The Forex Language – Separated By Terminology
God came down from the heavens to see the Tower of Babel, being unhappy with what he saw God separated the people using foreign language as the barrier. Then here comes terminology another language used amongst the masses of foreign exchange. A language easily used within the Forex community which leaves the non-Forex citizens clueless.
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.
To not be prepped and educated in the use of this speech, to communicate with fellow speakers, will leave you out in the cold. A career of a Forex trader can be laid to rest if there is confusion of the terminology or an unawareness of the sayings they use. That is for now.
The leading financial market of the world is the Forex market which trades all global currencies in real time. A basic understanding of the language is a must to succeed at all in the Forex market.
Terminology in the basics
To get by in the utmost way one must know at least the basic terminology of the Forex globe.
1) Bullish- having the general tendency to trade on the long side of a currency pair and having the belief that pair will increase in price.
Bearish is having a general tendency to trade on the short side of a currency pair and believing 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.
5) Pip- a popular word meaning the smallest price change a currency pair can make. Generally it 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?
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