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Forex glossary
Plain-language definitions of the terms used in forex and CFD trading. Each definition is a recorded row written by us — if a term is not listed, we have not written it yet rather than guessing at one.
5 terms shown · 59 terms recorded in total
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Backtest
A backtest runs a set of rules over historical price data to see how that rule set would have performed in the past. It answers a narrow question about history…
Letter B
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Base Currency
In a currency pair, the base currency is the first one named and the unit being bought or sold. In EURUSD, the euro is the base and the quote tells you how much…
Letter B
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Bid Price
The bid is the price at which the market will buy the base currency from you, so it is the price your sell order receives when you open a short position. On a t…
Letter B
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Breakout
A breakout is a move beyond a level or area that price had previously been unable to leave, such as the edge of a range. Breakouts frequently fail, so the term…
Letter B
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Broker Regulation
Regulation is the supervision a broker receives from a financial authority, which typically sets rules on client-money segregation, leverage limits, disclosure…
Letter B
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