Oct 19

If it is not enough that God came down from the heavens to see the Tower of Babel, and then separate each soul by a foreign language so that they could not talk to one another but now here lies a terminology, a language, to be used amongst the masses of foreign exchange so that they can understand one another leaving non-Forex citizens out of the loop.

I frolicked in to learn the terminology of the Forex player’s world of language and indeed it looked like babble. But for the foreign exchange inhabitants it all makes perfect sense. With shortened phrases, acronyms, and idioms to explain what they need and want during the speeches of exchanges and trades, it is only a language which the traders know best. And it is imperative for any new or experienced Forex civilian to know and be comfortable with the language.

Without any question, not being educated and fully prepped in this speech to converse with fellow speakers you will be left in the dust. Confused by the terminology or not being aware of sayings they use, you can forget about embarking on the career of a Forex trader all together. At lease for now.

Forex is the leading financial market of the world and trades all global currencies in real time. To shine in any way in the Forex market the basic language is a must.

Basic terminology

To get by in the utmost way one must know at least the basic terminology of the Forex globe.

Bullish, if you are bullish you have a general tendency to trade on the long side of a currency pair and believe that pair will increase in price.

Bearish, if you are bearish you will have a general tendency to trade on the short side of a currency pair and believe that pair will decrease in price.

Going long refers to buying a currency pair with the hope that the price will go up.

Going short means that you sell a currency that is not yet owned by you, the trader. The hope here is that the price will go down and you can but the currency pair back at a lower price than you sold it at.

Pip, as funny as it may sound, is popular as well. A pip is simply the smallest price change that a currency pair can make. It generally is equal to 10USD on full size lots of 100,000.

Range is also used, it defines itself my offering the seller information on the variety of prices being offered. The range gives the highest and lowest prices of the currencies.

There are tons of websites, and dictionaries that offer a full range of definitions for the Forex world of language. If you are interested in a Forex trading career you must be fully prepped on the terminology needed for conversation. If you are not you will be one of the lost souls roaming around not being able to talk to any of your fellow Forex inhabitants.

And nobody wants that, do you?

Aug 21

Forex‘ is generally known as the ‘foreign exchange market‘. This exchange market deals with the trading of currency from one trader/business to another. With the value of foreign currencies increasing a decreasing all the time, traders are able to buy foreign goods at a foreign price, and re-sale them at their own currency price, thus making a profit. ‘Forex’ initially began in the 1930’s and has since grown drastically with a number of extremely large businesses and small traders/businesses trading 23 hours a day, 5 days a week. There is now almost £1.7 trillion traded each day, with this amount rapidly increasing each year. ‘Forex’ came about when in the 1970’s when countries currency exchange rates switched to floating exchange rates rather then the fixed exchange rate, that had been created just after World War 2. After World War 2, there was a great urge to start the re-building of the world’s economic system. To help this 44 allied nations met in Bretton Woods, New Hampshire, United States to sign an agreement that would create a fixed trading currency throughout these nations.

After three weeks of deliberating it was agreed that from then on that every nation’s currency value would be fixed to that of the American dollar with only a small margin allowance. Furthermore many countries were able to equal out the currency value with an equivalent amount of gold. Not one of these nations was allowed to devalue their currency by any means, thus helping the economy stay reasonably stable for a good while. This ‘Bretton Wood’s agreement’ which was agreed a signed in July 1944 did however then change due to the system suddenly collapsing in 1971. Subsequently the USA had ended the convertibility of dollars to gold causing an increased strain amongst the world’s economy. Since then, the alteration of fixed currency rates to floating currency rates has allowed many businesses around the world to turn over a large profit from trading. This way of trading value’s of currency could be a great risk to many investors, however because the trading counter is always open there is believed to be a good deal of market liquidity.