Ask - The price at which the currency or instrument is offered.
 Balance - Amount of money in an account.
 Base Currency - 1. The currency in which an investor or issuer maintains its book of accounts; the currency that other currencies are quoted against. In the forex market, the US Dollar is normally considered the `base` currency for quotes, meaning that quotes are expressed as a unit of $1 USD per the other currency quoted in the pair.
2. In terms of foreign exchange trading, currencies are quoted in terms of a currency pair. The first currency in the pair is the base currency. The base currency is the currency against which exchange rates are generally quoted in a given country. Examples: CHF/JPY, the Swiss franc is the base currency; EUR/USD, the EURO is the base currency.
 Bid - The price that a buyer is prepared to purchase at; the price offered for a currency.
 Broker - An individual, or firm, that acts as an intermediary, putting together buyers and sellers usually for a fee or commission. In contrast, a `dealer` commits capital and takes one side of a position, hoping to earn a spread (profit) by closing out the position in a subsequent trade with another party.
 Close a Position (Position Squaring) - To eliminate an investment from one's portfolio by either buying back a short position or selling a long position.
 Commission - Fee broker charges for a transaction.
 Contract (Unit or Lot) - The standard unit of trading on certain exchanges.
 Cross Rates - An exchange rate between two currencies. The cross rate is said to be non-standard in the country where the currency pair is quoted. For example, in the US, a GBP/CHF quote would be considered a cross rate, whereas in the UK or Switzerland it would be one of the primary currency pairs traded.
 Day Trading - Opening and closing the same position or positions within the same trading session.
 Derivatives - Trades that are constructed or derived from another security (stock, bond, currency, or commodity). Derivatives can be both exchange and non-exchange traded (known as Over the Counter or OTC). Examples of derivative instruments include Options, Interest Rate Swaps, Forward Rate Agreements, Caps, Floors and Swap options.
 Economic Indicator - A statistic that indicates current economic growth and stability issued by the government or a non-government institution (i.e. Gross Domestic Product (GDP), Employement Rates, Trade Deficits, Industrial Production, and Business Inventories).
 Exposure - Net working capital - The current assets in a foreign currency minus current liabilities in the currency; Monetary/non-monetary method - Monetary assets and liabilities in the foreign currency are valued at present exchange rates, while non-monetary items are entered at the relevant historic rates.
 Foreign Exchange (or Forex or FX) - The simultaneous buying of one currency and selling of another in an over-the-counter market. Most major FX is quoted against the US Dollar.
 Fundamental Analysis - Thorough analysis of economic and political data with the goal of determining future movements in a financial market.
 GTC - Good-Till-Cancelled. An order left with a Dealer to buy or sell at a fixed price. The GTC will remain in place until executed or cancelled.
 Hedge - An investment position or combination of positions that reduces the volatility of your portfolio value. One can take an offsetting position in a related security. Instruments used are varied and include forwards, futures, options, and combinations of all of them.
 Interbank Rates - The Foreign Exchange rates at which large international banks quote other large international banks.
 Limit Order - An order to buy at or below a specified price or to sell at or above a specified price.
 Maintenance margin - The minimum margin which an investor must keep on deposit in a margin account at all times in respect of each open contract.
 Margin - Customers must deposit funds as collateral to cover any potential losses from adverse movements in prices.
 Margin Call - A requirement from a broker or dealer for additional funds or other collateral to bring the margin up to a required level to guarantee performance on a position that has moved against the customer.
 Net Worth - Amount of assets which exceed liabilities; May also be known as stockholders equity or net assets. For an individual -- the total value of all possessions such as houses, stocks, bonds, and other securities, minus all outstanding debts, such as mortgage and loans.
 One Cancels Other Order (O.C.O. Order) - A contingent order where the execution of one part of the order automatically cancels the other part.
 Open Position - A deal not yet reversed or settled and the investor is subject to exchange rate movements.
 Order - An order is an instruction, from a client to a broker to trade. An order can be placed at a specific price or at the market price. Also, it can be good until filled or until close of business.
 Pip (or Points) - The term used in currency market to represent the smallest incremental move an exchange rate can make. Depending on context, normally one basis point (0.0001 in the case of EUR/USD, GBD/USD, USD/CHF and .01 in the case of USD/JPY).
 Position - A position is a trading view expressed by buying or selling. It can refer to the amount of a currency either owned or owed by an investor.
Quote - An indicative market price; shows the highest bid and/or lowest ask price available on a security at any given time.
Range - The difference between the highest and lowest price of a future recorded during a given trading session.
Realized and Unrealized Profit and Loss - One using an accrual type accounting system has an "unrealized profit" until he sells his shares. Upon the sale of one's shares, the profit becomes "realized."
Risk Management - To hedge one's risk they will employ financial analysis and trading techniques.
Rollover - The settlement of a deal is rolled forward to another value date with the cost of this process based on the interest rate differential of the two currencies.
Stop Order - An order to buy/sell at an agreed price. One could also have a pre-arranged stop order, whereby an open position is automatically liquidated when a specified price is reached or passed.
 Spread - The difference between the bid and offer (ask) prices; used to measure market liquidity. Narrower spreads usually signify high liquidity.
 Stop loss order - Order given to ensure that , should a currency weaken by a certain percentage, a short position will be covered even though this involves taking a loss. Realize profit orders are less common.
 Swaps - A swap occurs when one currency is temporarily exchanged for another, then the currency is held and exchanged later after a fixed period of time. To calculate the swap take the interest rate differential between the two underlying currencies, thus it may be used for speculative purposes to exploit anticipated movement in the interest rates.
 Technical Analysis - An effort to forecast future market activity by analyzing market data such as charts, price trends, and volume.
 Volatility - A statistical measure of a market or a security's price movements over time and is calculated by using standard deviation. Associated with high volatility is a high degree of risk.
 Whipsaw - A term used to describe a condition in a highly volatile market where a sharp price movement is quickly followed by a sharp reversal.