With the ever-increasing number of concepts and jargon that are difficult for the ordinary understanding, the industry is not very welcome place for the uninitiated. So, if you are a forex trader candidate, read this article should be your first step before moving on to learn more about the online forex trading industry.
The Cs Terminology:
1) Currency Pair: The Forex market trades in currency pairs. Unlike share trading, in the forex market, when one currency is bought, it is paid for using another currency thereby giving rise to the term. You can get more info about forex trading in Kenya via various online resources. Of these, the currency being purchased is known as the Quote currency while the one being traded in exchange is known as the Base currency. Eg: USD/GBP
2) Central Bank: Central Banks are the organizations that provide banking and financial services for Governments and commercial banks. They are the banks usually tasked with the execution of a country's monetary policy. This is usually implemented by changing interest rates.
3) Candlestick chart: Candlestick chart is an important chart used in Forex trading. Using Red and Yellow bars, the candlesticks display the highest and lowest prices for a chart division. They are used by traders to predict the growth and fall of price movements.