Forex Terminology for Beginners PDF
Forex Terminology for Beginners PDF is a free lecture from Forex Trading for Beginners Course + 40 Robots Monthly. Enroll in the course here: https://eaforexacademy.com/courses/algorithmic-trading/algorithmic-trading-course/
Before we move on with the course, I would like to do a brief lecture with all the basic Forex Terminology for Beginners that you need to know to feel comfortable during the course.
If you have experience with trading, just go ahead to the next video.
But if this is new to you, don't worry, we'll walk you through the Forex Terminology for Beginners. Also, there will be an attached PDF that you can use at any time.
Let's start with the Ask price. This is the price that traders pay when buying an asset. Usually, this is the higher of the 2 prices that you will see on the trading platform.
Bid price - this is the lower of the 2 prices that traders use when selling the asset. Most of the time, on the price chart, you will see the Bid price. And this is why when you buy, the entry order shows a slightly higher price than the current price on the chart. A trade gets executed using the Ask price.
Spread - the Ask price minus the Bid price. Just like the difference between the buy and the sell prices in the banks and the exchange bureaus.
Pip - This is a measurement for the price in Forex trading. It is the 3rd and the 4th digit after the decimal comma.
Swap - this is the cost we pay the brokers when we hold our positions until the following day. So every time the broker transfers a trade to the next day, they will charge a swap.
However, that is not always a loss for the traders. Many times, the broker has a positive swap. Usually, this is when we hold the position that is against the primary trend.
Commission - not all of the brokers will charge you a commission. This is a cost we pay when opening a trade. The average commission is between $5 and $10 per lot. So if your broker charges you more, you better change the broker.
Lot - unit of measurement used when trading. 1 lot equals 100,000 of the base currency.
Leverage - if we use the leverage, that means that we use borrowed money from the broker. That is usually a good thing, but it might be risky. Using leverage allows traders to amplify their profits. But conversely, there is a risk of amplifying our losses proportionally. So the right usage of leverage depends a lot on using good money management.
Margin - this is the amount of money that we need to deposit with the broker to cover some or all of the credit risk.
CFD - contract for difference is the most popular way of participating in the Forex market. When we open an account with a broker, and we fund it with a certain amount of money, we can start trading. But usually, we use CFD trading.
And here are some slang words.
Long - if we say we go long, that means that we buy the asset. So if we have purchased the asset, we can say that we have a long trade or a long position.
Short - short trade means that we are selling the asset or base currency. Or when we have sold, we can say that we are holding a short trade or shorting an asset.
Bullish - a term used when the market is moving in an upward direction. We can say that the price is very bullish. That would mean that the price is currently moving upwards. Or we can say that the market is bullish.
Bearish - conversely, there are bears, and they push the price down. We can say I am bearish with EURUSD. That would mean that I am selling it at the moment, or I expect it to go down.
The Forex Terminology for Beginners and the course are included in our Packages:
https://eaforexacademy.com/packages/trading-software/
The Expert Advisors in the course are created with the following program:
★ Forex Strategy Builder Pro - 2 weeks trial:
https://eaforexacademy.com/software/forex-strategy-builder-professional/
★ Test EA Studio with 15-days trial and get the FREE course:
https://eaforexacademy.com/software/expert-advisor-studio/
� If you have any questions about Forex Terminology for Beginners, please, write in our trading Forum.
https://eaforexacademy.com/forums/forum/general/
Our online algorithmic trading courses:
https://eaforexacademy.com/courses/algorithmic-trading/
Let’s connect on social:
Facebook: https://www.facebook.com/eaforexacademy/
Instagram: https://www.instagram.com/eaforexacademy/
LinkedIn: https://www.linkedin.com/company/33249615/
Twitter: https://twitter.com/EAForexAcademy/
Before we move on with the course, I would like to do a brief lecture with all the basic Forex Terminology for Beginners that you need to know to feel comfortable during the course.
If you have experience with trading, just go ahead to the next video.
But if this is new to you, don't worry, we'll walk you through the Forex Terminology for Beginners. Also, there will be an attached PDF that you can use at any time.
Let's start with the Ask price. This is the price that traders pay when buying an asset. Usually, this is the higher of the 2 prices that you will see on the trading platform.
Bid price - this is the lower of the 2 prices that traders use when selling the asset. Most of the time, on the price chart, you will see the Bid price. And this is why when you buy, the entry order shows a slightly higher price than the current price on the chart. A trade gets executed using the Ask price.
Spread - the Ask price minus the Bid price. Just like the difference between the buy and the sell prices in the banks and the exchange bureaus.
Pip - This is a measurement for the price in Forex trading. It is the 3rd and the 4th digit after the decimal comma.
Swap - this is the cost we pay the brokers when we hold our positions until the following day. So every time the broker transfers a trade to the next day, they will charge a swap.
However, that is not always a loss for the traders. Many times, the broker has a positive swap. Usually, this is when we hold the position that is against the primary trend.
Commission - not all of the brokers will charge you a commission. This is a cost we pay when opening a trade. The average commission is between $5 and $10 per lot. So if your broker charges you more, you better change the broker.
Lot - unit of measurement used when trading. 1 lot equals 100,000 of the base currency.
Leverage - if we use the leverage, that means that we use borrowed money from the broker. That is usually a good thing, but it might be risky. Using leverage allows traders to amplify their profits. But conversely, there is a risk of amplifying our losses proportionally. So the right usage of leverage depends a lot on using good money management.
Margin - this is the amount of money that we need to deposit with the broker to cover some or all of the credit risk.
CFD - contract for difference is the most popular way of participating in the Forex market. When we open an account with a broker, and we fund it with a certain amount of money, we can start trading. But usually, we use CFD trading.
And here are some slang words.
Long - if we say we go long, that means that we buy the asset. So if we have purchased the asset, we can say that we have a long trade or a long position.
Short - short trade means that we are selling the asset or base currency. Or when we have sold, we can say that we are holding a short trade or shorting an asset.
Bullish - a term used when the market is moving in an upward direction. We can say that the price is very bullish. That would mean that the price is currently moving upwards. Or we can say that the market is bullish.
Bearish - conversely, there are bears, and they push the price down. We can say I am bearish with EURUSD. That would mean that I am selling it at the moment, or I expect it to go down.
The Forex Terminology for Beginners and the course are included in our Packages:
https://eaforexacademy.com/packages/trading-software/
The Expert Advisors in the course are created with the following program:
★ Forex Strategy Builder Pro - 2 weeks trial:
https://eaforexacademy.com/software/forex-strategy-builder-professional/
★ Test EA Studio with 15-days trial and get the FREE course:
https://eaforexacademy.com/software/expert-advisor-studio/
� If you have any questions about Forex Terminology for Beginners, please, write in our trading Forum.
https://eaforexacademy.com/forums/forum/general/
Our online algorithmic trading courses:
https://eaforexacademy.com/courses/algorithmic-trading/
Let’s connect on social:
Facebook: https://www.facebook.com/eaforexacademy/
Instagram: https://www.instagram.com/eaforexacademy/
LinkedIn: https://www.linkedin.com/company/33249615/
Twitter: https://twitter.com/EAForexAcademy/
