{"id":348,"date":"2013-03-18T17:02:22","date_gmt":"2013-03-18T17:02:22","guid":{"rendered":"http:\/\/pakeagle.com\/forex\/?p=348"},"modified":"2013-03-18T17:02:22","modified_gmt":"2013-03-18T17:02:22","slug":"forex-glossary","status":"publish","type":"post","link":"http:\/\/www.pakistanoffice.com\/live\/fee-urdu-forex-training-course-in-pakistan\/forex-glossary","title":{"rendered":"Forex Glossary"},"content":{"rendered":"

\"images\"<\/a>Here are some of the most common terms used in FOREX trading.<\/p>\n

Ask Price \u2014 Sometimes called the Offer Price, this is the market price for traders to buy currencies. Ask Prices are shown on the right side of a quote \u2014 e.g. EUR\/USD 1.1965 \/ 68 \u2014 means that one euro can be bought for 1.1968 UD dollars.<\/p>\n

Bar Chart \u2014 A type of chart used in Technical Analysis. Each time division on the chart is displayed as a vertical bar which show the following information \u2014 the top of the bar is the high price, the bottom of the bar is the low price, the horizontal line on the left of the bar shows the opening price and the horizontal line on the right of bar shows the closing price.<\/p>\n

Base Currency \u2014 is the first currency in a currency pair. A quote shows how much the base currency is worth in the quote (second) currency. For example, in the quote \u2014 USD\/JPY 112.13 \u2014 US dollars are the base currency, with 1 US dollar being worth 112.13 Japanese yen.<\/p>\n

Bid Price \u2014 is the price a trader can sell currencies. The Bid Price is shown on the left side of a quote \u2014 e.g. EUR\/USD 1.1965 \/ 68 \u2014 means that one euro can be sold for 1.1965 UD dollars.<\/p>\n

Bid\/Ask Spread \u2014 is the difference between the bid price and the ask price in any currency quotation. The spread represents the broker’s fee, and varies from broker to broker.<\/p>\n

Broker \u2014 the intermediary between buyer and seller. Most FOREX brokers are associated with large financial institutions and earn money by setting a spread between bid and ask prices.<\/p>\n

Candlestick Chart \u2014 A type of chart used in Technical Analysis. Each time division on the chart is displayed as a candlestick \u2014 a red or green vertical bar with extensions above and below the candlestick body. The top of the extension shows the highest price for the chart division and the bottom of the extension shows the lowest price. Red candlesticks indicate a lower closing price than opening price, and green candlesticks indicate the price is rising.<\/p>\n

Cross Currency \u2014 A currency pair that does not include US dollars \u2014 e.g. EUR\/GBP.<\/p>\n

Currency Pair \u2014 Two currencies involved in a FOREX transaction \u2014 e.g. EUR\/USD.<\/p>\n

Economic Indicator \u2014 A statistical report issued by governments or academic institutions indicating economic conditions within a country.<\/p>\n

First In First Out (FIFO) \u2014 refers to the order open orders are liquidated. The first orders to be liquidated are the first that were opened.<\/p>\n

Foreign Exchange (FOREX, FX) \u2014 Simultaneously buying one currency and selling another.<\/p>\n

Fundamental Analysis \u2014 Analysis of political and economic conditions that can affect currency prices.<\/p>\n

Leverage or Margin \u2014 The ratio of the value of a transaction to the required deposit. A common margin for FOREX trading is 100:1 \u2014 you can trade currency worth 100 times the amount of your deposit.<\/p>\n

Limit Order \u2014 An order to buy or sell when the price reaches a specified level.<\/p>\n

Lot \u2014 The size of a FOREX transaction. Standard lots are worth about 100,000 US dollars.<\/p>\n

Major Currency \u2014 The euro, German mark, Swiss franc, British pound, and the Japanese yen are the major currencies.<\/p>\n

Minor Currency \u2014 The Canadian dollar, the Australian dollar, and the New Zealand dollar are the minor currencies.<\/p>\n

One Cancels the Other (OCO) \u2014 Two orders placed simultaneously with instructions to cancel the second order on execution of the first.<\/p>\n

Open Position \u2014 An active trade that has not been closed.<\/p>\n

Pips or Points \u2014 The smallest unit a currency can be traded in.<\/p>\n

Quote Currency \u2014 The second currency in a currency pair. In the currency pair USD\/EUR the euro is the quote currency.<\/p>\n

Rollover \u2014 Extending the settlement time of spot deals to the current delivery date. The cost of rollover is calculated using swap points based on interest rate differentials.<\/p>\n

Technical Analysis \u2014 Analysis of historical market data to predict future movements in the market.<\/p>\n

Tick \u2014 The minimum change in price.<\/p>\n

Transaction Cost \u2014 The cost of a FOREX transaction \u2014 typically the spread between bid and ask prices.<\/p>\n

Volatility \u2014 A statistical measure indicating the tendency of sharp price movements within a period of time.<\/p>\n

by Norman Fleming<\/p>\n","protected":false},"excerpt":{"rendered":"

Here are some of the most common terms used in FOREX trading. Ask Price \u2014 Sometimes called the Offer Price, this is the market price for traders to buy currencies. Ask Prices are shown on the right side of a … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[194],"tags":[27,28,29],"_links":{"self":[{"href":"http:\/\/www.pakistanoffice.com\/live\/wp-json\/wp\/v2\/posts\/348"}],"collection":[{"href":"http:\/\/www.pakistanoffice.com\/live\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.pakistanoffice.com\/live\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.pakistanoffice.com\/live\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.pakistanoffice.com\/live\/wp-json\/wp\/v2\/comments?post=348"}],"version-history":[{"count":0,"href":"http:\/\/www.pakistanoffice.com\/live\/wp-json\/wp\/v2\/posts\/348\/revisions"}],"wp:attachment":[{"href":"http:\/\/www.pakistanoffice.com\/live\/wp-json\/wp\/v2\/media?parent=348"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.pakistanoffice.com\/live\/wp-json\/wp\/v2\/categories?post=348"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.pakistanoffice.com\/live\/wp-json\/wp\/v2\/tags?post=348"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}