Forex glossary are just the common terms used by forex brokers,traders and investors. The terminology of forex market are listed below which would quite help you not only in comprehending the terms used in the forex market but also covers the basics of forex trading market.
Ask price / offer price
In forex trading market when price are fixed the traders can purchase or sell. As market fix the price the quotes will be distributed to the traders by forex brokers. On seeing the quote trading is done.
Base currency
Listing out the price first in the currency pair is termed as base currency.
Bids
The investor accept the price and are ready to get the stock. The price which are accepted by the investor are known to be bids.
Bid / ask spread
It can be alleged as difference in pips as well as in purchasing and selling prices in addition shows variation in bids and offer price
Brokers
Brokers work for the traders and helps in linking the buyers and sellers. They get the commission for their work and take responsibility for guiding the traders.
Counter currency
Listing out the currency second in the the currency pair is known to be counter currency.
Currency symbol
There are some of the currency symbol listed below
AUD Australian Dollar
GBP British Pound
CAD Canadian Dollar
EUR Euro
JPY Japanese Yen
CHF Swiss Franc
Day trading
If the trading occurs within a single day it is known to be day trading
Foreign exchange
Foreign exchange is done in an over-the -market counter also known to be FX or forex. Foreign exchange means exchanging the currency when one buy the currency he get the other as an exchange.
Leverage
In simple word it could be said as the ratio of amount invested to the amount traded in the forex market.
Limit order
Limit order help the trader in crisis period by facilliating the option to withdraw from the market when market goes down thereby preventing the trader from loosing money.
Liquidity
Liquidity does not have impact on price stability as far as market is concerned it give a way for fat transaction.
Margin
In forex trading margin means the initial amount for the trader to start a forex account which should be invested before stepping in to this trade.
Pip / point
While commencing the trade they bid at lowest rate this is known as pips and prices as well as quotes are expressed in terms of pips.
Stop loss order
When you are aware of low stock price you can get rid of the trade . By this way you get the chance of limiting your great loss. This is highly advantageous to the traders as it controls the loss and helps the trader in critical situation.
Ask price / offer price
In forex trading market when price are fixed the traders can purchase or sell. As market fix the price the quotes will be distributed to the traders by forex brokers. On seeing the quote trading is done.
Base currency
Listing out the price first in the currency pair is termed as base currency.
Bids
The investor accept the price and are ready to get the stock. The price which are accepted by the investor are known to be bids.
Bid / ask spread
It can be alleged as difference in pips as well as in purchasing and selling prices in addition shows variation in bids and offer price
Brokers
Brokers work for the traders and helps in linking the buyers and sellers. They get the commission for their work and take responsibility for guiding the traders.
Counter currency
Listing out the currency second in the the currency pair is known to be counter currency.
Currency symbol
There are some of the currency symbol listed below
AUD Australian Dollar
GBP British Pound
CAD Canadian Dollar
EUR Euro
JPY Japanese Yen
CHF Swiss Franc
Day trading
If the trading occurs within a single day it is known to be day trading
Foreign exchange
Foreign exchange is done in an over-the -market counter also known to be FX or forex. Foreign exchange means exchanging the currency when one buy the currency he get the other as an exchange.
Leverage
In simple word it could be said as the ratio of amount invested to the amount traded in the forex market.
Limit order
Limit order help the trader in crisis period by facilliating the option to withdraw from the market when market goes down thereby preventing the trader from loosing money.
Liquidity
Liquidity does not have impact on price stability as far as market is concerned it give a way for fat transaction.
Margin
In forex trading margin means the initial amount for the trader to start a forex account which should be invested before stepping in to this trade.
Pip / point
While commencing the trade they bid at lowest rate this is known as pips and prices as well as quotes are expressed in terms of pips.
Stop loss order
When you are aware of low stock price you can get rid of the trade . By this way you get the chance of limiting your great loss. This is highly advantageous to the traders as it controls the loss and helps the trader in critical situation.
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