Courses › From Zero to Trader: The Ultimate Starter Guide
Key Forex Terms
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What this lesson covers
Every market has its own vocabulary, and forex has more of it than most. This lesson sets out the language a trader needs before anything else makes sense: what a currency pair actually represents, how majors, minors and exotics differ, and why prices are quoted with two numbers rather than one. It explains pips as the unit of movement, the spread as the cost of getting in, and lot sizes as the dial that decides how much each pip is worth to you. Leverage and margin are covered next, along with drawdown and slippage, which are the two ways a position can cost more than expected. The lesson closes with the trading sessions, the main styles traders adopt, and who else is in the market with you.