FX stands for Foreign Exchange in Forex slung
FX stands for a few things but why it is written like that? Forex slang is used by traders and mentors in order to speak faster. All the webinars, live sessions and 1:1 education normally are limited with time. And the reason the slang came is that the traders try to fit in the time and have to speak quickly.
FX stands for?
- Foreign exchange market – the biggest market in the world
- Foreign exchange – terms in banks for exchanging currencies
- Forward exchange rate or this is known as forwarding price
There are many slang words all over the internet, and it is especially important to know what they mean especially if it is connected to your business or the way you make money. And FX stands for theForex market where thousands of people and companies trade daily.
Below we will go over some other slang words that will help you understand better the language in trading.
For example, EA fx stands for Expert Adviser for the Forex market:
EA FX or Forex EA is used more and more on the Forex market for all of the currencies. Automated trading is part of our education in EA Forex Academy. We create portfolios of Expert Advisors and we select the best performers. We use the two professional automated software – FSB Pro and EA Studio. You can look at our course Algorithmic trading courses to have an idea of how we do the whole process to select the best Expert Advisors.
Many students ask us what FX stands for, but actually, the most frequent questions are about the currencies:
- EURO stands for the pair EURUSD. So if you hear or see ” EURO is going up” means that EURUSD is going up.
- CABLE stands for GBPUSD – the exchange rate between the pound and the dollar. This slang word came during 19th century when the exchange rate between the dollar and the pound began to be transmitted across the Atlantic by a submarine communications cable.
- KIWI stands for NZDUSD. It derives its name from New Zealand’s national icon – a flightless bird called a kiwi which is placed on one side of their national currency $1 coin.
- AUSSIE stands for the Australian Dollar. It is used to distinguish the Australian dollar from the other dollars. If you see ” ea fx for Aussie”, this would mean that this expert adviser is created for the Australian dollar against the American dollar (in most cases stands for AUDUSD).
FX stands for Foreign Exchange but how this is implemented in Algorithmic trading?
Algorithmic trading is done with expert advisors or this is code for trading strategies. Even you don’t have any trading experience or programming skills you can still trade with expert advisors on the forex market. FX stands for foreign exchange but with the brokers, we can trade on the foreign exchange even with the expert advisors.
How we can trade with Expert Advisors on the foreign exchange?
With the brokers, we can trade on the foreign exchange market which FX stands for. They provide the so-called CFD trading. This means that we don’t really buy the asset but we are trading on the value of the price.
Let’s say EURUSD is at 1.1355 and we buy the asset. If the price reaches 1.1375 and we close the position we will be 20 pips on profit. If the price goes against us down to 1.1335 we will be 20 peeps on a loss.
This way we can buy any trading asset on the market that is provided from the broker and we will be trading on the value of its price. We don’t physically by the asset, for example, we don’t buy gold oil stocks futures and this is one of the great ways to be participants on the forex market.
What is the easiest way to participate in the foreign exchange market?
Especially if you are a beginner Trader, you can take advantage of the Forex market trading with a Forex broker. The Forex brokers are huge companies that stand between us and the market. FX stands for foreign exchange but it’s not only between huge banks and corporations. It is also between the small players like the traders.
The easiest and free way to get access to the market is to open a demo account with such a broker. Now there are thousands of brokers so you need to be very careful which one you will choose.
There are many scam brokers which we explain how to avoid in our forum.
You should always look for the regulated brokers.
Now when we are talking about free access this means that if you open a Demo account with such a broker you will trade with virtual money. For example, you can open a demo account with $1,000 and practice trading. You will have access to the very same price quotes that everyone else has.
This way you will not risk any real capital and you will be able to trade While You Learn. It is essentially important to take education before participating in the Forex market. Many Traders lose their capital because they are not prepared to trade.
Also, trading with a demo account does not have a time limitation and you can practice as long as you wish. The problem is that when people start trading they involve emotions. This is where we can say that FX stands for a frustrating experience.
Why do traders lose on the Forex market?
One of the emotions that makes the Trader lose is FEAR. The Beginner Traders feel fear when they see their position going on a negative. They who it to close the trade so they will not have bigger losses. This way the Trader does not give the opportunity to the traits to go in the right direction.
Also, the traders feel fear when they are on a profit. They are afraid that the price will go against them and they will lose the small profit they already have. This way they don’t allow the price to bring them a bigger profit.
The other emotion that is involved in Trading is GREED. People are greedy for money. FX stands for foreign exchange and greedy is there. When the Trader is on a profit after a few consecutive trades he increases the trading amount. Every strategy has its profitable moments and its losing moments. After consecutive profitable trades, it is expected to hit the negative trades.
What is our trading strategy?
One of the most common platforms for trading is called MetaTrader.
On this platform we can place many expert advisors as shown in the picture above. This way we don’t rely on a single strategy or on a single expert advisor. We diversify the risk between many expert advisors and we achieve more stable results.
How we can afford trade with many EAs?
