• Currency
  The form of exchange used by a country; it is money. It is issued by a government or central bank and used as legal tender and a basis for Forex market trading.
  

• Cross Currency
  A pair of currencies traded in Forex that does not include the U.S. dollar. For example: EUR/JPY or GBP/CHF. One foreign currency is traded for another without having to first exchange the currencies into American dollars.
  

Cross-currency interest rate swaps (sometimes known as “currency swaps”) involve an exchange of cash flows related to interest payments and an exchange of principal amounts at an agreed exchange rate at the end of the contract; there might also be an exchange of principal at the beginning of the contract. In these circumstances, there may be subsequent repayments, which include both interest and principal, over time according to the predetermined rules.

• The 5 Major Currencies

Most trading platforms offer trading with:

1. EUR (Euro)
2. JPY (Japanese Yen)
3. GBP (British Pound)
4. CHF (Swiss Franc)
5. AUD (Australian Dollar)

All paired up against the USD, so there’ll be four main currency pairs that are heavily traded and that offer immediate liquidity most of the time:
Euro / US Dollar (EUR/USD)
US Dollar / Japanese Yen (USD/JPY)
British Pound / US Dollar (GBP/USD)
US Dollar / Swiss Franc (USD/CHF)

• Bid and Ask
  Bid - The Bid is the price at which a broker will buy your current day trading position from you.
  Ask - The Ask is the price at which the broker will sell you the position you require.
  

A Bid is made up of a Buy Limit Order that has been put into the market. An Ask is made up of an open Sell Limit Order.
Bid And Ask Prices Are Never The Same. The price announced by the seller (the ask price) is always higher than the bid price. As a result you are required to pay the ask price in case you have decided to purchase a currency and pay a higher price. On the other hand, if you decide to sell a currency you will have to receive the bid price, which is of a lower amount than the ask price.

• Bid/Ask Spread
  The difference between ask and bid prices is known as the spread. The spread goes directly to the pockets of the broker who was responsible for the transaction. However, the spread is also used for the paying of other fees, not only the commission of the broker.
  

Unless you use specific market orders, it will be almost impossible to determine the price you will get as both a buyer and seller. This is especially true for the actively traded pairs, which are characterized by their extremely dynamic nature.
Even though the bid/ask spread eats up part of your profit its avoidance is not recommended since it has proven its benefits as a working system throughout the years.

• Pip
  The smallest price increment a currency can make. Also it is known as points. For example, 1 pip = 0.0001 for EUR/USD, or 0.01 for USD/JPY.
  

The value of a pip - Pip value can be either fixed or variable depending on the currency pair. E.g. the pip value for EUR/USD is always $10 for standard lots, $1 for mini-lots and $0.10 for micro lots.

• Quotation
  The actual price, or the bid or ask price of either cash commodities or futures or options contracts at a particular time.
  

• Margin
  The deposit required to open or maintain a position. Margin can be either "free" or "used". Used margin is that amount which is being used to maintain or open a position, whereas free margin is the opposite. With $1,000 in your account and a 1% margin requirement to open a position, you can buy or sell a position worth up to a notional $100,000. This allows a trader to leverage his account by up to 100 times or 100:1. If your account falls to below the minimum amount required maintaining an open position, you will receive a "margin call" requiring you to either add more money into your account or close the open position. Most brokers will automatically close your open positions when the margin balance falls below the minimum level. The amount required to maintain an open position is dependent on the broker and could be 50% of the original margin required to open the trade.
  

• Leverage
  Leverage is having the ability to control a large amount of money using none or very little of your own money and borrowing the rest.
  

For example, in Forex, you can control $100,000 with a $1,000 deposit. Your leverage, which is expressed in ratios, is now 100:1. You’re now controlling $100,000 with $1,000.

• Margin Call
  A demand for additional funds. A requirement by a clearing house that a clearing member (or by a brokerage firm that a client) brings margin deposits up to a required minimum level to cover an adverse movement in price in the market.
  

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