Forex glossary of terms
Forex glossary - H
Hard Currency - A currency whose value is expected to remain stable or increase in terms of other currencies.
Head and Shoulders Pattern - A pattern resembling two peaks (the shoulders) with a higher peak between the two shoulders (the head). The neckline, or the bottom boundary that both shoulders reach, is regarded as a key point traders can use to enter/exit positions.
Hedge/Hedging - Strategy to reduce the risk of adverse price movements on one's portfolio and to protect against the volatility of the market. Hedging typically involves selling or buying at the forward price or taking a position in a related security. Hedging becomes more prevalent with increased uncertainty about current market conditions.
Hedger - A person or firm who uses the futures market to offset price risk when intending to sell or buy the actual commodity. See Pure hedger, Selective hedger.
Hedging line of credit - Financing from your lender for the purpose of hedging the sale and purchase of commodities.
High/Low - Refers to the daily traded high and low price.
Historical Volatility - A measure of the change in price over a specified time frame. Higher volatility suggests that the asset is more likely to trade within a wider range, while reduced volatility suggests the asset will trade in a tighter range.
Holder - One who purchases an option.
Hundredweight - 100 pounds. Abbreviated cwt.
Hyperinflation - Very high and self sustaining inflation levels. One definition being the period while inflation exceeds 50% until it has drops below that level for 12 months.
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