Forex & Currency

The lowest price at which a seller is willing to sell a currency pair, also known as the offer price — the price a trader pays when buying.

The first currency listed in a currency pair, representing the unit being bought or sold, with the exchange rate indicating how much of the quote currency is needed to purchase one unit of it.

The highest price at which a buyer is willing to purchase a currency pair — the price a trader receives when selling.

A forex market nickname for the GBP/USD currency pair, derived from the transatlantic telegraph cable that transmitted exchange rates between London and New York in the 19th century.

A forex strategy where a trader borrows a low-interest-rate currency and invests in a high-interest-rate currency, profiting from the interest rate differential.

Direct action by a central bank to buy or sell its own currency in the foreign exchange market to influence the exchange rate.

A currency pair that does not include the U.S. dollar, such as EUR/GBP or AUD/JPY, requiring an implicit conversion through the dollar.

A weighted group of selected currencies used to measure the value of another currency, set exchange rate policy, or diversify currency exposure in investment portfolios.

A deliberate downward adjustment of a currency's value relative to another currency or standard, typically carried out by a government or central bank.

Standardized, exchange-traded contracts obligating the buyer and seller to exchange a specific amount of one currency for another at a predetermined price and future date.

A risk management strategy used to protect against adverse exchange rate movements by taking offsetting positions in the forex market.

A financial derivative that gives the holder the right, but not the obligation, to exchange one currency for another at a predetermined rate on or before a specified date.

A quotation of two different currencies where one is expressed in terms of the other, forming the basis of all forex trading.

A financial agreement between two parties to exchange principal and interest payments in different currencies over a specified period, often used for hedging or accessing foreign capital.

A weighted index measuring the value of the U.S. dollar against a basket of six major foreign currencies, widely used as a benchmark for dollar strength.

The price of one currency expressed in terms of another, determining how much of one currency is needed to purchase a unit of another.

A currency pair that includes one major currency paired with the currency of a developing or smaller economy, characterized by wider spreads and lower liquidity.

A technical analysis tool used in forex trading that identifies potential support and resistance levels based on the Fibonacci sequence ratios of 23.6%, 38.2%, 50%, 61.8%, and 78.6%.

An exchange rate regime where a currency's value is determined entirely by supply and demand in the foreign exchange market, without government or central bank intervention to fix the rate.

The global decentralized market where currencies are traded against one another, operating 24 hours a day across major financial centers.

A financial intermediary that provides retail and institutional traders with access to the foreign exchange market, offering trading platforms, leverage, and execution services.

An agreed-upon exchange rate for a currency transaction that will be settled at a specified future date, derived from the spot rate adjusted for interest rate differentials.

The use of borrowed capital from a broker to control a larger position than the trader's own capital would allow, expressed as a ratio such as 50:1 or 100:1.

A nickname for the Canadian dollar (CAD) or the USD/CAD currency pair, derived from the image of a common loon on the Canadian one-dollar coin.

A standardized unit representing the quantity of a currency being traded, with a standard lot equaling 100,000 units of the base currency.

The most heavily traded currency pairs in the forex market, all of which include the U.S. dollar paired with another major global currency.

An exchange rate regime where a currency's value is primarily market-determined but the central bank periodically intervenes to influence the rate, also known as a "dirty float."

A broker notification that a trader's account equity has fallen below the required margin level, demanding additional funds or risk having positions forcibly closed.

The interest rate at which banks lend to each other on an overnight basis, serving as the benchmark rate that central banks target to implement monetary policy.

A currency whose exchange rate is fixed or closely tied to another currency or basket of currencies, maintained by the country's central bank.

The smallest standard unit of price movement in a currency pair, typically equal to 0.0001 for most pairs or 0.01 for yen-denominated pairs.

A long-term forex trading strategy where traders hold positions for weeks, months, or even years, focusing on major economic trends and fundamental analysis.

The second currency in a currency pair, representing the price in terms of how many units are needed to purchase one unit of the base currency.

A trade-weighted average of a currency's bilateral exchange rates, adjusted for inflation differentials, measuring a country's true price competitiveness against its trading partners.

A broker notification that the price a trader requested for an order is no longer available, offering a new price instead — common during fast-moving market conditions.

The process of extending the settlement date of an open forex position by swapping overnight interest rate differentials between the two currencies in the pair.

A currency that tends to retain or increase its value during periods of market turmoil, geopolitical uncertainty, or economic crisis.

An ultra-short-term forex trading strategy that aims to profit from very small price movements by executing many trades throughout the day, holding positions for seconds to minutes.

The difference between the expected price of a forex trade and the actual price at which it is executed, occurring when market conditions change between order placement and fill.

The current market price at which a currency can be bought or sold for immediate delivery, typically settled within two business days.

The difference between the bid (sell) price and the ask (buy) price of a currency pair, representing the primary transaction cost in forex trading.

Trader slang for the Swiss franc (CHF) or the USD/CHF currency pair, derived from Switzerland's association with financial stability and neutrality.

Forex market slang for one billion units of a currency, used by institutional traders and interbank dealers to communicate large trade sizes efficiently.