Active Money

Active money refers to the total amount of physical currency in public circulation at any given time. In other words, not taking into account digital currency such as bank account balances which can be drawn upon using a debit card (which funds are theoretically backed by physical coins and bills as well) . The Federal Reserve prints and releases money for two purposes: to replace old, worn coins and bills; and to adjust the active money supply in order to compensate for inflation or recessions.

Base Currency

This is the first currency in a currency pair. For GBPUSD, the GBP is the base currency.

Basis Point

Interest rate changes can be described as fractions of a percent or as basis points. A 1/4% (or 0.25%) change can also be called a 25 basis points change.

Bullish

In stocks, bullish means that the price of a stock is going up (or you think it will go up). Since forex is traded in pairs, bullish means the price of that pair is going up (or you think it will go up). If you are bullish on the EUR/USD, you think the EUR will go up vs. the USD. This makes you bullish on the Euro and Bearish on the US Dollar. A candlestick where the closing price is above the opening price is sometimes called a bullish candle. A general uptrend in a price is a bullish market.

Fomc

Federal Open Market Committee. Consists of the Fed Board of Governors plus 5 of the 12 Federal Reserve Bank presidents. They set the key interest rates for the USA, and also control the money supply.

GDP

Gross Domestic Product. This is the total cash value of all finished goods and services produced inside a nation's borders during a specified time period. An increasing GDP is generally considered a good sign for a nation's economic health. If the released number for GDP is significantly greater than the forecast, this usually has a positive effect on the value of a nation's currency.

Inflation

Inflation is a rise in the average prices of goods and services generally tied to a reduction in value of the currency. More simply put, inflation means your money is worth less now that it was worth previously.

Islamic Account ( Swap Free Account ) Intrest Free account .

Liquidity

Something that has liquidity can be easily bought or sold without having a significant affect on market price. This is due to the high volume of trading activity. In forex, you want your broker to have ligh liquidity. A broker tied to multiple sources of liquidity is more likely to successfully execute your open or close position command without slippage or giving you a requote

Lot Size

The would be the actual amount of currency bought/sold in a trade. One standard lot would be 100,000 units of the quote currency ($100,000 for xxxUSD pairs). For standard lots of xxxUSD pairs, a one pip move is worth $10.

Margin Call

Hello, this is Mr. Margin calling about your account balance. Short version: You don't have enough money left in your account, so the forex broker automatically closes some or all of your positions.

Market Maker

A brokerage that does not automatically clear all trades through the interbank market. Sometimes, this is just more polite term for Bucket Shop . Other times, the broker will eventually link trades to the true market.

Scalping

Trading very short time frames to grab a few pips at a time in very quick trades. Despite the fact that they get to collect the spread on each deal, a lot of brokers ban this trading style, since a good scalper can be very profitable.