Forex Glossary

Traders, especially beginners, may not know or understand some Forex terms, so we provide our users with a list of specialized terms with their definitions.

HDFC Bank Limited

is the Indian financial services company located in Mumbai and registered in 1994. The fifth largest bank in India by volume of assets, and the second largest by market capitalization. The bank was supported by Housing Development Finance Corporation, which is the main real estate investment company (established in 1977) in India.

Head and Shoulders

is a trend reversal pattern of technical analysis represented by two peaks and the price high in the middle


operation that protects an asset or liability against a fluctuation in the foreign exchange rate


stands for Harmonized Consumer Price Index. HICP is an indicator of inflation, a single cornerstone in the statistical system for the EU countries. The index is particularly important in the periods of interest rate increases, as its growth provokes further monetary tightening and consequently the national currency upswing.

High-Frequency Trading, HFT

is a type of trading which applies technical tools and computer algorithms (high-speed servers) to trade securities with high speed. In contrast to usual trading, High-Frequency Trading uses powerful computers to execute a greater number of trading operations. Usually, a computer analyzes the markets and executes operations based on its own trading strategy. The number of operations generated via High-Frequency Trading daily is counted in tens of thousands

IMF (International Monetary Fund)

international organization established by the UN and grants loans to member countries to meet balance of payments needs.


is delivery of goods or capital into the country from abroad.

Import substitution

is fostering domestic production of goods rather than importing foreign goods.

Industrial Production Index

is an economic indicator published by the Federal Reserve Board of the United States. It is based on the most significant categories of industrial goods. Since this index reflects changes in output of mineral resources, energy efficiency, gas and water usage as well as manufacturing production, it can be regarded as a GDP constituent.


is the process of increase in prices for goods and services. Due to inflation, a certain amount of money sufficient for purchase of some good or service at present will not be sufficient anymore in a while.