A list of common Forex trading terms…
AUD – Australian Dollar.
Aussie – Slang name for Australian Dollar.
Base Currency – First currency listed in a cross. Euro is the base currency of EUR/USD.
Bid/Ask Spread – The difference between what you can buy and sell a specific cross for. Retail brokers usually increase the spread slightly instead of charging a commission for currency trading.
CHF – Swiss Franc.
Crosses – Pairs of currency, such as EUR/USD or USD/CAD.
Currency Pair – Two currencies that trade against each other, such as EUR/USD.
EUR – The Euro.
Euro – European Currency.
Exotic Currency – Thinly traded currency.
Forex (FX) – International currency trading market.
Forex Trading – Buying or selling currencies against each other to make a profit.
GBP – British Pound.
Greenback – Slang name for US Dollar.
Inflation – General rate at which the cost of goods in a country is rising.
Interbank Market – Worldwide currency trading market.
Interest Rate – Return on money for holding it with a certain institution.
JPY – Japanese Yen.
Kiwi – Slang name for New Zealand Dollar.
Managed Account – An account in which you put your money and someone else trades it for you with the goal of making you money.
NZD – New Zealand Dollar.
Pips – One basis point of a currency pair.
Spot – Current price for a currency, what you can get “on the spot.”
USD – United States Dollar.
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