Forex Trading Glossary, Letter "M"


Maastricht Treaty - The Maastricht Treaty was signed and ratified, by member states of the, EEC, in the town of Maastricht, in the Netherlands on 7 February 1992.

This treaty amended the 1957 Treaty of Rome, which was fundamental in the founding of what was then the EEC (The European Economic Community - now the EU). The final signing of the Maastricht Treaty was key in establishing new, European-wide, guidelines, for the environment and sustainable economic growth, for today"s EU.

Maintenance margin - A "maintenance margin" is the minimum margin, which an investor must keep on deposit in a margin account at all times with respect to each open contract.

Make a market - A dealer is said to make a market when he or she quotes bid and offer prices at which he or she stands ready to buy and sell.

Managed float - Is when the monetary authorities intervene regularly in the market to stabilize the rates or to aim the exchange rate in a required direction.

Margin call - A "margin call" is the demand for additional funds to be deposited in a margin account to meet margin requirements because of adverse future price movements.

Margin - For currencies, a deposit made to the forex firm on establishing a futures position account.

Mark to market - "Mark to market" is the daily adjustment of an account to reflect accrued profits and losses often required to calculate variations of margins.

Market maker - A "market maker" is a person or firm authorized to create and maintain a market in an instrument.

Market order - A "market order" is an order to buy or sell a financial instrument immediately at the best possible price.

Microeconomics - "Micro economics" is the study of economic activity as it applies to individual firms or well-defined small groups of individuals or economic sectors.

Mid-price or middle rate - "Mid-price" or middle rate" is the price halfway between the two prices or the average of both buying and selling prices offered by the market makers.

Minimum price fluctuation - "Minimum price' fluctuation" is the smallest increment of market price movement possible, in a given futures contract.

Monetary base - "Monetary base" is the currency in circulation, plus banks' required and excess deposits at the central bank.

Moving average -"Moving average" is a way of smoothing a set of data, widely used in price time series.

Iterested in Forex Trading and Terminology?

We recommend Articles for Befinners to improve your experience and make trading performance more efficient.

Vantage FX Rating
NPBFX Rating
Cms Trader Rating
XM Rating
FX Giants Rating
Larson&Holz IT Ltd Rating

GTOptions Rating
OptionBit Rating
IQ Option Rating
Empire Option Rating
99Binary Rating
Binary Brokerz Rating