When you want to enter the world of forex trading, the many terms and abbreviations commonly used in the trading process may still sound foreign to you, usually traders call these terms Forex Dictionary. Here are some basic terms that are important for you to know:
The difference between the credit amount and the debit balance. If the balance is deficit (negative) if the debit is greater than credit. Vice versa, if the balance is surplus (positive) if credit is greater than debit.
Account Statement
A status report of all buying and selling transactions made by a client.
Fundamental Analysis
Analysis based on global or local economic, political and security situations and conditions that differ depending on the country of origin of the stock exchange, the companies that issue shares, or the countries whose currencies are traded.
Technical Analysis
Analysis that uses charts or graphs to track data on price movements and trading volume with the aim of identifying ongoing price trends.
Arbitrage
A way to make a profit when two companies make currency transactions in different types of markets.
The department that processes all financial transactions that occur outside the dealing room.
Bailout
Client fundraising.
Balance
Total client balance.
Central Bank
Financial services that provide commercial banks. The central bank also plays a role in maintaining the stability of the currency value from inflation.
Bull
An increase in the value of a currency. This is caused by many traders who make Buy transactions.
Bar Chart
Bar chart showing open and close prices for a certain period.
Bearish
Prices are down.
Forex News
World economic news released by a country and is expected to affect the value of a currency.
Bear
A decrease in the value of a currency. This is caused by many traders who make Sell transactions.
Bid Price
The asking price for a currency.
Bid / Ask Spread
The difference between supply and demand within a certain period.
Bottom Price
The lowest price on a currency pair within a certain period.
Broker
A company that has a function as an intermediary between traders and the stock market.
Bullish
Prices are going up.
Buy
Buy transaction.
Buy Limit
A buy transaction when an open position will automatically open when the price has touched the specified point.
Buy Stop
Buy transactions that are located above the current price.
A tool that provides data from the calculation of certain formulas to measure and assess market conditions so that traders can predict the next market direction.