Trading terminology

Investing in financial markets can be daunting because of the terminology used, it also makes the world of trading (which is in my oponion educated gambling) seem more glamorous.
Heres some of the more common trading terminology and what it means.
PIP - Used in the world of FOREX Trading, PIP stands for Price Increment Point and is the smallest unit of trading in FOREX.
FOREX - FOREX stands for FOReign EXchange, and is the trading of one currency pair against another.
SPREAD - The point or pip difference between the ask and bid price of a currency pair, spread is how forex brokers make they're money.
ASK -The ASK price is the price at which you can buy units or PIPS of whatever it is your trading for.
BID - The BID price how much you can sell for in your chosen market.
BULL - To buy stocks, shares or whatever. You would be a bull if you beleived what ever you were trading was going to increase in value.
BEAR - To sell you would be a bear if you beleived what ever you were trading was going to fall in value.
Leverage - The ability to control large volume of a commodity with a comparatively small amount of capital. Leverage is what enables small investors to participate in markets such as forex, without leverage you would need a lot of risk capital.
Risk Capital - Money that you can afford to lose.

Heres some free eBooks
Forex eBook - Read and Learn
stock market
amazing forex

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Andrei:

Nice info, but I think you should add more terms as Forex is full of them.

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