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Secondary currency

In Forex, this is the currency that the investor pays with or receives when trading.

For example, in EURUSD the variable currency is the US Dollar, meaning one unit of Euros is worth a variable amount of US Dollars.
When buying Euros, you pay with US Dollars, and when selling Euros you receive US Dollars.

The other currency (Euros in the example above) is called the base currency.

Secondary order

A secondary order(s) of a Three-way or If Done contingent order will not become active market orders unless the Primary order is executed.

Securities

A financial instrument that represents an ownership position in a publicly-traded corporation (stock), a creditor relationship with governmental body or a corporation (bond), or rights to ownership as represented by an option. A security is a fungible, negotiable financial instrument that represents some type of financial value. The company or entity that issues the security is known as the issuer.

Sell bid

A limit order to sell at the current Bid Price.

Shares

Also known as stocks or equities.
Financial instruments that represent partial ownership of a company. They are also known as Stocks or equities.

Short selling

In Forex trading, going short is to buy the price currency of the Forex currency pair.

For example, if you were going short on GBPUSD, you would be buying US Dollars by selling GB Pounds.

For equities, going short is selling a security without owning it, as opposed to going long where you are taking ownership of the security by buying it.

A short position benefits from a decline in market prices.

Slave order

An If Done order consisting of two orders:

  • a primary order that will be executed as soon as market conditions allow it,
  • and a secondary order that will be activated only if the first order is executed.

Speculative

Buying and selling solely in the hope of making a profit, rather than doing so for business-related motives.

Spot

A direct trade on a market price with a standard settlement date (Value date) of two business days from the trade date.

Spot market

The part of the market calling for spot settlement of transactions.

The precise meaning of spot depends on local custom for a commodity, security or currency.

In the UK, US and Australian foreign-exchange markets, spot means delivery two working days hence.

Spread (in index points)

The difference between the Bid price at which the trading instrument can be sold and the Ask price at which the trading instrument can be bought.

Status bar

The area at the bottom of the platform workspace, and on many trading modules, which is used for system messages and status information.

Stocks

Also known as equities or shares.
Financial instruments that represent partial ownership of a company.

Stop

A buy stop is an order to buy at a specific price higher than the current market price, and a sell stop is an order to sell at a specific price below the current market price.

Traders often refer to stop-loss orders, which are stops that are placed below the market when the trader is long, and above the market when the trader is short.

These orders are triggered when the market price reaches the price defined to prevent further losses in the trader's position.
Stop orders are not always executed at exactly the price specified, as the market may be too volatile.

Stop-if-bid order

Stop-if-Bid orders are commonly used to buy the specified instrument in a rising market. If the price level specified is actually bid on the market, the order will be filled at the price offered by the bank.

For example, if you sold GBPUSD at 1.4280, with a Stop Bid at 1.4330, the position would be closed (GBPUSD would be bought) if the Bid price hits or breaches 1.4330.

We recommend the use of Stop-if-Bid orders only to buy Forex positions.

The use of Stop-if-Bid to sell Forex positions can result in positions being prematurely closed if a market event causes the Bid/Ask spread to widen for a short duration.

Stop-if-offered order

Stop-if-Offered orders are commonly used to sell the specified instrument in a falling market. If the price level specified is actually offered in the market, the order will be filled at the price bid by the bank.

For example, if you bought USDJPY at 132.00, with a Stop Offer at 131.50, your position would be closed (USD vs. JPY would be sold) if the Offer price hits or breaches 131.50 (in other words, if 131.50 is offered).

We recommend the use of Stop-if-Offered orders only to sell Forex positions.

The use of Stop-if-Offered to buy Forex positions can result in positions being prematurely closed if a market event causes the Bid/Ask spread to widen for a short duration.

Stop-limit order (Futures)

In Futures trading, a stop-limit order is a variation of a stop order, with a lower/higher limit price to suspend trading if the price falls/rises too far before the order is filled.

This effectively restricts trading to a defined price range.

Stop order

Stop orders are commonly used to exit positions and to protect against trading losses.

Stop orders to sell are placed below the current market level and are executed when the Bid price hits or breaches the price level specified.

Stop orders to buy are placed above the current market level and are executed when the Ask price hits or breaches the price level specified.

If the Bid price for sell orders (or the Ask price for buy orders) is hit or breached, the order becomes a market order and is filled as soon as possible at the price obtainable in the market.

Note that this price may differ from the price you set for the order.

In the case of Futures, the order will be filled if possible, and any remaining volume will remain open as a market order.

In the case of CFDs, the order will be filled completely if the volume in the market allows for it. In the case of a partial fill, the remaining portion of the order will remain open as an order.

In the case of Contract Options, due to restrictions in the market, Saxo Bank is not able to execute a Stop Order unless there is a traded price in the market. For this reason it is not recommended using stop orders for Contract Options.

Stop order (Forex)

Forex stop orders are commonly used to exit positions and to protect investments in the event that the market moves against an open position.

Stop orders to sell are placed below the current market level and are executed when the Bid price hits or breaches the price level specified.

Stop orders to buy are placed above the current market level and are executed when the Ask price hits or breaches the price level specified.

Stop-loss orders

This is a stop order that will execute and close a position to limit losses in the case of an adverse market movement.

When a stop order is executed, it becomes a market order and is filled as soon as possible at the price obtainable on the market.

Note that this price may differ from the price you set for the order.

Straight-through-processing (STP)

This is when your order is routed directly to the exchange.

Strike price

The instrument price specified for an Option contract.

The specified price (together with other factors such as the Option duration and the market volatility) will affect the price for the Option contract.

Summary

The combined trading status and activity for your account(s), that is, your account value, securities and equity, net positions, and the closing amount (total profit and loss over all your positions).

The available margin and the margin required for your open positions are also found here, as is an overview of your open positions.

Support

The price level at which the fall of a price is expected to slow or turn when market participants begin to buy the instrument.

The opposite of support is resistance.

Swap

An order to spot trade (for example, buy) a Forex instrument as well as to conduct the opposite transaction (for example, sell) at a fixed price on a later date.

If the first transaction is on a future date, the transaction is a forward-forward contract. Other variations are overnight and tomorrow/next day (tom/next) swaps.

Swap price

A price adjustment, added to the opening price of the position, for forwarding a Forex trade beyond the original value date.

It is a function of the interest rate differential between the two trading currencies, and may work for or against you.

Symbol

Also known as the ticker symbol.

A combination of letters used to uniquely identify a traded instrument. This is also called the ticker symbol.

For example: for the Forex instrument dollar-yen, the symbol is USDJPY.

An example of a CFD symbol is VOLVb:xome.

For Futures, an example is JYZ5.

For Stocks, an example is MAERSKa:xcse.