Different professionals in different fields tend to speak different terms and that’s exactly what happens in the world of Forex. Here, you’re most likely to find trading brokers saying terms you are not likely to understand, especially if you are still new to the world of foreign exchange. That said, here are a few important Forex jargons that you might want to be familiar with so that you don’t look like a fool the next time you find yourself talking to a group of trading brokers or brokers in general:

Spread

A spread or the spread is a term used by many online brokers. It can be described as the amount you’re left with after subtracting the bid price from the asking price. Most disgruntled brokers fail to reveal the spread to their esteemed clients and therefore end up profiting from it. That said, it is extremely important for you to always keep a close eye on the transaction if you are to avoid being scammed. 

OTC

Over-the-counter, or just OTC, is a term used to describe how brokers operate. Since the forex marketplace doesn’t have any stipulated rules or regulations, the brokers always have to carry out all of their transactions over the counter. That said, it is quite normal for you to hear these terms being thrown around more often than not. But now that you know what OTC means, then you don’t have to scratch your head every time someone talks about it. 

The bid price

The bid price is the amount of money you’re likely to receive as soon as you’ve sold a certain currency. For instance, if you want to change your dollars into Kenyan shillings, the money you’ll receive in Kenyan shilling is what you’ll refer to as the bid price. 

The asking price

The asking price, on the other hand, is the amount of money you’ll have to part with for buying a certain currency. Again, using the example stated above, the amount of US dollars you spent to buy currency in Kenyans shillings is what is referred to as the asking price. 

Forex broker fees

Forex broker fees are all the charges that your esteemed broker will ask for their services. The latter mostly includes a commission for every successful transaction conducted on your behalf. 

Conclusion 

The forex marketplace is filled with a lot of words that might sound quite unfamiliar in the ears of the amateur. Thankfully, that doesn’t mean that they cannot be learned. If you are interested, you can simple go to the internet and learn as many Forex jargon as you like. Doing so is extremely important because you’ll therefore get ahead of the curve by understanding everything that’s being said. And when you understand Forex jargon, then it’s a step closer towards becoming a Forex Marketplace expert yourself.