In Forex Trading, Forex traders often use forex trading terms that can be ambiguous for starters. This slideshare describes essential forex trading terminologies for such traders.

1. Essential Forex
Trading
Terminologies

2. Refers to the global market where
one currency is traded for another.
Foreign Exchange

3. Also refers as foreign exchange
which can be any other currency like
for China it is Euro, Yen, Pound etc.
Foreign Currency

4. London, New York, Tokyo and
Singapore
Largest Markets

5. Biggest market, and its average
daily turnover in global foreign
exchange market is over $5 trillion
Market Size

6. Consumers and Travelers, Investors,
Commercial and investment banks,
Governments and central banks.
Participants

7. Refers to the current price of one
currency in terms of the other
currency
Exchange rate

8. The reserves of other countries’
currencies.
Foreign Exchange
Reserves

9. is the one which is used as base to
quote a pair like in MYR/USD. The
MYR is the base currency.
Base Currency

10. The smallest possible change in pair
currency
PIP

11. Difference between ASK and BID
Spread

12. The loan provided by the broker to
invest.
Leverage

13. Buying and selling of securities for
one day on the basis of short-term
investment.
Day Trading

14. Or fluctuating exchange rate is the
type in which the currency value is
freely fluctuating in the foreign
exchange market.
Float Rate

15. In fixed exchange rate the
government make currency rate
stable against a specific currency.
Fixed Exchange Rate

16. Fixed currency rate by the
government as the official rate.
Pegged Float Rate