If you are new to the Forex trading world, you may get confused while coming across different trading terms. The world of Forex trading is fast-paced and a little complex. People often face difficulties in understanding the way of this dynamic world. So, if you want to start a career as a Forex trader, or want to take trading as your side hassle you need to learn the basics first. The terms we use in this trading world can seem difficult and daunting. It will be helpful if you start by being familiar with the Forex trading terms. Modern digital trading platforms like Fin2AI allow you to learn the fundamentals of Forex trading through their educational materials. However, you at least need to learn the popular terms beforehand to understand the materials. Here is a list of some important Forex trading terms to let you get familiarised.
1. Cryptocurrency
Cryptocurrencies are the digital currencies used for investment on Forex trading platforms. Unlike other conventional currencies, cryptocurrencies are autonomous. The transaction process of these currencies is not controlled by the government. On Fin2AI platform different types of cryptocurrencies are available including Bitcoin, Ethereum, Ripple and many others. Each currency has its unique value depending on the situation of the market. Fin2AI allows you to trade all types of cryptocurrencies with near-zero spread making it a great platform to start your journey.
2. Altcoin on Fin2AI
Altcoins are the types of cryptocurrencies that are different from Bitcoin. In other words, all cryptocurrencies that are not Bitcoin fall under the category of Altcoin. Even though Altcoins first came as substitutes for Bitcoins, they have their own merits. With time some Altcoins became more popular and appealing than Bitcoins. You will find a wide variety of Altcoints on the Fin2AI platform including the most popular Ethereum. You can learn more about them on the platform and identify which one suits you the best.
3. Exchange
In the world of Forex trading, Exchange is the global marketplace where you trade your currencies or currency pairs. This is also the place where the exchange rate between the currency pairs is determined. Online trading platforms like Fin2AI help traders negotiate and trade at the best prices by evaluating the market data and calculating the trending prices.
4. Leverage
Leverage is an important technique in Forex trading that helps trader use their borrowed money to increase their trading position. It allows traders to manage and control a larger position with a small amount of money. For example, if the leverage is 1:40, then you can manage £40,000 with only £1,000. On Fin2AI, different accounts provide different leverage. You can choose considering your criteria and experience level.
5. Bid and ask price
The bid price in the Forex market is the highest price a buyer agrees to pay to buy a currency. Ask price, on the other hand, is the lowest price a seller is willing to accept from a buyer. The gap between the bid price and the ask price is spread.
