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Strong Buy Buy
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Sell Strong Sell
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Trading Jargon

In order to understand the Forex world, it is important that every trader familiarize themselves with trading jargon and terminology.

Let’s look at some of the basic trading terms that are used in everyday trading.

Entry and Exit

Entry is the price a currency is bought or sold at to open a trade.

Exit is the price a trade is closed at i.e. the price at which you ‘exit’ the trade.

Buy and Sell.

This is quite self-explanatory however the thing to remember is that when someone says they are buying EUR/USD, it means they are buying EUR against USD.

Similarly, selling EUR/USD means to sell EUR and buy USD.

Long and Short.

Long is another word for buying. And short another word for selling.

If a trader is going long in EUR/USD, it means they are buying Euro against US Dollar.

Bulls and Bears.

Bulls are traders seeking an uptrend so they can buy. Bears attempt to pull the market down so they can go short.

Bullish market is when the trend is predominantly moving upwards because traders are buying and bearish market means the trend is predominantly downwards because traders are selling.

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