There are many forex term that we have to understand if we want to have a currency trading business. Let us continue to understand the words that globally used in forex trading.
Floating Loss / Profit and Realized.
When you have a buy position in 100 and then the price moves down to 95, so if you calculated the estimated loss is 100-95 = -5. But that value can still be changed tomorrow, either increased or decreased. Well, the value of -5 at the moment is called Floating Loss (Loss), if the value is positive, such as pricing now to 105 the difference is 105-95 = +10 called Floating Profit. If you decide to sell / close your positions when the price is 100, then the value of +100 to be Realized Profit (no longer a floating but has become Real)
Pip.
It is the value of 1 point rise or fall in price movements. For a mini account in forex trading, a value of 1 point is $ 1, for the standard account is $ 10.
Technical Analysis.
It is an analysis in forex trading to measure the movement of prices through price charts. The things we need to know from this technical analysis are the trend, saturation, support, resistant, and Pivot Point.
Fundamental Analysis.
It is an analysis in forex trading to predict price movements based on fundamental news. Fundamental news here in the form of economic news, politic, and security that affect price movement.
Resistance.
It is the price limit above which is a psychological price, for example the current (year 2011) dollar exchange rate of JPY is 90 and has the upper price limit (resistance) 100 Yen, which could mean that until the price of dollar exchange rate through the price of 100 Yen then there will likely continue to rise away from the 100 but over 100 have not touched the price likely will move up and down just under 100.
Support.
is the limit below which the price of a pair of resistance (above), for example the current (year 2011) dollar exchange rate has a lower price limit (support) 85 amount, which could mean that until the price of dollar exchange rate fell through the price of 85 dollars then there is likely keep away from fall 85 but for 85 probably has not touched the price will only move up and down on top of 85 (support) and below 100 (resistance).
