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Basic Forex Terminology
What is Basic Forex Terminology? Basic Forex terminology is used by most individuals and companies that trade Forex. Forex stands for foreign exchange markets. Forex is the largest financial market in the world and trades global currencies in real time. In order to excel at Forex, you should be aware of basic Forex terminology. Here are some widely used terms.One of the most basic Forex terminologies is ask price. Ask price is the price a currency is offered for. When trading Forex, you will usually see both the ask price and sell price for each currency listed next to each other.
Base currency, stands for the currency that all your currencies are converted to once you close the trade. The base currency usually is the US Dollar for people doing business in America.
Going long and going short are also popular basic Forex terminologies. Going long means that you invest in a currency for the long term. Going short means that you sell a currency that is not yet owned by you- the seller. Going short can be a great way to profit in certain situations, but can involve high risk.
Pip is also a popular basic Forex term. Pip stands for the difference between the bid price and the asking price. The range is also an important term because it offers the seller information on the highest and lowest prices of currencies being offered.
So if you are interested in trading Forex, it is important that you read and understand the above basic Forex terminology.
Recent Forex News
Technical Analysis
GBPUSD: Bearishness Remains Dominant
Outlook for the pair continues to point to the downside after bear pressure pushed GBP further lower the past week. This is coming on the back of its previous week losses and has now opened up further downside risk towards the 1.5326 level, its Aug 31'10 low. On a turn
EURUSD: Set For More Gains
Having closed strongly higher on the back of previous week strength, further bullish threats are now likely as we enter a new week. This technical development should call for more strength towards its Aug 18'10 high at 1.2921 with a violation there targeting the 1.3332 level. A break will resume
USDCAD: Collapses, Halts Upside Offensive
USDCAD: The pair ended the week lower after an attempt on the upside failed the past week and pushed USDCAD to a low of 1.0384 on Friday. With that said, we think a follow through lower should see the pair weakening further towards the 1.0246 level, its Aug 19’10 low
Weekly Technical Update: Greenback Weakened Post Non-Farm Payroll
The USD was in consolidation/ correction mode this week ahead of the NFP. This is in a sense the market's way of paring some overextended USD gains, but also offers a chance for the market to continue with greenback strength. There was some dollar strength immediately after the release, but
USDJPY: Retains Its Broader Downside Bias
USDJPY: The pair continues to retain its broader downside bias as it looks to recapture its YTD low at 83.58 despite its price hesitation. A breach of there will open the door for more downside towards the 82.00 level, its psycho level with a cut through there aiming at the 81.00 level.
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Fundamental Analysis
Dollar Index Falls to Support on Better Job Data
The dollar, while rising against the yen and Swiss franc, fell versus other key counterparts after better-thanexpected US employment data eased concern of a double-dip recession. For the week, all the major crosses except sterling rose against the greenback. Private-sector payrolls grew more than expected in August and job losses
Weekly Economic and Financial Commentary
For a generation of Americans brought up on action heroes who face impossible challenges and then win the day, the results of fiscal and monetary stimulus are disappointing. Yet, the level of pessimism and talk of a double-dip strike us as too much of a bad thing. This week we
The Weekly Bottom Line
We had some fairly positive data this week, starting with expansions in both personal income and consumption for the month of July. Then the Conference Board's consumer confidence index surprised market expectations on the upside and the ISM manufacturing index also fared better than expected underpinned by a surprisingly strong
Risk Rebounds on Improving Global Data
The past week began with disappointment stemming from Japan's lack of direct currency intervention and risk aversion looked probable to continue into the week. This was not the case as better than expected Australian 2Q GDP started a ripple effect culminating into a global wave of positive data surprises. Upbeat
Is this an Audacious Obama Hope Rally?
The strong rally in risk into today's close in the US today can't be about this week's economic data particularly as the ISM non-manufacturing index for August showed a steep deceleration. So why the rally? The combination of an equity rally and a lousy ISM resulted in the predictable
Newsfeed display by CaRP
Technical Analysis
GBPUSD: Bearishness Remains Dominant
Outlook for the pair continues to point to the downside after bear pressure pushed GBP further lower the past week. This is coming on the back of its previous week losses and has now opened up further downside risk towards the 1.5326 level, its Aug 31'10 low. On a turn
EURUSD: Set For More Gains
Having closed strongly higher on the back of previous week strength, further bullish threats are now likely as we enter a new week. This technical development should call for more strength towards its Aug 18'10 high at 1.2921 with a violation there targeting the 1.3332 level. A break will resume
USDCAD: Collapses, Halts Upside Offensive
USDCAD: The pair ended the week lower after an attempt on the upside failed the past week and pushed USDCAD to a low of 1.0384 on Friday. With that said, we think a follow through lower should see the pair weakening further towards the 1.0246 level, its Aug 19’10 low
Weekly Technical Update: Greenback Weakened Post Non-Farm Payroll
The USD was in consolidation/ correction mode this week ahead of the NFP. This is in a sense the market's way of paring some overextended USD gains, but also offers a chance for the market to continue with greenback strength. There was some dollar strength immediately after the release, but
USDJPY: Retains Its Broader Downside Bias
USDJPY: The pair continues to retain its broader downside bias as it looks to recapture its YTD low at 83.58 despite its price hesitation. A breach of there will open the door for more downside towards the 82.00 level, its psycho level with a cut through there aiming at the 81.00 level.
Newsfeed display by CaRP
Fundamental Analysis
Dollar Index Falls to Support on Better Job Data
The dollar, while rising against the yen and Swiss franc, fell versus other key counterparts after better-thanexpected US employment data eased concern of a double-dip recession. For the week, all the major crosses except sterling rose against the greenback. Private-sector payrolls grew more than expected in August and job losses
Weekly Economic and Financial Commentary
For a generation of Americans brought up on action heroes who face impossible challenges and then win the day, the results of fiscal and monetary stimulus are disappointing. Yet, the level of pessimism and talk of a double-dip strike us as too much of a bad thing. This week we
The Weekly Bottom Line
We had some fairly positive data this week, starting with expansions in both personal income and consumption for the month of July. Then the Conference Board's consumer confidence index surprised market expectations on the upside and the ISM manufacturing index also fared better than expected underpinned by a surprisingly strong
Risk Rebounds on Improving Global Data
The past week began with disappointment stemming from Japan's lack of direct currency intervention and risk aversion looked probable to continue into the week. This was not the case as better than expected Australian 2Q GDP started a ripple effect culminating into a global wave of positive data surprises. Upbeat
Is this an Audacious Obama Hope Rally?
The strong rally in risk into today's close in the US today can't be about this week's economic data particularly as the ISM non-manufacturing index for August showed a steep deceleration. So why the rally? The combination of an equity rally and a lousy ISM resulted in the predictable
Newsfeed display by CaRP