Forex
Terminology

The global market for trading currencies. Also used synonymously with "forex."

Trades made directly between two parties, without a centralized exchange.

A financial derivative allowing traders to speculate on price movements without owning the asset.

Automated trading system that executes trades based on programmed strategies. Typically used on MT4/MT5.

A broker model that sends client orders directly to liquidity providers without intervention.

A system that matches buy and sell orders from multiple market participants, providing direct market access and tighter spreads.

A rule (especially in U.S. trading) that requires closing the oldest open position first when multiple trades are open in the same currency pair.

A percentage measure of profitability; ROI = (Net Profit / Investment) x 100

A preset price level where a trade automatically closes in profit.

Planned methods used by traders to decide when to buy or sell currency pairs, often based on technical or fundamental analysis.

Day trading: Short-term trades opened and closed within a single day.
Swing trading: Positions held for several days to weeks to capture medium-term trends.

Technical: Uses charts and indicators to predict price movements.
Fundamental: Analyzes economic indicators and news to assess value.

A tool to project account growth over time using compounding. Helps visualize how reinvesting profits can grow capital.

Tools like MACD, RSI, and Bollinger Bands used to analyze trends, momentum, and potential reversals.

Key price levels where currencies tend to reverse or stall. Used to set entries, exits, and stops.

Includes strategies like stop-losses, position sizing, and risk-reward ratios to protect capital.

Involves understanding candlesticks, timeframes, indicators, and trends to make informed trading decisions.

London and New York sessions are most active. Session overlaps often offer the best trading opportunities.

A short-term strategy aiming to make quick, small profits from fast trades, often lasting seconds to minutes.

Automated trading system that executes trades based on programmed strategies. Typically used on MT4/MT5.

Lists upcoming economic events that affect currencies. Useful for timing trades and understanding market sentiment.

Trade recommendations including entry/exit points. Can be manual or algorithm-based, free or paid.

Software that trades based on preset rules or AI algorithms. Runs 24/7 and helps remove emotional decision-making.

MT5: Multi-asset platform with support for EAs and backtesting.
cTrader: Sleek UI with faster execution and advanced charting.

Cloud-based charting platform with powerful tools, indicators, and social features for traders.