Bear Market - A market where the prices are moving downwards

Bull Market - A market where the prices are moving upwards

Cable - Terminology used to identify the GBP/USD market

Candlestick Patterns - A chart indicator used to identify potential changes in direction in the market

Commission - The fee charged by a broker or dealer

Currency - Any form of legal tender, the most active and commonly traded being those of the G7 nations which are the USA, Canada, UK, France, Germany, Italy & Japan

Currency Pair - A pair of currencies that combine to create a foreign exchange rate

Day Trading - A style of trading where positions are opened and closed during the same day

Economic Indicator - An indicator that is issued by the government that identifies current economic growth such as inflation or employment rates

Foreign Exchange (FX, Forex) - The trading of one currency in exchange for another

Fundamental Analysis - The use of news and economic indicators to identify movements in the market

FX - an abbreviation for foreign exchange

Long Position - A trade that is opened based on the market moving upwards

Market Risk - The effect of market prices changing

Order to Open - Identifying an entry point for a trade and giving an instruction for the trade to open at that point

Pips (Points) - The fourth decimal point of a currency which is the smallest tradeable unit

Range - The amount of movement between the highest and lowest points during any given period of time

Resistance - The upper level of the market where it is estimated that the market price will not go any further

Short Position - A trade that is opened based on the market moving downwards

Spread - The margin that a spread betting company will take to process the trade

Stop Limit - A pre determined level at which a trade should be closed automatically if the price reaches that point

Support - The lower level of the market where it is estimated that the market price will not go any further

Technical Analysis - The use of technical indicators such as moving averages and trend lines to identify movements in the market