Here are some key terms that are commonly used in forex trading:
Bid price: The bid price is the highest price that a buyer is willing to pay for a currency pair.
Ask price: The ask price is the lowest price that a seller is willing to accept for a currency pair.
Spread: The spread is the difference between the bid and ask price of a currency pair.
Leverage: Leverage allows traders to control a larger position with a smaller amount of capital. For example, a leverage ratio of 1:100 means that a trader can control a position worth $100,000 with a capital of only $1,000.
Margin: Margin is the amount of capital required to open a position.
Pips: A pip is the smallest unit of price movement in a currency pair.
Long position: A long position is a trade that profits if the price of the currency pair goes up.
Short position: A short position is a trade that profits if the price of the currency pair goes down.
Stop loss: A stop loss is an order to close a trade at a predetermined price in order to limit potential losses.
Take profit: A take profit is an order to close a trade at a predetermined price in order to lock in profits.