TRADER'S DICTIONARY - A

Account History
Listing of all transactions (trading and non-trading) completed for a given account.
Accounting Currency
Currency in which account deposit/withdrawal operations are denominated. Not to be confused with the currencies ultimately bought or sold with account funds.
Accrual Swap
An interest rate swap under which a counterparty pays a vanilla floating reference rate, usually three or six month LIBOR, and receives LIBOR plus a significant spread. Interest payments to this counterparty will only accrue on days when rates stay within a certain range dictated by preset upper and lower boundaries.
Aggregate Demand
Used loosely to describe all private and public sector demand for goods and services produced by a given country. In practice, it is interchangeable with Gross Domestic Product (GDP). Academic notions of aggregate demand make a distinction between short-term and long-term, and are modeled as a function of price levels.
Aggregate Risk
Can very depending on context, but generally defined as the amount of exposure a customer has to the (potential) movement of spot and forward rates.
Aggregate Supply
Measures the total volume of goods and services produced by a given economy. Generally speaking, an increase in demand should lead to an expansion of aggregate supply in the economy. In the event of a mismatch between aggregate supply and aggregate demand, prices would change (i.e. inflation/deflation) in order to return the economy to equilibrium.
Aggressor
A trader that has committed to the existing price in the market.
Agio
An archaic term used to describe the difference/premium between the official rate and the market rate.
American Depositary Receipt (ADR)
A vehicle which effectivelycenables American investors to own shares in foreign corporations. ADRS trade on exchanges like conventional securities. The sponsoring bank collects dividends, pays local taxes and converts them to dollars for distribution to American shareholders. It should be noted that ADRs are affected both by company performance and by changes in exchange rates.
American Option
An (currency) option which may be exercised at any time prior to expiration.
Appreciation
Common term used to describe a currency increasing in value, as a result of market forces as opposed to official adjustment.
Arbitrage
The simultaneous purchase and sale of an equivalent security in different markets, with the goal of profiting from pricing inconsistencies. In the context of currency trading, arbitrage applies to a mismatch in paired exchange rates between three currencies (triangular arbitrage) or an inefficiency between identical securities listed in different markets that arises from exchange rate fluctuation.
Around
Dealer jargon used to quote the forward premium/discount. For example, "two-two around" would translate into 2 points on either side of the present spot value.
Asset Allocation
Investment practice that divides funds among different types of securities/vehicles/markets in order to achieve a return that is calibrated to an investor’s risk profile.
Ask (Offer) Price
The price at which specific currency or contract can be purchased. In practice, this can be understood as the number on the right side of the quote, which is usually the higher price. For example, in the quote EUR/USD 1.4122/26, the ask price is 1.4126; meaning you can buy one Euro for 1.4126 US dollars. Opposite to bid price.
Association Cambiste International
The worldwide affiliation of foreign exchange dealers that together make most of the market for forex trading.
At Best
An type of order to buy or sell at the best rate that is currently available in the market.
At or Better
A type of order to deal at or above (whichever is available) a given price.
At Par Forward Spread
Describes a scenario in which the forward price (for a given time period) is equivalent to the spot price.
At the Price Stop-Loss Order
A type of stop-loss order that must be executed at the requested price regardless of "market conditions."
At-the-Money
Describes an option whose strike/exercise price is equal to (or close to) the current market price of the underlying security.
Auction
Sale of securities to the highest bidder(s). In finance, it is mainly used by governments for the allocation of foreign exchange and government paper, such as US Treasury Bills. Sometimes, auctions are conducted in terms of yield, rather than price.
Autocorrelation
The correlation between changes in a single variable over different time periods. If a price is negatively autocorrelated, a move down in one period would suggest a move up in the next, and vice versa. If it were positively autocorrelated, a move down would suggest a move down in the following period as well, and vice versa.
Average Rate Option
A hedging tool where a series of spot rate fixings during the life of an option are used to calculate an average rate. If the average rate is below the strike price, then the bank must settle the difference with the customer. Otherwise, the the option expires worthless with no payment made. Average rate options are generally suited for those who need protection against adverse currency moves that still wish to retain full upside potential. Also known as an Asian Option.
Aussie
Slang term for the Australian dollar.

