Futures and Forex Glossary Dictionary T2

 
Tier One

The highest possible credit strength rating, give by the Bank of International Settlements.

Time Value

The value that an option has besides intrinsic value. Time value represents the value that an option will have from the possibility of an increase in value of the underlying asset (or decrease in case of a put option). As the option gets closer to expiration date, time value decreases.

Tobin Tax

Proposed tax on currency transactions to limit speculation. Takes its name from the economist James Tobin who suggested the idea.

Tomorrow Next

Opening a closed currency position again to avoid actual physical delivery of the currency.

Trade Date

The date on which a position is opened or closed. See Also: Transaction Date

Trade Deficits

A country's trade balance is made up of the difference between all exports and imports. If a country imports more than it exports, then the result is known as a trade deficit.

Tradeable Amount

The minimum amount that a broker allows its clients to trade. This is usually the round lot (100,000 units).

Trading Margin Excess

The surplus amount in an account after margin has been met. See Also: Margin

Trading Model

An advanced system that includes historical data analysis, predictions and technical analysis to make trading recommendations. A trading model can be fully automated and then known as a forex expert adviser or forex robot.

Trading Platform

Software that provides a trader the means to trade on the forex market. See Also: MetaTrader4

Trading Robot

Software that is able to automatically analyze and trade on the forex market without any human involvement.

Trading Session

There are three major trading sessions in forex: The U.S. Session, the European Session and the Asian Session. The three overlap around close and open.

Trading System

A strategy with fixed rules, such as only trading the EUR/USD around London open.

Trailing Stop Loss

A stop loss limit order that can be set to re-adjust the stop limit as the price moves in the desired direction. See Also: Stop Loss Order
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