subject: The Tower Of Forex - Reaching Each Other Using Terminology [print this page] God came down from the heavens to see the Tower of Babel, being unhappy with what he saw God separated the people using foreign language as the barrier. Then here comes terminology another language used amongst the masses of foreign exchange. A language easily used within the Forex community which leaves the non-Forex citizens clueless.
Although the terminology used by the foreign exchange inhabitants makes perfect sense to themselves it all sounded like babble to me when I set out to learn it. Traders know best the language of shortened phrases, acronyms, and idioms that explains what they want during speeches of exchanges and trades. Any new or experienced Forex civilian must learn and be comfortable with the language.
Without any question, not being educated and fully prepped in this speech to converse with fellow speakers you will be left in the dust. Confused by the terminology or not being aware of sayings they use, you can forget about embarking on the career of a Forex trader all together. At lease for now.
The leading financial market of the world is the Forex market which trades all global currencies in real time. A basic understanding of the language is a must to succeed at all in the Forex market.
Basic terminology
The basic terminology of the Forex globe must be known to get by in the utmost way.
1) Bullish- having the general tendency to trade on the long side of a currency pair and having the belief that pair will increase in price.
Bearish is having a general tendency to trade on the short side of a currency pair and believing that pair will decrease in price.
Going long refers to buying a currency pair with the hope that the price will go up.
Going short means that you sell a currency that is not yet owned by you, the trader. The hope here is that the price will go down and you can but the currency pair back at a lower price than you sold it at.
The smallest price change that a currency can make is called a Pip. In full sized lots of $100,000 it generally is equal to $10 US.
Range is also used, it defines itself my offering the seller information on the variety of prices being offered. The range gives the highest and lowest prices of the currencies.
The full range of definitions for the Forex language can be found on many websites and dictionaries. If an interest exists in a career of Forex trading you must be full prepped on the terminology needed for conversation. If not you will be separated from your fellow Forex inhabitants by the language of terminology. This surely is not wanted.
