The forex is a decentralized global market all around the World. On this market the world's currencies traded. The daily turnover in these days (2018) around 5 Trillion USD. We also known as FX, foreign exchange or currency trading. This market is the most liquid, most volatile and MOST DANGEROUS to all clients are trading on. The prices are moved by the participants and the macroeconomic datas can see in the economic calendar under the HOME botton.
The Forex trading key words:
Currency Pairs: The trading pairs are very "coloured" and means one currency paired for other like EUR/USD, it is a deviza pair.
On the market we can find Major and Minor pairs. The major pairs are the followings, EUR/USD, USD/JPY, USD/AUD,
EUR/GBP, USD/CHF and the GBP/USD, all other are Minor currency pairs. Minors e.g. USD/HKD, USD/CHN, USD/ZAR,
USD/MXN ands so on.
Volatility: The volatility is the moving the rate of exchange of a currency pair inside a day. A currency pair is more volatile if the
rate of exchange price increase or decrease more fequently.
Base currency: The currency in ther pair what is first appearing in the currency pair quatation.E.G.: In the EUR/USD pir the
base currency is the USD.
Basis Point: The basis points are used in terms of interest rate. A basis point is1/100th of pecentage point, 0.01%. So when
we hear there is been a 50 basis point cat, than means 1/2% was cutted.
Technical Analysis: During the technical analysis we rely on the indicators on the chart and use the different kind of trend's forms and
candle sticks combinations and figurings.
Fundamental Analysis: The fundamental analysis is the analysing of the macro and micro economic data effect to the market.
Instruments: Listed and tradeable assets are called instruments, like currency pairs, row materials like gas, oil, differend kind
of sharings e.g. Microsoft, Caterpillar, metals, like gold, platinum and so on.
Spot Transaction: The spot trade is the purchase or sale of a foreign currency or other intruments for intant delivery.
Trend: We call as trend if a market instrument price are increase or decrease in long term.
Other high important informations: