Cleared Funds
The balance in a trading account that is ready to be traded with. Once funds have cleared they are free from any obligation and can be used to make a trade or be withdrawn; pending funds limit what a trader can do.
Related terms
Settlement
The process during which the asset of a trade is delivered or sold and the trade is marked closed: the seller is paid and ownership transfers to the buyer, after which the buyer can use the newly acquired asset or currency in another trade.
Read full definitionMargin
A deposit required to open and maintain a position, such as a forward contract or option. Margin serves as collateral to secure the transaction and protect against counterparty default risk.
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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.
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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.
Read full definitionBulls
Traders who expect prices to rise and who may be holding long positions.
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