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What Is Forex Trading?
Ken Charnley
Appreciation ? Appreciation describes when currency rises in value on the Forex market.
Bear ? A bear market describes the Forex trading market when prices for currency are steadily falling.
Bull ? A bull market describes the Forex trading market when prices for currency are steadily rising.
Cross ? A cross is the word for a trade of one currency for another on the Forex trading market. It is called a cross because the one currency crosses the other as they change hands.
Depreciation ? Depreciation describes when currency falls in value on the Forex trading market.
Long ? This is the term used to describe the action of buying currency on the Forex trading market. A long position will turn a profit if the market prices rise.
Majors ? Majors are the most popularly traded cross exchanges. They include USDJPY, GBPUSD, EURUSD, and USDCHF.
Margin ? A margin is the amount of the trade that must actually be paid when it is placed. It is sometimes as low as 2 percent.
Pip ? A pip is the smallest amount of difference that is noted in the price change of currency.
Short ? This is the term used to describe the action of selling currency on the Forex trading market. A short position will turn a profit if the market prices fall.
Spread ? The spread describes the difference between the selling price for currency and the buying price.
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