Forex eBook

Forex Glossary P


Forex Word Meaning
PipsDigits added to or subtracted from the fourth decimal place, i.e. 0.0001. Also called Points.
Political RiskExposure to changes in governmental policy which will have an adverse effect on an investor’s position.
Principal Valuethe initial amount of money of the invested.
Point & Figure chartsThe Point & Figure Chart disregards Time and focuses entirely on price activity.
PositionThe netted total holdings of a given currency.
PremiumIn the currency markets, describes the amount by which the forward or futures price exceed the spot price.
Price TransparencyDescribes quotes to which every market participant has equal access.
Pivot Pointthe primary support/resistance point calculated basing on the previous trend's High, Low and Close prices.
Profit (Gain) positive amount of money gained for closing the position.
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