Basic Forex Education_3. Trading Terminology Or Where Am I Going Long

Lesson 3: Trading Terminology
Or Where Am I Goin Long

Sometimes it can seem that the Traders have their own language. They use
words that probably make no sense to a non-trader.

For example, imagine you hear a conversation like this: “I'm going short on
cable but I am also watching guppy. How about you?”. “Well I'm currently flat, but I'm
looking to go long on Channel.”

What these traders actually meant was: “I'm selling pound/dollar and looking
for trade opportunities pound/yen. How about you?”, “Well, I currently don't have any
positions open but I am looking for an opportunity to buy euro/pound.”

So, here is a guide to some of the most common forex slang words:
Going long: placing a trade which is going to profit if the Exchange rate rises,
Going short: placing a trade which is going to profit if the Exchange rate falls,
Being Flat: being neither long nor short. Having positions open in the market
Aussie: Australian dollar;
Kiwi: New Zealand Dollar;
Loonie: Canadian Dollar;
Greenback or Buck: US Dollar;
Swissie: Swiss Franc;
Cable: Pound/Dollar;
Fiber: Euro/Dollar;
Yuppy: Euro/Yen;
Guppy: Pound/Yen;
Channel: Euro/Pound.