Forex glossary M to N

When you first dive into the world of Forex trading it can feel like you’re Alice falling down the rabbit hole. The language can be a bit bewildering at first and, while we’re on the Wonderland theme, it can even sound like the sort of nonsense words Lewis Carroll was so fond of inventing.

It’s important to get a grip on the terminology if you want to understand trading strategies and follow what people are saying, both online and in person. There’s no Jabberwocky or Bandersnatch but in this ongoing basic Forex glossary we will list and explain some of the common (and less common) words and terms you are likely to see bandied around the Forex community.




 Macro trader

The longest-term trader. The holding period can run from six months to years.

Manual trader

A trader who inputs his or her trades manually, i.e. without using an API, or application programming interface.

Manufacturing production

A subset of the industrial production figures that can serve as a good indicator of forthcoming employment and personal income data. This refers only to the manufacturing part of the overall industrial production.


Also known as a maintenance margin, this is the amount of collateral required to maintain an open position. To keep an open position of £100,000 with a leverage of 50, for example, you would need a margin of £2,000.

Margin call

A call for additional funds or collateral to cover a position that moved against the trader.

Mark to market

Recording profits and losses at the end of a trading session, according to the value of all open positions at current market prices.

Market close

The end of the trading session. The forex market is active 24 hours a day, since one market opens as another one closes. Most traders stick to certain sessions and some are more active than others.

Market maker

A dealer who enables a two-way market by quoting both the bid and the ask prices.

Market order

An order to buy or sell at the best possible price.

Market rate

The current quote for a given currency pair.

Market risk

Level of exposure to changes in market prices and conditions.


The date on which the settlement for a transaction is due, where the date is predetermined at the time of entering the contract.


Month on month. The change in statistics and other data relative to the level of the previous month.

Momentum traders

Traders that follow an intra-day trend attempting to grab 50-100 pips.



A major American stock exchange, second only to the New York Stock Exchange in terms of market capitalisation.


Important stock market index made up of equity securities issued by the 100 largest non-financial companies listed on the NASDAQ.

Net position

The total amount of currency bought or sold that has not been offset by opposing transactions.

 New York Session

The New York trading session, which runs from 8am to 5pm New York time.