Forex Trading Terms: 50 Terms

​Forex Trading Terms: 50 Terms

Foreign exchange, or also referred to as FX and Forex, is the exchange of a particular currency for a different currency. Sadly, this is not straightforward all the time and might even be a bit complex. 

Before you consider trading currency pairs, it is important that you make yourself familiar first with the most common Forex trading terms being used. Below are the 50 terms that you will surely encounter once you stepped into the world of forex trading.
 
Ask price
Bid price
Ask/bid spread
Pip
Base
Spread
Leverage 
Quote
Bull market
Bear market
Federal reserve 
Broker
Inflation
Gross Domestic Product or GDP
London Interbank Offered Rate or LIBOR
Interest rates
Foreign exchange volatility 
Relative Strength Index or RSI
Commodity Channel Index or CCI
Correlation 
Moving Average Convergence/Divergence or MACD
Purchasing Managers Index or PMI
Consumer Price Index or CPI
Quantitative easing or QE
Take profit
Stop loss 
Technical analysis
Fundamental analysis 
Majors or major pairs
Minors or minor pairs 
Crosses or cross currency pairs
Arbitrage
Asset backed security or ABS
Bar chart 
Back office
Base currency 
Benchmark 
Binary option 
Breakout 
Break-even
Buy stop order
Buy limit order
Contract for Difference or CFD
Carry trade
Consumer Price Index or CPI
Commodities
Cryptocurrency 
Dealer
Carry trade
Swing trading 

As you can see, there are a lot of acronyms and technical terms being used in the Forex trading world. Whether you are a new trader who is just getting started or you have already been trying your luck in the market for some time now, it is important that you always read, learn and build on your existing knowledge so that you can become a more knowledgeable and well-rounded trader who has the view and the potential to become more successful and profitable in the long run. 

Just so you know, the stupidest question in the world is the one that you don’t even dare to ask in the first place. So, every time you log into your chosen trading platform and you see a few forex trading terms that you haven’t heard of or encountered in the past, don’t think twice to ask, research and know more about it on your own. 
The thing about forex trading is that it is like a wild beast that is hard to tame at first. However, once you armed yourself with education and the right tools, there is simply no reason for you to continue to improve and grow as a trader. 

Never allow the complex and ominous-sounding forex trading terms above stop you from giving this venture a try. Just like with anything else in the world, you will never know what lies behind that door if you don’t dare to open it first. 

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