Page 181 - Ultimate Guide to Currency Trading

Melt value
The value of the pure gold content in gold coins that are less than 24 karat. Melt value is the
value of the weight of the gold without the usual 5 percent to 20 percent markup charged by
precious metals dealers.

Minor pairs
Currency pairs that are not the big four: GBP, USD, EUR or JPY.

Monetary policy
Efforts by a country's central bank to promote full employment, stabilize prices, and encourage
long-run economic growth through controlling the money supply and interest rates. (In the
United States, the Federal Reserve conducts monetary policy.)

Money
Anything that functions as a medium of exchange, store of value, or standard of value.

Money center
One of the main trading centers of the world: New York, Lon-don, Zurich, Frankfurt, Paris, and
Tokyo are a few.

Money supply
A measure of all of the cash, coin, and electronic quantity of a currency that is in circulation
and in accounts.

Mutual funds
An investment vehicle that is comprised of a basket of securities and offers the diversification
benefits of an ETF, but has its price calculated only once a day, at the close of the markets.

Naked trades
A method of going into trades without any stop losses or take profits pre-programmed into the
trade.

One-tenth solution
A method of investing 1/10th of your overall portfolio in a risky asset class and the remaining
9/10ths in a low-risk asset class.

Open market operations
The method that the Federal Reserve uses to buy and sell securities in an effort to regulate the
amount of money in the economic system.

Options
A financial product that takes its value from the price of an underlying security (such as a
stock).

Overnight trading
When you look for the developments at the Asian markets in the early evening in order to get a
good idea as to the direction of your bets.