Forex Glossary


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D–Mark: It is an abbreviation of Deutsche Mark (DEM), the official currency of Germany before it adopted euro in 2002. Each D–Mark was divided into 100 pfennings.

Day Trader: A day trader tries to make profits from short term intraday fluctuations and does not carry overnight positions.

Daily Chart: It displays the intraday movements of a security.

Daily Cut–Off: It is a particular point in time which is defined by the forex dealer. Since the forex market operates 24 hours, the dealers need to specify a time to mark the beginning and end of the day to record the trade dates and define settlement periods.

Daily Trading Limit: It is the maximum gain or loss allowed on a derivative contract in a trading session. It is set by the exchange to avoid extreme fluctuations and manipulation in the market. Once this limit is reached, trading will halt for any trader. 

Depreciation: When the value of a currency decreases as compared to another currency and the currency becomes weaker, it is called depreciation.