Forex Glossary

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• Bear Market - A market where the prices are moving down
• Bull Market - A market where the prices are moving up
• Cable Market - Foreign exchange term used for the GBP/USD currency pair
• Candlestick Chart - A chart indicator used to identify potential market change of direction
• Currency - Any form of legal tender, the most actively traded are USA, Canada, UK, France, Euro & Japan
• Currency Pairs - A currency pair depicts a quotation of two different currencies
• Economic Indicator - Economic indicators allow analysis of economic perfornce and predictions of future performance
• Foreign Exchange Market - The foreign exchange market (currency, forex, or FX) trades currencies
• Fundamental Market Analysis - Fundamental analysis of a business involves analyzing its financial statements and health
• Long - Means the holder of the position owns the security and will profit if the price of the security goes up
• Risk - The convention is to focus only on potential negative impact to some characteristic of value that may arise from a future event
• Point(aka pip) - Smallest price change that a given exchange rate can make
• Resistance Trend Line - The upper level of the market where it is considered the market price will
  go no further
• Short - The practice of selling
• Spread - The difference between the price quoted by a market maker for an immediate sale (bid)
  and an immediate purchase (ask).
• Stop Loss - market order to close a position
• Support Trend Line - The lower level of the market where it is considered the market price will
  go no further
• Technical Analysis - The use of technical indicators e.g., as moving averages and trend lines
  to identify market movements

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