Thursday, 22 January 2015

FOREIGN EXCHANGE MARKET GLOSSARY



Glossary
Forex: Also known as the foreign exchange market, forex is an over-the-counter market.

Currency pair: The two currencies involved in a foreign exchange rate. Example: EUR/USD

Base currency: The first currency in a currency pair.

Pip: The smallest unit of price that a currency can be traded in.

Spread: The difference between the bid and the ask of a currency price.

Tick: The minimum change in the price of a currency, be it up or down.

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