Common Forex Trade Jargon Everyone Must Know About (L to N)
The geography, particularly regarding Asia, the wealth of mineral wealth and commodities, and the governmental policies of steady high-interest levels contribute to the appeal of Australia in the FX market. Due to its strong association with the demand for commodities, which have a long history of being unpredictable, Australian currencies are countercyclical and highly volatile.
The currency exchange market has numerous peculiar terminology, abbreviations, and phrases that may frequently leave traders scratching their heads. Becoming acclimated to forex trading might be difficult while using new platforms like MT5, MT4 Australia and others. An investor’s path and profit may be significantly hampered by foreign jargon and a lack of grasp of such trade lingo. Aspiring forex traders must continue reading for a review on a few fundamental words that every Forex Trader has to be familiar with to advance their understanding of the forex market. This article looks at terms that start with L to N.
Leverage
Forex brokerage firms provide traders with leveraging services, which increases a trader’s purchasing power. It enables the trader to invest a small sum while engaging in high quantities of trading currencies. A ratio indicates leverage; for example, a leverage of 1:50 multiplies an investor’s buying power by 50.
Limit Order
A limit order is a directive to cancel or initiate a trade transaction at a potential value rather than the present value. For instance, if the AUD/USD exchange rate is published at 1.07604/1.07723, a linked limit order to buy AUD at a rate under the present market value will result in the buying of the currency at 1.07722 or lower.
Liquidity
Liquidity is the quantity or volume of a forex currency presently available for trade.
Leading Indicators
It refers to the data that can forecast future economic growth or development seen on platforms like MT4 Australia.
Level
A level is a pricing range or specific value that is significant from a technical perspective or because there are a lot of recorded trades or order interests.
Long Position
In contrast to a short position, a long position is one in which a trader purchases a base currency within a pair to benefit from a rise in the market value.
Lot
One lot equals 100,000 units of the currency a trader selects to trade. A single lot is a predetermined unit of that currency.
Liability
The possible loss, liability, or financial commitment is a liability.
Long Position
It is a position that rises in value when market prices rise. It is long whenever the base exchange in the currency pair is purchased. The assumption behind taking this position is that the market rate would increase.
Longs
Longs are traders who have acquired goods, assets or products.
Margin
The amount of outstanding balance needed to keep an open holding is called “margin.”
Margin Call
The margin call warning informs traders that extra investment is required to raise the margin and maintain the status of their remaining holdings.
Market order
A market order is necessary for people wishing to trade since it directs that a deal be carried out as soon as feasible at best possible price.
Micro Lot
Within a currency pair, 1,000 units of the base currency are referred to as a “micro-lot.”
NAS100
It is the name of the NASDAQ 100 index acronym.
Net Position
Net position is the number of forex funds purchased or sold that are not cancelled by reversing transactions.
New York Session
It refers to the New York forex trade time between 8:00 AM and 5:00 PM.
