What do all those forex terms mean?
You don’t need to learn all of the terms used in the forex market, but you will need to know a few of them. Depending on your trading style, some of them won’t even apply to you. For example, if you are a position trader (holding your trade for a few weeks), then you can disregard the spread because it won’t affect your trade much.
A lot of the calculations will be done for you by your broker, but you will need to know a few numbers, such as the lot size of your trade, your entry price, your stop loss (if you use one), your exit price (take profit).
You need to know what leverage your broker has given you. If you are in the US, then most likely it is 50:1.
In the quote, there are two currencies. The first is the base currency and the second is the quote currency. If you are long (expecting the price to rise), then the base currency is the one that you want to go up and the quote currency (the second one) you want to decline. Vice versa for shorts.
As you go through these infographs and their commentary, you will pick up on terms used and what they mean. Don’t be overwhelmed by this foreign language called forex, it’s not that bad.
Comment below if you have any questions.
Also, you can get all the infographs in Infographical Forex.