Basic Terminology For Forex/CFD Traders

Basic terminology for Forex/CFD Traders

1. Trading Overnight

It is a method of trading in which a position is left open on a customer’s account even when the Spot/Cash/Futures/OTC Market is closed.

2. Day Investing

Are buying and selling transactions completed on the same day, ensuring no new open positions on the customer’s account when the Spot Market/Cash/Futures/OTC closes? This is also referred to as intraday trading.

3. Insolvency

Is action taken before the contract due date to close or delete an open position by transacting a number of the same positions on a position opposite to the position initially held.

4. Vacant Position (Open Position)

It is an open buy (long) or sell a (short) position that has not been liquidated.

5. Price of Settlement

Does the exchange determine the price as the official price at the end of the day? trade following the terms of the contract

Spreads are a type of spread.

Is the point difference between the bid price and the bid price (offer).


PIP is the most insignificant price unit. The previous price can be expressed in numerical units or complete numerical units. Depending on the habits of each contract, a decimal after the decimal point may be used. This is commonly referred to as a “PIP” in currency trading contracts (forex).

8. The State of the Volatile Market

It is a situation in which the market is unexpected. This spreadsheet will be based on the price movement circumstances and the quotation submitted by the provider used by Organized Traders.

When at least one of the following conditions is met, what is meant by volatile conditions? from the situation below, and not because of a misquote, as follows:

1. There is only one bid or offer on either side;

2. The spread between bids and offers is greater than the Providing Trader’s average spread; or

3. There was a price fluctuation of more than 30 (thirty) points; news, politics, economics, terrorism, natural disasters, and financial market conditions.

Order of the Market

It is the customer’s mandate to accept the bid price or the available selling price (offer) at that time.

10. Order of Limitation

It is a customer mandate to accept the bid price or the available selling price (offer) when it reaches a specific price—typically used to open or close positions.

Stop Order No. 11

It is a customer mandate to accept the bid price or the available selling price (offer) when it reaches a specific price level—usually used to close positions to avoid further significant losses.

12th. Securing

It is the creation of a new position that is opposed to the previous position without the intention of liquidating the position.

13. Trading and Clearing

Customer Transaction Reporting via the Indonesian Commodity and Derivative Exchange and Customer Transaction Registration via the FCA

SPA Operators’ Reference Prices are based on Reuters financial data.

14. Contract for Rollover

It is an automatic position extension facility, with facility/procedure costs for adjusting price changes between the old and new contracts.
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