Page 95 - NEW FOREX FULL COURSE

FOREX TRADING COURSE FOR BEGINNERS

U

Uncovered - Another term for an open position.
Under-valuation - An exchange rate is normally considered to be undervalued when it is below
its purchasing power parity.
Uptick - A transaction executed at a price greater than the previous transaction.

V

Value Date - For a spot transaction it is two business banking days forward in the country of the
bank providing quotations which determine the spot value date. The only exception to this
general rule is the spot day in the quoting center coinciding with a banking holiday in the country
of the foreign currency. The value date then moves forward a day.
Value Spot - Normally settlement for two working days from today. See value date.
Volatility - A measure of the amount by which an asset price is expected to fluctuate over a given
period.
Vostro Account - A local currency account maintained with a bank by another bank. The term is
normally applied to the counterparty's account from which funds may be paid into or withdrawn,
as a result of a transaction.
W

Wash trade - A matched deal which produces neither a gain nor a loss.
Whipsaw - Term for where a trader takes a position, then has to move against it triggering stop
loss limits and liquidation of positions, then having to move in the original direction. Normally
occurs in volatile markets.
Working day - A day on which the banks in a currency's principal financial center are open for
business. For FX transactions, a working day only occurs if the bank in both financial centers are
open for business (all relevant currency centers in the case of a cross are open).

WESTERN AND JAPANESE TECHNICAL STOCKS TERM

GLOSSARY
The following is a list of terms used in association with Japanese Candlestick Analysis. Some terms
are purely of Western origin; others are purely of Japanese origin. Many are used for description
in both Western and Japanese techniques, becoming intermingled through the years.
Bar Charts
The conventional graphic depiction of price activity. The trading range is illustrated with a vertical
line representing the high to low prices during a time period. Open price is shown by a short
horizontal line attached to the left side of a vertical line, the close is a horizontal line to the right
side. Price is represented on the vertical scale of the chart. Time is represented on the horizontal
scale

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