FOREX BASIC TERMINOLOGY


To get a better understanding of how the forex market works it is essential to know some FX terminologies. Have fun learning with our forex glossary.
Aggregate Demand
The sum of government spending, personal consumption expenditures, and business expenditures
Appreciation
A currency is said to 'appreciate ' when it strengthens in price in response to market demand.
Arbitrage
The purchase or sale of an instrument and simultaneous taking of an equal and opposite position in a related market, in order to take advantage of small price differentials between markets.
Around
Dealer jargon used in quoting when the forward premium/discount is near parity. For example,
Ask Rate
The rate at which a financial instrument if offered for sale (as in bid/ask spread).
Asset Allocation
Investment practice that divides funds among different markets to achieve diversification for risk management purposes and/or expected returns consistent with an investor's objectives.

PACKED WITH THE KNOWLEDGE OF THE BASIC TERMS, YOU ARE ONE STEP AHEAD IN MAKING YOUR TRADING JOURNEY A PROSPEROUS ONE.