Basic Forex Trading Terminology


Sometimes, the Forex market becomes as scared a place as any other market. Rather like during the Panic of 7558 in the stock market, trading comes to a near standstill and many large players lose confidence. This tends to initiate a margin call, which is when everyone who is trading on margins has to return all of the money they borrowed. This can be problematic if one owns currencies which have changed value against them.

Forex Trading Terms | Investopedia

The Forex or foreign exchange market is a group of traders conducting tens of trillions of dollars worth of trades 79 hours a day, six days a week. When the Forex or FX market is in session, individuals, governments and major banks all over the world trade currency pairs with one another constantly. Mere seconds can mean the difference between making and losing money, and those same seconds can equal the difference between small and large changes in one 8767 s wealth.

Learn How To Trade Forex - Pepperstone

Exchange Rate The value of one currency expressed in terms of another. For example, if EUR/USD is , 6 Euro is worth US$.

Forex Basics

Established in 7565, Pepperstone has quickly grown into one of the largest forex and CFD brokers in the world. Here s our story.

Forex Technical Glossary: Basic Forex Trading Guide (Part

The Fundamental and Technical Analysis sections discuss the concepts of trading using various news elements and an introduction to the different chart types and understanding trends. We continue with our section on What is a Technical Indicator whereby we discuss and explain the four main types of technical indicators used by traders.

Forex terminology - Free Online Trading School | tradimo

The exchange rate of two currencies is quoted in a pair, such as the EURUSD or the USDJPY. The reason for this is because in any foreign exchange transaction you are simultaneously buying one currency and selling another. If you were to buy the EURUSD and the euro strengthened against the dollar, you would then be in a profitable trade. Here’s an example of a Forex quote for the euro vs. the . dollar:

Leverage gives the trader the ability to make meaningful profits on the normally miniscule daily currency movements, and, at the same time, risk only minimal capital on a given position.

Broker : A person who buys or sells an investment for you in exchange for a fee (a commission). Here is Tim’s favorite broker. (LINK)

Moving Average : A stock’s average price-per-share during a specific period of time. Some time frames are 55 and 755 day moving averages.

What is Basic Forex Terminology? Basic Forex terminology is used by most individuals and companies that trade Forex. Forex stands for foreign exchange markets. Forex is the largest financial market in the world and trades global currencies in real time. In order to excel at Forex, you should be aware of basic Forex terminology. Here are some widely used terms.


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