Forex Gossary 
Most Important Terms

Discover a wealth of financial terms and definitions that every trader should know.
Adjustable Peg
An adjustable peg is a system used by a country to manage the exchange rate of its currency. It’s a hybrid system between a fixed exchange rate and a floating exchange rate.
Aggregate Risk
Aggregate risk refers to the combined or total exposure an entity has to various individual risks. It essentially looks at the big picture of potential risks, considering how they might interact and amplify each other’s impact.
Aggressive
In the forex market, aggressive trading refers to a trading style characterized by taking on higher levels of risk in pursuit of potentially larger profits.
Analyst
An analyst is a professional who collects, interprets, and analyzes data to extract valuable insights and inform decision-making. They work in various fields, and their specific responsibilities and areas of expertise can differ depending on the industry and their role.
Agio
In the context of foreign exchange (forex) trading, agio refers to the premium or difference between the nominal value of a currency and its actual value in another currency.
Arbitrage
In the world of finance, arbitrage refers to a risk-free trading strategy that exploits price discrepancies between different markets or exchanges. It essentially involves buying an asset at a lower price in one market and simultaneously selling it at a higher price in another market, locking in a quick profit.
Ask
In the context of forex trading, the ask price refers to the price at which a seller is willing to sell a specific currency pair. It represents the minimum amount of the quote currency (the second currency in the pair) a seller is willing to accept in exchange for one unit of the base currency (the first currency in the pair).
Aussie
“Aussie” is a common slang term used in the forex market to refer to the Australian dollar (AUD)
Average True Range (Atr)
As you previously mentioned, the Average True Range (ATR) is a volatility indicator used in technical analysis to measure the average price fluctuation of a security over a specific period. It takes into account the high, low, and closing prices of the security, as well as the absolute difference between the previous day’s close and the current high and low prices.
What are Fundamental Forex Terms?
  • Fundamental Forex Terms
    Decipher the essential vocabulary related to economic indicators, central bank policies, and other factors driving currency values.
  • Technical Forex Terms?
    Unravel the code of technical analysis, deciphering chart patterns, indicators, and trading strategies used to forecast price movements.
  • Forex Market Mechanics
    Gain a comprehensive understanding of the inner workings of the forex market, including order types, execution methods, and various market participants.
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Forex Glossary FAQs

A Forex Glossary serves as a comprehensive reference guide for traders, providing definitions and explanations of terms and concepts commonly used in the foreign exchange (Forex) market.

  • Terminology Definitions: Forex Glossaries include definitions of essential terms such as pips, lots, leverage, margin, spreads, and currency pairs, helping traders understand the language of the Forex market.
  • Concept Explanation: In addition to defining terms, Forex Glossaries often offer explanations of fundamental concepts such as technical analysis, fundamental analysis, risk management strategies, and order types commonly used in Forex trading.
  • Educational Resource: Forex Glossaries serve as an educational resource for traders of all levels, from beginners to experienced professionals, aiding in the development of a solid understanding of Forex trading principles and practices.

Traders utilize Forex Glossaries as a valuable tool to enhance their understanding of Forex terminology and improve their trading skills.

  • Terminology Clarity: By referring to a Forex Glossary, traders can clarify the meanings of unfamiliar terms encountered in trading platforms, analysis tools, or educational resources.
  • Strategy Development: Understanding Forex terminology is essential for developing effective trading strategies. Traders use the Glossary to grasp the nuances of concepts like support and resistance levels, trendlines, and candlestick patterns.
  • Communication and Collaboration: A common understanding of Forex terminology facilitates communication and collaboration among traders, brokers, analysts, and other participants in the Forex market, enhancing information sharing and collaboration.

Forex Glossaries encompass a wide range of terms and concepts relevant to the Forex market, providing a comprehensive resource for traders seeking to expand their knowledge base.

  • Currency Pair Terminology: Forex Glossaries cover terms related to currency pairs, including base currency, quote currency, major pairs, minor pairs, and exotic pairs.
  • Trading Strategies and Analysis: Terms associated with trading strategies (such as scalping, swing trading, and carry trading) and analysis methods (like technical analysis indicators and fundamental analysis metrics) are included to aid traders in strategy development and decision-making.
  • Brokerage and Platform Terminology: Glossaries also explain terms related to brokerage services and trading platforms, including order types, account types, trading hours, and commission structures, helping traders navigate the operational aspects of Forex trading.
If you have more questions visit FAQ Page
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