Terminology

Pip: The smallest price movement in a currency pair, typically the fourth decimal place. For example, if EUR/USD moves from 1.3000 to 1.3001, it has moved one pip.

Bid Price: The price at which a trader can sell a currency pair.

Ask Price: The price at which a trader can buy a currency pair.

Spread: The difference between the bid and ask price of a currency pair.

Leverage: The ability to control a large position in the market with a relatively small amount of capital. It magnifies both profits and losses.

Margin: The amount of money required to open or maintain a leveraged trading position.

Lot Size: The standardized size of a trading position. In forex, a standard lot is typically 100,000 units of the base currency.

Stop-Loss Order: An order placed to limit potential losses by automatically closing a position at a predetermined price level.

Take-Profit Order: An order placed to lock in profits by automatically closing a position at a predetermined price level.

Long Position: A trading position where a trader buys a currency pair with the expectation that its value will increase.

Short Position: A trading position where a trader sells a currency pair with the expectation that its value will decrease.

Margin Call: A notification from a broker requiring a trader to deposit additional funds into their account to maintain open positions.

Liquidity: The ease with which an asset can be bought or sold in the market without significantly affecting its price.

Volatility: The degree of variation in the price of an asset over time. High volatility implies large price fluctuations.

Market Order: An order to buy or sell a security at the current market price.

Limit Order: An order to buy or sell a security at a specified price or better.

Take-Profit Order: An order to automatically close a position at a predetermined profit level.

Risk Management: Strategies and techniques used to minimize potential losses and preserve capital while trading.

Technical Analysis: Analysis of historical price data and chart patterns to forecast future price movements.

Fundamental Analysis: Analysis of economic, political, and social factors to evaluate the intrinsic value of an asset.

Moving Average: A technical indicator that smooths out price data by calculating the average price over a specified period.

Relative Strength Index (RSI): A momentum oscillator that measures the speed and change of price movements. It ranges from 0 to 100 and is used to identify overbought or oversold conditions.

Support and Resistance: Levels on a price chart where the price tends to find support (does not fall below) or resistance (does not rise above).

Candlestick: A type of price chart that displays the open, high, low, and close prices of an asset over a specific period. Candlestick patterns are used in technical analysis to predict future price movements.

Risk-to-Reward Ratio: The ratio of potential profit to potential loss on a trade. It helps traders assess the potential return relative to the risk of a trade.

Bullish: When the currency is moving in an upward direction, making higher highs and higher lows in the up fibonacci ABCD pattern.

Bearish: When the currency is moving in a downward direction, making                  lower lows and lower highs in the down fibonacci ABCD pattern.