<p>

The vocabulary,
acronyms, and words used in the forex market are usually strange and might
leave us perplexed. It could already be challenging enough to adjust to trading
on new platforms. </p><p class=“MsoNormal“>Using foreign
terminology and not understanding such trading lingo can seriously hinder a
trader’s progress and profitability. Even if you’re just starting to <a target=“_blank“ href=“https://www.oanda.com/bvi-my/cfds/“ target=“_blank“>trade forex</a> today, keep reading for a primer on some of the key
terms that every forex trader needs to be aware of to improve their
comprehension of the forex market. </p><p>1. Currency Pair</p><p class=“MsoNormal“>There are 180
recognised currencies in use throughout 195 countries. By doing various studies
and research, we traders can anticipate how a specific currency will behave on
the market. </p><p class=“MsoNormal“>How we trade these
currencies or conduct forex trading is <a target=“_blank“ href=“https://www.investopedia.com/terms/c/currencypair.asp#:~:text=our%20editorial%20policies-,What%20Is%20a%20Currency%20Pair%3F,is%20called%20the%20quote%20currency.“ target=“_blank“>based on how one currency
performs in comparison to another</a>. When deciding which
currencies to trade, you’ll see they come in pairs. Let’s use EUR/USD as a case
study. If you were to „buy“ EUR against USD, you would bet that the
euro would do better than the US dollar. </p><p class=“MsoNormal“>To categorise pairs,
there are three basic divisions used: </p><p class=“MsoNormal“>Major Pairings: The
eight widely traded pairings that each contain one of the following currencies:
EUR, CAD, GBP, CHF, JPY, AUD, or NZD, and the US dollar (USD) as the base or
counter currency. </p><p class=“MsoNormal“>Cross Pairs: Any pair
of two prominent currencies that do not use the US dollar as either their base
currency or counter currency is referred to as a cross pair. These are believed
to be less predictable than major pairs. GBP/AUD, EUR/CAD, and NZD/CAD are a
few examples, but there are more as well. </p><p class=“MsoNormal“>Exotics – These are, to
put it simply, less well-known currencies with significant levels of market
volatility. These include the South African rand, the Hungarian forint, and the
Polish zloty. </p><p>2. Leverage</p><p class=“MsoNormal“>Leverage is essentially
borrowing money from a trading account. A trader can open a position with a big
contract size for less money by using leveraged trading. Using high leverage to
trade your chosen forex pairs, cryptocurrencies, and other markets without
needing to make substantial financial commitments is a profitable strategy. </p><p class=“MsoNormal“>Let’s use the
well-known forex pair GBP/USD as an example. Based on a contract size of
100,000 per lot, a trader without leverage would need roughly $130,000.00. A
trader may open a position with only $260, employing leverage of 1:500 (130,000
/ 500). The trader presently has $130,000 in his possession after only
investing $260. </p><p>3. Price ASK and BID</p><p class=“MsoNormal“>The bid price is the
price a trader is willing to sell a currency pair for. At the asking price, a
trader will purchase a currency pair. The difference between the asking price
and the bid price is known as the spread. </p><p>4. PIP</p><p class=“MsoNormal“>PIP is an acronym for
percentage in point. The smallest fluctuation in the exchange rate between two
currencies is known as a PIP. The PIP is the fourth decimal point on a price
quotation for a currency pair. It is a tool for measuring value. </p><p class=“MsoNormal“>For instance, the price
quotation for the AUD/USD pair is 0.6876, meaning that you can acquire around
0.6876 US dollars for every Australian dollar. If the PIP increased by 0.0001
to 0.6877, it would mean that you could buy slightly more US dollars for every
Australian dollar. </p><p>5. Lot Size</p><p class=“MsoNormal“>The term
„lot“ in forex trading refers to the size of the transaction or
position you will open. One lot, or 100,000 units of the base currency of a
currency pair, is the standard unit of trading in the forex market. In the case
of EUR/USD, a trade amount of $100,000 is needed to initiate a transaction. EUR
is the base currency. Since one standard PIP is worth $10 in a buy transaction,
a shift of 10 PIPs would result in a gain of $100. </p><p>6. From Long to Short</p><p class=“MsoNormal“>When a trader buys the
first currency in a currency pair and sells the second, they are said to be
going long on the pair. Going long or short on a currency shows that you
believe its value will rise. </p><p class=“MsoNormal“>Like AUD/USD,
purchasing AUD in the hope that it will gain value against the USD. A trader
who goes short does so by selling one currency and buying another. Going short,
or „selling,“ one-half of a currency pair, is a wager that the price
will decline. </p><p>6. Margin</p><p class=“MsoNormal“>The initial quantity of
money a trader must deposit to open a position is called margin. <a target=“_blank“ href=“https://www.thebalance.com/trading-on-margin-1344888″>Margin also enables a
trader to open larger positions</a>. When trading on
margin, the trader just has to contribute a percentage of the entire position value
to begin a transaction. Margin enables leveraged trading, but exercise caution
because it increases both gains and losses. </p><p>7. Bearish / Bullish</p><p class=“MsoNormal“>A market’s or the stock
market’s overall performance may be deduced from market sentiment. A bullish market
outlook means that prices are increasing. When the market is in a pessimistic
mindset, prices are falling. </p><p class=“MsoNormal“>Bulls can readily be
distinguished from other animals thanks to their horns and propensity to toss
stuff into the air when enraged. Rising costs Bears have a destructive nature
when upset; they will rise erect on their hind legs. Costs are decreasing.

