Glossary

In this post, I'm going to help you with the forex glossary.
Terms and words most used in Forex are explained and meant here.

Ask
The price at which the currency is offered.

Base Currency
The primary currency used a base to quote a pair.

Bear

Person who believes the prices will drop or decline.

Bid

The price a trader will sell the currency.

 

Broker

The agent handling investor's orders to buy and sell currencies. 

In the Forex business, commission is not charged because the broker makes money through the spread.

 

Bull

Person who believes the prices will rise.

 

Currency Swap

Contract committing two parties to exchange streams of interest payments in different currencies for a known period of time at an agreed exchange rate when matured.

Foreign Exchange, Forex or FX

Buying of one currency and selling of another in the market.

High/Low

Higher and lower traded values in a chart time frame.

Margin

Required initial deposit to enter into a position. Must be deposited to cover any potential losses from movements in prices.

 

Open Position

 A deal that has not been yet settled by physical payment or reversed by an equal and opposite deal for the same value date. 

 

PIP

Term used to represent the smallest incremental move the exchange rate makes

 

Resistance

A price level selling is expected to take place.

Short

Selling an instrument or currency, means you have a currency and sell it against another.

Spread 

Difference between the bid & ask prices, used to measure market liquidity. 

 

Support Levels

The price level buying is expected to take place. 

 

Technical Analysis 

forecasting future market activity by analyzing market info and data such as price trends, volume, charts and etc...

Sincerely.

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