Education

Education

Education is the key to all transactions. You can be faster, that there is a fluidity to complete the transaction. D2M broad liquidity will be the best choice for heavy users.

Global market maker and liquidity of the Company

D2M is connected to one of the world's largest market by the network to deal with the global financial institutions, banks and financial institutions do, the various supply liquidity. We provide liquidity from banks and various financial institutions. It also manages your FX trading,Our solutions provide the ultimate performance.

D2M is able to provide solutions to meet the needs, tailored to specific needs. Our clients can also expand the business as a private label and affiliate ・ IB.

D2M has a fast and advanced connection technology to connect instantly to all of the major financial institutions and the industry-leading liquidity providers, the rate is at the back-office integration through the STP.

Reliability of service by the system reliable, faster, we will provide the best performance and more.

Glossary

  • A

    • Analyst

      • Employee of a brokerage, bank or fund manager who studies companies and makes buy-and-sell recommendations.

    • Appreciation

      • A currency is said to 'appreciate' when it strengthens in price in response to market demand.

    • Arbitrage

      • The simultaneous buying and selling of a financial instrument at two different prices in two different markets, resulting in profits without risk.

    • Asset Allocation

      • Investment practice that divides funds among different markets to achieve diversification for risk management purposes and/or expected returns consistent with an investorfs objectives.

    • Ask

      • The buying price. The higher price of the two way quote.

    • At Best

      • An instruction given to a dealer to buy or sell at the best rate that can be obtained at the moment.

    • Automated Trading

      • A trading method that uses an automated system to trade without any human input. D2M would like to welcome active players like automated trading accounts.

  • B

    • Back Testing

      • A method for checking the potential profitability of a trading system by applying it to historical data.

    • Base Currency

      • The base currency is the first currency listed in any currency pair. Its value is determined against the counter currencyfs value. For example, if the rate of the EUR/USD pair is 1.3525, then the EUR is the base currency and it is worth 1.3525 USD.

    • Base Rate

      • The rate at which the Bank of England lends to the retail Banks.

    • Bear

      • Someone who believes that prices in the market are going to decline. Opposite of a bull.

    • Bid

      • The quoted price at which a client can sell.

    • Bollinger Bands

      • Plus or minus two standard deviations where the standard deviations are calculated historically in a moving window estimation. Hence, the bands will widen if the most recent data is more volatile. If the prices break out of the band, this is considered a significant move.

    • Bull

      • Someone who believes that prices in the market are going to rise.

    • Bundesbank

      • Germany's central bank.

  • C

    • Candlestick

      • Chart A chart that indicates the trading range for the day as well as the opening and closing price. If the open price is higher than the close price, the rectangle between the open and close price is shaded. If the close price is higher than the open price, that area of the chart is not shaded. Carry Trade Refers to the simultaneous selling of a currency with a low interest rate, while purchasing a currency with a high interest rate.

    • CBOT

      • Chicago Board of Trade.

    • Central Bank

      • Refers to the simultaneous selling of a currency with a low interest rate, while purchasing a currency with a high interest rate.

    • Chartist

      • Person who analyses markets with the use of charts.

    • Clearing

      • The process of settling a trade.

    • Close a Position

      • To eliminate an investment from one's portfolio by either buying back a short position or selling a long position. CME Chicago Mercantile Exchange.

    • Compliance Dept.

      • The department of a firm that ensures that the firm complies with the regulation of the Financial Services Authority.

    • Counter Party

      • The customer or bank with whom a foreign exchange deal is made.

    • Country Risk

      • Risk associated with a cross-border transaction, including but not limited to legal and political conditions.

    • CPI

      • Consumer Price Index, used as a measure of inflation.

    • Cross Currency

      • A pair of currencies that does not include the US dollar.

    • Cross Rate

      • A price quote consisting of any currency quoted against a currency that is not the USD. The quote is made up of the individual exchange rates of the two currencies against the USD.

    • Current Account

      • One of two parts of a nation's balance of payments (the other is capital account). It is a record of all trade, exports and imports, between a nation and the rest of the world. The current account is separated into merchandise, services, and what's called unilateral transfers. The merchandise part is nothing other than the well-known balance of trade. There's also a lesser known balance of services -- the difference between services imported and exported.

  • D

    • Day Order

      • An order which remains open until the end of the trading hours for that day.

