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Terminology

JP Markets Quiz Glossary: Decoding Key Terms for Successful Trading

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What is Base Currency?

The first currency in a currency pair. It shows how much the base currency is worth as measured against the second currency.

The currency used in military bases.

The bottom currency in a pile.

The main ingredient in a recipe.

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What is Central Bank Intervention?

A government agency organizing central events.

Central bank intervention occurs when a central bank actively enters the foreign exchange market to influence the value of its currency.

An intervention focused on central location issues.

A bank's interference in central heating systems.

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What is Base Currency?

The bottom currency in a pile.

The currency used in military bases.

The main ingredient in a recipe.

The first currency in a currency pair.

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What is Ask Price?

The price of asking someone a question.

The cost of renting a movie.

The lowest price a seller is willing to accept for a currency pair.

The amount you pay to enter a competition.

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What is a Bid Price?

The highest price a buyer is willing to pay for a currency pair.

The amount you offer for a coffee bid.

The cost of placing a bid in an auction.

The price for a bidirectional ticket.

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What is Equity?

Equity in Forex trading is simply the total value of a Forex trader's account.

The quality of being equally distributed.

A term referring to equal opportunity in society.

A type of furniture used in equal measure.

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What is a Drawdown?

A contest for artists drawing under pressure.

It is the peak-to-trough decline during a specific period of an investment, trading account, or fund. It is a measure of the risk and potential losses.

The lowering of a curtain during a performance.

A term in plumbing for draining a downspout.

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What is an ECN Broker?

A broker specializing in environmental conservation.

A broker engaged in electrical circuit networking.

A financial intermediary that uses electronic communications networks (ECNs) to give clients direct access to other participants in the currency market.

A broker focusing on exotic cuisine networks.

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What is Appreciation?

A currency is said to appreciate when its price rises.

A decrease in value.

The act of appreciating different perspectives.

The act of appreciating new traders

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What is a Carry Trade?

A strategy in which an investor sells a certain currency with a relatively low interest rate and uses the funds to purchase a different currency yielding a higher interest rate.

A type of dance move.

A trade involving carrying someone's luggage.

A trade involving carrying heavy items.

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What is a Bull Market?

A market specializing in bull statues.

A marketplace for bullish animals.

A financial market of a group of securities in which prices are rising or are expected to rise.

A market that sells bullfighting equipment.

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What is Commission?

A service charge assessed by a broker or investment advisor in return for providing investment advice and/or handling the purchase or sale of a security.

A commission earned for committing to a cause.

A form of art commission paid in currencies.

A committee decision-making fee.

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What is Correlation?

A term used in culinary arts for mixing ingredients.

The act of sending correlated messages.

Correlation measures the degree to which two currency pairs move in relation to each other.

A fitness exercise involving coordination.

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What is Exchange Rate?

The rate at which items are exchanged in a market.

The value of one currency for the purpose of conversion to another.

A term used in athletics for the rate of relay baton exchange.

The speed at which people exchange pleasantries.

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What is Exotic Currency?

A type of currency used exclusively in exotic locations.

Currency flavored with exotic spices.

A currency used in trading exotic pets.

An exotic currency in forex is a term used to describe currencies that are thinly traded in foreign exchange markets and are not widely used in global financial transactions.

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What is Depreciation?

A term used in weather forecasting.

A decrease in the value of a currency in terms of its exchange rate versus other currencies.

The act of appreciating different perspectives.

A form of dance involving depreciation movements.

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What is Day Trading?

A trade conducted exclusively during daylight hours.

A trade involving items related to the day.

A form of trading restricted to specific calendar days.

The practice of buying and selling financial instruments within the same trading day such that all positions are closed before the market closes for the trading day.

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What is a Broker?

Someone who breaks things for a living.

An individual or firm that acts as an intermediary, bringing buyers and sellers together for a fee or commission.

A person who bakes goods.

A type of cooking utensil.

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What is a Bear Market?

A place where bears are traded.

A market selling teddy bears.

A market specializing in bear-related products.

A market condition where prices are falling or are expected to fall.

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What is Arbitrage:

A type of tropical fruit.

The simultaneous buying and selling of an asset to profit from a difference in the price in different markets.

A term used in architecture for a specific type of arch.

A genre of music popular in the 18th century.

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