FX TRADING DAY

FOREX CURRENCY TRADING

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FOREX or Futures - Where to Trade
Our modern futures market originated in the 19th century when farmers began selling contracts to deliver agricultural products at a later time. They did this to attempt to anticipate market needs and to smooth the supply and demand during the...

How Bollinger Bands Can Tell You What The FOREX Market Will Do Next.
In Forex trading as in all other speculative activities in the capital markets there is a major problem that all, new and experienced traders, will face every time they open their forex trading stations. This is, how to predict the behavior of...

Trading in the Forex requires some caution
Whether it is in the millions or thousands, trading in the Forex is a bit risky. There are a lot of players involved and if you don't arm yourself properly with knowledge about the Forex you may just get swamped. The Forex is the largest...

Learning Forex Terminology Should Be Your First Step To Becoming A Successful Investor In Forex

If you have have begun to take an interest in Forex trading I am sure you have started to look at some guides on the subject. No doubt you have come across a number of different terms and perhaps wondered exactly what they mean. Like any technical area, Forex trading has a specialised vocabulary which you should take time to understand before going any further in your Forex education. Below is a list of the most important terminology you should become familiar with:

Appreciation/Depreciation - These refer to the value of a currency going up or down respectively.

Bear/Bull - These terms are also related. When a currency is falling in value this is known as a bear while on the other hand a rising currency is called a bull. If we have a currency pair with one currency rising (bull) then it follows that the other currency will be falling against it (bear).

Cross - This simply refers to the action of trading one currency for another on the market.

Long - If an investor takes a "long position" then he is buying up a currency in the expectation that its value will rise to ensure profit.

Majors - These are the most heavily traded currency pairs. Examples include USD-GBP and JPY-USD.

Pip - This is the smallest unit of difference in the change of price of a currency.

Short - This is the opposite of "long" and will mean that the investor is selling the currency, hoping that its price will fall.

Spread - The price available for buying a currency and selling will usually be different. The spread refers to the difference in the two prices.

Stop loss - This is a mechanism used by traders to ensure damage limitation should the trade move in the wrong way to what they expected.

Once you understand the basic terminology you can move on to more advanced topics and concepts.

Andrew McNaught is a successful webmaster and publisher of Forex World Online where you can find out more about forex trading terms and other useful forex information.

Written By: Andrew McNaught