Morning Motivation

Every morning is a fresh beginning. Every day is the world made new. Today is a new day. Today is my world made new. I have lived all my life up to this moment, to come to this day. This moment - this day - is as good as any moment in all eternity. I shall make of this day - each moment of this day - a heaven on earth. This is my day of opportunity.

~Dan Custer

Weekly Horoscope (07.01 - 13.01)

Aries (21.03 - 20.04) 
Aries traders have excellent prospects in trading on the Forex this week. In order to achieve truly impressive results, stars recommend you to improve your approach to market analysis and make it more systematic, versatile - so your methods will be even more effective. This week, there probably won't be any situations requiring risky actions from your side, and Aries, which have inner dislike to risk will certainly enjoy it.

Taurus (21.04 - 21.05)
Tauruses this week will have to fight their emotions, which would seriously interfere with your trading. Your mood will change for no reason, as your trading decisions. Therefore stars recommend Tauruses, if possible, to stay out of the market or to give their money in the hands of a professional manager trader - thus you will have more chances to save money and grow. If you listen to advice of the stars, you will get time to think over the situation on which you need to make a decision and free your self from the uncertainty.

Gemini (22.05 - 21.06)
Professional flair can fail Geminis this week. Especially painful this may be on the representatives of this sign, who've always greatly relied on their intuition. However, you should not ignore your gut feeling completely: just be more careful and cautious, do not neglect fundamental and technical analysis - combine the information that inner voice whispers to you, and you will succeed!

Cancer (22.06 - 22.07)
Stars promise Cancers generally favorable week for Forex trading, but warn that you can fail because of your inability to admit mistakes. The situation might occur when things go against your plans, but try to understand your mistake and learn from it, otherwise you are in the risk to repeat it again and again. Avoid trading currency pairs with the Australian dollar. Spend weekends away from trading outdoors.

Leo (23.07 - 23.08)
Sometimes even confident Leos can doubt their abilities. Exactly this inner state is expected from the representatives of this sign this week: You will feel that you have enough funds in the account in order to get a profit, you're going for. In addition, you will feel a lack of knowledge. However, do not be too critical with your self. Think about your best times and revenues that you managed to get through with the help of your talent and professional trader's intuition. If you doubt in your strength - refer to asset management services.

Virgo (24.08 - 23.09)
Many Virgins, possess exceptional analytical skills and they would have been able to achieve in Forex trading mind-blowing results, if not for their sick attitude to failure and, in particular, loss. Understand that you cannot always make profit, loss - is inevitable. However, their number can be minimized, if not to give up and trade again and again. Cease to treat capital losses as the end of the world, and you will see that Fortune has prepared for you much greater opportunities to earn. In particular, pay attention to USD/JPY pair.

Libra (24.09 - 23.10)
Libras this week will have good luck in all cases, including trading in Forex. However, the pitfall in your financial swimming could be your tendency to doubt - it often keeps you from decisions that potentially could be fatal. Stop doubting, focus on trade, listen to yourself, and do it! Stars advise you to reconsider this attitude to trading as soon as possible, because this week you will have a great opportunity to break a big jackpot - do not miss it!

Scorpio (24.10 - 22.11)
For Scorpios week is unlikely to be profitable, as a cruel joke traders of this sing often forget to set stop-losses. In the first half of the week you can lose a significant amount because of it. However, if you show the wonders of foresight, the situation can turn into a success for you, so think about what the outcome would be preferable for you, and take appropriate action. As for the trading, good luck will accompany Scorpios who trade the following currency pairs: EUR/USD and USD/JPY.

Sagittarius (23.11 - 21.12) 
Sagittariuses this week will be chased by mistakes in the manual trading, so try to keep such trading to a minimum and give preference to a mechanical trading system. To avoid losses, stop doing trading for a moment and get involved in some other activity. A good option for you will be investing, particularly in the stock market tools. Examine the market: perhaps you will find a great and potentially lucrative option of investing in securities.

