The most commonly used terminology in forex trading :
Appreciation - an increase in the value of currency.
Ask - the price at which the dealer will sell the base currency in exchange for the quote currency.
Base Currency - the currency that the investor buys or sells (i.e. EUR in EURUSD ).
Bear - someone who believes prices are heading down.
Bid - the price at which an investor can place an order to buy a currency pair; the quoted price where an investor can sell a currency pair. This is also known as the 'bid price' and 'bid rate'.
Bid/Ask - the point difference between the bid and offer (ask) price.
Bull - someone who is optimistic about the market. A bull market is characterized by enthusiastic and sustained buying.
Cross rate - an exchange rate that is calculated from two other exchange rates.
Depreciation - a fall in the value of a currency.
Exchange Rate - the ratio of one currency valued against another currency.
Long - to buy.
Long position - a position that increases its value if market prices increase.
Liquidity - refers to the relationship between transaction size and price movements.
Margin - the deposit required when entering into a position as well as to hold an open position. Your margin status can be monitored in the Account Summary.
Open position - any position (long or short) that is subject to market fluctuations and has not been closed out by a corresponding opposite transaction.
Pip - is the smallest unit by which a Forex cross price quote changes.
Risk - a chance in which an effect will occur. Mainly used as a negative effect.
Quote Currency - the second currency in a currency pair.
Short - to sell.
Short position - a position that benefits from a decline in market prices.
Spot Market - market where people buy and sell actual financial instruments (currencies) for two-day delivery.
Spread - the difference between the bid and the ask rate.
Swap - a transaction which moves the maturity date of an open position to a future date.
Tick - the smallest possible change in a price, either up or down.
Transaction date - the date on which a trade occurs.
Volatility - statistical measure of the change in price of a financial currency pair over a given time period.
Trade Forex
Appreciation - an increase in the value of currency.
Ask - the price at which the dealer will sell the base currency in exchange for the quote currency.
Base Currency - the currency that the investor buys or sells (i.e. EUR in EURUSD ).
Bear - someone who believes prices are heading down.
Bid - the price at which an investor can place an order to buy a currency pair; the quoted price where an investor can sell a currency pair. This is also known as the 'bid price' and 'bid rate'.
Bid/Ask - the point difference between the bid and offer (ask) price.
Bull - someone who is optimistic about the market. A bull market is characterized by enthusiastic and sustained buying.
Cross rate - an exchange rate that is calculated from two other exchange rates.
Depreciation - a fall in the value of a currency.
Exchange Rate - the ratio of one currency valued against another currency.
Long - to buy.
Long position - a position that increases its value if market prices increase.
Liquidity - refers to the relationship between transaction size and price movements.
Margin - the deposit required when entering into a position as well as to hold an open position. Your margin status can be monitored in the Account Summary.
Open position - any position (long or short) that is subject to market fluctuations and has not been closed out by a corresponding opposite transaction.
Pip - is the smallest unit by which a Forex cross price quote changes.
Risk - a chance in which an effect will occur. Mainly used as a negative effect.
Quote Currency - the second currency in a currency pair.
Short - to sell.
Short position - a position that benefits from a decline in market prices.
Spot Market - market where people buy and sell actual financial instruments (currencies) for two-day delivery.
Spread - the difference between the bid and the ask rate.
Swap - a transaction which moves the maturity date of an open position to a future date.
Tick - the smallest possible change in a price, either up or down.
Transaction date - the date on which a trade occurs.
Volatility - statistical measure of the change in price of a financial currency pair over a given time period.
Trade Forex
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