TERM: Spread

Spread is difference between bid and ask price. Different brokers offer varying spread.

TERM: Ask

Ask is price at which broker will sell base currenc in exchange of quote currency. It is price at which trader buy from market.

TERM: Bid

The bid is that priceat which your broker is willing to buy base currency. It is selling price for trader.

TERM: Long position

Long position means buying base currency. If you are long GBP/USD, it means you want GBP to go north against USD. 

TERM: Quote currency

Second currency in a currency pair, or currency on right side is called quote currency. eg GBP/USD in this pair USD is quote currenc

TERM: Base currency

The first currency listed on left of the currency pair is know as base currency. eg in GBP/USD,GBP is base currency.

FX market structure

Fx market is decentralised market, it has no no fixed physical exchange. but forex market participants can be grouped in following way

• Major banks
• Electronic brokerage services(EBS)/Reuters dealing 3000-spot matching
• Medium sized and small banks
• Retail market makers/Retail ECN's/  Hedge funds and commercial companies
• Retail traders