The foreign exchange thesaurus will furnish you with understanding on the meanings of the entire common standards you can also stumble upon when trading the forex market.
Forex Glossary
Open Position
It means that the trader has any role within the foreign exchange market. For example, if the investor is shopping or selling in GBPUSD parity, this individual has an open position.
Compound Interest
Compound curiosity is the addition of curiosity to the major sum of a mortgage or deposit.
Buying Rate
It is known as the rate at which the investor can buy the instrument to be invested.
Broker
In the foreign exchange market, it’s the character or college that brings the customer and seller together and obtains middleman income between these two parties.
Bear Market
A endure market is a common decline within the stock market over a period of time. It includes a transition from excessive investor optimism to general investor fear and pessimism.
Leverage
It is a system that enables buyers to take situation in monetary markets with much less capital and bigger volumes. For instance: If the highest leverage ratio used in the market is 1: 100, a transaction of $ 100,000 will also be made with a capital of $ 10,000. Revenue and loss is calculated over the volume of these transactions.
Margin
The deposit required to open or keep a function. Margin can be either “free” or “used”. The used margin is that amount which is being used to hold an open function, whereas free margin is the quantity available to open new positions.