</p><p>Summary</p><p class=“MsoNormal“>As you can see, the
forex trading sector uses several acronyms and specialised terms. To develop
into more well-rounded and successful traders, we should continually read,
learn new knowledge, and build on what we currently know. </p><p class=“MsoNormal“>The most absurd
question of all is the one that is never posed. Ask around, conduct some
studies, and find out the next time you visit a trading community and encounter
words or phrases you’re not acquainted with. We can all become better traders
with the right tools and instruction, even though forex trading may be a tricky
beast to tame.</p>

This article was written by ForexLive at forexlive.com.

<p class=“MsoNormal“><a target=“_blank“ href=“https://fxbackoffice.com/?utm_source=forexlive&utm_medium=article&utm_campaign=BUZZDNOV22&utm_id=website&utm_term=112022″ target=“_blank“>FX
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This article was written by ForexLive at forexlive.com.

<p>Market
picture</p><p class=“MsoNormal“>Bitcoin
rewrote two-year lows on Thursday morning near $15,550, losing more than 27%
from Saturday’s local highs. CoinMarketCap estimates the total capitalisation
of the crypto market to be at 839bn, down 6.7% from levels 24 hours ago and 21%
below Saturday’s peaks.</p><p class=“MsoNormal“>Ethereum is
now a third cheaper than levels at the end of last week, and its sell-off
started noticeably from the 200-day moving average, which had previously acted
as resistance in April. Near the $1070 mark, there is a noticeable
strengthening of buying, as in July.</p><p class=“MsoNormal“>The crypto
market is now in a panic liquidation phase, occurring amid a raid on
cryptocurrencies, which can be compared to the bank run in the
early 20th century. The fundamental
difference is that banking was already an established business back then,
although regulation was in its infancy. The current crisis may be the catalyst
for crypto regulation.</p><p class=“MsoNormal“>If we look
at the situation from a market speculator’s perspective, we are in the process
of capitulation. Such moments often precede long-term reversals. But it is
worth realising that despite Bitcoin’s 5% rebound from the start of the day and
the double-digit rise in yesterday’s casualties, the sell-off may not yet be
over.</p><p class=“MsoNormal“>In our view,
the crypto market is now in the same phase where it was in late 2018 when the
bulk of the decline was behind it, but the best speculative buying moment was
still a year away.</p><p>News
background</p><p class=“MsoNormal“>The
prolonged, almost 5-month sideways slide has relaxed market participants. The
sharp fall in crypto assets took traders by surprise. Investors have been
forced to sell off cryptocurrencies to cover losses on loans secured against
them due to margin calls. The FTX exchange itself, along with Alameda, may also
have been selling off assets.</p><p class=“MsoNormal“>The most
significant drop in the top-100 crypto was Solana, which collapsed by 49%, as
one of the largest holders of SOL was Alameda Research, the investment company
of FTX exchange head Sam Bankman-Fried.</p><p class=“MsoNormal“>Marathon
Digital CEO Fred Thiel said his mining firm was the second-largest public
company in the world (11,300 BTC) in terms of bitcoins stored, thanks to its
retention of mined BTC. MicroStrategy remains the leader, with around 130,000
BTC stored in its wallets.</p><p class=“MsoNormal“>According to
a survey by Nickel Digital Asset Management, 92% of professional investors are
optimistic about the outlook for the cryptocurrency market, despite its
decline.</p><p class=“MsoNormal“>This article was written by <a target=“_blank“ href=“https://www.fxpro.com/“ target=“_blank“>FxPro</a>’s Senior Market Analyst Alex
Kuptsikevich.</p>

