Forex Trade: Abbreviations Used Frequently

Let’s start from the basics where we answer the most important question for you, which is “What does Forex mean?”

Foreign Exchange, also called Forex or FX, is the biggest global currency exchange market in the world. It is the market where various currencies are used for trading. Trading here on Foreign exchange market simply means nothing else but buying one currency and selling the other simultaneously. If we put it in simpler words, the currency of one country is exchanged for currency of another country at whatever current exchange rates are in the present. one more thing that you could note is the Forex market is open 24 hours a day.

PROFESSIONAL TERMS USED IN FOREX

A list of professional terms of any domain is one of the main instrument for all its users. These Particular words help to avoid misinterpretation while working on this process. Moreover, proper wordbook helps in creating a certain atmosphere of professionalism, thus making people focus on their job to the maximum.

The foreign exchange market is also a kind of science full of specific words. Many of them are condensed on purpose because events happen fast here and there is no time for reading or pronouncing long sentences. That is why there are abbreviations Forex is so fond of. Let’s directly come to the abbreviations their full form and meaning.

1) FX- Foreign exchange

    It is an international stock market.

2)ECN-broker – Electronic Communication Network broker

Such a broker provides with clients’ output of applications on the interbank level, using the system ECN. Making such deals a trader gets a smaller spread, more liquidity and more available information concerning the market events.

3) Mln, bln, tln- Millions, billions, trillions

4)OTC market- Over the counter market

This combination is used for the deals, concluded outside of the market.

5)Q-Abbreviation for the quarter

It is a period (3 months).

6)WTO- World Trade Organization

More than 120 countries gathered together to regular international trade.

7)BC- Base currency

The first currency in the currency pair. It stands for showing the ratio of the first currency towards the second one. For example: USD/RUR 70,6414 mean that 1 dollar = 70, 6414 rubles. Main exceptions to the rule are the British pound, Australian dollar and euro.

8)FY- fiscal year abbreviation

It is a financial year of a company, i.e. twelve months, which the company chooses for book-keeping.

9) SLO- Sell limit order

It is a time-limited order to sell an instrument.

10)STP- Straight-through processing

In this model, a broker’s company takes the role of a middleman between a client and a liquidity provider.

11)GDP-Gross domestic product

It is a total market price of all products and services calculated in one country for a year.

12)SA- Seasonally adjusted

To even swings in periods experts calculate statistics and adjust changes to specific seasons.

13)ECB- European Central Bank

 14)RSI- Relative Strength Index

Another indicator that analyzes a trend’s strength and forecasts its changes.

For now, we would like to conclude our article with this much knowledge for you all.