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Forex trading lingo

forex trading lingo

These are the most liquid and the most sexy. At this price, you can buy the base currency. It is the ability to control large dollar amounts of a security with a relatively small amount of capital. These transactions avoid the need to exchange both currencies into American dollars before executing the trade.

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In these highly volatile FX markets, a sharp price movement is quickly followed by a sharp reversal. Otherwise, they are called knock-ins when they have no value until that underlying asset has reached the predetermined price. It stands for Percentage In Point. But, they can also produce excellent returns if you play your cards right. That is why this is certainly a bit of FX markets lingo that every single Forex investor will want to know before getting started. Barrier Option, a barrier option is a type of option within Forex markets.

forex trading lingo