When you trade Forex for a living, you tend to learn quite a lot of terms that are hard to stick to if you slow down your trading frequencies. However, if you want to truly be able to comprehend the analysis and price forecasts from the professionals, it is important that you stick to these terms and make them your daily driver.
Here at ForexNewsNow, we understand this problem, because we have faced them ourselves, remembering so many words when you’re just starting out in Forex is not as easy as some may expect, even more, the terms come quite close to the people you will need to know about. People who are quite popular in their influential announcements and activities throughout the trading process, we shall cover them as well. Because of all of this information, we made a list of the most important terms and people and compiled them in our Forex Glossary. Let’s get to reviewing them through categories.
You may not expect banks to be featured in something like a Forex Glossary, however, it is important to know about the biggest players in institutional Forex. You can even argue that banks are the primary drivers of the prices that you see on your screen when trading with your Forex broker.
Although every single country in this world has a functioning central bank, it’s quite obvious that not every one of them operates at a volume that many others do. For example, a central bank of a developed country can outperform several developing country central banks put together. The most important banks in the world are considered to be, Bank of Japan, Bank of New Zealand, Bank of Australia, Bank of Canada and of course, the Swiss National Bank.
The savvy traders among you readers may have noticed that one of the biggest banks in the world is missing here. Well, we had to feature them separately, because of their impact on the global financial market. The Bank of England is very popular for its Monetary Policy Committee. The reason is, of course, the Financial Hub nature of London, which oversees quite a large portion of the world trades occurring every day.
Famous people in Forex
This Forex Glossary is quite different from the ones you’ve seen on other websites. The key point of our Forex dictionary, if it’s what you want to call it, is to help you understand how the whole dynamic works. Who are the main players and who are responsible for the price changes you see every day. In this segment, we will give some deserved attention to the people behind the banks mentioned above, the people who actually help it function and make Forex possible.
People like Mervyn King (ex-chairman of the Bank of England), Ben Bernanke (ex-chairman of the Federal Reserve, ex-overseer of the Federal Open Market Committee), Jean-Claude Trichet (ex-president of the European Central Bank), Glenn Stevens (ex-chairman of The Reserve Bank of Australia), and last but not least, Masaaki Shirakawa (current Governor of the Bank of Japan).
Terms and abbreviations
Terms and abbreviations are a major part of your trading. For example, when a completely Forex illiterate person listens to FX slang or some kind of speech, they would think that the guy is speaking in some alien language or something. Bullish? Bearish? Pip? What???
Well, since those terms are quite popular, let’s tackle the more advanced abbreviations and known factors in the Forex Glossary.
- G20 – The group of twenty Finance ministers and central bank governors.
- Ifo Business Climate Inde – Refers to an index of business confidence and optimism that is used as a gauge of economic activity in Germany.
- ISM Manufacturing Report – An economic indicator and a gauge of manufacturing activity in the United States.
- Gfk Consumer Confidence– Documents the level of consumer confidence in the economy in several European states, specifically the UK and Germany.
- Sentix Investor Confidence – a monthly scale of business conditions in the 17-member states of the Eurozone.
- ADP Non-Farm Payrolls – a figure that seeks to measure the employment levels of about 500,000 American businesses.
- Conference Board Consumer Confidence Index – An economic indicator that is used to evaluate the overall sentiment of consumers and the level of confidence they have in the economy.