Forex

Each world currency is given a three letter code which is used in FOREX quotes. The most common currencies are USD (US dollars), EUR (European euros), GBP (United Kingdom pounds), AUD (Australian dollars), JPY (Japanese yen), CHF (Swiss francs) and CAD (Canadian dollars). Prices of foreign exchange are indicated by FX quotes in pairs of currencies. The first currency is the 'base' and the second is the 'quote' currency. In this example: EUR/USD = 1.30363 The currency pair is European euros and US dollars. The base currency (EUR) is always at '1' and the quote currency shows how much it costs to buy one unit of the base currency. In this example, 1 EUR costs 1.30363 US dollar. Or it costs 1.30363 US dollars to buy 1 euro. When the price of the quote currency goes up it indicates that the base currency is becoming stronger one unit of the base currency will buy more of the quote currency. If the quote currency falls, however, the base currency is becoming weaker

Forex Glossary A Appreciation - A currency is said to "appreciate" when it strengthens in price in response to market demand. Arbitrage - Taking advantage of countervailing prices in different markets by the purchase or sale of an instrument and simultaneous taking of an equal and opposite position in a related market to profit from small price differentials. Ask (Offer) Price - The price at which the market is prepared to sell a specific currency in a contract. At this price, the trader can buy the base currency. In the quotation, it is shown on the right side of the quotation. For example, in the quote USD/CHF 1.2400/04, the ask price is 1.2404; meaning you can buy one US dollar for 1.2404 Swiss francs. B Bar Chart - A type of chart which consists of four significant points: the high and the low prices, which form the vertical bar, the opening price, which is marked with a little horizontal line to the left of the bar, and the closing price, which is marked with a ...

Comprehensive glossary of economic indicators from the relevant markets. While these indicators are generally applicable economic terms, some of them are specific for the country of their release. Please see below an innovative approach to covering FX fundamental and technical analysis.: Auto Sales Balance of Payments Balance of Trade (Merchandise Trade Balance) Beige Book Fed Survey Business Inventories and Sales Capital Account (now known as Financial Account) CBI Surveys Construction Spending Consumer Price Index (CPI) Current Account Durable Goods Orders Employment Cost Index (ECI) Employment Report Factory Orders and Manufacturing Inventories Gross Domestic Product (GDP) HICP (Harmonized Index of Consumer Prices) Housing Starts/Building Permits IFO Implicit Deflator Index of Leading Economic Indicators (LEI) The Institute of Supply Management (ISM) L M1 M2 M3 New Home Sales Personal Income and Personal Consumption Expenditures (PCE) ...