Forex Dictionary Terms


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Definition – What does Appreciation mean?

Appreciation is simply the increase in value of a position, currency or financial instrument. In forex trading, appreciation is usually used to describe a particular currency that is gaining value relative to other currencies.

ForexTerms explains Appreciation

Forex traders who hold a long position in a particular currency want to see it appreciate against other currencies – specifically the other currency quoted in the currency pair(s) they are trading. Appreciation is a simple concept, but the drivers of appreciation can be complex. A currency may appreciate based on the issuing nation’s economic strength or it may appreciate simply because the issuing nation’s economy is known to be a safe haven, is less worse off, or for some technical reason completely unrelated to fundamental factors.

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