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.
Rate
The price of one currency in terms of another, typically used for dealing purposes.
Resistance
A term used in technical analysis indicating a specific price level at which analysis concludes people will sell.
Revaluation
An increase in the exchange rate for a currency as a result of central bank intervention. Opposite of Devaluation.
Revaluation Rates
The revaluation rates are the market rates used when a trader runs an end-of-day to establish profit and loss for the day.
Risk
Exposure to uncertain change, the variability of returns significantly the likelihood of lessthan-expected returns.
Risk Capital
The amount of money that an individual can afford to invest, which, if lost would not affect their lifestyle.
Risk Management
To hedge one's risk they will employ financial analysis and trading techniques
Roll-Over
Process whereby the settlement of a deal is rolled forward to another value date. The cost of this process is based on the interest rate differential of the two currencies.
Rollover Rate
The daily rollover interest rate is the amount a trader either pays or earns, depending on the established margin and position in the market. To avoid rollovers simply make sure positions are closed at the established end of the market day

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