July 11th, 2008 | Published in
Making Money by Publix
….Continued from Commonly Used Terms in Forex (Part 2)
margin – the deposit required when entering into a position
NYSE – The New York Stock Exchange Open position – a position in a currency that has not been offset over the counter – when trading takes place between two parties, rather than on exchange
pips – a pip is the smallest unit by which a Forex cross price quote changes position – buying or selling currency cross risk – trying to control outcomes or predictable range of gains and losses
secondary currency – the currency that the investor trades the base currency against
short position – a position that benefits from a decline in market prices short – to sell
speculative – buying and selling in the hope of making a profit
spot – a Spot rate is the current market price of an asset spot market – the part of the market calling for spot settlement of transactions. The precise meaning of spot will depend on local custom for a commodity, security or currency. In the UK, US and Australian foreign-exchange markets, spot means delivery two working days hence
spread – the difference between the bid and the ask rate. Foreign exchange is normally traded on margin. A relatively small deposit can control bigger positions in the market.
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