If anyone dreams of being a Forex trader, they must know or learn about the dialects or language used in Forex trades. If you start a trade without knowing the terms in this business, you will be unable to understand each other’s language. So, you cannot continue your trade transactions anymore.
For this reason, we intend to discuss the most common financial terms in the Forex market in this article. We hope our discussion of these languages can guide you properly.
Common Financial Terms of Forex Market
There are some common financial languages or terms which must be known to the beginners before they start their trading career.
Bearish or Bullish
In the Forex market, Bearish and Bullish is very common jargon. The word ‘Bearish’ has come from the name ‘Bear,’ indicating the price or value of the currency or asset will decrease. So, in this context, the merchants will sell their property.
On the other hand, the word or term ‘Bullish’ is derived from the word ‘Bull,’ and this term is just the opposite of ‘Bullish’. It means that the assets’ cost will rise. So, in this condition, the traders will buy the currency or investments. But remember, you need access to good broker to execute the trades. Click here to contact the top brokers at Saxo so that you can open the premium account to trade options.
Short or Long
These two words are the way to mean Bearish and Bullish sentiment. When a Bearish merchant sells his property, it is called ‘Short.’ Conversely, when a Bullish broker purchases currencies or assets, it is said to be ‘Long.’
If you want to become a Forex trader, you must know the nicknames of different currencies.
Hence, we will mention the nicknames of various currencies in the world:
GBPUSD currency is known as “cable”. It connects the two leading financial centers around the globe, like New York and London. If buyers are in the bearish cable, it suggests that they will sell or offer GBP in opposition to the U.S. Dollar.
CAD is the nickname of the Canadian Dollar. This Dollar has become one of the key currencies in the Forex market. Usually, the traders describe the CAD pairs and USDCAD as “Loonie” duos.
The New Zealand Dollar is known as NZD. The traders of the Forex market frequently refer to this currency as the Kiwi dollar. Hence, in Forex trading, the NZDUSD pair is equal to the Kiwi pair.
AUD is the nickname of the Australian Dollar. It has another name called Aussie Dollar. To mean bearish and bullish movement, the businessmen purchase or sell AUDUSD
EURUSD is called ‘fiber.’ So, when you in a bullish position, it indicates that you are ‘buying fiber.’
Dovish or Hawkish
In the Forex market, it is prohibited for the central bankers to be bearish or bullish as they cannot participate in any financial trading. Nevertheless, central bankers or their statements can be dovish or hawkish. Therefore, if their declarations are dovish, it indicates the bearish movement, and the merchants can go short. Conversely, if the central bank’s statement or report is hawkish, it denotes a bullish move. So, merchants can go long.
We notice that all the central banks in the world regularly fix the economic circumstances for the next period. In this time, the banks’ research divisions try to evaluate the conditions of the financial market. Besides, the decision-making sectors work to help decide their activities. Thus, the central banks use the tools to signify an economic or commercial policy.
The mentioned jargon is the most trendy, typical examples of Forex trading terms, which merchants frequently use. So, if you are a Forex business dreamer, you will have to work to learn these terms.