Trading Glossary

Forex traders and professional investors in the forex market use a kind of sub lingo or language also known as trading jargon that keeps evolving. It is important that as traders or investors looking to learn the nuances of forex trading that you have a complete list of abbreviations, technical words, acronyms etc that are used in the trading scene. Trading training has put together a glossary so that beginners and traders that will make them feel part of the trading fraternity.

Trading training recognizes that not all of us are aware of acronyms like kiwi, pip, buy quote etc. Not all of us also know the use and the meaning of candlesticks, spread and what they are used for. Only once we understand these abbreviations and acronyms can we know how to utilize them when wanting to trade.  Here is a list of some terms that you will also find in the trading training glossary.

Firstly lets understand the term “Currency” which is a vital ingredient in forex exchange and it is imperative for every trader to be familiar with this term. Currency is nothing but ‘paper money’ which can also be bifurcated into coins, bills as well as notes. These are issued by the government of the country you belong to. This currency forms the medium of exchange between that country and the other country’s currency.  Exchanging world currencies belonging to any nation for any other currency for trade purposes is known as forex exchange.

Auto trader- This is another phrase that you will find being continually used in training trading and it is nothing but the automated forex trading software program. These programs do not need much intervention but will help you set up trades, buy and sell currency and help you earn a profit.

Bid rate- At trading training you will know what bid rates are and learn how to effectively use it to your advantage. The bid rate is nothing but the price at which the broker is ready to buy the base currency with the counter currency which is the second currency in a currency pair.

Day trading – This is another term included in the glossary at trading training which you will come across frequently when trading in the forex market. In day trading you generally buy and sell currency pairs that show some significant price change during the day. Although the forex market can be traded in the night as well.