This article was written by FxPro FXPro at forexlive.com.

<ul><li>Prior -0.5%</li><li>Market index 199.9 vs 200.1 prior</li><li>Purchase index 162.6 vs 160.5 prior</li><li>Refinance index 373.1 vs 386.7 prior</li><li>30-year mortgage rate 7.14% vs 7.06% prior</li></ul>

This article was written by Justin Low at forexlive.com.

<p style=““ class=“text-align-justify“>That seems to be the take from Goldman Sachs as they revise higher their 3-, 6-, and 12-month outlook for USD/JPY to 155, 155, and 140 respectively (previously was 150, 135, and 125 respectively). Whatever the case may be, <a target=“_blank“ href=“https://www.forexlive.com/news/usdjpy-stays-lockstep-with-the-bond-market-20221108/“ target=“_blank“>the pair remains lockstep with the bond market</a> and this week’s US CPI data will be a crucial one for short-term sentiment at least.</p>

This article was written by Justin Low at forexlive.com.

<p style=““ class=“text-align-justify“>This was already rumoured earlier in the week <a target=“_blank“ href=“https://www.forexlive.com/news/wsj-reported-facebook-parent-meta-will-cut-thousands-of-jobs-this-week-20221107/“ target=“_blank“>here</a>. But it is a sign of the times with big banks also looking to cut jobs further as we global economic headwinds build. In addition to that, Meta will also extend its hiring freeze through to Q1 next year with only some exceptions being made.</p>

This article was written by Justin Low at forexlive.com.

<p style=““ class=“text-align-justify“>The dollar is posting a decent advance on the day now but more so against currencies with high beta (risky currencies) and these days, that includes the pound. GBP/USD is down nearly 1% to 1.1420 as it cracks below its 200-hour moving average:</p><p style=““ class=“text-align-justify“>That erases the gains from yesterday as sellers regain some near-term control in the pair, though <a target=“_blank“ href=“https://www.forexlive.com/news/gbpusd-still-caught-in-no-mans-land-20221108/“ target=“_blank“>the big picture look is still not really going anywhere</a> for now.</p><p style=““ class=“text-align-justify“>The dollar’s push higher comes as we see a round of selling in equities with S&P 500 futures now down by 0.6% on the day.</p><p style=““ class=“text-align-justify“>There’s not much in terms of headlines to have sparked the quick drop in the past hour or so, with the US midterms still shaping up as it is i.e. a less Republican-favoured result than initially anticipated. The Senate race remains tight and the fight for control of the House is still just slightly favoured for the Republicans, even if Democrats have showed much resilience.</p><p style=““ class=“text-align-justify“>One can argue that perhaps the rout in cryptos is starting to spill over as things are looking rather bearish now with Bitcoin breaking the June lows:</p>

This article was written by Justin Low at forexlive.com.

