Noise Trader
What is a Noise Trader? A noise trader is an individual who trades based on incomplete or inaccurate data, often trading irrationally. Noise traders often make trades based on hype or rumor, rather than on solid technical or fundamental analysis or professional advice. The impact of noise traders can be significant. They cause the market...
Non-Deliverable Forward (NDF)
What is a Non-Deliverable Forward (NDF)? A non-deliverable forward (NDF) is a straight futures or forward contract, where, much like a non-deliverable swap (NDS), the parties involved establish a settlement between the leading spot rate and the contracted NDF rate. The settlement is made when both parties agree on a notional amount. NDFs are settled...
No Dealing Desk
What is a No Dealing Desk? A no dealing desk is a system that allows for instant forex trades on the interbank market. Brokers that use the system work with several liquidity providers. It enables them to access the best bid and ask prices directly. Investors are given rates that can be executed immediately. Orders...
Shadow (Candlestick Wick)
What is Shadow (Candlestick Wick)? In the world of finance and charting, a shadow is a line that makes up a candlestick pattern’s wick – the portion of the candlestick that represents price action outside of the candlestick body formed by the opening and closing prices of the period. Every candlestick chart must contain a...
Technical Decline
What is Technical Decline? Technical decline is the downward price movement of a security that is caused by factors other than a fundamental change in the security’s value. The forces that power the downward movement relate to technical factors affecting the trading condition of the securities, but not the economic or fundamental factors that affect...
