Being Clear About The Forex Terminologies
Being clear about the forex terminologies is very important when it comes to online trading forex. When you are reading through the technical material it is important for you to get to know the online forex trading terminologies applicable for the same. When you know them better you will be able to get a grasp of the situation far more quickly in forex trading platforms.
• Leverage (gearing) - The depositor only finances a particular fraction of the sum traded.
•Long - To purchase.
• Long position - A position that increases its value if market prices increase in iforex market.
• Liquid (-ity) - When you buy foreign currency the capability to be converted simply and with least loss into cash. A liquid market is one in which there is enough action to please both buyers and sellers. Ultra-short-dated treasury notes are a typical case of a liquid investment.
• Margin - The deposit necessary when entering into a position plus to hold an open position. Your margin status can be kept an eye on in the Account synopsis.
• NYSE - The New York Stock Exchange.
• Open position - A position in a currency that has not yet been compensated. For example, if you have bought 100,000 USDJPY, you have an open position in USDJPY up till you offset it by selling 100,000 USDJPY, thus “closing” the position.
• Over the counter - When forex trading takes place directly between two parties, rather than on an exchange. Over the counter trades can be modified as per the requirement whereas the exchange-traded products are often consistent.
