Glossary

We at forexcult.com, provide you the best forex trading information including forex glossary. Forex market is a booming sector where a huge number of investors are showing their interest. We provide you all the necessary advices and guidance to help you understand forex trading better. This trade is all about comprehending the market situation and the relevant techniques properly. We help you to formulate an appropriate strategy which in turn enables you to trade systematically and properly. The application of proper strategy and technique will definitely help you to gain more.

Right strategy and right techniques do not guarantee the profit in millions but for sure our expert forex trading advice will provide you the knowledge on how to earn profit from Fx trading depending upon the situation.

There are certain specific terms which are used in FX Market, so to get some more clarity about the FX market the following terms are explained below in Forex glossary:

  1. Ask Rate – The lowest offer price for the international currency or any other instrument.
  2. Asset Allocation – Diversification of investment among different markets, such as, Forex, commodities, stocks etc. to get the advantage of diversification and nullify the risk.
  3. Back Office – This department deals with the settlement of various trading transactions.
  4. Base Currency – It either can be termed as the currency in which the traders forex currency trading system is maintained or the first currency among a currency pair.
  5. Bear Market – This is a trend in which the market prices decline and keep on declining for a long time.
  6. Broker – It can be a firm or person or group of persons who bridge/s the gap between the buyer and seller in expectation of a fee.
  7. Capital Market – The market which is meant for long term or mid-term investment, e.g.; Government bonds or currency bonds.
  8. Depreciation – The reduction in the value of the currency due to some market factor.
  9. Efficient Market – In this market, the present price of the asset is being calculated after considering all the historical analysis.
  10. Foreign Exchange – This process involves the buying of a currency type and subsequently selling of the same.
  11. US prime rate – The rate of interest which is offered by the US banks to their major corporate clients.
  12. Value date – The date on which two or more parties mutually agree to settle their payment obligations and ownership rights etc.

For further assistance and information regarding the foreign exchange trading you may browse through Forexcult.com.