Stock Market and Forex Terms
By Nicole Morgan
Forex is the nickname for the Foreign Exchange Market. The activities to buy and sell forex is called Forex Trading There are several branches of the stock market in the United States. Some stocks trade on the Dow Jones, others on Nasdaq. All stock market transactions in the United States take place on the New York Stock Exchange (NYSE). There may be one or more distinct markets in other countries.
International trade takes place on the market termed the Foreign Exchange Market, or Forex. Several countries across the world in almost every time zone participate in trade on Forex, with multiple currencies being utilized and stocks and commodities from all participating countries being offered for trade.
There are many nations and time zones involved, Forex remains open for trade 24 hours a day, 5 days a week. These additional hours increase the risk factor intensely for those of us who cannot monitor our investments 24 hours a day. This means that the value of your holdings could potentially plummet overnight, while you sleep, because other countries are still trading while you are in a dream world.
One of the major foreign markets that Americans trading on Forex will encounter is that of the British. While several other terms relating to the stock market will be similar because of the common language, there are some specific terms that are very different in the British trading vocabulary.
For example, in the United States, stockbrokers who hold onto securities purchased at low prices for the purpose of selling them to clients in a higher priced market (so that the client can turn around and resell them for the profit on the open market) are called market-makers. However, in Britain, this type of investor is simply referred to as a ”jobber”.
Another term you will want to be familiar with is ”yard”. This does not refer to a green patch of land, a measurement in inches, or even 36 of something. The term is used in reference to quantity of currency rather than value and is equivalent to one million units of the currency in question. In other words, you can have a yard of dollars or a yard of yen, and though it is the same quantity of bills, coins, or whatever physical currency is used, it is not necessarily equivalent in value.
In Britain, they do not use the Euro, and they do not use the U.S. dollar. They have chosen to still use the pound sterling, a currency that has been used in the country for hundreds of years. However, Britain is currently on a path to make the conversion to the Euro within the next five years.
About The Author
Nicole Morgan offers expert advice regarding Forex Trading Techniques and Training
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