    • Day Trading

      • Opening and closing of a position in the same contract in one day.

    • Dealer

      • An individual or firm that acts as a principal or counterpart to a transaction

    • Deflation

      • A deep and long-lasting decrease in the price of goods and services within an economy. It is the opposite of inflation which is an escalation in prices.

    • Depreciation

      • A fall in the value of a currency due to market forces.

    • Devaluation

      • The deliberate downward adjustment of a currencyfs price, normally by official announcement.

    • Discount Rate

      • The Interest rate that an eligible depositary institution is charged to borrow short-term funds directly from the Federal Reserve Bank or Central Bank.

    • Derivative

      • A contract that charges in value in relation to the price movements of a related or underlying security, future or other physical instrument. An option is one of the most common derivative instruments

  • F

    • Factory Orders

      • The dollar level of new orders for both durable and nondurable goods. This report is more important than the durable goods report which is released earlier in the month.

    • Floating Exchange Rate

      • Floating exchange rates refer to the value of a currency as decided by supply and demand.

    • FOMC

      • -

    • Federal Reserve

      • The Central Bank of the United States.

    • Fed Fund Rate

      • The interest rate on Fed fund account balances that is closely monitored to gauge the Fed's view on the economy.

    • Fill

      • Execution of an opening or closing order.

    • Forward

      • The pre-specified exchange rate for a foreign exchange contract settling at some agreed future date, based on the interest rate differential between the two currencies involved.

    • Fundamental Analysis

      • This type of analysis focuses on the macroeconomic factors that influence the value of a countryfs currency.

    • Futures

      • A way of trading financial instruments for a specific price on a specific date in the future. Unlike options, futures give the obligation to buy or sell instruments at a later date. They can be used to both protect and to speculate against the future value of the underlying product.

  • G

    • G7

      • The seven leading industrial countries (US, UK, Germany, Japan, France, Canada, Italy).

    • Gapping

      • A situation where the market trades at a significantly different price to the previously traded price without trades occurring at intervening prices. This tends to relate to when a market resumes trading after a period of closure (e.g. a weekend) or in highly volatile moments.

    • Gearing

      • The use of debt to increase exposure to high risk/reward. Gearing is also known as leverage.

    • Golden Cross

      • In technical analysis, when a short-term moving average breaks through a long-term moving average upward, it is considered that the currency has set an up-trend.

    • GDP

      • Total value of a country's output, income or expenditure produced within the country's physical borders.

    • GNP

      • Gross domestic product plus income earned from investment or work abroad.

    • GTC Order

      • An order which remains open until filled or until the client cancels.

  • H

    • Head and Shoulders

      • A price trend pattern which has three peaks, the middle one being higher than the surrounding two, forming what looks to be a head with two shoulders on either side. When this pattern is seen, the pair of currencies is expected to decline substantially sometime in the future.

    • Hedge Fund

      • A private fund which usually solicits investments from wealthy individuals. It has a speculative nature as it is unregulated.

    • Hedging

      • This is a term used to describe having the same number of buy positions as sell positions on one product. Market movements cannot affect a hedged position, as any profits or losses from one position will be offset by the other position.

  • I

    • Inflation

      • An economic condition whereby prices for consumer goods rise, eroding purchasing power.

    • Initial Margin

      • The initial deposit of collateral required to enter into a position as a guarantee on future performance.

    • Interbank Market

      • The Interbank Market is the currency market for Foreign Exchange - the international market for currencies. The Interbank Market is the largest market in the world dealing in about US$ two trillion daily turnover.

    • Interbank Rate

      • The foreign exchange rates at which large international banks quote other large international banks.

    • Intervention

      • Action by a central bank to impact the value of its currency by entering the market. Concerted intervention refers to action by a number of central banks to control exchange rates.

    • Introducing Broker

      • A person or corporate entity which introduces clients to a specified FX broker for a fee after entering into a contract with the said broker.

  • L

    • Leading Indicators

      • Economic indicators that change before the economy changes.

    • Leverage

      • Leverage is a loan from your broker, which enables you to trade with a small amount of capital. It can increase your potential profit, but it can also increase your risk.

    • LIBOR

      • The London Inter-Bank Offered Rate. Banks use LIBOR when borrowing from another bank.

    • Limit Order

      • An order to buy or sell at a more advantageous level than where the market last traded.

    • Education

      • The ability for a market to accept large transactions with minimal to no impact on price volatility.

