Forex Trading Short Format Terms List
- PIP: Percentage in Point (the smallest price move in a forex quote)
- LOT: Standard trading volume unit in forex trading
- USD: United States Dollar
- EUR: Euro
- JPY: Japanese Yen
- GBP: British Pound Sterling
- AUD: Australian Dollar
- NZD: New Zealand Dollar
- CAD: Canadian Dollar
- CHF: Swiss Franc
- FOMC: Federal Open Market Committee
- ECB: European Central Bank
- BIS: Bank for International Settlements
- NFP: Non-Farm Payrolls
Advanced Forex Trading Terms With Short Forms & Full Forms Name
- DXY: US Dollar Index
- EMH: Efficient Market Hypothesis
- ECN: Electronic Communication Network
- NDD: No Dealing Desk
- STP: Straight Through Processing
- BID: Buying price
- ASK: Selling price
- NFA: National Futures Association
40 Common forex trading terms Thatâs Help trader to understand that market language. Also I Provided Short Form Terms & Full Forms With Deep Explanation
1. Pip (Percentage in Point): The smallest price move that a currency can make, usually in the fourth decimal place.
2. Spread: The difference between the bid (buy) and ask (sell) price of a currency pair(BTCUSD,USD/INR,EUR/USD.
3. Leverage: A tool that allows traders to control a large position with a small amount of capital. It increases both potential profit and potential loss.
4. Margin: The amount of money required to open a position, often expressed as a percentage of the full position size.
5. Lot: The standard unit size of a forex transaction. A standard lot is 100,000 units of the base currency.
6. Base Currency: The first currency listed in a currency pair, which is being bought or sold.
7. Quote Currency: The second currency in a currency pair, which is used to determine the value of the base currency.
8. Bid Price: The price at which the market is willing to buy a currency pair.
9. Ask Price: The price at which the market is willing to sell a currency pair.
10. Currency Pair: A quotation of two different currencies, with the value of one currency being quoted against the other.
11. Long Position: Buying a currency pair with the expectation that its value will increase.
12. Short Position: Selling a currency pair with the expectation that its value will decrease.
13. Bullish: A market sentiment that anticipates rising prices.
14. Bearish: A market sentiment that anticipates falling prices.
15. Order: An instruction to execute a trade at a specified price.
16. Stop Loss: An order placed to limit potential losses by closing a position when the market moves against it.
17. Take Profit: An order placed to lock in profits by closing a position when the market moves in favor.
18. Hedging: A strategy used to offset potential losses in one position by opening another position.
19. Scalping: A trading strategy involving making small, quick trades to capture small price movements.
20. Day Trading: A trading strategy where positions are opened and closed within the same trading day.
21. Swing Trading: A trading strategy that involves holding positions for several days to capture short- to medium-term price movements.
22. Position Trading: A long-term trading strategy where positions are held for weeks, months, or even years.
23. Technical Analysis: The study of past market data, primarily price and volume, to forecast future price movements.
24. Fundamental Analysis: The study of economic, financial, and other qualitative and quantitative factors to predict currency movements.
25. Broker: A company or individual that facilitates the buying and selling of currencies on behalf of traders.
26. Liquidity: The ability to buy or sell an asset without causing a significant impact on its price.
27. Volatility: The degree of variation in the price of a currency pair over time.
28. Slippage: The difference between the expected price of a trade and the actual price at which the trade is executed.
29. Swap: The interest rate differential between the two currencies in a pair, which can result in a credit or debit for holding a position overnight.
30. Margin Call: A brokerâs demand for additional funds to maintain an open position when the account equity falls below a certain level.
31. Exotic Pair: A currency pair that includes one major currency and one currency from a smaller or emerging market.
32. Cross Pair: A currency pair that does not include the US dollar.
33. Lot Size: The volume or quantity of a trade in the forex market.
34. Equity: The total value of an account, including the unrealized profits and losses from open positions.
35. Drawdown: The reduction of an accountâs equity from a peak to a trough during a losing trade or series of trades.
36. Risk Management: The process of identifying, assessing, and controlling risks involved in trading.
37. Brokerage Fee: A commission or fee charged by a broker for executing a trade.
38. Currency Basket: A portfolio of selected currencies with different weightings, used to compare the value of a currency.
39. Currency Peg: A countryâs currency value is fixed or pegged to another major currency like the US dollar or gold.
40. Arbitrage: The simultaneous purchase and sale of an asset to profit from a difference in price.
These terms cover the essential concepts in forex trading. Understanding these will help you navigate the forex market more effectively.