Big Talker - Learning the Language of the Forex Market
Written by admin on March 20, 2008 – 9:51 am -To succeed as a Forex trader, you need to know how to speak the lingo. Here is a little quiz. How many of the following words and meanings can you match?
The difference between the right word and almost the right word is the difference between lightning and a lightning bug. ~Mark Twain
Forex is a multi-national world encompassing many cultures and languages.
Yet, it has a language all its own. If you have ever traveled abroad or found yourself in a place where you didn’t understand the language spoken around you, then you know how frustrating it can be not to understand what people are saying around you.
Even more frustrating is the experience of understanding the language, but being unable to cipher the meaning of the words. Every industry has its own subculture and its own language. The simplest – and sometimes – oddest words or phrases may communicate a great deal of information.
To succeed as a Forex trader, you need to know how to speak the lingo.
Here is a little quiz. How many of the following words and meanings can you match?
| 1. Agio | a. a less broadly traded currency |
| 2. Settlement | b. one unit of price change |
| 3. Call rate | c. actual physical exchange of one currency for another |
| 4. Kiwi | d. action by a central bank to reduce supply in order to increase price of a currency |
| 5. Retracement | e. the price at which the currency or instrument is offered |
| 6. Exotic | f. the overnight interbank interest rate |
| 7. Whipsaw | g. difference in the value between currencies |
| 8. Pip | h. a sharp price movement followed by a sharp reversal |
| 9. Squeeze | i. slang for New Zealand dollar |
| 10. ask | j. temporary reversal in overall market trend |
In addition to the vast vocabulary of words, there are plenty of phrases and acronyms peculiar to the Forex. Not to worry! Forex veteran and expert trader Dustin Pass has developed and produced a complete glossary of Foreign Exchange Market (a.k.a., Forex or FX) terms. Better still, he offers it free of charge.
To receive your FREE Forex Trader’s Daily Glossary, click here.
You will be surprised just how much you can learn about the Forex just by learning the lingo. Why settle for lightening bugs when you can harness the lightening?
[tags]forex, forex trader, forex guide, forex glossary, forex terms, dustin pass[/tags]
Posted in Easy Forex |