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Knowledgebase : English > About Forex > Forex terms
MARGIN CALL: A margin call happens when your brokerage informs you that the balance of your trading account has dropped below the required margin(%), and there is not enough equity (floating profit- floating losses or unused balance) to support your ope...
BID PRICE: In forex, bid price is a term used to express the highest price a buyer is willing to pay. ASK PRICE: In forex, ask price is a term used to express the lowest price a seller is willing to pay. According to these definitions the bid price is...
These two terms are used in forex to explain rising and falling in the market prices. It can be said that there are two markets: bullish and bearish. When there is an upward-moving in the prices of the market, it is called bullish. Whereas, when there i...
In forex, currencies are traded in pairs. A currency pair consists of two particular currencies that are bought and sold. The first currency is known as the base currency and the second one is known as the quote currency. The value of a currency pair is d...
A ACCOUNT A record of all transactions or a special personal account opened with the company by a client. This account is used to offset the obligations of the client and dealer, resulting from the deals concluded under the present agreement. ACCOUN...
In forex, leverage is a loan provided by the brokers that lets investors trade much more value of a currency. In other words, you can trade more value of a currency with a limited capital. However, leverage is a two-edged mode. As it can increase the prof...
Lot is a standard trading term referring to an order of 100,000 units. There are also mini, micro, and nano lot sizes that are 10,000, 1,000, and 100 units respectively. Currency pairs are usually traded in units of 100,000 (standard lots), 10,000 units...
MARKET ORDER: The instruction you give to the broker on the purchase or sale of any financial instrument. In the Forex market and other financial markets, there are two types of orders. MARKET ORDERS: What are these orders? These are orders when you let...
In finance, especially in Forex, a PERCENTAGE IN POINT (PIP) is a unit of change in an exchange rate of a currency pair. Put simply, a pip is the smallest unit of price for a currency. It is the last decimal point in exchange rates or currency pairs. ...
LONG POSITION: The buying of a security such as stock, commodity, or currency, with the expectation that the asset will rise in value. If a trader is in a trade on the basis that the market is going to force the price of a currency pair upward this is k...
Forward deals are contracts for purchasing a given amount of foreign currency on a predetermined future date, at a predetermined exchange rate. Delivery of the underlying currency is made on the deal's maturity date. Contrary to spot transactions, the d...
A trailing stop order is a special kind of sell stop order. Sell stop orders let you say, "If the bid price falls to my trigger price, allow my sell order to execute on an exchange." The key difference between a traditional stop order and a trailing sto...
A break between prices on a chart occurs when the price makes a sharp move up or down with no occurred trading in between. Gaps can be created by factors such as regular buying or selling pressure, earnings announcements, and a change in an analyst's outl...