Forex For Dummies Online

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