terms of online forex trading

When it comes to online forex trading it is very important that you are sure of the many of the terms associated with forex, for without knowing the different terminologies in forex you will not be able to carry out your trade in a better way. Here are the important forex terms that you might have to know when dealing in foreign exchange tradingAsk- The price demanded by the trader. This more often than not, points out the smallest price that a seller will take over.

* Base currency- The currency that the depositor trades (i.e. EUR in EURUSD)

* Bear - Someone who thinks prices are decreasing. A bear market is one in which there has been a continual fall in prices and which does not look like it will make progress quickly.

* Bid - The charge offered by the trader. These generally indicate the peak price a client will pay.

* Bid/Ask - The Bid rate is the rate at which you can sell. The Ask (or offer) rate is the rate at which you can buy.

* Bull - Someone who is positive about the market activity. A bull market is characterized by enthusiastic and nonstop buying.

* Cross - When trading with currencies, the depositor buys one currency with the help of another. These two currencies form the cross: for example, EURUSD.

* Cross rate - An exchange rate that is estimated from two other exchange rates.

* Depreciation/decline - A drop in the cost of a currency.

* Exchange rate - What one currency is worth in terms of another, for example the Australian dollar might be valued 58 US cents or 70 yen.