Glossary For Forex Trading Novices in South Africa

For fans and outsiders who seek to know about forex trading industry, the business can be quite a challenge. With the ever-increasing number of concepts and jargon that are difficult for the ordinary understanding, the industry is not very welcome place for the uninitiated. So, if you are a forex trader candidate, read this article should be your first step before moving on to learn more about the online forex trading industry.

The As Terminology:

1) Ask Price: Also known as the "Bid Price," this is the price at which the currency or financial instruments sold to the market by traders. Ask price is usually the price that defines the profit made when a trader closes the position. You can get more info about forex trading in south Africa via various online resources.

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2) Aggregate Risk Aggregate Risk is defined as the exposure of financial institutions largely banks- have with clients on the spot and forward contracts. This risk is usually defined as the total number of entities face exposure to currency fluctuations.

3) Arbitrage: This is the process in which traders buy assets or financial instruments in one market and simultaneously selling it in another to make a profit by exploiting price differences between the same two assets. This price difference, which may arise from a variety of reasons, are used for the benefit of Derive.

 

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