Exchange Rate - When the value of one currency is expressed in the terms of another, Currency Pair - All currencies must be sold in pairs. There are two currencies that make up an exchange rate, so when one currency is bought, the other is simultaneously sold and vice versa., Base Currency- This is the first currency in a pair (EUR/USD)., Counter Currency- This is the second currency used in a pair. The counter currency is also known as the “terms” currency (EUR/USD)., Sell Quote - This quote is normally displayed on the left side and represents the price that you can sell the base currency for. The sell quote is also referred to as the “bid” price. For instance: EUR/USD quotes 1.3200/03, and then you can sell one Euro for 1.3203 USD., Buy Quote - This quote is normally displayed on the right side and represents the price that you can buy the base currency for. The buy quote is also referred to as the “ask” or “offer” price. For instance, EUR/USD quotes 1.3200/03, and then you can buy one Euro for 1.3203, USD Resistance – A high point in a market chart that recurs regularly. Generally, it’s the point where the market (or currency) will begin a downturn Support – A low point in the market chart that recurs regularly. Generally, it’s the point where the market (or currency) will begin to climb back up., Gross domestic product (GDP) - represents the total market value of all goods and services that are normally produced within any given country CPI - is the measure of the change in the prices of consumer goods in 200 categories.

Cross rate - is used to convey the proportional values between the two currencies when it’s not across the USD. For instance, if the quote is DEM/SFR at .7000, this means that on German Mark can be exchanged for only .7 Swiss Francs. Going long – investing in the leading currency (for example USD/JPY = 1.243) Going short – investing in the counter currency by saying it well get stronger against the base (leading) currency USD/JPY (for example USD/JPY = 1.243) Lot (standard lot) – $100,000 contract value ($10,000 margin) Mini Lot - $10,000 contract value ($1,000 margin) Pips – the smallest rise of a change in price (1/10,000 of the value), i.e. EUR/USA price changes from 1.2834 to 1.2836 the price has changed by 2 pips. Pivot points – is a datum that analysts use as an important tool to predict low (support) and high (resistance) points of the graph. If one of these points is broken, it is expected to move in the same direction (if in downward movement, then the market is bearish). Important! - Pivot points are short-term trend; they need to be recalculated each business day separately. Currency shortcuts: USD (U.S. dollars) GBP (United Kingdom pounds) JPY (Japanese yen) CAD (Canadian dollars) EUR (European euros) AUD (Australian dollars) CHF (Swiss francs) CNY (China Yuan) CZK (Czech koruna) HKD (Hong Kong dollar) HUF (Hungarian Forint) INR (Indian Rupee) KRW (Korean Won) MXN (Mexican Peso) PLN (Polish Zloty) SGD (Singapore dollar) ZAR (South African Rand) THB (Thai Baht)