Technical words in Forex market must be the new lexicon for any trader. The meaning of some words used in Forex are different from the ordinary use of the words themselves. It should be noted that a complete knowledge about these technical terms will ease the trader from further problem in the Forex system and thus be able to determine the best Forex trading strategies.

Ask: The term used to note the price of buying currencies.

Bid: The term used to note the price of selling currencies.

Currency pair: It is defined as the pair of currency that is being traded. It comes in base currency/ cross currency mode; for instance, EUR/USD

FCM: or the Futures Commission Merchant is defined as the role of the broker to meddle between trades and the market.

Leverage: It is the money being used as an initial trading fund to ensure the trade like in the 200: 1 leverage- the amount of money needed as a fund is USD 200 to initialize a trade of USD 20, 000.

Liquidity: The combination of sellers and buyers at a single timeframe trading in the market. The liquidity in today’s market is high because of the 24 hour Forex market activity being played by the traders.

Lot: It denotes of the size of the currency being traded in the market t the moment for example, 1 Standard Lot means USD 100, 000 while the set offs are mini lot.

PIP: Price Interest Percentage. It is the smallest amount of money denomination from which the market may change.

Swap: It is defined as the deductible money or the added money during a trade that extend until 2:00 EST

Trading Platform: It is defined as the computer system used in viewing the market activity. The most common platform is the MetaTrade4Platform because of its simplicity and easy usage but many other platform can be used by traders.

These technical terms can prove to be very useful and helpful to any trader. With the use of these technical terms and implementing the best Forex trading strategies, a trader can have his utmost potential to succeed in the business.