determined by the rate at which banks call each other overnight. If the investor has a currency with a relatively high interest rate, the investor can obtain the spread on the currency interest rate when its position is extended.

4, short, short: the transaction expects the price of the future market will fall, that is, sell a certain amount of currency or option contracts at the current market price, and then cover the price after the fall to close the position, so as to obtain the difference between selling at a high price and buying at a low price. This way is the trading method of selling before buying.

5, Open position: that is, Margin Call, referred to as MC, when the available margin is 0, it will encounter MC, and all held positions will be forced to close.

6, pullback, rebound: in the general trend of price fluctuations, the reverse market in the middle, generally in the rising market, we call it a correction; Turning upward in a down market is called a rally.

7, panic selling: Hear some news, close the position, no matter the price is good or bad.

8, bottom, bottom: when the price falls to a certain place, the fluctuation is not large for a period of time, and the range is narrowed.

9, breaking: break through the support or resistance level (generally need to break more than 20 to 30 points)

10, false break: suddenly break the support or resistance level, but immediately turn back.

11, single-day turn: originally to sell (right) the market, but in the afternoon to the right (sell) the market, and more than the opening price.

12, selling pressure: sell orders on high points.

13, stop loss, stop loss: the direction is wrong, immediately close the position at a certain price.

14, stop loss buying: After the short direction is sold in the trading market, the exchange rate does not fall but rises, forcing the short to buy back.

15, the consolidation of the market: the currency in a range of back and forth, up and down.

16, cowhide: market volatility is small.

In addition, there are actually a lot of black talk in the financial market, and the space is limited, so I will not talk about it here. Novice to enter the market, first of all to understand these "black talk", of course, the focus of the disk is not how much you can master "black talk", but in their own analytical ability to improve.

Source: FX110