Must-known trading abbreviations in the forex trading.
Before you learn Forex terms and every abbreviation on the world of foreign exchange, it is possible for you to think that this market is full of mystery. It is especially true for those who have just started to trade in the financial market. In fact, there are many trading abbreviations in Forex market that you should know. This article will help you learn some.
Forex Trading Abbreviations that You Must Know
When it comes to Forex, Forex itself is a short term of Foreign Exchange which stands for an international exchange market where world’s currencies are purchased and sold. This market is primary trading currency pair with some popular currencies including US Dollar, Pound Sterling and Euro is mostly traded. As you trade these currencies, you will find widely used trading abbreviations as follow.
• A to B
Let’s begin from the abbreviations which start with A to C. Before that, there are also 10 Yr and 30 Yr which refer to US 10-Year Note and US 30-Year Bond. For the initial A, there are ADX (Average Directional Index) and ATR (Average True Range) which usually found in technical indicator. Next, there are BE (Breakeven) and BB (Bollinger Bands).
• C to D
For the initial C, there are CFD (Contract for Difference), CPI (Consumer Price Index), CTA (Commodity Trading Advisor), CSI (Commodity Selection Index), COT (Commitments of Traders) and CCI (Commodity Channel Index in technical indicator or Consumer Confidence Index in economic indicator). When it comes to initial D, you may find DD which can refer to Drawdown and Due Diligence.
• E to H
For trading abbreviations started with E, we have ECN (Electronic Communication Network), ETF (Exchange Traded Fund) and EMA (Exponential Moving Average). For the initial F, there are Fed (Federal Reserve System) and FDM (Forex Dealer Member). When it comes to G, you might find GDP (Gross Domestic Product) in economic indicator and for H, there are HH (Higher High) and HL (Higher Low) in charts.
• I to N
When it comes to I, there is IB which can refer to Interbank and Inside Bar. Then, for the initial L, there are LH (Lower High) and LL (Lower Low). For the M, you might find MA (Moving Average), MFT (Multiple Time Frame) and MACD in technical indicator which stands for Moving Average Convergence Divergence. For the initial N, there is NFP (Nonfarm Payroll).
• O to S
For the initial O, you might find OHLC (Open, High, Low, Close) in chart. When it comes to P, there are PA (Price Action), PIP (Price Interest Point), PPI (Producer Price Index) and PP (Pivot Point). For the R, there can be R/R (Risk/Reward), RVI (Relative Vigor Index) and RSI (Relative Strength Index). For the S, there are SL (Stop-Loss) and SMA (Simple Moving Average).
• T to Z
For trading abbreviations begin with T, there are TP (Take Profit), TS (Trailing Stop), TL (Trend Line) and TSI (True Strength Index). When it comes to U, you might find some abbreviations like UTC (Universal Time) and USDX (United States Dollar Index). For the initial W, there is WB (World Bank). The last X, there are XAG which means Silver and XAU which means Gold.
The Bottom Line
Finally, you have learned some of the most important abbreviations in the
Forex trading world. In addition to those trading abbreviations, you need to learn Forex currency abbreviations as well which are based on the ISO Code. And one more thing, don’t forget to keep upgrading yourself by taking part in Forex seminars and webinars as well as by reading Forex articles in various resources.