An abbreviation that stands for Foreign Exchange. Forex is therefore trading in foreign currencies.
Trading goes with large volumes. A standard volume has 100,000 units and is called a LOT
By placing a trade order you buy or sell a certain currency
Bear / Bearish
A Bear is someone who sells currency because he thinks that the price will fall. A falling course is called Bulllish
Bull / Bullish
A bull is someone who buys currency because he thinks that the price will rise. A rising price is called bullish.
Going short means ‘buying’. When you expect the price to go up, you place a purchase order and ‘Go your short’.
Going long means ‘Selling’. If you think the price will fall, you place a sales order and ‘Go your short’.
You set a stop-loss with every trade order, to avoid too much loss.
A take-profit allows you to prevent profits from disappearing again due to fluctuating price changes.
A broker is like a bank, but for Forex. They are the link between you and the Forex market.
With the currency pair EUR / USD this is the fourth number after the decimal point: 1,2327
With the currency pair EUR / USD this is the fifth number after the decimal point. 1,24679 Not every broker uses this fractional PIP.
The Meta-Trader 4 is the software that is used to place trade orders.
A Scalper is someone who places multiple trade orders per day and aims to make many small profits.
A day trader is someone who places one or a few trade orders per day with the aim of making an x-number of PIPs profit.
Someone who deals with a large capital and often lets several trades run for a few days.
Experienced Forex traders who often run their trades with a large capital for days, weeks or even months.