• Ask price:  The price at which someone is willing to sell their currency for another or the price at which a trader can purchase a financial instruments. Also known as offer price.
  • Bid price: The price at which a trader is willing to buy a financial instruments.
  • Ask/Bid spread: The difference between ask and bid price.
  • Broker: An individual or organization who help to buy and sell financial instrument on behalf of buyer and seller.
  • Closed position:  A closed position is where a currency’s position is eliminated by buying or selling.
  • Day traders: A trader who generally open and close position within a day rather than long term trading.
  • Going short: The process of selling of a foreign currency that is not own by the seller.
  • Hedge: A trading strategy that allowed to an investor to reduce the risk of adverse price movement by taking position
  • Initial margin: The minimum payment to acquire a new security that acts as a guarantee for future performance.
  • Leverage: The ratio of actual investment and the margin.
  • Open position:  Any position those are not eliminated by payment or similar opposite deal.
  • Base currency: The first currency of a currency pair.
  • Portfolio: A collection of financial instrument.

 

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