The Language of Forex

Question 1

what does ninja mean?

Answer 1

ninja is a nickname for the USD/JPY currency pair

Question 2

what does ‘single currency’ mean?

Answer 2

EUR (euro)

Question 3

what does ‘loonie’ mean?

Answer 3

CAD (canadian dollar)

Question 4

what does ‘swissie’ mean?

Answer 4

CHF (swiss franc)

Question 5

what does ‘aussie’ mean?

Answer 5

AUD (australian dollar)

Question 6

what does ‘kiwi’ mean?

Answer 6

NZD (new zealand dollar)

Question 7

what does ‘greenback, buck’ mean?

Answer 7

USD (U.S. Dollar)

Question 8

what does ‘sterling, pound sterling’ mean?

Answer 8

GBP (great british pound)

Question 9

what does ‘cable’ mean?

Answer 9

GBP/USD (british pound/us dollar)

Question 10

what does ninja mean?

Answer 10

USD/JPY (US dolla/japanese yen)

Question 11

what does ‘chunnel’ mean?

Answer 11

EUR/GBP (euro/british pound)

Question 12

what does yuppy mean?

Answer 12

eur/jpy (euro/japanese yen)

Question 13

what does guppy mean?

Answer 13

gbp/jpy (great british pound/japanese yen)

Question 14

what does barnie mean?

Answer 14

USD/RUB (us dollar/russian ruble)

Question 15

what is QE ?

Answer 15

quantitative easing

• the central bank’s monetary policy to print and inject more money into the economy

Question 16

what is bid & ask?

Answer 16

purchase and selling pice related to the base (domestic) currency

Question 17

hawkish & dovish statements?

Answer 17

central bank announcements that usually hint at interest rate increases (hawkish) or cuts/decreases (dovish)

Question 18

yard?

Answer 18

a billion units of any currency

Question 19

gap?

Answer 19

a market move where price skips several levels without any trades occuring

Question 20

thin market?

Answer 20

condition when prices are not as liquid as expected

Question 21

speculator?

Answer 21

individual trader taking large risks in hope of making a quick gain

Question 22

day trader?

Answer 22

opening few trades a day and closing them that evening

Question 23

scalper?

Answer 23

a trader who aims for small but fast short-term gains (usually intra-day)

Question 24

uptick?

Answer 24

a new price quote at a price higher than the preceding quote

Question 25

rate hike?

Answer 25

an interest rate rise

Question 26

surge

Answer 26

a very quick and sudden price movement in an upward direction

Question 27

plunge?

Answer 27

a very quick and sudden price movement in a downward direction

Question 28

volatility?

Answer 28

how much a price fluctuates over a period of time

Question 29

whipsaw?

Answer 29

highly volatile market with sharp price movements, usually trading sideways with no trend

Question 30

safe haven assets?

Answer 30

currencies, commodities or bonds that rise during periods of high uncertainty (e.g., gold, japanese yen, swiss franc, bitcoin)

Question 31

commodity currency?

Answer 31

a currency that is based on a commodity export economy (e.g., AUD exporting minerals, CAD exporting oil, NZD exporting dairy & meat

Question 32

'going long'?

Answer 32

opening a bullish (buying) trade

Question 33

going short?

Answer 33

opening a bearish (selling) trade

Question 34

babysitting a trade?

Answer 34

holding a losing trade open for a long time

Question 35

swing trading?

Answer 35

moving quickly to take advantage of potential swings in asset prices, by holding or shorting an asset overnight or longer

Question 36

position trading?

Answer 36

betting on long-term gains by keeping a position open for several months to years, without being too concerned about short-term price movements

Question 37

scalping?

Answer 37

trading with many short-term positions (seconds - minutes) for repeated small profits

Question 38

hedging?

Answer 38

maintaining a position that reduces the risk of your primary position

Question 39

currency rallying?

Answer 39

a price that recovers after a period of its decline

Question 40

plunging?

Answer 40

a price that's sinking or falling from its previous value

Question 41

keeping the power dry?

Answer 41

limiting your trades until trading conditions become clearer

Question 42

getting whacked?

Answer 42

losing against a swift, sharp trade

Question 43

melting account?

Answer 43

making losses too large to continue trading

Question 44

what does the following statement mean? "USD/CAD - dovish BOC hurts the loonie"

Answer 44

bank of canada reports an interest rate cut, therefore canadian dollar depreciates against US dollar

Question 45

what does the following statement mean? "AUD/USD - jobs report ruined the rally"

Answer 45

bad australian employment report stopped recent AUD/USD uptrend

Question 46

what does the following statement mean? "NZD/USD - signs of recovery for the roller coaster kiwi"

Answer 46

new zealand dollar recovers against US dollar after an extended exchange rate fall