Glossary Of Terms

On this page, you will find short descriptions and meaning on some of the most commonly used terms when trading in Forex. We hope this will help give you a better understanding and you can always refer back to this glossary for terminology that you don't understand.

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

A

Accrual - When there is an exchange transaction, this term is used to determine the premium or discount base on the deposited deal over the period of transaction.

Aggressor - This is term used to describe a trader who is dealing on an existing price in the market.

Appreciation - This term is normally used when their is a rise in the currency. If we said that the USD is appreciating, this means the US dollar is rising in Forex Rate. It couls also mean there is an increase in the value of an asset depending on what you're trading.

Adjustment - The final action taken to correct the imbalance of a payment or currency rate.

Arbitration - The sale of a simultaneous deal taken from a related market, allowing traders to earn the differences between the small prices.

Ask - This is the asking price that the trader have to pay to buy the base currency. The price will depend on the forex pairs that are using for the trade.

At Best - An instruction order given to a forex broker to buy or sell at the best price or rate pre-defined by the trader.

At Or Better - An instruction given to a broker to close the deal at a specific price or rate that is better than anticipated.