Currency Pairs: quotation of two different currencies, with the value of one currency being quoted against the other. The first currency listed in the pair is called the base currency, and the second currency is called the quote currency. Currency Pairs: The quotation of two different currencies, with the value of one currency being quoted against the other. Example: EUR/USD.

Bid and Ask Price: The bid price is the price at which the market is willing to buy a currency pair, while the ask price is the price at which the market is willing to sell it. 

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Base Currency: The first currency in the pair. It is the currency you are buying or selling.

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Quote Currency: The second currency in the pair. It is the currency you are using to buy or sell the base currency.

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Pips (percentage in point): A pip is a unit of measurement that represents the smallest change in value between two currencies in a forex quote. For most pairs, it’s 0.0001, and for pairs involving JPY, it’s 0.01. Understanding pips is crucial for calculating potential profits and losses in forex trading. Pips: The smallest price move that a given exchange rate can make. For most currency pairs, it is 0.0001.

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Leverage: The use of borrowed funds to increase the potential return on investment.

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Margin: refers to the amount of money required to open and maintain a leveraged trading position. It acts as a security deposit for the trade and ensures that you have enough funds to cover potential losses. Margin: The amount of money required to open a position.

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​Lot Size:  refers to the amount or quantity of a currency pair that you buy or sell in a single transaction. It determines the size of your trade and can significantly impact the potential profit or loss. There are different types of lot sizes, each representing a specific number of units of the base currency in a forex pair. Lot Size: The number of currency units you will buy or sell.

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Technical Analysis: Technical analysis in forex trading involves studying past market data, primarily price and volume, to forecast future price movements. Unlike fundamental analysis, which focuses on economic indicators and news events, technical analysis relies on charts and technical indicators to make trading decisions.

Line Chart: Plots the closing prices over a specific period. It's simple and provides a clear view of the general price trend.

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Bar Chart: Shows the opening, high, low, and closing prices (OHLC) for each period. It's useful for seeing the range and price direction.

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Candlestick Chart: Similar to bar charts but with a more visually appealing representation. Each candlestick shows the opening, high, low, and closing prices for a period, with different colors indicating price movements.

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Uptrend: A series of higher highs and higher lows. Indicates that the currency pair is moving upward.

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Downtrend: A series of lower highs and lower lows. Indicates that the currency pair is moving downward.

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Sideways Trend (Range): When the price moves within a horizontal range, indicating no clear direction.
 

Support: A price level where a downtrend can be expected to pause due to a concentration of demand.

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Resistance: A price level where an uptrend can be expected to pause due to a concentration of supply.

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Breakout: When the price moves above resistance or below support, often indicating the start of a new trend.
 

Moving Averages (MA): Averages the price over a specific period to smooth out price data. Common types include Simple Moving Average (SMA) and Exponential Moving Average (EMA).

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Short a Trade: Executing a sell trade.

 

Long a Trade: Execute a buy trade.

 

Day Trading: The practice of buying and selling financial instruments within the same trading day. The goal is to profit from short-term price movements. Day traders close all their positions before the market closes to avoid overnight risks.

Swing Trading: A trading strategy where traders hold financial instruments for several days to weeks. The goal is to capture price swings, which are larger than those targeted in day trading, by following short- to medium-term trends.

Scalping: A trading strategy that involves making numerous trades throughout the day to profit from small price changes in the market. Scalpers hold positions for very short periods, often just a few minutes, and focus on high volumes to accumulate gains.