What are Forex terms you know?

Majority of the time, beginners may want to delve into Forex without knowing the basic terms which is crucial to their growth. When they find themselves in rooms where they're discussing matters like Forex, futures or Crypto trades, they end up feeling lost.

What term do you know?

Help a beginner.

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@asuquokelvin - 1 month ago

Engineering liquidity and sideline liquidity

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@emma_durban - 1 month ago

Currency pair: a combination of two currencies of different countries whose price is the exchange rate. An example of a currency pair is EUR/USD and the current exchange rate is around 1.1500.

So someone can say I am trading EUR/USD and the current price is at 1.1500 the price they are referring to is the exchange rate.

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@liam_calgary - 1 month ago

Going long is a term meaning to buy while going short means to sell. You can hear someone say I am long GBP/CAD it means the person has clicked on the buy button for the GBP/CAD currency pair

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@asuquokelvin - 1 month ago
Quoted - asuquokelvin

Engineering liquidity and sideline liquidity

Fair value gap is a valued price gap between 3 consecutive candles and most time's price often gets to a fair value gap before continuing it's main direction

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@israeljasspu - 1 month ago

Poi ; point of interest

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@melody_nk - 1 month ago
Quoted - asuquokelvin

Engineering liquidity and sideline liquidity

These are not forex terms for beginners, you will end up confusing them. The basic terms are things like pips, spread, swaps, regulation etc.

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@melody_nk - 1 month ago

One common word you will hear is "Regulation"

Regulation has to do with the people who oversee what the broker does and who have the power to punish the broker if they do something wrong.

Before opening an account with a broker check that they have a government authority that regulates their activities. Unregulated brokers are lawless entities so you should avoid them.

To know if a broker is regulated, check the bottom of their website to see regulatory information.

In the attached, screenshot, we see regulation for the broker called IG Markets. Their activities in the UK are regulated by the Financial Conduct Authority (FCA) with Firm Register Number 94492.

The reason why they state the Firm Register Number is so that you can verify their claim by copying the number and going to the FCA website and verifying the authenticity.

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@asuquokelvin - 1 month ago
Quoted - melody_nk

I support the other user, this makes no sense except it is shown pictorially

The gap between 3 consecutive candles is a fair value gap, look at the image I just marked out you will see a red arrow and two blue lines from the blue line down to the one up is the gap between two candles at 1.40328 and 1.40944 is the gap the red arrow marking the down side of the gap to the up side up the gap, price often uses fair value gaps as magnets, which means price often return to the fair value gap before continuing the trend

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@asuquokelvin - 1 month ago
Quoted - melody_nk

These are not forex terms for beginners, you will end up confusing them. The basic terms are things like pips, spread, swaps, regulation etc.

Sorry I just made a comment on fair value gaps representation at least that will help, showing the gap from 1.40328 and 1.40944 and stating clear that it acts as a magnet for price which means price can reverse to that level before continuing the trend

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@asuquokelvin - 1 month ago
Quoted - melody_nk

A picture showing the FVG would have made a lot of sense for a beginner.

Looking at the chart examples there the fair value gap lies between 1.40328 and 1.40944 you can see 3 bullish candles the first one which has the close of 1.40328 and the third which has an open of 1.40944 and the second candle which has a high volume, the gap there can act as a magnet for price, in which price can come back to fill up that level before continuing the trend

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