Forex Glossary

The Foreign Exchange market has its own terminology which is normally used by all Forex brokers, investors and traders. Here is a brief list of the frequently used Forex terms and their meanings. Also besides terms, we provide you beneficial Hints For Forex Trading as well.

Ask Price/ Offer Price
The ask and offer price is the price at which the market is ready to trade a specific currency. This is the price where, an investor can purchase the base currency. When seeing a quote, it is located on the right side.
For example, in the quote EUR/USD 1.4547/52, the ask price is 1.4552.

Base currency
The currency listed first in a Currency Pair is known as the Base currency.

Bids
A Bid is the price at which the investor is willing to purchase a currency.

Bid/Ask Spread
Simply stating, Bid/Ask spread is the variation between the bid and offer price. It can also be defined as the degree of difference in pips, amid the buying price and the selling price of a currency pair.

Broker
A person or an organization acting as an agent, putting together buyers and sellers for a commission or fee, can be defined as a Broker. They are the ones who work on behalf of their investors.

Counter Currency
The currency listed second in a Currency Pair is known as the Counter currency.

Currency symbols
EUR - Euro
AUD - Australian Dollar
CAD - Canadian Dollar
CHF - Swiss Franc
JPY - Japanese Yen
GBP - British Pound