Forex Dictionary A-B

All Forex Terms Starting With A & B:

A

Analyst: a market professional who analyses the markets on his indicators and makes predictions.

Arbitrage – this is a style of trading where profits originate by buying the same currency as the one you have sold simultaneously in a different market. There are times when the price for the same pair is different in one market than the other. This momentary difference bridges up in no time and the prices become the same. Arbitrageurs take advantage of these pricing lapses to make their profits. Similarly, other form of arbitrage trading calls for taking position in the cross pairs as soon as a discrepancy is seen between majors and crosses.

Ask (BUY) — this is price that you can buy the respective pair/Instrument for, at the time of reading. It changes all the time and always is higher than the BID price.

AUD: Australian Dollar

Aussie — this is the Nickname to the currency pair that makes with Australian dollar and United States Dollar. It reads as AUD/USD.

B

Back-test: The process of checking a trading method’s profitability over the historical price data. This usually is done by making an automated Expert advisor that runs from a Back-date to current date and produces data as to how many winners against how many losers the system could have produced in that period.

Bearish: Bearish means Going down or likely to go down. This is used to describe the movement of the currency pair/markets when the price of the pair starts going down. It is said that the market is Bearish or the market has turned bearish.

Bid (SELL) — this is the price at which you can sell the respective currency pair. Just like the Ask price, The BID price also changes all the time but is always lower than ASK price.

Boe: It stands for Bank of England that controls the interest and saving rates of GBP and supervises the monetary policies of United Kingdom. (Also Check George Soros)

Boj: Bank of Japan

Bonus: The incentive that the broker offers to you to open an account with him.

Broker — the broker is the authorized and regulated representative of the bank and works as an intermediary between retail traders/Financial institutions and the Banks. Its main Job is to accept trading orders on behalf of the bank and maintain up-to-date records of all these transactions. The Broker is bound to comply with the transaction limits and Conditions as set by the Banks and is regulated by the concerned financial authority of the country.

Bucket shop: A brokerage company that takes the opposite positions of the orders placed with it by the traders. They move with the belief that all trades or most of them will only lose money, so taking positions opposite to their orders will make profits for the company.

Bullish: Bullish means Going up or likely to go up. This is used to describe the movement of the currency pair/markets when the price of the pair starts going up. It is said that the market is Bullish or the market has turned bullish.

Buy Limit: This is a pending order to buy a pair when the price turns more profitable for the trader by “falling” to a certain price.

Buy stop: This is a pending order to buy a pair when the price of it has risen to a certain level. It is believed that if the price has risen to a certain level, then the price will continue to rise.

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