Chapter 4: Talking the talk
You have probably added significantly to your trading vocabulary. A lot more is to come, but this is nothing to fear. Even traders with prior experience in the equities or futures markets will come across certain terms that may at first be unfamiliar to them in the foreign exchange market. We have mentioned the unique three-letter ISO 4217 codes that are used to identify each currency, and the concept of majors, crosses and thirds. In this chapter we explain terms such as pips, spreads and handles, and other terms that form part of the day-to-day language of the FX trader.
It is important to realise that none of these terms or the associated language is particularly difficult to understand. However, it is only by ...
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