there are many terms and expressions in forex trading you should know to be able to trade and gain profit and understand the market and these terms are:
 |
| forex terms and expressions |
Stop loss
putting an end to the loss of a particular price at which the transaction is closed.
Trading Platform
it Is a program provided by the brokerage firm through which the investors implement the process of buying and selling.
Interest Rate
the cost of borrowing money or the amount of money the borrower pay to the lender.
Fibonacci Fan
Is a technical tool used for knowing the levels of resistance and support levels and it depends on Fibonacci levels by drawing 3 diagonal lines represent levels of 38.2%, 50.0%, 61.8% .
Spread
The difference between the price of purchase and the sale price.
Base Currency
it is the first currency in a currency pair, and it equal to a certain amount of another currency which called the counter currency.
Money Supply
Is the total amount of money in the economy of the State at a specific time.
Forex Futures contract
The contracts provide that a process of purchase or sale of a certain amount of currency will occur at specific price and date in the future.
Market Makers
They are the brokerage firms or banks or institutions that provide liquidity for their clients and make the trading process easier through the representation of the other party to perform the process of trading in the Forex market.
broker
Is the mediator between investors who sell and buy currencies and for specific fees. and in the foreign exchange markets brokerage firms benefit mostly from spreads between the bid and ask price.
Swissy
Is a general term given to Swiss franc.
Ask price
Is the price at which the investor buy currency.
Bid price
Is the price at which the investor sell his currency.
Open price
The first traded price at a specific time period
Close price
Is the last traded price at a certain time.
CandleSticks
it is the oldest graph representation of the price movement and it describe trading through forms resemble candles, where each candle represent the trading movement for a specific time period and through it, we can represent the opening and closing prices, highest and lowest price.
Trendlines
A line represents the current trend of price, draws on the bottoms on the upside, and draws on the peaks in the downward trend.
Up Trendline
Is a line representing the uptrend and draws down the price up between rising bottoms.
Down Trendline
a line represents the downward trend, draws top price and connecting vertices downlink (two or more peaks) .
Speed Lines
it is a technical analysis tool and consist of three Trendlines which are used to identify regions of resistance and support.
Gopher
Is a general term given to the pair of US dollar/Japanese yen (USD/JPY).
speculation
The process of Trading in capital markets with high risk with attempting to predict the direction of the market to achieve great and fast profit return.