FOREX GLOSSARY

Our glossary aims to provide basic knowledge of the FX terminology to help beginner investors master the jargon of the industry.

 

Ask Price

  • The price at which a client will be quoted when attempting to open a ‘BUY’ (Long) position, or close a ‘SELL’ (Short) position. ASK price can be found by adding the current spread to the chart price. MT4 charts show only the bid price.

Bar chart

  • A type of chart used in many trading platforms (i.e.: MT4). It provides clients with four major points for a specific time frame. These are the high and low prices, which are determined form the vertical bar, the opening price marked on the left side of the bar, and the closing price marked on the right.

Base Currency

  • The first currency quoted in a currency pair on forex i.e.: The Base currency of EURUSD is the Euro. 1 Lot buy EURUSD at market price 1.3000 indicates the purchase of 100,000 Euros and selling of 130,000 USD or otherwise 1 Euro equals 1.3 USD.

Bearish

  • The term is used to express the opinion that the value of a specific currency will go down in pric

Bid Price

  • The price at which a client will be quoted when attempting to open a ‘SELL’ (Short) position, or close a ‘BUY’ (Long) position. BID price can be seen directly from MT4 charts.

Bullish

  • The term is used to express the opinion that the value of a specific currency will go up in price.

Candle-Stick chart

  • A type of chart used in many trading platforms (i.e.: MT4). It consists of real body which determines whether the closing price was higher (coloured candle) or lower than the opening price (empty candle), and shadow lines which show the high and low of a specific time frame.

CFD

  • Stands for Contract For Difference. Investors trading CFDs are enjoying all the benefits together with all risks of owing an instrument without actually owing it. It is considered to be an easier method of trading since it is eliminating majority of intermediaries.