The document provides definitions for various terms related to forex trading, including: - Account, which is used to offset obligations between clients and dealers from concluded deals. - Account history, which lists completed transactions and non-trading operations for an account. - Balance, which is the total financial result of all executed transactions and deposits/withdrawals to an account. - Client, who executes operations with the company either as a physical or legal party. - Closed transaction, which consists of two opposite trading operations of equal volume. - Currency pair, which is made up of two currencies that make up a foreign exchange rate, like EUR/USD. - Margin, which is the required equity

1. Forex Glossary
Account – a special personal account opened with the company by a client. This account is used to offset the obligations of
the client and dealer, resulting from the deals concluded under the present agreement.
Account history – a full list of completed transactions and non-trading operations of a certain trading account.
Accounting currency – currency unit in which deposit/withdrawal operations are performed.
Adviser – a trading account management algorithm in a form of a program engineered in MetaQuotes Language 4, that
sends requests and orders to the server via the client terminal (platform).
Balance – the total financial result of all fully executed transactions and deposits/withdrawals to/from an account.
Base currency – currency unit in which an account, balances, commission fees and payments are nominated and
calculated.
Broker – the firm that provides crediting services and trader support.
Bull market – market that tends toward escalating rates.
Bulls – traders that count on currency rate escalation.
Client – physical or legal party executing operations with the company.
Client log file – file, created by the client terminal, which records all requests and orders sent from the client to a dealer
with 1 second accuracy.
Client terminal – Client terminal – MetaTrader 4 or 5 software product that lets the client get information about financial
market trades in real time mode (volume defined by the company), perform technical analysis of markets, operate,
set/change/cancel orders and receive messages from the dealer and the company as well.
Closed transaction – consists of two opposite trading operations of equal volume (the position opening and closing):
buying followed by selling or selling followed by buying.
Contract specifications – general trading conditions (such as spread, lot size, minimal trading operation volume, trading
operation volume increment, initial margin, lock margin etc.) for each instrument.
Currency pair – two currencies which make up a foreign exchange rate, for example, EUR/USD.
Dealing – non-cash currency trading.
Dealing center – company that provides access to the money market.
Developer – “MetaQuotes Software Corp.” is the trading platform developer.

2. Equity – the secured part of the client account, including open positions, that is bound to the Balance and the Floating rate
(profit/loss) by the following formula: Balance + Floating + Swap, i.e. the funds on the client account minus the current loss
of the open positions, plus the current profit of the open positions.
Figure – price change for 100 pips. For example, price change EUR/USD from 1.3770 to 1.3870 – this means figure
increase.
Force major circumstances – occurrences which could not be foreseen or prevented. These include: natural disasters;
wars; acts of terrorism; government actions, actions of executive and legislative government authority, hacker attacks, and
other unlawful acts toward servers.
Free margin – determines the state of an account. Calculated according to the formula: Equity - Margin = Free margin.
Hedging – operation that protects an asset or liability against a fluctuation in the foreign exchange rate.
Initial margin - the funds cover required by the company for maintenance of open positions.
Intraday trade – trade oriented at gaining profit within one day.
Lot Size – a quantity base currency in one lot, that is specified in the contract.
Margin – the required equity which an investor must deposit to collateralize a position equal to 1% (when leverage = 1:100)
of an open position deposit.
Margin level – determines the condition of an account. Calculated according to the formula: (Equity / Margin) * 100%.
Margin trading – using borrowed money to buy securities, with the expectation of increasing profits. Margin trading can
bring big returns, but is also risky.
Market opening – trade opening after a weekend, holidays or after an interval between trading sessions.
Market opening price gap – either of the following situations:
– Market opening quote Bid is greater than market closing quote Ask;
– Market opening quote Ask is less than market closing quoteBid.
Market-makers – major banks and financial firms that pledge to provide liquidity by accepting the other side of a trade in a
currency, security or futures contract.
Non-trading operation – depositing or withdrawing funds from a trading account, or extending credit.
Normal market conditions – condition of a market that meets the following requirements:
- absence of noticeable breaks in relation to the trading platform quotes;

3. - absence of rushing price dynamics;
- absence of significant price gaps.
Obvious mistake – opening/closing client positions or executing client order at a price that greatly differs from price
quoted per instrument in present flow quoting at the moment of processing. Or some other dealer activity or inactivity that
deals with mistaken determination of market prices at the present moment.
Open position – the result of the first part of a completed transaction; at the position opening, the client accepts the
following liabilities:
- to execute the opposite operation of equal volume;
- to maintain equity not lower than 10% of the necessary margin.
Pending order – the client instructs the dealer to buy or sell once the price reaches the order level.
Pips (points) – the smallest unit of price for any foreign currency, also referred to as points.
Price prior to non-market quoting
– closing price of minute bar, prior to minute bar with non-market quoting. Price Gap – either of the following situations:
– Present quoting Bid is greater than prior quoting Ask;
– Present quoting Ask is less than prior quoting Bid.
Quote flow – a sequence of numerical data describing the price value of an instrument at a certain time period.
Range – the distance between levels of support and levels of resistance.
Resistance level – highest channel’s borderline.
Rising trend - occurs, when every following value of the wave curve is higher than the previous rate value. The lows of the
waves are connected with a straight line – the trend line.
Server log file – file, created by the server, which records all requests and orders received from the client to a dealer, as
well as the processing result, with 1 second accuracy.
Spike – a comparatively abrupt movement of a price or value level upwards or downwards (usually exceeding spread).
Spikes have a peculiarity of recurrence during a certain period of time, from several minutes to several hours. According to
InstaForex Public Offer Agreement, all positions opened and closed by non-market quotations are to be cancelled, which
guarantees the safeguard of funds against spikes.

4. Spread – the difference in pips between the Bid and the Ask quote.
Support level – lowest channel’s borderline.
Swap – the amount of money deducted from or added to a client account for the overnight position.
Ticker – a unique identification number given to each open position or a pending order in a trading platform.
Trade operation volume – number of lots multiplied by lot size.
Trader – person, who trades currency on the Forex market in order to earn profit.
Trading Account – unique personalized stock-taking operations register on the trading platform, where complete closed
transactions, opened positions, non-market operations and orders are reflected.
Trading operation – an act of buying or selling any instrument performed by the client.
Trading platform – software and technical facilities that provide the transmission of financial trading information in real
time mode, execution of trading operations with account of mutual obligations between the client and the dealer, and control
of conditions and restrictions. For the purposes of the present regulation, it consists of “Server” and “Client terminal”.
Transaction – trade operations where money resources move from base currency into quoting currency and vice versa.
Trend – current general direction of price movement.
Trend lines – the straight lines with a positive slope, plotted on a graph through low points when the tendencies are
uprising, and with a negative slope, drawn through the high points when tendencies are declining; the lines define the
current trends; the trend line gaps usually signal tendency changes.