Forex traders often chat with one another about a variety of topics related to financial markets, giving their perspectives and discussing trading ideas and current moves on the markets. While communicating or chatting they often use certain trading terms, words or slang to express their thoughts in a shorter form. Some of the most popular market terminologies in forex trading are listed below.
• Asset Allocation:
Asset Allocation is the dividing of instrument funds among markets to achieve diversification or maximum return.
• Bearish:
Bearish in forex trading is a market view or market trend that anticipates lower prices.
• Bullish:
Bullish in forex trading is a market view or market trend that anticipates higher prices.
• Chartist:
A Chartist is an individual who studies graphs and charts of historic data to find trends and predict trend reversals.
• Trading Counterparty:
Counterparty in forex trading is the other organization or party with whom trading is being transacted.
• Day Trader:
A Day Trader is a forex speculator who takes positions in market instruments which are liquidated prior to the close of the same trading day.
• Economic Indicators:
Economic indicators are statistics that indicate economic growth rates and trends such as retail sales and employment.
• Exotic:
Exotic in forex trading is a less broadly traded market instrument.
• Fast Market:
Fast Market is the rapid movement in a trading market caused by strong interest of buying and selling by forex traders.
• Fed:
Fed is the U.S. Federal Reserve. It is the central bank of the United States and the most influential financial institution in the world.
• GDP:
GDP is the Total value of a country's output, income or expenditure produced within the country's physical borders.
• Liquidity:
Liquidity in forex trading is the ability of a market to accept large transactions with ease without affecting its price. And with the market having many buyers and sellers at any given time.
• Resistance Level:
Resistance level is the point at which a market instrument price is likely to result in a rebound but if broken may result in a significant price movement.
• Spread:
Spread in forex trading is the difference between the bid and ask price of a market instrument. In other words, the difference between the buying and selling price of a market instrument.
• Support Levels:
Support levels are trading points when a price depreciates or appreciates to a level where forex professionals or trading analysis will suggest that the price will rebound.
• Thin Market:
Thin Market is a market in which trading volume is low and in which consequently spread is wide and the liquidity is low.
• Volatility:
Volatility is a measure of the amount by which an asset price is expected to fluctuate over a given period...
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