    • Long Position

      • When the base or trade currency is bought, the position is said to be long.

    • Lot

      • A unit to measure the amount of the deal. The value of the deal always corresponds to an integer number of lots.

  • M

    • Managed Account

      • An account for which the account holder gives the broker the holder's authorization to buy and sell foreign currencies on his or her behalf. It is also widely known as discretionary account.

    • Margin

      • The required equity that an investor must deposit to collateralize a position.

    • Margin Call

      • A request from a broker or dealer for additional funds or other collateral to guarantee performance on a position that has moved against the client.

    • Market Maker

      • A dealer who provides a bid and ask price in which they stand ready to buy and sell. In this way, dealers are also known as market makers.

    • Market Order

      • An order to have a position opened or closed when the underlying market trades at the specified price. Market orders are then filled at our quote at the time.

    • Market Risk

      • Exposure to changes in market prices.

    • Mark-to-Market

      • Process of re-evaluating all open positions with the current market prices. These new values then determine margin requirement.

    • Maturity

      • The date for settlement or expiry of a financial instrument.

    • Middle Rate

      • The price halfway between the bid and ask offered by dealers.

    • Momentum

      • The measure of the currency's ability to move in the given direction.

    • Moving Average

      • One of the most basic technical indicators. It shows the average rate calculated over a series of time periods.

  • N

    • Net Position

      • The amount of currency bought or sold which has not yet been offset by opposite transactions

    • Non-Farm Payroll

      • Reported monthly, this figure represents the total number of paid U.S. workers of any business, excluding farm employees, general government employees, private household employees, and employees of nonprofit organizations that provide assistance to individuals. The NFP report also includes estimates of the average work week and average weekly earnings of all non-farm employees.

  • O

    • Offer

      • The rate at which a dealer is willing to sell a currency.

    • OCO Order

      • A designation for two orders whereby one part of the two orders is executed and, the other is automatically cancelled.

    • Online Broker

      • A brokerage that provides trading services to its clients over the Internet.

    • OPEC

      • Organization of Petroleum Exporting Countries.

    • Open Position

      • A long or short position whose value will change with a change in prices

    • Order

      • An instruction to execute a trade at a specified rate.

    • Over Bought

      • A term used to show a bullish view has been wrongly predicted and that the market will change trends.

    • Over the Counter

      • Used to describe any transaction that is not conducted over an exchange.

    • Overnight Position

      • A trade that remains open until the next business day.

    • Over Sold

      • A term used to show a bearish view has been wrongly predicted and that the market will change trends.

  • P

    • Personal Income

      • Measures an individual's total annual gross earnings from wages, business enterprises and various investments. Personal Income is the key to personal spending, which accounts for 2/3 of GDP in the major economies.

    • Pip

      • The smallest unit of price for any foreign currency. Typically seen as the 4th or 5th decimal point.

    • Pivot Point

      • The primary support/resistance point calculated based on the previous trade's high, low and closing prices.

    • PPI

      • Producer Price Index, a measure of wholesale prices of goods and services.

    • Profit/Loss (P/L)

      • The actual realized gain or loss resulting from trading activities on Closed positions, plus the theoretical unrealized gain or loss on Open positions that have been Marked-to-Market.

  • Q

    • Quote

      • A two-way market price containing the bid and offer price.

  • R

    • Rally

      • A recovery in price after a period of decline.

    • Range Trading

      • Range trading is a tactic that includes buying when prices veer towards lower support levels and selling when prices veer towards upper resistance levels.

    • Recession

      • Downturn in a country's economy, as measure by a decline in GDP.

    • Resistance

      • A term used in technical analysis indicating a specific price level at which the current uptrend is expected to halt.

    • Retail Sales

      • Measures the monthly retail sales of all goods and services sold by retailers based on a sample. This data gives a look into consumer spending behavior, which is a key determinant of growth in all major economies.

    • Revaluation

      • An increase in the exchange rate for a currency as a result of central bank intervention. Opposite of Devaluation.

    • Risk

      • Exposure to uncertain change, most often used with a negative connotation of adverse change.

    • Rollover

      • The process by which an open position is extended from the current business day to the next business day. During this process, typically at the close of New York Trading (17:00 EST) overnight financing will be charged to, or received by the client's trading account (reflecting the interest rate differential between the two currencies).

