Forex Information - Top Ten Basic Terms In Forex Trading And Their Definitions (Part 2)

Bid/ask spread – the difference between the proposed buying price and the actual selling price

OTC – over the counter

Exchange rate – the difference between currency values; for instance, a Canadian dollar is valued at .86 of a US dollar

Hedge funds – large mutual funds companies that control vast amounts of money and are able to manipulate the value of a currency through speculation