Glossary
A
Automated Forex Trading
A trading system in the foreign exchange market that is run and executed by computer software with no human interference.
B
Base Currency
The first currency in a currency pair (for example, for GBP/USD, the Great Britain Pound is the base currency).
Bear Market
When market prices are inclined to come down, the market is stated to be a bear market. Someone who anticipates prices to drift downwards is bearish.
Bid
The side of the price quoted where the party quoting the price is having interest in purchasing the base currency of the currency pair.
Bull Market
When market prices tend to go up, the market is stated to be a bull market; people who expect elevated prices are regarded as bulls. Conditions originating that are expected to contribute to elevated prices are known as bullish.
C
Cable
The phrase practiced in the forex market to depict the GBP/USD exchange rate.
Charting
When traders study the markets, they make use of graphs and charts to contrive the movement of prices, volume, open interest, or other statistical indices of price trends.
Cross Rate
The exchange rate between any two currencies, barring the US Dollar.
Currency Pair
The any two currencies that create a foreign exchange rate (for instance, GBP/USD).
D
Day Trading
A form of trading where trade positions are opened up and closed down for the duration of the same day.
E
Exchange Rate
The price at which a particular currency may be exchanged into a different currency.
F
Foreign Exchange
A market intended for the purchase and sale of currencies.
Forex
An abbreviation for foreign exchange.
H
Hedger
A trader who undertakes to shift the danger of price switch by adopting a reverse and identical position in the same or closely allied market.
I
Introducing Broker
Broker who refers customers to forex trading platform providers, while also spreading out the amount of products they provide to their existent and prospective customer base.
L
Limit Order
An order to open up a position or to close down a presently existing position. A buy limit will be in a lower position than the current market and a sell limit will be higher than the current market. When employing a limit order to close down an existing position, you are laying down your intended profit levels.
Liquidity
The capability to speedily transform an investment portfolio to cash without incurring a visible loss in worth.
M
Market Order
An order that is instantly carried out at the present market price.
Market Rate
Present quote of a currency pair.
O
Offer
The side of the price quoted where the party citing the price is having interest in selling the base currency of the currency pair.
S
Short
Someone who has sold a currency pair. A trader having a short position is seeking the price of the base currency to fall.
Spread
The bid-offer spread that is the variation between buy and sell quotes.
V
Volatile Market
A market that experiences excessive and active price variations is stated to be volatile market.
Volatility
A measurement of the variation in the market price of a currency pair.
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