Capricorn (22.12 - 20.01) 
Capricorn this week, a good service will serve the fundamental analysis. However, if you are not good at it, use only proven analytics and business experts. It is not necessary to use several analytical sources simultaneously, otherwise you may get lost in the view that, of course, will not benefit your trading. Toward the end of the week Capricorns need to be attentive to what people are saying around: someone accidentally tossed phrase will help you find the answer to your question long tantalizing.

Aquarius (21.01 - 19.02)
Many Aquariuses completed last year not as successfully as they wanted. And now, for the representatives of this sign is coming time most suitable for the analysis of trading techniques and strategies or changing trading instruments. After all, if today you want to get results, surpassing yesterday's, you'll have to do what you did not do yesterday! So, the time for change is coming. You would do well to consult a more experienced colleague or written on the traders' courses - new professional knowledge you will not interfere.

Рisces (20.02 - 20.03) 
The coming week - is a week of opportunities! A hard-working and talented Pisces the strength to succeed in any industry. But luck will smile to you only if you treat a new case with the utmost seriousness and will not be distracted by external stimulus. This is especially true for representatives of this sign, who decided on their own to learn new trading instruments or completely new kind of earnings. If you connect your innate stubbornness and be really passionate about what you are doing, it is possible that this week you will be able to lay the first brick in the foundation of your new business project.

FXCC, VantageFX, XEMarkets: Daily Accruals from January

Dear IAFT customers!

We are increasing the number of companies, on which accruals will be made on a daily basis. Starting from January, the already existing list has been replenished with 3 new brokers who can provide us with daily reports on your trading. This time, you have the opportunity to receive daily rewards already on 16 companies.

Reward accruals will be made on the daily trading results till 10:00 a.m. CET following the reporting one. For instance: reward for your trading on the 3rd of January will be accrued on the 4th of January till 10:00 a.m. CET. The new accruals scheme will be introduced on the following brokers:

• FXCC
• VantageFX
• XEMarkets

In view of this new feature, the Crediting calendar section will be updated specifying that accruals on the above mentioned companies are made every day. Accruals on the rest of the brokers will be made once a month, as before, in the first 10 days of a new month following the reporting one.

December accruals will be made on all the companies in the ordinary course.

If any questions arise, please contact our Support service - we will be happy to assist you!

Best regards,
IAFT Administration

How to Choose a Forex Broker

Choosing a good forex broker is one of the most important decisions you need to make at the beginning (or at any point) of your forex trading career. Do not take this decision lightly, but at the same time don't stress over it – the process does not need to be complicated – just like in your trading decisions, once you do your homework, things tend to fall into place. Chance favors the prepared trader and everything you need to make an informed decision is listed right here. All you have to do is follow the advice given and you will find yourself a broker that suits your needs.

- Regulation (the "Legitimacy Test")

- Timeframes

- Automated vs. Discretionary Trading Styles

- Islamic Swap-Free Accounts

- Tradable Instruments

- Minimum deal sizes

- Leverage

- Customer Support

- Test-run the Platform

Help in choosing a broker by IAFT 

Weekly Horoscope (31.12―06.01)

