Welcome to Forex Geekiologie! Here is a list of words that are commonly used in the forex world and throughout the Forex Diva Coffee Break course. You may want to come back to this forex dictionary at every stage of your forex learning/trading process. Don’t let a word go without knowing exactly what it means!
|
Forex Term |
Meaning |
| Long | Being in a BUY position |
| Short | Being in a SELL position |
| Bullish market | Prices are rising |
| Bearish market | Prices are falling |
| Bid | The price in which the trader is willing to buy the base currency |
| Ask | The price the broker is willing to accept from the trader. This price is always higher than the bid. |
| Spread | The difference between the bid/ask price. This is how most brokers make money. |
| Range | The difference between the highest and lowest price in a given trading period |
| Resistance | An estimated price level at which a currency pair has trouble breaking above. You can sell at this price. |
| Support | A price level at which a currency pair has trouble falling below. You can buy at this price. |
| Rally | An increase of price after a period of decline. |
| Consolidation | When the prices are neither trending up nor down. |
| Pips | The smallest value change in a currency pair exchange rate. |
