by: Amelie Gam
Travelling is the best recreation one can enjoy. You learn and have fun at the same time. Travel doesn’t only happen at a geographical level, but at a psychological level also, like mind travel. Any book (or the Internet) can transport a person miles and miles away in space, time and dimension. Many visited Forex world this way and happened to encounter a strange nation called the brokers, who spoke the Currency language, and traded currencies like crazy. It probably sounds funny, nevertheless their market place made everyone realize they were worth studying!
The impression one has when entering the gateways and portals to Currency world is that of an exotic land, unapproachable by laymen. Why? Ignoring all the men in suites that always know what they are doing, the dashboards which seem at first useless for novice traders and investors or the busy atmosphere won’t help the newly arrived Currency trader. It’s the language that makes one feel like currency trading is impossible to learn. What would you say if you heard: “Currency Swap, Cross Currency, Currency Carry Trade, Currency Forward, Compound Option, Currency Option, Country Basket, Currency Overlay, Currency Pair” in a Currency trading world you’ve never had to deal with before? You would be frightened and tell yourself that this kind of investment is too difficult to learn.
The truth is there are many sites on the Internet that offer the necessary information and explain currency-trading terms in an appealing manner. You could speak this language in no time if you would benefit from a glossary (it is like a dictionary for the Forex world). Attractive explanations of special, unusual currency terms can get you the Green Card and citizenship in the trader’s currency market.
If you are thinking of the reason you should learn terms related to Currency trading then take a look at some that will make you reconsider:
-Hearing the words “At or Better” will probably make you dizzy. The words sound like English, but they don’t make any sense in this language. They actually say “deal at a specified rate or at a higher one”. So, you would have to be an insider…
-What do you think of “Contagion”? To understand this means to know history. It was first used in 1997 when there was a financial crisis in Asia. It started in Thailand and spread east affecting other Asian economies. Then it was used in Argentina and in Latin American countries. It defines the spread of a financial crisis from one country to its proximity.
-It’s not Christmas in Currency trading land and you keep hearing about “ELF-X”. No, he is not Santa’s little helper! These initials represent Equity Linked Foreign Exchange Option - ELF-X and they stand for an investor’s option to minimize risk and protect him when purchasing or selling currencies.
-“GTC” stands for “Good till Cancelled” and it represents an order from the investor to a dealer to buy a good security until he decides it is not good anymore.
-“Pip” sounds cute, but it is a financial term too. Currencies can make denominations and Pip is the smallest one.
You can do business and earn money by knowing this language. Risk of loosing is diminished and investment can become profitable. But what can you do in a country when you do not have experience, when you don’t know what everyone’s saying and you still want to profit. You hire a translator (a broker) or you study the Currency trading language so you can do business yourself.
The advice one can receive when planning to go abroad on a business trip is to first document and then finally venture into the Forex world. So, it is like taking a small trip before the really important one…
Summary:
Inexperienced investors that haven’t even read or heard of the special terms used in this field of work can not make succesful financial transactions. If books can be considered as countries, worth visiting and learning from, and Currency trading as a language, then it is recommended to travel more and learn as much as possible.
Co name: gamit
Submit by: Amelie Gam
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