Glossary of Terms

American-style option – An option contract that may be exercised at any time before it expires.

Ask –The quoted price at which a customer can buy a currency pair. Also referred to as the ‘offer,’ ‘ask price,’ or ‘ask rate.’

Base Currency – For foreign exchange trading, currencies are quoted in terms of a currency pair. The first currency in the pair is the base currency. For example, in a USD/JPY currency pair, the US dollar is the base currency. Also may be referred to as the primary currency.

Bid – The quoted price where a customer can sell a currency pair. Also known as the 'bid price' or 'bid rate.'

Bid/Ask Spread – The point difference between the bid and ask (offer) price.

Currency pair – The two currencies that make up a foreign exchange rate. For example, USD/YEN is a currency pair.

Read more »

Forex Trend Following - How to Catch and Hold the Big Trends For Huge Profits

The really big profits come from catching and holding the big long term currency trends which can last for weeks, months or years and this article is all about turning these trends into triple digit profits. If you look at any forex chart, you will see long term trends and here is a simple forex trading strategy for turning them into profits.

Learn How to Use Breakouts

The first point is most new trends and continuations, start from new market highs. If you want to make money then you need to buy breakouts. Most traders make the mistake of waiting for prices to pullback to get in at a better "price" but the move doesn't in most instances it continues, so you must learn to buy breakouts - if you want to get on the side of the big trends.

Read more »

Forex Education - Why Buying Low Selling High is Not the Best Strategy For Profits

How often do I see vendors telling you that you can pick market tops and bottoms in forex trading? All the time and they tell you that you can do it with accuracy - but its rubbish - you can't. If you want to make money there is a better way than trying to predict and that is the subject of this article...

Read more »