Forex Trading "jargon"

Forex Scalping can also be called a quick trading. It's a method where traders allow their positions to last only for a matter of seconds, to a full minute and rarely longer than that. As a rule if a trader holds to a position for more than a minute or two it is considered no longer a scalping, but rather a regular trading.

A dealing desk broker would not agree with scalpers’ trading style and most likely will ask a trader to change his/her trading habits or to find another broker. The reason behind is kind of broker, is the time needed to countertrade/process each order to prevent own losses in case a trader closes in profit.

The correlation is one of the most common and most useful statistics. A correlation is a single number that describes the degree of relationship between two variables.

Correlation, in forex, is the statistical measure of the relationship between two currency pairs. The correlation coefficient ranges between -1 and +1. A correlation of +1 implies that the two currency pairs will move in the same direction 100% of the time. A correlation of -1 implies the two currency pairs will move in the opposite direction 100% of the time. A correlation of zero implies that the relationship between the currency pairs is completely random.

The EURUSD and USDCHF had a near-perfect negative correlation of -1.00. This implies that 100% of the time, when the EUR/USD rallied, USD/CHF sold off. This relationship even holds true over longer periods as the correlation figures remain relatively stable.

Other +/- correlation pairing to consider:

GBPUSD AUDUSD NZDUSD like EURUSD.
USDCAD USDJPY like USDCHF.

Risk appetite: Willing to consider all potential options and choose the one most likely to result in success.

Hard Landing: A term used to describe an economy going into recession as the government attempts to slow down inflation.

Austerity measure: Taken when theres a threat that a government can not honour its debt liabilities.

Debt contagion: When an economic crisis in one country's bond or equity markets spreads to other countries which experience the same problems. A more general definition of contagion = Highly transmittable disease.

Bailout: An act of giving financial assistance to a failing economy to save it from collapse.

Troika: a slang term for the three organizations which have the most power over Greece's financial future - or at least that future as it is defined within the European Union. The three groups are the European Commission (EC), the International Monetary Fund (IMF), and the European Central Bank (ECB).