It is important for currency traders to understand the jargons and terms that are used by market participants. From a definition of what is leveraging to explaining what is a short position and the principle behind technical analysis, this glossary defines some of the more commonly used forex trading words.
Forex Trading Concepts – Interbank to Limit Order
Interbank - This refers to the borrowing and lending that occurs between banks, and is separate from transactions with businesses and retail customers.
Leverage - This is a margin or loan facility that allows traders to trade multiples of what they have in their trading account. For example, a 100:1 leverage will allow someone with $1,000 to enter a trade for $100,000.
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