Entering the world of FX is like entering any new field. Every field has its terminology that you need to understand in order to figure out what’s going on. For example, if you’ve never cooked before, you might not know what it means to sauté something or what the difference between blanching and boiling is (personally, I don’t, which is why I use that as an example). That would make it hard to follow a recipe.

FX is no different. The terminology can be bewildering. On the one hand, fundamental analysis is based on economics, a notoriously obscure field where professionals actually find their career is hindered if they are easily understood.* On the other hand, many participants use technical analysis, which sounds a bit like Ouija boards operated by people in business suits.

This series tries to demystify the most frequently used terms that you’ll encounter in your journey to becoming a Master of the FX Universe.

 

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