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Forex Words to Remember


Jul.17.2013

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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.
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