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Forex

  • An Authorized Forex Dealer is any financial institution that has received approval from a regulatory body to act as a dealer for the act of buying and selling currencies.
  • The base currency is the first currency quoted in a currency pair. The base currency is often referred to as the parent currency and exchange rates are quoted in per unit of the base currency.
  • The "Big Figure" in the Forex world refers to the first 2 or 3 digits of a price quote on a forex rate or price.
  • A blocked currency is primarily used for domestic transactions and is not traded on the Forex.
  • The cross rate is the currency exchange rate between two currencies, where neither of the currencies are of the country in which the exchange rate is given.
  • A currency basket is basically the mutual fund for currencies.
  • The currency carry trade is created by simply borrowing funds at a low rate and investing these funds into higher yielding assets.
  • A currency swap is an agreement between two parties to exchange a currency after a specified period of time.
  • The Euro Libor is the Libor rate denominated in Euros.
  • Exotic Currency is a thinly traded currency.  Examples of an exotic currency would be the Iraqi dinari or the Uruguay peso.
  • Forex Arbitrage is a trading strategy where a forex trader attempts to make small gains in a short period of time by exploiting the pricing inefficiencies of the currency pairs.
  • Learn about the basics of the Forex market before you begin trading. Define your Forex trading strategy and broker.
  • A forex mini account is a type of brokerage account capable of buying and selling a contract on forex at one-tenth the size of a standard lot.
  • Forex Trading involves trading currency pairs involving the currency of the largest countries in the world.
  • The forex market trades 24 hours a day 5 days a week. There are four primary time brackets where the majority of trading on the forex takes place.
  • The US dollar is the currency of the United States.  It is currently in a multi year bear market.
  • PIP is an acronym for percentage in points. This percentage in point represents the smallest value of measurement for currencies on the forex market  
  • A xenocurrency is a currency which trades outside of its home country.