Check Out The Infographic Version Of This Article : The Fundamental terms of technical trading you should know - "a complete guide"

Venturing into the online trading community is a dauntless act which is to be definitely appreciated. But sheer grit and determination are not the only things required to sustain yourself as a successful trader. The way to a fruitful trading career is a strong knowledge of the fundamentals which can stand in good stead in your FX trading career and help you achieve what you set out to do. Here are a few technical trading terms which can help in building your knowledge base.

• 1. Asset :

     A property owned by an individual which is usually considered to have a high value.

  2. Broker :

     A firm or an individual which helps people to buy/sell goods.

  3. Commodity :

     Commodities are raw materials which can be bought and sold according to a particular trader’s requirements. E.g. gold, coffee etc.

  4. Depreciate :

     The decrease in the value of a particular commodity is called depreciation.

  5. Economic Indicator :

     Statistics which predict the position of an economy up to a certain level.

  6. Futures Contract :

     An agreement between the buyer and the seller where the goods are sold at the fixed expiry date at live market prices.

  7. GBP - Great Britain Pound :

     The currency of the United Kingdom.

  8. Hurdle rate :

     The minimum rate at which a project or an investment is accepted.

  9. Inflation :

     Inflation is the elevation of prices when the purchasing value of money declines.

  10. Long Position :

      Buying a commodity with the expectancy that its market price will gradually increase is known as entering a Long Position.

  11. Maturity :

      Maturity refers to the period when a security or an insurance policy gets matured.

  12. NYMEX :

      NYMEX stands for New York Mercantile Exchange and it is also the largest physical commodity futures exchange in the world.

  13. Overnight :

      A particular trade which has not been closed and is open for the upcoming business day.

  14. Portfolio Hedgers :

      The person who hedges to reduce the amount of risk exposure in his/her investment portfolio.

  15. Risk Tolerance :

      The potential of a trader to handle the price fluctuations and losses in their trading career.

  16. Spot Exchange Rate :

      The current market’s exchange rate is known as Spot Exchange Rate.

  17. Transaction Costs :

      The costs incurred when currencies or commodities are bought and sold.

  18. White label :

      The use of a company’s products and services by another company as their own products with their brand identity is known as White Label.

  19. ZEW :

      It is the Centre for European Economic Research which conducts monthly surveys on the economic conditions of developed countries.
      Traders often fail to understand the value and the exposure they gain when they possess a strong trading knowledge. To learn and explore more trading terms, visit : http://www.al-shuaib.com/education/traders-glossary.php