Glossary – Trading

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There are 18 names in this directory beginning with the letter M.
The longest-term trader who bases their trade decisions on fundamental analysis. A “macro” trade’s holding period can last anywhere from around 6 months to multiple years.

Manufacturing production
Measures the total output of the manufacturing aspect of the Industrial Production figures. This data only measures the 13 sub sectors that relate directly to manufacturing. Manufacturing makes up approximately 80% of total Industrial production.

The required collateral that an investor must deposit to hold a position.

Margin call
A request from a broker or dealer for additional funds or other collateral on a position that has moved against the customer.

Process of re-evaluating all open positions in light of current market prices. These new values then determine margin requirements.

Market capitalization
The total value of a listed company – share price multiplied by the number of shares issued.

Market maker
A dealer who regularly quotes both bid and ask prices and is ready to make a two-sided market for any financial product.

Market order
An order to buy or sell at the current price.

Market risk
Exposure to changes in market prices.

Market Value
Market value of a forex position at any time is the amount of the domestic currency that could be purchased at the then market rate in exchange for the amount of foreign currency to be delivered under the forex Contract.

The date for settlement or expiry of a financial product.

Medley report
Refers to Medley Global Advisors, a market consultancy that maintains close contacts with central bank and government officials around the world. Their reports can frequently move the currency market as they purport to have inside information from policy makers. The accuracy of the reports has fluctuated over time, but the market still pays attention to them in the short-run.

Synonymous with black box. Systems that automatically buy and sell based on technical analysis or other quantitative algorithms.

Abbreviation for month over month, which is the change in a data series relative to the prior month’s level.

A series of technical studies (e.g. RSI, MACD, Stochastics, Momentum) that assesses the rate of change in prices.

Momentum players
Traders who align themselves with an intra-day trend that attempts to grab 50-100 pips.

Money Supply
The amount of money in the economy, which can be measured in a number of ways.

Mutual fund
An open-end investment company. Equivalent to unit trust.
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