Generally, in the financial market, Forex has a lot of jargon in its communication. Algerian traders who want to jump in should learn to understand the jargon in Forex Trading fluently. You can also trade with the best forex brokers in Algeria that can be found at http://www.arabforex.pro/en/algeria/ to reduce mistakes if you are still a beginner trader.
The following are terminologies commonly used in Forex Trading, such as:
Margin Call is when your Algerian forex broker requests for you to put more money into your trading account should you wish to continue your trading activity.
Loss or loss is an event that cannot be avoided from trading activities. Even the best traders have experienced losses. While you can’t control market behavior, you can certainly control how much you lose per trade. Use Stop Loss to limit losses.
Bid / Offer
Almost all financial markets in the world have two-way prices. This is the price you buy and sell in a particular market.
Point / Pip / Tick
The point, pip, or tick is the smallest unit in which the market moves.
The purpose of knowing the tick value of a transaction is to help calculate how much our profit or loss (P / L) is. It represents the financial implications of 1 point movement in the transaction.
“Lot” is the amount you wish to trade. Its conditions are set for each market that trades forex in Algeria and other countries.
Order (Risk Management)
It is used to close or open the position of a price of your own choice. This is useful if you can’t follow market movements, as you can choose the price you want to enter the market (by placing an open order) or exit the market (by placing a close order).
Stop and Limit
A stop order is an instruction that is executed only if the market price reaches a certain level that is less profitable than the current market level. Then, a limit order is an instruction that is executed at a certain rate when the market price reaches a level more favorable than the current market price. It can be used to close or open positions.