The exchange rate is a specialized activity. It is difficult to make money in this area unless you are familiar and well-equipped with various Forex jargon and words that people in this industry use. Whether you are a trader retail, institutional trader, broker or analyst currency, you will be using terms to describe the Forex market will be the same. In this article, I will introduce you to two terms (or words) that are commonly used in currency trading market. Term # 1 - PipThis term refers to the smallest increase in movement in market prices. A 'pip' is also sometimes referred to as' point '. Operators use the term 'pip' like, "Wow, the market rose to 200 pips last night!" This means that the market had moved up to 200 more pairs of incremental points. Because currency traded at 0. 0001 nearest decimal place, most traders believe that a beginner can pip equals 0. 0001. While this is often the case, it is not always true. Take the USD / JPY currency pair, for example. This pair of routes to the nearest decimal 0. 01. For USD / JPY pair then one pip equals 0. 01. Term # 2 - Bull