It is well known that the internet provides a wide range of possibilities to get a success in your business, especially if you are an online trading professional. Yes, the most of the forex traders have used the internet for earning more money without spending too much of their own money. In that manner, the forex trading provides a lot of features in earning money in the best way for making the bright future. So, most of the people like to trade on the forex market through the internet. However, it is not an easy thing to trade, but it needs some knowledge and skills to obtain enough money through trading. In this manner, getting the knowledge of forex will surely make you more profitable than before. As a beginner in the forex trading industry, you may not know what it is and there are some forex trading terms are used. So, you need to know about them. This article provides you the meaning of different terms that are used in the forex trading market.
Terms used in the forex market
As you see, the Forex trading is simply known as the foreign exchange and it is the buying and selling of the currency of a country in order to turn a profit. If you have enough knowledge about the forex trading, then you can surely get enough features in getting the money with the best manner. In that manner, if you are a beginner in the forex trading industry, then you need to know some of the common terms that are used in the forex market and they are listed as below.
· Account
· Ask price
· Asset allocation
· Base currency
· Cross rates
· Currency
· Fixed exchange rates
· PIP
· Limit order
· Exotic currency
· Hawkish
· Dovish
In that manner, these are some highly used terms in the market and so it is better to know about these terms to get knowledge about getting the features in the most effective manner. In such a way, the account is the specified personal account which is opened with the respective forex company by the client. As well as, this account is used to balance the responsibilities of the client and the dealer.
Then, the ask price is the rate which is decided by the seller to sell his base currency. Furthermore, the base currency is also the currency in which the investor maintains his account.
Other terms in the forex market
The term PIP in the forex market denotes the smallest change in the value of the currency exchange rate which can make either decrease or increase. In addition to that, the limit order is the process of controlling the profit or loss by the investor.
Hawkish is the term to explain any forex trading person or the group which takes the immediate aggressive action in the particular financial situation. Dovish is also the same thing which can be made as the passive action in response to the economic event.
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