forex exchange
Forex Glossary | Price Trend
A consistent movement of currency prices in a certain direction. Traders try to spot trends in order to capitalize on their potential. Click here to learn more about trends.
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Forex Glossary | Point
Point is the smallest price increment in the last digit in the rate – usually the fourth digit after the decimal point (apart from the USD/JPY).
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Forex Glossary | PIP 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 | PIP
Pip is the smallest price increment in the last digit in the rate – usually the fourth digit after the decimal point (apart from the USD/JPY).
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Forex Glossary | Offer Price
The offer 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 | Margin
The minimal cash deposit that you have to put up for the transaction. Trading forex on margin increases your buying power, but it can also increase your losses.
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Forex Glossary – Lot
The standard unit of trading. One standard lot equals 100,000 units of the base currency, a mini lot equals 10,000 units, and a micro lot equals 1,000 units. eToro’s standard trade volume is the mini lot.
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Forex Glossary – Loonie
Dealer slang for the USD/CAD currency pair.
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Forex Glossary – Long Position
Going long means opening a position in which the trader buys currency in hopes that this currency’s value will increase (buy low, sell high).
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Forex Glossary | Leverage
Leverage is a loan from your broker, which enables you to trade with a small amount of capital. It can increase your potential profit, but it can also increase your risk.
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