Glossary

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Look up the meaning of hundreds of trading terms in our comprehensive glossary.

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  • Factory orders
    Factory orders are a common economic indicator, used to assess the dollar value of goods from factories. The data for factory orders are released in monthly reports by the US Census Bureau, and are split into two major groupings: durable and non-durable goods. Each factory orders report includes new orders, unfilled order, shipments and inventories.
  • Federal Reserve
    The Federal Reserve System, referred to as the Federal Reserve or the Fed, is the United States of America’s central banking system.

    On December 23, 1913, the Federal Reserve Act created the system after a series of financial shocks caused the need for central control of monetary policy to prevent future crises.
  • Figure/the figure
    Refers to the price quotation of '00' in a price such as 00-03 (1.2600-03) and would be read as 'figure-three.' If someone sells at 1.2600, traders would say 'the figure was given' or 'the figure was hit’.
  • Filled orders
    A filled order, of fill for short, is simply an executed order in the markets. It is an order that has had its parameters filled, whether it was an order to buy or sell an asset, to open or close a position. For example, if you were to create an order to buy a stock at $45, and your order is accepted, it would be said to have been ‘filled’ and $45 would be the ‘fill price’.
  • Fill or kill
    A fill or kill (FOK) order is an instruction sent to a broker or directly to a trading venue that must be carried out immediately and in its entirety. If either of those stipulations cannot be met, the order is canceled. No partial or delayed execution of the order is allowed.
  • Financial analyst
    A financial analyst conducts financial analysis for external or internal clients. Their primary duty is to examine data to identify opportunities or evaluate outcomes for investment recommendations or business decisions.

    In the financial services industry, analysts provide regular reports on forex, equity, commodity, and cryptocurrency markets to assist traders’ decision making.
  • Financial contract
    A financial contract is a legally binding document between at least two parties which defines and governs the parties’ rights and responsibilities under the agreement.

    A financial contract is legally enforceable when it meets the law’s requirements and approval. It usually involves exchanging money, goods, services or promises to trade any of these products.
  • Fix
    One of approximately five times during the forex trading day when a large amount of currency must be bought or sold to fill a commercial customer’s orders. Typically, these times are associated with market volatility. The regular forex fixes are as follows (all times EST):

    5:00am - Frankfurt

    6:00am - London

    10:00am - WMHCO (World Market House Company)

    11:00am - WMHCO (World Market House Company) - more important

    8:20am - IMM

    8:15am - ECB

  • Flat Market
    A flat market describes when the price for a certain security neither rises or falls for a significant time period. Flat markets can occur when there is low trading volume or when increasing price movements on some securities are offset by declining price movements of other securities in the same index.
  • Flat or square position
    Dealer jargon used to describe a position that has been completely reversed, eg you bought $500,000 and then sold $500,000, thereby creating a neutral (flat) position.
  • Flat reading
    Economic data readings matching the previous period's levels that are unchanged.
  • Follow-through
    Fresh buying or selling interest after a directional break of a particular price level. The lack of follow-through usually indicates a directional move will not be sustained and may reverse.
  • FOMC minutes
    FOMC minutes are a detailed record of the Federal Open Market Committee (FOMC) meetings and are released three weeks after every meeting. The minutes offer more concise insights on the monetary policy stances of all members of the committee and how individual members see the value of the USD and other securities.
  • Forex
    Forex, also known as foreign exchange or FX, is the conversion of one country's currency into another. It forms the basis of forex trading, one of the world’s most-traded asset classes.
  • FRA40
    The FRA40 is a benchmark index containing 40 of the biggest companies on the Euronext Paris exchange. It’s commonly referred to as the French 40. Most of the companies included are international, representing 35 different sectors.
  • FTSE 100
    The FTSE 100 is an index of the 100 companies with the highest market capitalisation on the London Stock Exchange. Although, many of the listed companies are international, making it a somewhat weak indicator of the UK economy.
  • Fund
    A fund is an investment vehicle that enables people to pool their money together to invest in different securities like stocks, bonds, currencies, property, or commodities.

    Funds might have different objectives; either to deliver a regular income or capital growth for the investor.
  • Fundamental analysis
    Fundamental analysis is involves using related economical and financial factors to determine the value of a security. Both macro and microeconomic factors are considered when performing fundamental analysis from the overall economic health of an industry or country to specific details pertaining to one company such as specific Management decisions made by the company to its revenue and profit. Fundamental analysis can be used on a range of securities including indices and individual stocks, forex, and commodities.