Glossary

Base Currency:

In context to a forex exchange trading, currencies are usually expressed in terms of currency pair. In such a currency pair, first currency is oftenly referred to as a ‘Base Currency’ .More precisely, a base currency is defined as that currency which allows a particular country to specify its exchange rates or other forms of operating results.

Basket:

This term is widely used in forex trade and at times it is also termed as the ’Unit of Account’. This term implies to the group of forex trading currencies that intends to deal with the current exchange rate of the currency.

Bid/Ask Spread:

In context to a forex trade, bid/ask spread is usually described as a difference between the bid and the ask price, expressed in terms of a decimal point.

Big Figure:

Refers to the first two - three digits of a foreign exchange rate. For instance, USD/JPY offers an exchange rate of 119.05/10. Here, the big figure is 119.

Broker:

Into the forex trading market, a broker acts as an intermediate or an agent whose main task is to either buy or sell currencies to the different traders or different financial  organizations and earn a considerable amount of commission on his part.

Bull Market:

A market which intends to follow a consistent rising pattern for the currency pairs over a period of time.

Bull:

It generally refers to an investor, who is quite definite that the price of currency is going to hike in future.

Buying Rate:

In context of the forex trading, buying rate is also referred to as a ‘Bid Rate’.  A buying rate implies to the rate at which both the parties, i.e. forex trader and forex market are consented to buy the currency.

Cable:

A cable is a term used to define the US Dollar or a British Pound exchange rate.

Cash Settlement:

It is a defined as a procedure that intends to settle down the future contracts, depending on the difference between the current and future market value of the cash.

Candlestick Chart:

It is one of the most significant types of the forex charts that represent all the variations in currency trading. These variations are further marked as Open, High, Low and Close.