Terminology

Most commonly known Forex Terminology that is used in the Financial Markets, if you are a newbie in the financial market here are some words that will help you get around.

MARKET ANALYST:

Financial professional who has expertise insight in evaluating the market and puts together forex live signals for buying, selling recommendations for clients. Market analyst must know all forex related terminology for survival in the financial market.



CHART

Chart that indicates the trading range. If price is higher than the close price, the rectangle between the open and close price

BEARISH/BEAR MARKET

Negative for price direction favoring a declining market.

BULLISH/BULL MARKET

Favoring a strengthening market and rising prices.

BROKER

An independent or firm that acts as an intermediary, bringing buyers and sellers together for a fee or commission. In contrast, a dealer commits capital and takes one side of a position, hoping to earn a spread (profit) by closing out the position in a subsequent trade with another party.

CLOSED POSITION

Exposure to a financial contract, such as currency, that no longer exists. A position is closed by placing an equal and opposite deal to offset the open position. Once closed, a position is considered squared.

LOT

A unit to measure the amount of the deal. The value of the deal always corresponds to an integer number of lots. 0.01 – 0.10 – 1.00 – 10.00 – 100.00 Lot scale

PIPS

Pips refer to digits added to or subtracted from the fourth decimal place, i.e. 0.0001. The smallest unit of price for any foreign currency.

RISK MANAGEMENT

Roles of a financial analysis and trading techniques to reduce and/or control exposure to various types of risk. They have to know what are good strategies for trading binary options, my forexbook must have notes for good earning potential.

STOP-LOSS

When market reaching a certain level that is believed to be a point where trend will not return any time soon, If stops are triggered, then the price will often jump through the level.

TECHNICAL ANALYST

Process by which charts of past price patterns are studied for clues as to the direction of future price movements.

TAKE-PROFIT

This means “take profit.” Refers to orders that look to close above or below the level that was bought or sold.

TREND

An uptrend is identified by higher highs and higher lows. A downtrend is identified by lower highs and lower lows. Price movement that produces a net change in value of price.

VOLATILITY

This Refers to active markets movement that often present trade opportunities.

 

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Warning risk

Trading Forex, Binary and CFDs involves substantial risk and can result in the loss of your initial invested capital.

Trading brings a high level of risk and may not be appropriate for all investors. You should fully understand the risks involved.

Never risk more than what you are prepared to lose.