Forex Glossary

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Ask
The price at which the market agrees to sell a specific currency pair.

Bid
The price at which the market has agreed to buy a specific currency pair.

Broker
Courtier

Cable
The pair GBP / USD trader jargon

Day Trading
Open and close one or more positions in a single day.

Fed - Federal Reserve
The U.S. central bank.

Flat / Square
Being flat, do not hold positions or positions logues shorts - Being outside the market.

Forex
Acronym for Foreign Exchange - Currency Market.

Hedging
Practice of positioning itself on an investment in order to protect themselves from fluctuations in other investment - Ex: short jump on a pair to protect a long beforehand.

High / Low
Generally the highest (lowest) price tradée during the day.

Interbank rates
The courses that large international banks to exchange currency with other large international banks.

Long (position)
A market position where the Client has bought a currency not hold before. Being long on EUR / USD back to Euro long (buy) and short dollar (selling).

Pip
Term used in the currency markets to represent the smallest possible change to a pair considered. Ex: EUR / USD = 1.2200, a fluctuation of 0.0001 to 1 pip - USDJPY = 111.28, a fuctuations of 0.01 to 1 pip.

Short (Position)
A market position where the Client has sold a currency not hold before. Being short EUR / USD returns to be short EURO (sale) and DOLLAR long (buy).

Spread
Difference between the bid and sale price for a pair in question. Example: EUR / USD 1.2200/1.2203, the spread is 3 pips.

Trailing Stop
Stop order following the bull market if the market is bullish, or down if the market is bearish to follow an open position and secure profits.

Yard
Billion in financial jargon