    • Round Trip

      • Buying and selling (opening and closing of a trade) of a specified amount of currency.

  • S

    • Scalping

      • A style of trading notable by many positions that are opened for extremely small and short-term profit. D2M does not have any restriction on scalping, and it welcomes scalping players, too.

    • Short Position

      • A position that benefits from a decline in market price. When the base currency of the pair is sold, the position is said to be short.

    • Slippage

      • Execution of order for a price different than expected (ordered).The main reasons for slippage are fast (or volatile) markets, low liquidity, and a broker's in ability to execute orders at a predetermined price. Spot Market A physical market in which foreign currencies are bought and sold for cash at the current market price, settle on the spot and delivered immediately.

    • Spread

      • The difference between the bid and offer price. Square Purchase and sales are in balance and thus the account holder or dealer has no position.

    • Sterling

      • Slang for British Pound.

    • Stop Loss Order

      • Order type whereby an open position is automatically liquidated at a specific price. Often used to minimize exposure to losses if the market moves against an investor's position.

    • Supply and Demand

      • Economic theory that simply states price is a function of the market, supply and demand.

    • Support Level

      • A technique used in technical analysis that indicates a specific price level at which a current declining trend is expected to correct by itself. Opposite of Resistance.

    • Swap

      • A currency swap is the simultaneous sale and purchase of the same amount of a given currency at a forward exchange rate.

    • Swift

      • Society of worldwide interbank financial telecommunications. It is a dedicated computer network that is set up to support fund transfer messages between member banks worldwide.

  • T

    • Take profit Order

      • A customer's instructions to buy or sell a currency pair which, when executed, will result in the reduction in the size of the existing position and show a profit on that position.

    • Technical Analysis

      • Effort technique used to forecast prices by analyzing market data, i.e. historical price trends and averages, volumes, open, interest, etc.

    • Tick

      • The minimum change in price, up and down.

    • Ticker

      • Shows current and/or recent history of a currency either in the format of a graph or table.

    • Trade Balance

      • Measures the difference in value between imported and exported goods and services. Nations with trade surpluses (exports greater than imports), such as Japan, tend to see their currencies appreciate, while countries with trade deficits (imports greater than exports), such as the US, tend to see their currencies weaken.

    • Trading Platform

      • The set of software and technical resources that support financial market trading information to be received in real time; processes trading operations, takes into account mutual obligations between the client and the dealer, and observes conditions and restrictions as well. For the purposes of the present regulation, it consists of the "Server" and "Client" terminals.

    • Trade through API

      • A way of Trading conducted through an Application Programming Interface, which is used in foreign exchange market for automated software trading.

    • Trading Range

      • Range between the highest and lowest prices at which a currency pair is traded.

    • Trailing Stop

      • Trailing Stop is an algorithm to manage Stop Loss orders. Once a trailing stop has been placed (for example, trailing stop's value is 10 pips) the following occurs:

    • No Stop

      • Loss order will be placed until the open position is in a profit of at least 10 pips. MT4 then sends an instruction to place the Stop Loss order 10 pips higher or lower than the current price. Subsequently, each time the difference between the current price and the order level exceeds 10 pips, MT 4 sends the instruction to modify the Stop Loss order to a level 10 pips higher or lower than the current price. As a result, the Stop Loss order becomes closer to the current price.

    • Transaction Cost

      • The cost of buying or selling a financial instrument.

    • Trend

      • The current general direction of price movement.

    • Trend Line

      • These are straight lines, with a positive slope, drawn on a graph through low points when tendencies are rising, and with a negative slope, drawn through the high points when tendencies are on the decline. These lines define the current trends. Trend line gaps usually signal tendency changes.

    • Turnover

      • The total money value of all executed transactions in a given time period.

    • Two-way-Price

      • When both bid and offer rates are quoted for a FX transaction.

  • U

    • Unrealized P/L

      • The theoretical profit or loss on open positions valued at current market rates, as determined by the broker in its sole discretion. Unrealized Profit/Loss becomes Profit/Loss when the position is closed.

    • Uptick

      • A new price quoted at a price higher than the preceding quote.

  • V

    • Value Date

      • The date on which counterparts to a financial transaction agree to settle their respective obligations.

    • Volatility

      • A statistical measure of a market's price movements over time.

  • W

    • Wholesale Price

      • Measures the changes in prices paid by retailers for finished goods.