Currency Pair: ‘A quotation of two different currencies, where the value of one currency is quoted against the other. The first currency is the base currency, and the second is the quote or counter currency. Example: EUR/USD (Euro/US Dollar). Bid Price The price at which a trader can sell a currency pair (what the market is willing to buy the currency for). Ask Price (Offer Price): The price at which a trader can buy a currency pair (what the market is offering the currency for). Spreac The difference between the bid and ask price. The sprea the trade. is essentially the broker's commission on Pip (Percentage in Point): The smallest price movement a currency pair can make, typically the fourth decimal point (0.0001) in most pairs. For JPY pairs, it’s the second decimal point (0.01). Leverage: A mechanism that allows traders to control a large position with a small amount of actual capital For example, 100:1 leverage means for every $1, you can control $100. Margi ‘The collateral required to open and maintain a leveraged position. It’s usually expressed as a percentage of the position size. Lo ‘The standardized quantity of the currency being traded. Y Standard Lot (1 lot): 100,000 units Y Mini Lot (0.1 Lot): 10,000 units Y Micro Lot (0.01 Lot): 1,000 units Aposition in which a trader buys a currency expecting it to rise in value. Short Positio A position in which a trader sells a currency expecting it to fallin value.Bull Market: A market condition where prices are rising or expected to rise. Bear Market: Amarket condition where prices are falling or expected to fall ‘Stop-Loss Order: ‘An order placed to automatically close a position if the market moves against it by a specific amount, to limit losses, Take-Profit Order: An order that automatically closes a position when it hits a certain profit level. Slippag ‘The difference between the expected price of a trade and the actual price at which it is executed, often due to market volatility. Liquiait Refers to how easily and quickly an asset can be bought or sold in the market without affecting, its price. High liquidity means there are many buyers and sellers. Volatilt ‘The measure of how much the price of a currency pair fluctuates over a certain period of time, High volatility means larger price swings. Order Types: + Market Order: An order to buy or sell immediately at the current market price. + Limit Order: An order to buy or sell at a specific price or better. ‘+ Stop Order: An order to buy or sell when the price reaches a specified level, often used for risk management. Hedging: A strategy used to offset potential losses by taking opposing positions in correlated markets or financial instruments. Swap (Rollover): ‘The interest paid or earned for holding a position overnight, which reflects the interest rate differential between the two currencies in the pair. Margin Call:‘Anotification from a broker that your account balance has fallen below the required margin level, and additional funds must be deposited to maintain open positions. Risk-Reward Ratio: ‘Ameasure used by traders to compare the expected returns of a trade to the amount of risk taken. A 2:1 risk-reward ratio means the potential profit is twice the potential loss, Drawdown: ‘The difference between the peak and the trough in the balance of a trading account, showing the decline in account equity during losing trades. Currency Cross: Accurrency pair that does not involve the U.S. dollar. For example, EUR/JPY (Euro/Japanese Yen). Base Currency: ‘The first currency in a currency pair, which determines the value of the quote currency. In EUR/USD, EUR is the base currency. Quote Currency: ‘The second currency in a currency pair. In EUR/USD, USD is the quote currency, and its value is, quoted in terms of one unit of the base currency. Risk Management: Techniques traders use to minimize potential losses, such as stop-loss orders, position sizing, and risk-reward ratios. Fundamental Analysi Analyzing economic, political, and social factors to predict future price movements in the forex market. Technical Analysi Using historical price data, charts, and patterns to predict future movements in the forex market. Exotic Currency Pal Accurrency pair that consists of a major currency and a less liquid or developing country’s currency, such as USD/TRY (U.S. Dollar/Turkish Lira).