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The Forex Edge by James Dicks

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GLOSSARY

Appreciation The increase in the value of an asset.

Arbitrage A technique that lets traders profit from differences in the price of a single currency pair that is traded on more than one market.

Ask The price at which a currency pair or security is offered for sale. The quoted price at which an investor can buy a currency pair. Also known as the offer, ask price, and ask rate.

Asset An item having commercial or exchange value.

Back-testing The process of testing a trading strategy on prior time periods. Instead of applying a strategy for the time period forward, which could take years, a trader can do a simulation of his or her trading strategy on relevant past data in order to gauge the strategy’s effectiveness. Most technical analysis ...

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