Basic Terms

Forex – Foreign Exchange Market also known as currency exchange

Pip – The smallest unit for a certain currency. For example 1¢

Futures – A promise to buy an asset in a future date at a certain price.

Mini Account – A small account opened to experience trade with.

Brokerage Firm – A company that is licensed to make the deal between the buyer and the seller.

Commission – The price of transactions in a brokerage firm.

Real-Time – live information

Quotes – The actual price being traded.

Margins – The difference between the cost and the selling price

Spread – the difference of two prices, rates of currencies.

Day Trading – trading on the daily fluctuations

Swing Trading – longer then one day trading and up to a week.

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