Forex Dummies can get lost easily with trading terms - let's break it down for you!As the Forex Dummy makes his way into the trading world, he’s going to need to understand the lingo. You should start with these buzz words:

  1. Bid – to buy
  2. Ask – to sell
  3. Liquidity – financial ease of transaction, i.e. cash
  4. Trading volume – the amount traded
  5. Bid/ask spread – the difference between the proposed buying price and the actual selling price
  6. OTC – over the counter
  7. Exchange rate – the difference between currency values; for instance, a Canadian dollar is valued at .86 of a US dollar
  8. Hedge funds – large mutual funds companies that control vast amounts of money and are able to manipulate the value of a currency through speculation
  9. Central bank – the national bank of a nation, which usually exerts control over the value of that currency
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