<p style=““ class=“text-align-justify“>She mentions that the central bank could have a „scorched earth“ rate policy to get inflation under control, but that it would not be the best outcome. In terms of their next steps, she maintains that they have flexibility as they „would raise rates faster if we thought inflation was not coming down as expected“. Right.</p>

This article was written by Justin Low at forexlive.com.

<p style=““ class=“text-align-justify“>The pair is little changed today and remains close to the notable resistance point at 0.6500 after its recent recovery when the dollar hit its latest peak last month. Since then, the greenback has very much consolidated gains against most major currencies and it is no different against the aussie.</p><p style=““ class=“text-align-justify“>As things stand right now, the pair is caught in a tussle between 0.6200 and 0.6500 as buyers and sellers are both awaiting firmer direction or some form of catalyst to drive a move on either side of the key technical levels above.</p><p style=““ class=“text-align-justify“>All signs seem to be pointing towards the US CPI data later this week as a potential mover but until we get there, just keep a look out on the technicals in case we do see any sudden moves in the run up to the key risk event.</p><p style=““ class=“text-align-justify“>US futures have tilted higher today, with S&P 500 futures now up 15 points, or 0.4%, and that might give the aussie a bit of a helping hand in contesting 0.6500 again later.</p>

This article was written by Justin Low at forexlive.com.

<p>Crypto
Market picture</p><p>
The
crypto market has lost over 5% in the last 24 hours, pushing capitalisation
back below $1 trillion. The steep fall in FTT affected Bitcoin and Ether and has
pulled a significant market spectrum.
Bitcoin is now trading at $19.8K, with the most substantial losses coming in
the Asian session, filled with algorithmic traders, pushing the price back to
$19.4K at one point. It is noteworthy that a sell-off did not follow the
sell-off in the first and second cryptocurrencies in the markets. </p><p>Once again,
we are forced to guess whether crypto reflects the internal risk attitude of
the financial markets or whether we have seen a short-term technical sell-off.
In the former case, market sentiment will worsen during the day. In the second,
BTCUSD will redeem during the day and further confirm the market’s reversal to
growth. </p><p class=“MsoNormal“>
According to CoinShares, investments in crypto funds declined last week after a
slight increase the previous week. Outflows amounted to $16m compared to
inflows of $6m a week earlier. Bitcoin investments fell by $13 million, and
Ethereum rose by $3 million. Investments in funds that allow shorts on bitcoin
fell by $7 million. Investors have shown a lack of enthusiasm over the past eight
weeks, CoinShares noted.

</p><p>News background</p><p>
Former
MicroStrategy head Michael Saylor called bitcoin a „hope“ for
Lebanon, whose national currency has fallen 96% against the dollar, and
inflation has reached triple digits. The Middle Eastern country has been in a
deep financial crisis since 2019.
</p><p>Twitter’s new owner, Elon Musk, plans to postpone temporarily or entirely shut
down the development of some of the projects announced by the previous
administration, including, reportedly, work on a cryptocurrency wallet. The
news has hurt Dogecoin, which has been growing in hopes of becoming the social
network’s digital currency.</p><p>
According to Reuters, UK bank Santander will block transactions on
cryptocurrency exchanges in 2023 to protect consumers from fraud.</p><p class=“MsoNormal“>
Mining companies are being forced to sell off cryptocurrency mining equipment
at a massive discount to cover losses from a falling market, The Wall Street
Journal reported.

</p><p>This article was written by <a target=“_blank“ href=“https://www.fxpro.com/“ target=“_blank“>FxPro</a>’s Senior Market Analyst Alex
Kuptsikevich.</p>

This article was written by FxPro FXPro at forexlive.com.