Broker
A third party coordinating the sale of financial securities between sellers and buyers. Exchanges only accept orders from their members, so traders and investors use brokers as intermediaries; brokers are compensated through commissions, fees or payment from the exchange.
Related terms
Dealer
A financial institution, typically a bank, that trades foreign currencies on its own behalf in volumes large enough to help maintain market liquidity and regulate bid and ask quotes.
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A fee charged for buying or selling a product.
Read full definitionRetail Investor
An individual, non-professional investor who buys and sells securities or funds through brokers or investment accounts, typically in smaller amounts than institutional investors. Retail investment has grown significantly with access to financial information and trading tools.
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Aggressive
A description of traders and/or price action acting with conviction.
Read full definitionArbitrage
The simultaneous buying and selling of the same currency in different markets to profit from small price differences. The strategy exploits temporary inefficiencies in FX markets.
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An instruction given to a dealer to buy or sell at the best rate that can be obtained at a specific time.
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An instruction given to a dealer to buy or sell at a specific price or better.
Read full definitionBulls
Traders who expect prices to rise and who may be holding long positions.
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Taking a long position on a product.
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