Terminologies Of Online Forex Trading
Whenever we enter a sector, it is best to come prepared; only then will we be able to succeed in that field, such as online forex trading. Various terms and terminologies are used in forex trading, and sometimes it cannot be very clear for some people, and they may get overwhelmed. So getting to know each term can greatly help traders in the long run.
Basic terms used in online forex trading
The first and the most important and common term of online forex trading is a Forex Account; it is necessary to make the trades of the currencies. Also, the forex account can be of three types; Standard Forex Account, Minin Forex Account, and Micro Forex Account, and all of these accounts vary depending on their size.
Another common term used in online forex trading is Ask, which states the lowest price at which a trader is ready to buy a currency. Generally, the asking price is higher than the bid price. This takes us to Bid this term describes the amount at which a trader is ready to sell a currency.
The person responsible for consistently putting out bids in the market in response to the buyers’ queries is known as the Market Maker. Usually, the bid prices are lower than the asking price, but if the demand is high, the bid price can go higher than the asking price.
Bear Market is used for the market where the prices are declining among the currencies. This market is used for signifying a downtrend in the market due to low economic fundamentals that may occur due to any natural disaster.
Another term used in online forex trading is the Bull market, which describes the market where prices increase for all currencies. This market reflects the uptrend due to some good news related to the global economy.