Forex Jargon | Codes decoded

In one of my post in the past, I had discussed the importance of understanding the traders slang and how it could help a new trader to acquire a further appreciation towards trading by joining into Forex related conversations. I had researched and listed some of the terms that newbie traders should know:  


Bull market (bullish)– market in uptrend.
Bear market (bearish)– market in downtrend.
Margin call– the moment when there is a lack of maintenance margin account, you must either upload your account or close some open positions.
Tick, Item– the minimum step change in the price.
Long (position), also ‘longs’– to buy something, to assume an increase.
Short (position), also ’shorts’– to sell something, to assume a drop.
Heat– how big risks are we taking in our trade.
Range– when the market doesn’t move either in downtrend or uptrend for some time.
Flat (Square)– neutral state when all your positions are closed.
Set up– particular environment for a trade.
Gap– a difference between the previous period’s close price and the next period’s open price.
Whipsaw– a condition of a highly volatile market where a sharp price movement is quickly followed by a sharp reversal.
Rally– a recovery in price after a period of decline.
Profit (Gain)– positive amount of money gained for closing the position.
Loss– loss of the transaction (or in the open position).
Pip (Point)– the last digit in the rate (e.g. for EUR/USD 1 point = 0.0001).
Slippage– execution of order for a price different than expected (ordered), main reasons for slippage are: “fast” market, low liquidity and low broker’s ability to execute orders.
Drawdown– the amount of the decline in value of a forex trading account, expressed either in dollars or as a percentage, between its highest and lowest points.
Squeeze– action by a central bank to reduce supply in order to increase the price of money.
Limit– order to buy or sell currency at a specified price or better.
Lock- the opening of two positions for one instrument, one specification and the same size in different directions.
Majors– the most popular currency pairs available for trading, include EUR/USD, GBP/USD, USD/JPY, USD/CHF, USD/CAD and AUD/USD. Less traded pairs are known as “Exotics”.
Cable- GBP, British Pound .
Aussie- AUD, Australian Dollar.
Swissie– CHF, Swiss Federation franc.
Kiwi- NZD, New Zealand dollar.
Loonie– CAD, Canadian Dollar.
Holy Grail– consistently profitable trading system.
There are still tons out there and most probably you would stumble upon it during your adventure on the financial market.