Forex Terminology for beginners – ONE

Ask (Offer) - the price of the offer, the price you buy for.

Bear - If someone has a negative view of a particular currency and believes that its price will decrease, they are said to be ‘bearish' about that currency.

Bid (Demand) -the price of the demand, the price you sell for.

Bull - If someone has a positive view of a particular currency and believes that its price will increase, they are said to be ‘bullish' about that currency.

ECB (The European Central Bank) - the main regulatory body of the European Union financial system.

Fed (The Federal Reserve) - the main regulatory body of the United States of

America financial system, a division of which, the FOMC (Federal Open Market Committee), regulates, among other things, federal interest rates.

Fundamental Analysis - a Forex trading analysis based only on news, economic indicators and global events.

GDP (Gross Domestic Product) - this is a measure of the national income and output for a given country's economy. It is one of the most important online forex indicators.

Limit - A limit is placed on a trade so as to exit it after a speculator has gained the expected number of pips.

Long - Trading a currency under the assumption that its price will rise - a ‘buy' trade..

Loss - the loss from closing long position at lower rate than opening or short position with higher rate than opening, or if the profit from a position closing was lower than broker commission on it.

Lot - definite amount of units or amount of money accepted for operations handling (usually it is a multiple of 100).

Momentum - the measure of the currency's ability to move in any given direction.

Moving Average (MA) - one of the most basic technical indicators. It shows the average rate calculated over a series of time periods. Exponential Moving Average (EMA), Weighted Moving Average (WMA) etc. are just the ways of weighing the rates and the periods.

Open Position (Trade) - position on buying (long) or selling (short) for a currency pair.

Order - order for a broker to buy or sell the currency with a certain rate.

Pip - Means Price Interest Point and refers to the smallest digit in any pricing, so if GBPUSD rose from 1.9443 to 1.9450, it rose 7 pips.

Pivot Point - the primary support/resistance point calculated basing on the previous trend's High, Low and Close prices.

Principal Value - the initial amount of money of the invested.

Profit (Gain) - positive amount of money gained for closing the position.

Forex analysis based only on news, economic indicators and global events.

Etoro.com - Forex Exchange

Ask (Offer) - the price of the offer, the price you buy for.

Bear - If someone has a negative view of a particular currency and believes that its price will decrease, they are said to be ‘bearish' about that currency.

Bid (Demand) -the price of the demand, the price you sell for.

Bull - If someone has a positive view of a particular currency and believes that its price will increase, they are said to be ‘bullish' about that currency.

ECB (The European Central Bank) - the main regulatory body of the European Union financial system.

Fed (The Federal Reserve) - the main regulatory body of the United States of

America financial system, a division of which, the FOMC (Federal Open Market Committee), regulates, among other things, federal interest rates.

Fundamental Analysis - a Forex trading analysis based only on news, economic indicators and global events.

GDP (Gross Domestic Product) - this is a measure of the national income and output for a given country's economy. It is one of the most important online forex indicators.

Limit - A limit is placed on a trade so as to exit it after a speculator has gained the expected number of pips.

Long - Trading a currency under the assumption that its price will rise - a ‘buy' trade..

Loss - the loss from closing long position at lower rate than opening or short position with higher rate than opening, or if the profit from a position closing was lower than broker commission on it.

Lot - definite amount of units or amount of money accepted for operations handling (usually it is a multiple of 100).

Momentum - the measure of the currency's ability to move in any given direction.

Moving Average (MA) - one of the most basic technical indicators. It shows the average rate calculated over a series of time periods. Exponential Moving Average (EMA), Weighted Moving Average (WMA) etc. are just the ways of weighing the rates and the periods.

Open Position (Trade) - position on buying (long) or selling (short) for a currency pair.

Order - order for a broker to buy or sell the currency with a certain rate.

Pip - Means Price Interest Point and refers to the smallest digit in any pricing, so if GBPUSD rose from 1.9443 to 1.9450, it rose 7 pips.

Pivot Point - the primary support/resistance point calculated basing on the previous trend's High, Low and Close prices.

Principal Value - the initial amount of money of the invested.

Profit (Gain) - positive amount of money gained for closing the position.

Forex analysis based only on news, economic indicators and global events.

Etoro.com - Forex Exchange

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