Forex Dictionary (Slang)

Forex Glossary: What Every Beginner Trader Needs to Know

On the Forex market, many beginners face difficulties understanding the terms used in articles, forums, and economic news. Words like "margin," "swap," or "cable" can be confusing, and specific slang, such as "mashka is looking down," only complicates the learning process. However, in practice, Forex terms are usually simple and easy to remember. The key is to understand their basic meanings to avoid mistakes and lay the groundwork for studying more complex topics.

At Ronin Academy, we understand how crucial it is for beginners to learn the language of financial markets. That’s why we’ve created a Forex Glossary that covers all the essential terms, from "bars" and "timeframes" to "margin" and "leverage." This glossary is available completely free of charge and serves as your first step toward confident trading.

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Basic Forex Terms

Candlesticks and Bars

This is a type of chart where each time interval (timeframe) is represented by a specific figure. Candlesticks and bars simplify data analysis, making it more compact and comprehensible. While they may seem unfamiliar to beginners, this format quickly becomes intuitive after a few trades.

Timeframe

A timeframe represents the period each candlestick or bar covers. For example:

• M5 — a five-minute interval,
• H1 — a one-hour interval.

Smaller timeframes (up to H1) are suitable for short-term trading, while larger timeframes are used for long-term strategies.

Ticks and Points

• Tick: The smallest price movement. For five-digit quotes, it is the fifth decimal place.
• Point: The main unit for measuring price changes, equal to ten ticks, and represented by the fourth decimal place.

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Key Trading Elements

Order

An order is a trader's instruction to buy or sell. There are two types of orders:

1. Market Orders — executed at the current price.
2. Pending Orders — activated at a specific price level.

Positions

• Short (Sell): Selling. This term originates from the stock market and refers to speculative operations.
• Long (Buy): Buying, aimed at long-term profit.

Spread

The difference between the buying price (Ask) and the selling price (Bid). This is essentially the "commission" a trader pays when entering the market.

Swap

The fee or credit for holding a position overnight. A swap is calculated based on the interest rates of the currencies in a pair.

Stop Loss and Take Profit

• Stop Loss limits losses. For example, if you buy USD/RUB at 60, setting a stop at 59 will close the position when that price is reached.
• Take Profit locks in profits at a pre-determined price level.

Breakeven

Moving the stop loss to the entry price after the trade moves in your favor to ensure no losses.

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Strategies and Calculations

Margin

The amount held by the broker to secure a trade. It is calculated based on position size, instrument type, and leverage.

Leverage

A multiplier that increases your buying power using borrowed funds. For instance, 1:100 leverage allows you to control capital 100 times greater than your deposit.

Margin Call

A notification that your account balance is close to the minimum level required to maintain positions. If the situation doesn’t improve, a Stop Out occurs—where positions are forcibly closed by the broker.

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Market Trends and States

Trend

The overall direction of the market:

• Uptrend (bullish): Prices are rising.
• Downtrend (bearish): Prices are falling.

Flat

A market state where prices move within a narrow range.

Correction

A temporary price movement against the main trend, often followed by a continuation of the trend.

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Currency Pairs

1. Majors: USD paired with popular currencies like EUR, GBP, JPY.
2. Cross Pairs: Pairs that do not include USD, such as EUR/JPY.
3. Exotic Pairs: Currencies from emerging markets with lower liquidity, such as MXN or ZAR.

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Indicators and Tools

Fibonacci Levels

A graphical tool for predicting price reversals based on specific retracement levels.

Divergence

A signal where the price and an indicator move in opposite directions, indicating a potential reversal.

Expert Advisors (Trading Robots)

Automated programs that execute trades based on pre-set algorithms.

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What Ronin Academy Offers

The Ronin Academy Glossary is not just a list of terms but a comprehensive guide for both beginners and experienced traders. Each term is explained in detail, with examples and practical recommendations for use. Best of all, it’s completely free and designed to help you confidently take your first steps in the Forex market.

 

Stop wasting time searching for information in scattered sources. Everything you need to begin successful trading is already available in one place. Start your learning journey today and explore the world of finance with Ronin Academy!