FOREX RESERVES DEFINITION
Forex Terminology For Beginners
Online Forex Glossary provided by Etoro.com
Ask (Offer) – the price of the offer, the price you buy for.
Bear - If someone has a negative view of a particular currency and believes that its price will decrease, they are said to be ‘bearish’ about that currency.
Bid (Demand) -the price of the demand, the price you sell for.
Bull - If someone has a positive view of a particular currency and believes that its price will increase, they are said to be ‘bullish’ about that currency.
ECB (The European Central Bank) – the main regulatory body of the European Union financial system.
Fed (The Federal Reserve) – the main regulatory body of the United States of America financial system, a division of which, the FOMC (Federal Open Market Committee), regulates, among other things, federal interest rates.
Fundamental Analysis – a Forex analysis based only on news, economic indicators and global events.
GDP (Gross Domestic Product) – this is a measure of the national income and output for a given country’s economy. It is one of the most important Forex indicators.
Limit - A limit is placed on a trade so as to exit it after a speculator has gained the expected number of pips.
Long - Trading a currency under the assumption that its price will rise – a ‘buy’ trade..
Loss – the loss from closing long position at lower rate than opening or short position with higher rate than opening, or if the profit from a position closing was lower than broker commission on it.
Lot – definite amount of units or amount of money accepted for operations handling (usually it is a multiple of 100).
Momentum – the measure of the currency’s ability to move in any given direction.
Moving Average (MA) – one of the most basic technical indicators. It shows the average rate calculated over a series of time periods. Exponential Moving Average (EMA), Weighted Moving Average (WMA) etc. are just the ways of weighing the rates and the periods.
Open Position (Trade) – position on buying (long) or selling (short) for a currency pair.
Order – order for a broker to buy or sell the currency with a certain rate.
Pip - Means Price Interest Point and refers to the smallest digit in any pricing, so if GBPUSD rose from 1.9443 to 1.9450, it rose 7 pips.
Pivot Point – the primary support/resistance point calculated basing on the previous trend’s High, Low and Close prices.
Principal Value – the initial amount of money of the invested.
Profit (Gain) – positive amount of money gained for closing the position.
About the Author
Dan Lares is a Forex analysist at Etoro.com
China ’s gold reserves 1of2 growing by leaps and bounds