God came down from the heavens to see the Tower of Babel, being unhappy with what he saw God separated the people using foreign language as the barrier. Then here comes terminology another language used amongst the masses of foreign exchange. A language easily used within the Forex community which leaves the non-Forex citizens clueless.
Although the terminology used by the foreign exchange inhabitants makes perfect sense to themselves it all sounded like babble to me when I set out to learn it. Traders know best the language of shortened phrases, acronyms, and idioms that explains what they want during speeches of exchanges and trades. Any new or experienced Forex civilian must learn and be comfortable with the language.
Without any question, not being educated and fully prepped in this speech to converse with fellow speakers you will be left in the dust. Confused by the terminology or not being aware of sayings they use, you can forget about embarking on the career of a Forex trader all together. At lease for now.
The leading financial market of the world is Forex which trades all global currencies in real time. The basic language is a must to shine at all in the Forex market.
To get by in the utmost way one must know at least the basic terminology of the Forex globe.
1) Bullish- having the general tendency to trade on the long side of a currency pair and having the belief that pair will increase in price.
Bearish is having a general tendency to trade on the short side of a currency pair and believing that pair will decrease in price.
Going long refers to buying a currency pair with the hope that the price will go up.
Selling a currency that is not yet owned with the intent that there will be a decrease in price so that the currency pair can be put back at a lower price than it was sold for is called, Going Short.
5) Pip- a popular word meaning the smallest price change a currency pair can make. Generally it is equal to 10USD on full size lots of 100,000.
Range is also used, it defines itself my offering the seller information on the variety of prices being offered. The range gives the highest and lowest prices of the currencies.
There are tons of websites, and dictionaries that offer a full range of definitions for the Forex world of language. If you are interested in a Forex trading career you must be fully prepped on the terminology needed for conversation. If you are not you will be one of the lost souls roaming around not being able to talk to any of your fellow Forex inhabitants. And nobody wants that, do you?
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