foreign exchange
Forex Glossary – Kiwi
Dealer slang for the NZD/USD currency pair.
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Forex Glossary | Hedging
The practice of opening several positions at once where one position minimizes the risk of another position.
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Forex Glossary | Fundamental Analysis
This type of analysis focuses on the macroeconomic factors that influence the value of a country’s currency. Traders open positions based on how they think changes in these factors are bound to affect different economies.
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Forex Glossary | FED
The Fed is short for Federal Reserve, which is the central banking system of the United States. The Fed issues announcements regarding U.S. monetary policy which can have significant effect on the Forex market.
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Forex Glossary | Currency Pair
The two currencies that the exchange rate is comprised of. One of the currencies is bought, and the other is sold at the same time.
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Forex Glossary | Cross Rate
A price quote consisting of any currency quoted against a currency that is not the USD. The quote is made up of the individual exchange rates of the two currencies against the USD.
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Forex Glossary – Counter Currency
The counter currency is the second currency in any currency pair. Its value is determined against the base currency’s value. For example, in the following currency pair EUR/USD, the counter currency is USD.
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Forex Glossary – Cable
Also known as Sterling. Dealer slang for the GPB/USD currency pair.
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Forex Glossary – Buy Price
The buy price (right quote display) is the price at which traders can buy the base currency. If you think that the EUR value will increase then you can choose to buy it for USD at the price displayed in the ask quote.
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Forex Glossary – Bid Price
The bid price (left quote display) is the price at which traders can sell the base currency. If you think that the EUR value will decrease then you can choose to sell it for USD at the price displayed in the bid quote.
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