New to forex trading? Here’s the trading lingo you need to know…

Julie Brownlee, Fsp Invest, 30 Oct. 2014

Tags: forex, forex trading, forex trading glossary, trading glossary, beginner forex trading,



If you’re just starting to trade forex, you’ll have to get to grips with the vocabulary that traders use.

This way you’ll be able to understand what you’re doing better. Before you know it you’ll be sounding like a seasoned forex trader.

So what terms do you need to know when it comes to forex trading?

Read on to find out…



Your introduction to forex trading glossary


Buy
This is when you place a forex trade when you think the market is going to rise. This is also known as going long. If you’re in a short forex trade, you’ll buy to close your position.

Expiry date
This is the date which you can no longer trade a currency futures contract. For instance, March futures expire of the morning of the Monday before the third Thursday of the month.

Gearing
This is the magnifying effect of the potential positive or negative outcome of your forex trade. When you trade forex, using currency futures or spread trading, you’re trading geared products.

Gearing also gives trading a high level of risk. For example, if you’re ten times geared, your gains or losses will be multiplied by ten.

Long
This is having a forex position when you bought the currency in the hope the price will rise. It’s the same as buying.

Margin
This is the amount of money you need to open and maintain a forex position. This depends on the gearing and the size of the trade you’re in.

Sell
This is putting a forex trade on when you think the currency pair will fall in value. It’s also known as going short. Or if you’re in a long position, this is how you close your trade.

Short
This is the same as selling. You put a forex trade on where you sell the currency in the hope it will drop in value. To close the trade you have to buy the position back at a later date.

Stop loss
A stop loss is an order you give you forex trading company to limit your losses if a trade you’re in goes against you.

So there you have it, the trading lingo you need to know if you’re new to forex trading.

*********** Recommended Product ************

You can’t afford to miss Timon Rossolimos’s Forex seminar on the 29th of November 2014

“Every tip… Every secret… Every technique I’ve used to become a master trader and bank gains on 90% of my monthly trades will be YOURS!”

Reserve your seat now!


*******************************************


Related QA

Pic
BombazInt asked:
Hi Timon..Are you familiar with this broker called CM Trading??.Whats your take on their trustwortiness??Also compared to other brokers which broker [read more]
Published at 06 Dec. 2017 in: Forex Forex trading 1 Answer
Pic
barbaramagwaza5 asked:
1.Good Morning Timon, I would like to know if I have ordered a book like Forex 101 etc, does it get physically delivered to me or? 2. When I have [read more]
Published at 06 Nov. 2017 in: Forex Barbaramagwaza5 1 Answer
Pic
pearlyhabib asked:
Hi Timon, I registered for the Webinar held on 30 September 2017 - How to turn R10,000 into R87,400 in just two hours. When i tried to access the [read more]
Published at 04 Oct. 2017 in: Forex Trading webinar 1 Answer
Pic
rakhabeletsi asked:
I have 1 year loosing money i cant seem to be making progress on this forex thing and investing on penny stocks so i believe if i could have a mentor [read more]
Published at 03 Oct. 2017 in: Forex Wealth creation 1 Answer
Pic
henry.bc asked:
I subscribe to GT247 and Easy Equities but what charting platform would you recommend to do or track the profit patterns on? [read more]
Published at 30 Sep. 2017 in: Forex 2 answers

Related articles:


Latest:

Comments
0 comments



 
 


Youtube Twitter Facebook

Connect with us:    

POPULAR TOPICS
  • Accelerated Investor
  • Accessories