Glossary Of Trading

MACD (Moving Average Convergence/Divergence)

The MACD indicates potential changes in a trend’s direction, strength, momentum and duration.

Major (forex pairs)

Currency pairs made up of the 8 most traded currency pairs – AUD, CAD, CHF, EUR, GBP, JPY, NZD and USD.

Margin Call

A warning that one’s remaining equity is insufficient to cover additional potential losses.


A location or entity where people and entities can negotiate and trade assets of value.

Market Maker

A brokerage that retains sufficient liquidity in an asset to serve as a counterparty for trades on that asset.

Markets In Financial Instruments Directive (MiFID)

ESMA’s directives on the management on financial entities and the regulations that govern them.


A series of trading platforms manufactured by Metaquotes Software Corporation, considered the benchmark in online trading.


A computer provider who hosts and administers a blockchain. With cryptocurrencies, the miner is rewarded for work done with newly-minted cryptocoins.

Minor (forex pairs)

Currency pairs in which only one of the named currencies is a major currency (AUD, CAD, CHF, EUR, GBP, JPY, NZD and USD).


The strength of a trend. Its corollary is the pace at which the value of an asset changes.

Monetary Policy

The tool by which central banks control the flow and availability of money through interest rates, reserve ratio requirements, and the printing of money. Not to be confused with a government’s fiscal policy, which determines how that money is acquired and utilized.

Moving average

A means of eliminating momentary noise, or fluctuations in a chart. Each successive value is derived by computing the average of a specified number of preceding values. This helps to identify trends.