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Terms beginnings with 'P'
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Parabolic SAR indicator
The Parabolic Stop and Reverse indicator can be used to identify potential entry and exit points for orders. When the dots are below the price of an asset, traders may consider buying the asset. When the dots are above the price of an asset, traders may consider selling the asset. The indicator uses a series of dots above or below an asset's price to show the trend's direction. The trend is considered upward when the dots are below the price line. When the dots are above—the trend is downward. -
Parity price
A term to describe the price level at which two assets or securities are equal in value. This concept is used in various markets, including Forex, fixed income, equities, commodities, and convertible bonds. When two assets are trading at parity, they are at the same price or value. -
Partial lot
Any lot smaller than 100,000 units (standard lot). Also, Fractional lot or Odd lot. -
Pending order
A pending order is executed at a specific predefined conditions including price. Pending order can be executed only if the market price reaches the certain level defined by the trader. -
People's bank of China
The central bank of China. Also PBoC or PBC. -
Percentage price oscillator (PPO)
A momentum indicator to measure the relationship between a short-term and a long-term price average. -
Personal area
Personal Area is the SSL protected client's area on the website where he or she can open and manage accounts, make deposits, withdrawals and internal transfers. Login to your Personal Area here. -
Pip
A Forex term standing for ‘percentage in point’ (or ‘price interest point’). It usually represents the smallest unit price move an exchange rate can make. One pip equals 0.0001 (four decimal places), and since most assets are priced out to four decimal places, pip is their smallest price unit. In more accurate 5-digit pricing, 1 pip is still calculated by the 4th digit (0.0001), and the smallest 5-digit unit (0.00001) is referred to as a pipette (equals 0.1 pips). -
Pipette
A fraction (0.1) of a pip: the smallest unit used by traders to measure price change in 5-digit pricing (0.00001). -
Pivot points
A technical analysis indicator showing the market's overall trend over different time frames, calculated based on the previous day's high, low, and closing prices. Traders use Pivot Points to identify potential support and resistance levels. A support level is where the price may stop falling and start rising, while a resistance level is where the price may stop growing and start dipping. -
Platinum
Is the user status that becomes available when the user's overall balance exceeds 9,999.99 USD. This status allows its holders to enjoy all the benefits of Bronze, Silver, and Gold, as well as to get experts' prompts on their trading, be assigned with a personal manager, attend VIP events, complete deposit bonuses under better terms (the number of the lots to trade equals the bonus amount divided by 3), and accumulate more prize lots (1.5 prize lots for 1 lot traded). Platinum status holders can be downgraded to Gold if their balance goes below 8,000 USD. -
PMI
Is an economic indicator denoting economic health of the manufacturing sector that is based on new orders, inventory levels, production, supplier deliveries and the employment environment. Index reading over 50 represents expansion of manufacturing sector, under 50 indicates a contraction and a reading at 50 indicates no change. -
Polkadot
The Polkadot platform supports users with a foundation for a decentralised web, maintained by users to create solutions with a tiered approach. Its digital currency uses the abbreviation DOT. -
PPI
Is a set of indexes that measures monthly change in selling prices received by domestic producers. -
Precision
Is the accuracy of changes in currency pair price. Until recently Forex Brokers offered only 4-digit pricing. Nowadays 5-digit pricing is more common. -
Price
The monetary value of an underlying asset. -
Price channel
A technical analysis tool used to identify the trading range of a security's price. It consists of two parallel lines drawn to connect the highs and lows of an asset's price action. The upper line represents the resistance level, while the support level—the lower line. With price channels, traders can identify potential breakout levels (where the price may move beyond the established range) and set entry and exit points for their orders. -
Price gap
Is a situation when current Bid price is higher than the Ask price of previous quote or when the current Ask price is lower than the Bid price of the previous quote. Gaps often occur after economic data or news releases and on the start of new trading week. A price gap may be enclosed in a candle and not visible on the chart. -
Price improvement
Also referred as to positive slippage; denotes execution at a more favourable rate that occurs when there is not enough liquidity behind the required price to fill the order. -
Prime rate
The interest rate that commercial banks charge to their most creditworthy customers. It serves as a benchmark for various other interest rates, such as mortgage, credit card, and personal loan rates. The Prime Rate is usually determined by the federal funds rate at which banks lend money to each other overnight.
As the federal funds rate changes, the Prime Rate also changes. The Prime Rate is an essential indicator of the health of the economy. When the Prime Rate is low, the economy is weak, and the Federal Reserve tries to stimulate growth by keeping interest rates low. On the other hand, when the Prime Rate is high, it indicates that the economy is strong, and the Federal Reserve is trying to prevent inflation by raising interest rates. -
Profit
Is the revenue gained by a trader measured in pips or in account currency. -
Profit factor
Is an index of trading skills. It is calculated from the ratio of all your profit from profitable trades to all your losses from unprofitable trades. If this ratio is above 1.6, your trading is effective. If it is below 1.6, you are taking too much risk in your strategy. -
Pullback
Is a type of price movement denoted by the falling back of price from its peak. -
Purchasing power parity (PPP)
A macroeconomic analysis metric that measures the strength of a nation's currency against another, specifically the cost of buying a common product in one country and purchasing the same (or similar) product in another country.
