FOREX BASIC TERMINOLOGY

In order to become a successful trader, it is vital to understand the basic Forex terminology, which at times may be misleading.
Pips
Digits added to or subtracted from the fourth decimal place, i.e. 0.0001. Also called Points
Political Risk
Exposure to changes in governmental policy which will have an adverse effect on an investor's position.
Point & Figure charts
The Point & Figure Chart disregards Time and focuses entirely on price activity
Position
The netted total holdings of a given currency.
Premium
In the currency markets, describes the amount by which the forward or futures price exceed the spot price.
Price Transparency
Describes quotes to which every market participant has equal access.

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