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.

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