Introduction. A brief excursion into the history of the financial market

Forex is a market in which transactions for the sale and purchase of currencies are made with the aim of making a profit by changing the rates of these currencies. Forex is the largest financial market in the world, its turnover significantly exceeds the turnover of the stock and other markets

A commodity is a raw material used for trade.

A stock index is a composite index calculated on the basis of the prices of a certain group of securities - an “index basket”.

Exchange-traded funds or ETFs (abbreviation for Exchange Traded Fund) are investment funds whose shares are traded on an exchange. ETF funds have become widespread in recent decades. Shares are a unit of ownership in a company

A pip is the minimum change in price movement. In simple terms, it is a standard unit for measuring how much the exchange rate has changed in value.

The balance reflects the state of the account for closed positions. As soon as the deal is closed, the balance of the deposit changes immediately, and up or down, it depends on the results of the trading operation. The funds demonstrate the dynamics of fluctuations in the funds on the deposit. When a deal is opened, the funds of the entire account will either increase at the moments of profit growth for the current operation, then decrease if the position gains a loss.

"Bulls" and "bears" is a common name in exchange circles for market participants who play on the rise or fall of currencies or securities.

In trading, a lot is the minimum amount of an asset (stocks, commodities, precious metals, futures, etc.) that can be sold or purchased at one time. The lot size is determined by the rules of the exchange.

The purchase price is the monetary value of the asset at which the dealer accepts bids to purchase the asset.

The ask price is the opposite value at which the dealer accepts orders to sell a certain asset.

A long position (long position) is a position that a trader enters hoping to profit from the growth of the market.

A short position (short position) is a position that a trader enters in the hope of profiting from a falling market.

Stop Loss and Take Profit are types of protective orders that are placed to automatically close a trade. Stop loss limits the trader's possible losses, take profit helps to fix the profit when it reaches the desired level.