When I was learning Forex trading for the first time ever, it felt like I have to jump into a completely new world because not only I should learn a lot about the system, but also I should start to talk with completely different languages. Yes, there are so many terms that we should learn on Forex. Numerous terms like technical hedging, bullish, bearish, force cell, floating loss and so on should be in the part of conversation. Here are some of the most basic terms on Forex we should learn or we will be kicked out of the game.
Pips, one pip means the smallest price of foreign currency, all currencies has five digits and pip is the smallest change on fourth decimal such as 0.0001. Another term is major currencies. Major currencies coves USD, JPY, EUR, CHF, GBP, AUD, and CAD and the rest currencies are minor currencies. Technical hedging is a strategy to limit the loss in unfortunate condition by staying on the current position.
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