Short

Taking a short position means SELL. In Forex, going short means that a trader is selling the base currency and buying the quote currency. For example, if we go short or sell GBP/USD, we sell pounds (GBP) and buy U.S. dollars (USD).

Short Squeeze

A short squeeze occurs when a currency or other asset jumps sharply higher, forcing short-sellers to bail out to cut their losses. Short sellers are being squeezed out of their positions, usually at a loss.

Spot Forex Market

The physical exchange of a currency pair, which takes place at the exact point the trade is settled – ‘on the spot’ – or within a short period of time. Currencies are bought and sold to the current price. The spot FX market is also known as an over-the-counter (OTC) market.

Spread

A spread refers to the difference between two prices, for example the bid and the ask price. The smaller the spread, the greater the liquidity of the currency or given security. As professional traders we prefer average low spreads on ECN accounts such as 0.1 pips for EUR/USD and 0.4 pips for GBP/USD.

Stop Order

Stop orders are orders that are triggered when a price moves past a specific price point, limiting the trader’s loss or locking in a profit.

Support

A support is a price point on a chart where the probabilities favor a pause or reversal of a downtrend.