Futures and Forex Glossary Dictionary M3

Mediation

If there is a dispute between two parties concerning a futures contract, the national futures association (NFA) can act as a mediator to find a solution. Mediation is the process where the two concerned parties use a third independent party (the mediator) to find a mutually agreeable solution.

Memory-Of-Price Strategy

This trading strategy assumes that support and resistance level is of double tops and double bottoms continue to influence future price action even after they have been broken. That means, that even after stops are cleared, the price will still gravitate back towards the initial support and resistance levels. It's a strategy that can be used to take home frequent small profits with little risk of each individual trade, but with the risk of large losses when the strategy fails. It is therefore recommended to be diligent about stops when this happens.

Metatrader

Metatrader is the most popular online trading platform designed for brokers and financial institutions dealing in the forex, CFD and futures markets. Metatrader is currently in its 4'th edition with Metatrader4. Metatrader has a user friendly interface and offers charting, expert advisers and technical analysis to help traders. Metatrader has its own programming language which allows users to develop their own automated trading systems and macros.

Metatrader4 mobile

A fully functional trading terminal for PDAs and cell phones. Metatrader4 mobile provides the same possibilities that the metatrader4 platform does, including charting, technical analysis and full confidentiality. See Also: Metatrader

Mexican peso (MXN)

The currency of Mexico. One peso consists of 100 centavos. The peso is often shown with the currency symbol $ or Mex $.

Micro lot

1000 units of currency, compared to a standard lot which is 100,000 units. Mini lots are traded in forex mini accounts. See Also: Lot

Middle Rate

The halfway price between the Bid and Ask price.

Milton Friedman

Milton Friedman was an influential American Nobel Prize winning economist who became a political and ideological advocate for smaller governments and non-interventionist fiscal policy. His teachings and writings on macroeconomic policy is knows as monetarism and teaches that the government should refrain from using fiscal policy to influence the economy, but should instead en
courage growth by a responsible expansive monetary policy.

Mini Account

A fully functional forex account and otherwise normal forex account, with the exception that it's possible to trade lots of 10,000 units instead of the normal 100,000 units. Minimum deposit limits are also lower.

Mobile Trading

Trading from a mobile device such as a PDA or cell phone. Some brokers offer platforms such as metatrader4, which offers a mobile trading platform with full functionality.

Module

A part of a program that can be used for a specific purpose, such as the charting module of a forex trading platform.

Momentum

The tendency for the price of a security to continue to move in the direction that its currently moving, gaining momentum as other traders joining on the move.

Monetarists

Theory that money supply and monetary policy has a large impact on growth in an economy. See Also: Milton Friedman

Monetary Base

Measurement of the money supply which includes deposits made by member banks into the central bank and the cashing circulation. See Also: M1, M2, M3

Monetary Easing

Encouraging spending and consumption by increasing the money supply by means such as cutting interest rates. See Also: Quantitative Easing

Monetary Hegemony

A situation where a state or country has almost complete control or decision power over the setup of the international monetary system. The current international monetary situation has been described as the dollar hegemony because of the dollars status as the world's reserve currency and currency of trade for oil. See also: Reserve Currency

Monetary Policy

The actions of the central bank to influence the economy trough either expanding or retracting the money supply.

Monetary Policy Committee

The monetary policy committee (MPC) is a committee in Britain that decides the official interest rate on their monthly meetings.

Money Management

Managing risk from investments and trading by following conservative rules for how much money to trade and when to stop losses. See Also: Risk Management

Money Manager

A manager of a portfolio of investments for a client. The money manager chooses and oversees the portfolio and is paid a fee for his services.

Money Supply

The amount of money in the economy: cash, notes, loans, credits and other liquid securities. There are many different ways of measuring money supply such as M1,M2 and M3. The money supply of
an economy affects consumption, savings and investments See also: monetary base

Most Favored Nation

The most favored nation clause is a classification that members of the world trade organization can give to another country, which gives that country a number of benefits such as reduced tariffs. See Also: World Trade Organization (WTO).

Moving Average

A statistical method used to show trend lines over a time period. A moving average smoothes out the price data, so that trend lines can be spotted easier.