language in forex

language in forex

in transaction forex found several terms necessary you know to know system trading forex as follows:
currency pair (money eye pair)
currency in transaction forex always berpasangan for example eur/usd = 1,3000 that 1 euro 1,3 usd. currency beside right eur called base currency and situated beside left usd called quote currency. thereby mean if you buy a currency so you also sell another currency. example: buy eur/usd? buy eur and sell usd. in currency pair found 2 kinds currency that is merect and indirect. where dollar be base currency. in merect currency example eur/usd at the (time) of scale model rises has meaning euro menguat towards us dollar and on the contrary with indirect currency usd/eur that mean us dollar melemah towards euro.
point/pip (money eye movement unit)
currency movement will be evaluated in unit point/pip. example: pegera 1,3000 until 1,3100 100 point/pip. in also known term:
open: market opening price on certain.
close: market closing price on certain.
high: ceiling price on certain from price open.
low: bottommost price on certain from price open.
quote/rate currency
quote consist of price 2 directions that is bid price sells to dealer and original price buys from dealer. bid always smaller than original. price difference from bid and original called spread. example: eur/usd bid/original: 13000/02 mean price sells to broker 1,3000 and price buys from broker 1,3002 spread 1,3002-1,3000 = 2 point.
spot
operative currency value at that moment.
market order
market order trader will buy in original price at that moment or sell in price bid operative forthwith.
whoa loss
be limit-pricing that determined by trader where when does price move at variance with position that opened (example: open buy but price has moved to go down) so when does price nudge level whoa loss that determined position melikuidasi automatically that mean trader experience loss amount of level whoa loss that determine.
take profit
be limit-pricing that determined by trader where when does price move unidirectional with position that opened (example: open buy and price has moved to rise) so position melikuidasi automatically that means trader get profit amount of level take profit that determined.
pending order
pending order trader will buy or sell in price under or on price that operative (running). there 4 kinds pending order that is:
buy whoa: buy on price running
sell whoa: sell under price running
buy limit: buy under price running
sell limit: sell on price running
position long (buy)
where trader buy a currency with a purpose to sell then in price higher thereby trader get profit from market that rise or often called with bullish that is trend menguat a currency towards another currency.
position short (sell)
where trader sell a currency with a purpose to buy it then in lower price thereby trader get profit from market that go down or often called with bearish that is trend melemah a currency towards another currency.
bullish
bullish happen when price experiences increase then menerus.
bearish
bearish happen when price experiences penerunan then menerus.
volume
trade contact total (lot) that still in position open or not yet melikuid.
used margin (margin that use)ed
used margin full scale need margin from entire open position and entry order that mobile that counted according to real time.
lot
lot transaction contract unit.
contract size
be factor coefficient in profit calculation and loss. formula to count contract value:
profit/loss = ((selling price – buying price) x contract size x lot) – (commision x lot)
leverage
leverage fund total that need as guarantee and will return at the (time) of close position. for example leverage 1: 100 mean margin that wanted 1% from quantity trading. example: leverage 1: 100 trade quantity 300 so you must has minimal fund 3 in account you.
margin call
margin call limit leverage that permitted by broker. at the (time) of account you will exceed leverage maximum so automaticly existing transaction melikuidasi automatically.