Forex Trading Glossary, Terms and Definitions

To be a successful Forex Trader you must know the Forex "jargon" and know all the important words, terms and definitions. Our Forex Glossary is a unique guide designed efficiently for the study of foreign currency trade and investment.

The Glossary covers an huge range of definitions and keywords along with a number of examples. At present, the Forex Database Glossary contains over 1200 terms that are related to investment and online currency trading and it is updated on a regular basis.

Learn more about Forex Terms and all the difficult words

If you think that you know the terminology and all the facts, terms and hard words we suggest that you jump directly to our Forex Guide for beginners. You can also continue to read the small article below to expand your knowledge about "different players" in the Forex Trading World.

Knowing the Different Players of Forex Trading

Players of Forex trading can be categorized into several types. It is important to understand who these players are so that you can deal with them appropriately. The first major players in the Forex market are governments and their central banks. They engage in Forex trading based on their specific fiscal policies. Governments trade in Forex through their central banks. These official banks control the currencies of their respective governments and sometimes impose general regulations or restrictions on their currencies based on existing economic situations. There is alot of very strange forex terms involved with this and you might also want to buy a very good forex lexicon to understand all the phrases and terms.

The second major players in the Forex market are private banks and financial institutions. Normally, these financial institutions have enormous reserves which they could put at stake in speculative trading. These types of players are driving the Forex market and they control significant shares in its profit.

Private businesses, multinational corporations, and global enterprises are the third major players in the Forex market. Some are exclusively dedicated to the Forex market while others engage in Forex as a complement to their export and import businesses. Although most businesses use regular banking channels to accumulate foreign currencies, the more aggressive ones are speculating part of their resources in the Forex trading floors (Read more about the term "trading floors" in the Forex Glossary).

Lastly, the most numerous players in the Forex market are the marginal traders. These are individuals who make Forex as their sole or part-time business. Some individual players are also gamblers who bask in the roller coaster trading system of the Forex market (Common word that canbe found in many different synonyms and terms in the forex trading glosssary). Although they are numerous, their accounts are miniscule compared to the major Forex players. However, marginal traders make the Forex trading floors more exciting and vibrant.

Article Summary
• - Common Trading Terms
• - Forex Definitions
• - The Forex Jargon
• - Special Terminology

There are also Forex players that cannot be categorized. These players sometimes bond together and use a revolving fund that contributes greatly to sharp fluctuation of currency prices. These special groups of players are mostly speculators that make Forex their golden cow. They can set market liquidity (hard word that needs to be explained - visit our forex glossary) and in most cases can dictate the direction of the trading floors. They are very active in the market and follow each Forex floor around the world. Their trading practices are excellent and they normally reap profits because of their wide informal networks.

All players of Forex trading behave in similar fashion. Their actions cannot diverge from the general situation of the market. Although some Forex player can influence slight movements of currency prices, it is still the global economic and political conditions that dictate the behavior of the international foreign exchange market.