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?