You will find here definitions and help to understand these terms that the stubborn trading world insists you not to know. In a simple manner and vocabulary accessible to all, in this Forex Dictionary you will find sense to all the lingo used by professional traders kept accessible to a few until now.
In economy and investment there’s a golden rule: Don’t put your money in anything that you are able to explain what it is. Furthermore, your explanation must be so simple that your own granny must understand what you are talking about.
All the below definitions are an ideal supplement to my Forex Articles and Trading Strategies shared, as well as part of my PROfessional Price Action Trading Course.
A – B – C – D – E – F – G – H – I – J – K – L – M – N – O – P – Q – R – S – T – U – V – W – X – Y – Z
A
Analysis
B
Bear – Bearish
Binary Options
Broker
Bull – Bullish
C
Candlestick
Chart
Cryptocurrency
CFD – Contract For Differences
It’s a investment instruments in the derivative market, which would pay the difference in between the purchase and sell price (difference). It is settled in cash terms and there’s no exchange of goods involved. It is considered a complicated and risky instrument but a large majority of regulators. In forex trading you purchase 1 EUR/USD lot (EUR100,000) at 1.10 and sell it later at 1.15 Your profit would be 0.05 x 100,000 = EUR5,000. You have not own physical EUR at any point of time though.
D
Day Trading – Day Trader
E
Elliot Waves
F
Forex – Foreign Exchange
Fibonacci
Fundamental Analysis
Futures
G
H
Head and Shoulders – H&S
Holding or To Hold
I
Indicators
Intraday or Day-Trading
It’s a trading style based on the need of, all open trades during the day, to be closed before the current session ends, i.e. within the same day. Regardless the status of the trade, whether in profit or loss. Traders operating this style are referred as Day Traders. Likewise, trades open and closed within the same session are referred as Intraday.
J
K
L
Lot
Leverage
M
MACD
Market Makers – MM
Metatrader 4 – MT 4
Metatrader 5 – MT5
Moving Average
N
O
OTC – Over The Counter
P
Pip
Pair
Pin Bar
Price Action
Q
R
Rollover
RSI
S
Scalping – Scalper
SL or Stop Loss
Swing Trading
T
Technical Analysis
TP or Take Profit
It is the point, in our forex and trading operations, where we will fix when we want our trade to be closed with profits. This allows us, after analysing the market, a part from fixing our entry, fixing as well the highest/lowest point where we think our investment will reach adn take profit on the spot. Without the need of being in front of the screen the whole day, of course, like professional trader.