There are three different ways to create many expert advisors:
- Hire a developer – if you have manual strategies you can hire a developer to call them as an expert advisor so you can trade these strategies automatically. Of course this is quite expensive because the developer will charge you with about $30 per hour. If the strategy uses few different entry and exit rules such an expert advisor will cost you about $500. So if you want to build a portfolio of expert advisors hiring a developer you will spend a couple of thousands of dollars.
- Learn to code – if you have the patience and the time to learn coding by yourself you will chef expert advisors for free. Of course, this will take a couple of years where are you will not have any income. Also if you learn to code you will not be able to create profitable strategies. You will code the strategies but you do not have a guarantee that the strategies will be profitable.
- Use strategy builders – this method requires an initial investment to buy a strategy Builder but it allows the Trader to create an unlimited number of expert advisors with the time. Most of that strategy builders come with lifetime license which gives the Trader all the time he needs. Also with the strategy builders, we can analyze the strategies before we export them as expert advisors and trade them on the MetaTrader platform. More, the strategy builders allow us to generate profitable strategies.
We succeed to trade with many expert advisors in one account because we use the strategy builders EA studio and FSB Pro.
These are pieces of software that allows the Trader to alternate strategies and to generate strategies. If you have a manual strategy that you are trading on the forex exchange which we said FX stands for, you can build your strategy into an expert advisor.
You will see immediately what is the result for the last couple of years and you will decide if you want to continue trading with this strategy. The problem in manual trading is that many people start to believe in a strategy when they see a few consecutive profits. Normally when the traders build their strategies in the strategy builder they see that their strategies are losing.
This is why there is a generator.
The generator allows the Trader to trade with profitable strategies. It generates hundreds of strategies based on the historical data from the broker we have selected to use.
Now EA studio has a quick generator because it is based online. It generates thousands of strategies for minutes and if you leave it working for more than 10 hours you will see more than millions of strategies calculated. There are some great features inside which allow you to filter the strategies and select only the most profitable and robust strategies:
EA Studio comes with 15 days free trial for everyone who wants to test EA studio. This means that during this. You can create as many experts advisors as you wish. The best thing is that you export the expert advisors with one click and you don’t need to have any coding experience.
FSB Pro stands for Forex strategy builder professional. This is one of the most camels where is for algorithmic trading nowadays and it is a little bit slower than EA studio because you need to install it on your computer. However, the FSB pro provides more opportunities for the Trader because it allows trading using longer time frames.
For example, if you have a strategy trading on M5 you can set different indicators that will filter the entries on the longer time frames for example on H1 and H4.
FSB Pro comes with 15 days free trial as well and you can install it on your computer to test how it works.
At EA forex Academy we are looking for the best software to use for algorithmic trading. As we set FX stands for foreign exchange but with a small capital it is very hard to trade as the banks do. This is why we need to use software which will automate our trading and it will make possible our participation on the market with small capital.
When we trade with expert advisors we can trade with 0.1 lot which is $10,000 other currency or even with most of the brokers we can trade with 0.01 lot which is $1,000.
The brokers provide us with leverage which allows us to trade bigger amount then what we have in our account. For example, we can have an account of $1,000 what we can open trades for $10,000. Of course, this way we have a huge risk in our account but at the same time, we have a huge opportunity to profit on the foreign exchange market(which fx stands for).
Trading on the FX market is not easy and everyone should understand that there is a huge risk. There are huge players on the market such as Banks, institutional funds, brokerages, and international companies. All of those create the Forex market, which we said FX stands for.
If you are interested to learn more about the Forex trading you can look at our trading education.
We have three different sections:
- Algorithmic trading
- Manual trading
- Cryptocurrency trading
In the algorithmic trading section, you will find courses where I include hundreds of expert advisors and more I update them every month. You will learn how to use the strategy builders and how to generate Strategies by yourself.
In the manual trading section, you will find courses where you will learn how to trade on the Forex market by yourself and not to depend on expert advisors. FX stands for foreign exchange and this is exactly what you will learn and it’s courses. You will learn how to buy and sell currencies and how to benefit from it.
In the cryptocurrency trading section, you will find courses that are based on the most preferable cryptocurrencies. These are the Bitcoin, the Ethereum, the Ripple, the Litecoin, the Dash.
Algorithmic trading is also possible with the cryptocurrencies. This is because the brokers provide CFD trading also for the cryptocurrencies. However, the cryptocurrencies are not yet part of the foreign exchange market.
If you have any questions, you can always drop them in our trading Forum.
What does FX mean?
FX is the slang word for Forex. And Forex is the biggest market where thousands of people and companies exchange currencies daily.
Is the FX market decentralized?
Yes, it is decentralized and it is a global market where buyers and sellers meet and form the prices of the currency pairs.
How to trade on the FX?
There are different ways to participate in the foreign exchange market. Most popular among the retail traders is by using FX brokers which offer the trading platforms.
FX stands for what?
FX stands for different things, but regarding the trading, it stands for Forex. Which on its side stands for Foreign Exchange Market.