Ask
The ask is the price at which the market is offering to sell a currency pair to you.
Read definitionForex Glossary
Clear Forex definitions, without the jargon spiral.
A searchable A–Z library of trading terminology. Use it for a quick definition, then follow the connected lessons when you want the deeper explanation.
39 terms
A
B
Bearish
Bearish describes an expectation or market condition associated with falling prices.
Read definitionBid
The bid is the price at which the market is prepared to buy a currency pair from you.
Read definitionBreakout
A breakout occurs when price moves beyond a defined area such as a range, prior high, prior low or consolidation boundary.
Read definitionBullish
Bullish describes an expectation or market condition associated with rising prices.
Read definitionC
Central Bank
A central bank is an institution responsible for monetary policy and other functions within a currency area.
Read definitionConsolidation
Consolidation is a period in which price trades within a relatively contained area without sustained directional progress.
Read definitionCorrelation
Correlation describes the degree to which two markets have tended to move in relation to each other.
Read definitionCurrency Pair
A currency pair expresses the value of one currency relative to another.
Read definitionD
Drawdown
Drawdown is the decline from a previous account or equity peak to a subsequent low.
Read definitionE
Exotic Pair
An exotic currency pair typically combines a major currency with a currency from a smaller or emerging economy.
Read definitionF
FOMO
FOMO means fear of missing out: the urge to enter because a market is moving without you.
Read definitionFundamental Analysis
Fundamental analysis studies economic, policy and financial forces that can influence currency values.
Read definitionL
Leverage
Leverage allows a trader to control market exposure larger than the capital committed as margin.
Read definitionLimit Order
A limit order requests execution at a specified price or better.
Read definitionLiquidity
Liquidity describes how readily transactions can occur without causing large price disruption.
Read definitionLong
A long position is a position that benefits if the quoted currency pair rises.
Read definitionLot
A lot is a standardised way of describing the size of a Forex position.
Read definitionM
Major Pair
A major currency pair includes the US dollar and another heavily traded global currency.
Read definitionMargin
Margin is the amount of account equity set aside to support an open leveraged position.
Read definitionMarket Order
A market order seeks immediate execution at the best available price.
Read definitionMomentum
Momentum describes the strength or persistence of directional price movement.
Read definitionP
Pip
A pip is a standard unit used to describe a change in a Forex quotation.
Read definitionPosition Size
Position size is the quantity of a currency pair held in a trade.
Read definitionPrice Action
Price action is the direct study of how price moves and reacts.
Read definitionR
Revenge Trading
Revenge trading is emotionally driven trading intended to recover a recent loss quickly.
Read definitionRisk-to-Reward
Risk-to-reward compares the amount planned to be lost if a trade fails with the amount potentially gained if the objective is reached.
Read definitionRollover
Rollover is the process associated with carrying a Forex position from one trading day into the next.
Read definitionS
Short
A short position is a position that benefits if the quoted currency pair falls.
Read definitionSlippage
Slippage is the difference between the requested order price and the price at which the order is actually executed.
Read definitionSpread
The spread is the difference between the bid and ask prices.
Read definitionStop Loss
A stop loss is an order intended to close a position when price reaches a predefined adverse level.
Read definitionStop Order
A stop order becomes active when price reaches a specified trigger level.
Read definitionSupport and Resistance
Support and resistance are areas where price has previously attracted meaningful buying or selling interest.
Read definitionSwap
Swap is an overnight financing adjustment that may be charged or credited on an open Forex position.
Read definitionT
Take Profit
A take-profit order closes a position when price reaches a predefined favourable level.
Read definitionTechnical Analysis
Technical analysis studies market price and related data to understand behaviour and identify repeatable context.
Read definitionTrend
A trend is sustained directional progress over the timeframe being analysed.
Read definitionV
Volatility
Volatility describes the size and speed of price changes.
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