SOME FOREX TERMINOLOGIES FOR THE NEW TRADER

 Forex trading is the transaction of national currencies by the means of exchang and it include many other thing now being the one trading mostly operated online not the known traditional method,most population. Here are some of the terminology one need to know well before taking part to the trading; but the topic needs citation;

1 pips.

2 leverage.

3 dividend.

4 day trade.

5 bid

6 close and open.

7 currency and currency pairs

8 major pairs

9 

These are some terminology you need to know as a beginner in forex trading:,

1. Pip: The smallest unit of measurement in forex trading, representing the change in value between two currencies.

2. Spread: The difference between the bid and ask price of a currency pair, which represents the cost of trading.

3. Leverage: The use of borrowed funds to increase the potential return on investment. It allows traders to control larger positions with a smaller amount of capital.

4. Margin: The amount of money required to open and maintain a leveraged position. It acts as a collateral for potential losses.

5. Stop Loss: An order placed to automatically close a trade at a predetermined price level, limiting potential losses.

6. Take Profit: An order placed to automatically close a trade at a predetermined price level, securing potential profits.

7. Long: Buying a currency pair with the expectation that its value will increase.

8. Short: Selling a currency pair with the expectation that its value will decrease.

9. Resistance: A price level at which selling pressure is expected to be strong, causing the price to reverse or stall.

10. Support: A price level at which buying pressure is expected to be strong, causing the price to reverse or stall.