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Forex Glossary

Forex market may look simply as buying and selling of currency pairs. But before getting yourself involved in trading activities, it is important for a trader to know and understand the basic terminology of the Forex market.
Every discipline has its own jargon, and Forex is no exception to it.

Basic Terms

Here are some of the extremely basic terms that you will encounter in the foreign exchange market:
Currency Pair. The two currencies that make up the foreign exchange rate. The first listed currency is the base currency while the second currency is the quote currency (USD/EUR is a currency pair).

Spread. It is the difference between the buying price and the selling price. Spread is simply the fee that the broker charges you to trade.
Pip. A pip is the measurement of how far the price has moved. It is an acronym for the phrase “percentage in point”.
Bull and Bear. A bull is when the market is believed to rise while bear is when it is seen to fall.

Leverage. It is the ability to control a large amount of money in the Forex markets.
Margin. It is the term given to the amount of money required in your account in order to open a trade.
Stop Loss. It is an order that closes out your trading position with the intent of cutting your losses when the market moves against you.

Meaningful Platform

ITRADER is an innovative platform consisting of Forex Glossary which explains terms and notions on the Forex market. It serves as a unique guide for the study of foreign currency trading with a wide range of definitions, informative keywords and related terms which can help you avoid confusion.

The Forex market is an arena where mastery of few basic terms is crucial on your progress in the competition. But without using the ITRADER platform, the only term you will get to know is “loss.”