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Technical terms in forex trading

technical terms in forex trading

buy the base currency from your broker. Rollover The process of extending the settlement date on an open position by rolling it over to the next settlement date. You then sell that asset, the price of it changes and you buy it back. If a traders account falls below the minimum amount required to maintain an open position, he will receive a margin call requiring him to either add more money into his or her account or to close the open position. As a rule, pip is equal.0001.00001 for the majority of currency pairs, which are"d to the fourth or fifth decimal point after the comma, but for JPY pairs it.01.001 and is"d to the second. Gbpusd GBP stands for British Pound which in this currency pair is traded against US dollar. So if the EUR/USD goes down.3, then the US dollar has increased in value against the euro the dollar has become stronger and the euro has become weaker. Bollinger Bands Indicator The Bollinger Bands indicator reflects the current market volatility changes, confirms direction, warns about the opportunities of trend continuation or trend end, consolidation periods, increasing volatility for breakouts, as well as indicates the local highs and lows.

technical terms in forex trading

The, forex market comes with its very own set of terms and jargon. So, before you go any deeper into learning how to trade the Fx market, its important you understand some of the basic. Forex terminology that you will encounter on your trading journey. In forex trading, if the trader believed that the GBP/USD currency pair is going to rise, and they bought that pair, they would be described as entering a long position.

Liquid market A market where traders can buy and sell large volumes of assets anytime and with low transaction costs. If the trade does not work out, you know exactly how much money you are risking and will not lose more than. Momentum Indicator The Momentum is a technical analysis indicator which reflects the direction of a trend and measures the speed of the price change based on the comparison of the current and previous values. Forex Trading Terminology, the Forex market comes with its very own set of terms and jargon. Part 4: What is Professional Forex Trading? Basic Forex terms: Cross rate, the currency exchange rate between two currencies, both of which are not the official currencies of the country in which the exchange rate" is given. So if you risk 10, then this is the amount of money you are prepared to lose. This term is used forex entry point indicator free download because when a bull fights, they use their horns in an upward motion this is a useful way of remembering the term. On an hourly chart, each candle takes an hour to form and. Aussie Slang term for the Australian dollar. U usdcad The currency pair, formed from the US dollar and the Canadian dollar, indicates how many Canadian dollars are needed to purchase one US dollar.

technical terms in forex trading

Short selling The concept of going long in trading is relatively straight forward.
This page provides a collection of terms necessary for traders to understand the complex terminology.
Forex and CFD trading.
The most commonly used trading terms, acronyms, and abbreviations are presented here explaining the core ideas and methods used by traders every day.
Forex technical analysis by the experienced DailyFX team.

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