I think these will be very useful to anyone that is new in forex trading. It will be very helpful if you read it over and over until it become part of you.
Long – Buy
Short – Sell
Base Currency – The Currency on the left side of a pair (USD/CAD)
Quote Currency – The Currency on the right side of a pair (USD/CAD)
Bid Price – The price at which the broker is willing to buy from you.
Ask - The price which the broker is willing to sell to you.
Pip – The smallest change in currency value.
Spread – The difference between bid and ask price.
Margin – Amount you deposit with your broker – that is your capital.
Leverage – This is the number of times your broker is will to multiply your capital e.g. if you deposited $200 and your broker gives you a leverage of 1:100, it means you can trade up to $20,000