A list of professional terms of any sphere is the main instrument for users. Special words help to avoid misunderstanding while working process. They economize time and make life much easier. Besides, proper lexicon assists in creating the specific atmosphere of professionalism, thus making people concentrate on their job to the max.
Foreign exchange market is a kind of science full of particular words. Many of them are shortened on purpose because events happen so fast and there is no time to read or pronounce long sentences. That is why there are abbreviations Forex is so fond of.
For convenience financial market vocabulary can be divided into 3 categories. Some words migrate from one section to another.
|
Short form |
Full form |
Meaning of the term |
|
FX |
Foreign exchange |
It is an international stock market. |
|
ECN-broker |
Electronic Communication Network broker |
Such broker provides with clients’ output of applications on the interbank level, using the system ECN. Making such deals a trader gets a smaller spread, more liquidity and more available information concerning the market events. |
|
Mln, bln, tln |
Millions, billions, trillions |
|
|
OTC market |
Over the counter market |
This combination is used for the deals, concluded outside of the market. |
|
Q |
Abbreviation for quarter |
It is a period of time (3 months). |
|
WTO |
World Trade Organization |
More than 120 countries gathered together to regular international trade. |
|
BC |
Base currency |
The first currency in the currency pair. It stands for showing the ratio of the first currency towards the second one. For example: USD/RUR 70,6414 mean that 1 dollar = 70, 6414 rubles. Main exceptions to the rule are British pound, Australian dollar and euro. |
|
FY |
fiscal year abbreviation |
It is a financial year of a company, i.e. twelve months, which the company chooses for book-keeping. |
|
SLO |
Sell limit order |
It is a time-limited order to sell an instrument. |
|
STP |
Straight through processing |
In this model a broker’s company takes a role of a middleman between a client and a liquidity provider. |
|
GDP |
Gross domestic product |
It is a total market price of all products and services calculated in one country for a year. |
|
SA |
Seasonally adjusted |
To even swings in periods experts calculate statistics and adjust changes to specific seasons. |
|
ECB |
European Central Bank |
|
|
RBA |
Reserve Bank of Australia |
|
|
Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. |
Abbreviations for months of the year |
Commonly recognized contractions of calendar months. |
|
JA FE MR AL MA JN JL AU SE OC NO DE |
Canadian months shortening |
January February March April May June July August September October November December |
|
MACD |
Middle Average Convergence/Divergence |
One of the FX indicators based on crossing and calculating moving averages. |
|
RSI |
Relative Strength Index |
Another indicator that analyze a trend’s strength and forecast its changes. |
|
CCI |
Commodity Channel Index |
An indicator shows the current changes of price depending on its middle index for a particular period of time. |
|
BP |
Basis Point |
A measure item for rates, ranges and other percentages. |
|
AT |
Australia |
|
VE |
Venezuela |
|
DE |
Germany |
|
HK |
Hong Kong |
|
DK |
Denmark |
|
CA |
Canada |
|
CN |
China |
|
MX |
Mexico |
|
NZ |
New Zealand |
|
GB |
United Kingdom |
|
US |
United States |
|
CH |
Switzerland |
|
JP |
Japan |
|
Abbreviations for currency |
Full name |
Country |
|
USD |
American dollar |
USA |
|
EUR |
European currency |
European contries |
|
CAD |
Canadian dollar |
Canadian currency |
|
NOK |
Norwegian Krone |
Norway |
|
AUD |
Australian dollar |
Australia |
|
HKD |
Hong Kong dollar |
Hong Kong |
|
Chinese yuan |
Chinese currency |
|
|
JPY |
Japanese yen |
Currency of Japan |
|
GBP |
Great Britain pound |
Brittish currency |
|
CHF |
Swiss franc |
Switzerland |
|
NZD |
New Zealand Dollar |
New Zealand |
|
MXN |
Mexican Peso |
Mexico |
|
DKK |
Danish Krone |
Denmark |
|
ZAR |
South African Rand |
South Africa |
|
RUR (RUB) |
Russian Ruble |
Russian Federation (this currency does not have a status of freely converted) |
In conclusion, it is worth saying that the majority of specialists like shortening terms, because it makes their job more productive and easier (especially monetary abbreviations). Moreover, many languages borrow professionalisms from the English language thus making Forex lexicon as international as the market itself is.
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