The term Forex is quite familiar to most people in the business sector. The Foreign Exchange Market is the largest known financial market in the whole world and many stories of success and failure have loomed over its existence. Its popularity has zoomed over the years and it now has a daily turnover average of $1.9 trillion US dollars.

Putting it simply, Forex means simultaneous buying of a currency and the selling of yet another currency, these currencies are being traded in pairs, one currency being traded for another.

There are a lot of terms used in forex trading. Some of those terms are a little bit hard to understand, or some terms may seem to have the same meaning, and very soon you might find yourself unable to understand a single word used in forex trading.

To be a good forex trader, you must know the language being used in the market. This includes the different terms which you must familiarize yourself with; it does not necessarily mean that you should memorize all of the terms.