Forex Terms

  • Forex Terms
August 11, 2021

What Is Ask Price In Forex Trading?

Forex trading ask price is the selling price of the trading asset Forex ask price is the lowest price a trader is willing to sell a currency pair While trading Forex, you will see two prices in the trading platform The difference between these two prices is called spread Understanding...

August 11, 2021

What Is ECN Execution?

ECN enables trading of financial products outside traditional exchanges ECN facilitates trading outside regular trading hours Investors from different regions are given access to trading with ECN execution ECN gives traders direct access to the financial markets Understanding ECN Execution – How Does It Work? Forex ECN explained: ECN connects...

August 11, 2021

What Does Shorting Mean In Forex?

Going short in Forex trading refers to selling the base currency Traders open short positions when they believe the asset is going to decline It is usually used as “taking a short position” or simply as “going short” Going short is the opposite of going long Going Short in Forex...

August 11, 2021

What Is Margin In Forex?

In Forex trading, the minimum amount of money that you should have to open new positions is called margin The margin that you are required to have varies from broker to broker It essentially is a type of faith deposit with a broker Margin is not a “cost” or a...

August 11, 2021

What Is Arbitrage In Forex?

Arbitrage in Forex is a low-risk strategy involving buying and selling currencies The main aim of currency arbitrage is to exploit price differences in the market There are several different types of Forex arbitrage Triangular Forex arbitrage requires very quick and larger in size trades Forex Currency Arbitrage – What...

August 11, 2021

What Does Going Long Mean In FX?

To go long in Forex means to buy an asset Mostly, it is used as “going long” or “taking a long position” Going long in Forex means that you think the base currency will increase Going long is the opposite of going short Going Long In Forex – What Does...

August 11, 2021

What Is Bid Price In Forex Trading?

Forex bid price refers to the buying price Bid price is the highest price that a buyer is willing to pay to buy an asset The selling price in Forex is called ask Difference between bid and ask price is called spread Bid Price Forex – How Does It Work?...

August 11, 2021

What Is NDD Execution?

Forex NDD execution stands for No Dealing Desk execution It offers traders unfiltered access to interbank exchange rates NDD execution offers you trading directly with interbank rates NDD helps you get the most competitive bid and ask prices NDD Forex Trading – What Is It? Forex NDD explained: No Dealing...

August 11, 2021

What Is STP Execution?

STP market execution stands for Straight Through Processing It involves sending money of the traders directly to the market STP is thought to be a hybrid of the ECN and dealing desk models STP execution means directly connecting traders with liquidity providers Understanding STP Forex Execution – How Does It...

August 11, 2021

Forex Trading Dictionary – Key Terms To Know

There are numerous Forex trading terms that beginners should know Forex trading terminology is used to describe the movements in the market There are some acronyms and terms describing different types of concepts Understanding Forex trading terms can help you become a better trader Forex Trading Terms – Everything You...

August 11, 2021

What Is Equity In Forex?

Forex equity stands for the current value of the trading account There are several terms used to describe equity in Forex If you do not have any open positions, equity is equal to your account balance If you have open positions, calculating equity gets a little confusing Understanding Equity In...

August 11, 2021

What Is Spread In Forex?

Spread is the difference between the ask and bid prices A fixed spread is the permanent amount of spread set by the broker A floating spread changes based on market movements and is less predictable Yield spreads are used to calculate the spread rate in percentage Understanding Spread In Forex...

August 11, 2021

What Is Lot In Forex?

Forex lot represents the overall amount of specific currency that a trader owns Standard lot equals 100,000 units Mini lot is 10,000 currency units Micro lot is 1,000 units Nano Lot is 100 currency units Understanding Forex Lot Sizes – How Do They Work? Forex lot size explained: Lots are...

July 30, 2021

What Is Leverage In Forex?

Leverage is a vital trading instrument in Forex Average leverage levels are 1:100 and 1:200 Using this tool is extremely risky Understanding Leverage In Forex Trading – What Is It? Forex leverage explained: Leverage is borrowed money from the broker to increase trade size. Leverage, also referred to as margin...

July 26, 2021

What Is Pip In Forex?

Pip shows the slightest price movement of currency pairs Pip is the fourth number after the decimal point The pipette shows changes in the fifth number Pip Value = Contract Size x One Pip Understanding Forex Pips – What Are They? Forex pips explained: Pip (Percentage in Point) is the...