Profiting from differences in the price of a single currency pair that is traded on more than one market.
The price at which sellers are willing to sell a currency pair, also known as the ‘offer’, ‘ask price’.
Dealer slang for the AUD/USD currency pair.
A popular format for studying the price action of currency pairs
In terms of Forex Market trading, currencies are quoted in terms of a currency pair. The first currency in the pair is the base currency. The base currency is the currency against which exchange rates are generally quoted in a given country. Examples: USD/JPY, the US Dollar is the base currency; EUR/USD, the EURO is the base currency.
An extended period of general price decline in the market.
The price at which an investor can place an order to buy a currency pair; the quoted price where an investor can sell a currency pair. This is also known as the ‘bid price’ and ‘bid rate’.
The first two or three digits of a foreign exchange price or rate. Examples: USD/JPY rate of 108.05/10 the
big figure is 108. EUR/USD price of 1.1325/28 the big figure is .13
The term Great Britain pound is commonly used in less formal contexts, although it is not an official name of the currency of the United Kingdom. The full, official name, pound sterling, (plural: pounds sterling) is used mainly in formal contexts and also when it is necessary to distinguish the United Kingdom currency from other currencies with the same name.
An agent, who executes orders to buy and sell currencies and related instruments either for a commission or on a spread. Brokers are agents working on commission and not principals or agents acting on their own account. In the Forex market brokers tend to act as intermediaries between banks bringing buyers and sellers together for a commission paid by the initiator or by both parties. There are four or five major global brokers operating through subsidiaries affiliates and partners in many countries.
A market which is on a consistent upward trend.
An order to execute a transaction at a specified price (the limit) or lower.