Glossary of Terms

Search common forex trading terms and definitions from A to Z.

All A B C D E F G H I J K L M N O P Q R S T U V W X Y

Below is a glossary of terms that are used in the online trading industry. Select the first letter of the word you are seeking from the list above to jump to the appropriate section of the glossary.

- W -

Web Trader / Web Trading Platform

What is a web trader?

A web trader is a platform through which forex traders can open and close positions online, without downloading any software. Using a web browser, traders can follow Bid-Ask spreads, place Stop Loss and Take Profit orders, and track all positions executed, past and current.

How does one use a web trader?

Once a trader has opened an account with a broker, such as Fortrade, he will see links to the trader’s web trading platform. By clicking on the link, and confirming that he is in fact the trader with the account, he can access his entire trading history through the web trader, as well as all potential forex trades that he can buy or sell, complete with Bid-Ask spreads. The Fortrade web trader can be found here.

Links related to cryptocurrencies
Bid-Ask Spread
Broker
Buy
Sell
Stop Loss (S/L)
Take Profit (T/P)

Weighted Moving Average (WMA)

A type of moving average that gives even more weight to recent price changes than an exponential moving average (EMA), meaning it reacts very quickly to potential market trends.

WTI Crude Oil (CL)

What is WTI crude oil?

WTI (West Texas Intermediate) crude is crude oil that is drilled from wells in the United States. It is one of the two major benchmark oils in the world, the other being Brent crude. Crude oil is defined as natural, unrefined petroleum that can be refined into thousands of products, known as petrochemicals. The most common uses of refined crude oil include gasoline, diesel fuel, kerosene, and heating oil.
Because crude oil is a nonrenewable source, and poses many dangers to the environment and world eco-system, in recent years, much progress has been made in finding alternative energy sources – including solar and wind – which are safer and will never run out. As a result, it is difficult to know how much longer crude oil will be considered a critical commodity. However, for now, it certainly is, and many countries are major suppliers, including the United States, Russia, and Saudi Arabia.
Like most commodities, the price of WTI and Brent is driven primarily by supply and demand, and is extremely vulnerable to external factors. If, for example, members of OPEC (Organization of Petroleum Exporting Countries) decide to limit production of oil, the global supply will dwindle, and the price of WTI and Brent will rise. Alternately, when oil-rich countries (OPEC and others) produce excessive amounts of oil, the supply outweighs the demand, and the prices can drop.

How do CFD and commodities traders use WTI crude oil?

While some traders purchase spot contracts on WTI crude (in which ownership of the oil changes hands at the moment of purchase, and the price reflects the cost of crude at that moment), it is far more common for traders to purchase futures contracts. With futures contracts, the price agreed upon reflects what both the buyer and seller believe will be the price of WTI crude at a predetermined future date. Those who trade on oil CFDs are essentially predicting how the price of oil will move before the position closes.

Links related to WTI crude oil
Brent crude (EB)
Futures Contract
Crude oil – Brent vs. WTI
OPEC Basket
Spot

Did you know?
Learning about Forex and CFD trading can provide many benefits, including better results. If you are ready to begin trading with Fortrade, just click the ‘Trade now’ button.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 86.59% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.