Trading Glossary

APPRECIATION:
A currency appreciates when it strengthens in price.
ASK RATE:
The rate at which traders can currently buy a particular currency.
ASSET ALLOCATION:
Investment practice that divides funds among different markets to achieve diversification for risk management purposes .
BASE CURRENCY:
The currency in which an investor keeps his book of accounts. In the Forex market, the US dollar is normally considered the base currency for quotes.
BEAR:
A person who thinks that market prices will decline.
BERAR MARKET:
A market that is characterized by declining prices.
BID RATE:
The rate at which traders can currently sell a particular currency