Loonie
This is a nickname for the Canadian dollar, which has a picture of a loon on the one dollar coin. For those that are not familiar with lumens, these are iconic water birds found in Canada and throughout North America, with a booming, haunting cry that has come to symbolize the Canadian wilderness. The common loon is the one portrayed on the Canadian one dollar coin – this is the official bird of Ontario, the most populous Canadian province. The Canadian two dollar coin is called a toonie, although this is a made-up name and not a bird.Long and short
These describe two different positions in the forex market – and in other financial and equity markets as well. When a trader has a long position, they have bought a currency pair because they believe its value will rise. With a short position, the trader has sold the currency pair in the belief that its value is likely to drop.Pip
A pip is a small measure of currency pair movement and is equivalent to 1/100 of a basis point. For example, a movement of one cent in a US-denominated currency pair is a move of one basis point, or 100 pips. In fact, a pip is the smallest amount that any currency exchange rate can move.
Spread
This is the difference between how much traders pay for a currency pair and how much the seller receives. For example, if the bid price is 1.4005 and the ask price is 1.4009, then the spread is 0.0004 – or 4 pips. Since forex brokers do not charge commissions, the spread is one way that they make money.Stop loss
A stop loss is a secondary order placed with a primary trade in order to limit risk. For example, a trader could buy a currency pair at 1.4271 with the expectation that it is going to rise. However, they can limit risk by placing a sell order at a level below the price at which they purchased – for example at 1.4250. This limits how much they can lose, since the sell order will execute once the price drops to this level. Similar approaches are available to limit risk when a trader enters a short position.Trend
This is when a currency pair tends to move in a particular direction for an extended period of time – either upward or downward. Following trends is a very popular forex trading strategy, and often involves significant technical analysis to determine when a trend may be underway and when it may be coming to a conclusion.
Editors’ Picks
AUD/USD holds above 0.6500 in thin trading
The Australian Dollar managed to recover ground against its American rival after AUD/USD fell to 0.6484. The upbeat tone of Wall Street underpinned the Aussie despite broad US Dollar strength and tepid Australian data.
EUR/USD comfortable below 1.0800 lower lows at sight
The EUR/USD pair lost ground on Thursday and settled near a fresh March low of 1.0774. Strong US data and hawkish Fed speakers comments lead the way ahead of the release of the US PCE Price Index on Friday.
Gold price finishes Thursday’s session set to reach new all-time highs
Gold price rallied during the North American session on Thursday and hit a new all-time high of $2,225 in the mid-North American session. Precious metal prices are trending higher even though US Treasury yields are advancing, underpinning the Greenback.
Bitcoin price extends retreat from $69K as old whales shift their holdings to new whales
Bitcoin price continues to move further away from the $69,000 threshold, gaining ground as BTC bulls hope for a retest of the $73,777 peak. This is because of the general assumption that clearing this blockade would set the tone for a reach higher, marking a new all-time high.
Bears have been standing before a steamroller so far this year
Despite a pushback on rate cuts from Christopher Waller, and what was supposed to be cautious trading sentiment ahead of critical US inflation data released later on Friday, the S&P 500 rose on Thursday, marking its best first-quarter performance in five years.
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