Aries (21.03 - 20.04) 
This week will demand from Aries flexibility, many of whom do not have it, especially in the first half of the period. On the market will be observed fluctuations and if you can feel them properly you will get a good profit. However, on Friday something might go across your plans. If you do decide to enter the market that day, be careful and avoid unnecessary risks.
Taurus (21.04 - 21.05)
Tauruses will benefit from communication with peers and colleagues. During a conversation with one of them you can come up with an interesting idea, that is sure to serve you a good stead in the future. Closet to middle of the week Taurus's intuition will go sharper, so Wednesday will be perfect for forecasting and planning. With regard to trading on Forex, the most successful day will be Tuesday. On Thursday and Friday there is a risk of incurring losses, but not very significant.
Gemini (22.05 - 21.06)
In the first half of the week Geminis will be dogged by controversy and it will not let them to think rationally. However, you have a chance to earn good money if you can avoid unnecessary emotional decisions. By the end of the week the heavenly bodies will recommend Geminis to take a break from constant thoughts about upgrading their trading strategy, because now is not the best time for a change. On Friday beware: your ambitions may cause your bad mood and negatively impact on trade.
Cancer (22.06 - 22.07)
For cancer comes favorable week for training, so dedicate this time for sharing of experience and deep study of new financial instruments. Closer to the end of the period you will be able to earn good money on the financial markets and be recognized in a new field for you. At the same time stars strongly recommend you not to work too much, because lately you have not been paying attention to your health. Try to at least an hour a day spend out in the fresh air.
Leo (23.07 - 23.08)
Heavenly bodies are predicting success in financial affairs for Leos this week, but only if they are able to analyze in detail the successes and achievements over the past year. Evaluate objectively your strengths and weaknesses and think about how effectively you manage your time - perhaps you need to reorganize your schedule. The most successful day for trading will be Wednesday and the most successful pairs - those which include Japanese yen.
Virgo (24.08 - 23.09)
It will be useful for Virgos this week to study the work of foreign traders: it will help you significantly improve your trading quality. In addition, traders will participate in tournaments and succeed, you will get not only a valuable experience, but also money reward. On Thursday and Friday there is a chance to encounter technical difficulties in Forex trading, so it is better to stay out of the market these days.
Libra (24.09 - 23.10)
Stars predict success for those Libras, who prefer asset management. For those representatives of the sign, who have wanted for long time to try themselves as a managing trader, now is the most successful period for doing it. In the middle of the week fortune may smile Libra traders who trade precious metals. But in the last days of the week is better to refrain from trading - there is a risk to overlook an important detail and suffer losses because of it.
Scorpio (24.10 - 22.11)
The beginning of the week will be favorable for the settlement of monetary issues. It is likely that Scorpios will be able to use borrowed from their broker funds in a right way. Among other things, a good profit can bring the money invested in securities or funds. However, the second half of the week may not be very successful in terms of trade. Be cautious and carefully expose the stop-loss and take-profit.
Sagittarius (23.11 - 21.12)
Sagittariuses this week are expected to loose their creative powers, it is probably connected with the fact that you did not have time to finish some affairs that were to be completed before the next year. This will play on your nerves, but the stars advise you not to take yourself too critical, because the nervousness will hinder your trading. On Thursday, the situation will improve and you will be full of energy once again. However, the period is not suitable for experiments, so test new trading strategies are to be put off until better times.
Capricorn (22.12 - 20.01)
This week Capricorns will be able to successfully apply analytics, but try to use the information from trusted sources only. In the last days of the trading week some technical malfunction can occur with your broker, so just in case, set the mobile version of the trading terminal on your phone. Deals with pairs that have British pound are expected to be successful.
Aquarius (21.01 - 19.02)
For Aquarius the week is promised to be ambiguous. Thus, in the first days of the period it is better not to sign important documents and conduct business negotiations: they are unlikely to be effective, and the time needs to be appreciated. Throughout the week, you will be distracted from trading by the loved ones, demanding your attention and on Friday you will bombarded with a variety of information, from which will be hard to select the important one. Therefore stars advise you to take some time off and have a rest.
Рisces (20.02 - 20.03)
Most of the Рisces this week are unlikely to pay much attention to trade, being completely busy preparing for holidays. And rightly so, because the industrious Рisces all year were loaded with work, stubbornly refusing pieces of advice to take a break. This week is perfect for relaxation and tune in to a new 2013 year of fruitful trade. It is best to analyze your trading achievements over the past year and plan for the next 12 months.

Make money without investing anything!

Start from scratch with IAFT!

Our Association is constantly improving the services we provide for our traders. The next step in this direction is the creation of exclusive contests where anyone can participate and earn his starting capital.

Joining IAFT traders contests is very easy:
1. Go through simple registration process (if you are not registered at our website).
2. Log in at our website.
3. Register at one of the broker's websites.
4. Download and install MetaTrader4 from your broker's website.
5. In your Personal office click Traders Contests.
6. Choose a contest and enter the following information: Dealing center, the number of the trading account with this company and investor's password.
7. Click Participate and start trading.

You can join the ongoing daily, weekly or monthly contests at any time – even a few days before its completion. The most important is the will and ambition to trade!