Trading Glossary

Understand trading language clearly.

Search key trading terms and learn the vocabulary behind forex, CFDs, margin, risk, orders, pricing, and execution.

Ask Price

Pricing

The price at which a trader can buy an instrument.

Bid Price

Pricing

The price at which a trader can sell an instrument.

Spread

Pricing

The difference between the bid price and ask price.

Pip

Forex

A small unit of price movement in forex trading, commonly used to measure changes in currency pairs.

Lot

Position Size

A standardized trade size used to measure position volume.

Leverage

Risk

A mechanism that allows traders to control a larger position with a smaller amount of capital.

Margin

Risk

The amount of funds required to open or maintain a leveraged position.

Equity

Account

Account balance plus or minus floating profit or loss from open positions.

Free Margin

Account

Available funds that can be used to open new positions or absorb losses.

Margin Level

Risk

A percentage showing the relationship between equity and used margin.

Stop Loss

Order Types

An order designed to close a position when price reaches a predefined loss level.

Take Profit

Order Types

An order designed to close a position when price reaches a predefined profit level.

Market Order

Order Types

An order executed at the best available market price.

Limit Order

Order Types

A pending order to buy or sell at a specified price or better.

Volatility

Market Behavior

The degree of price movement or fluctuation in a market.

Liquidity

Market Behavior

The ability to buy or sell an instrument without significantly affecting its price.

Swap

Costs

An overnight financing adjustment applied when a position is held beyond the trading day.

Slippage

Execution

The difference between the expected price of a trade and the actual executed price.

Drawdown

Risk

A decline from a trading account’s peak value to a lower value.

CFD

Markets

A contract for difference that allows traders to speculate on price movement without owning the underlying asset.

Glossary content is educational and simplified for clarity. Final legal, product, and risk definitions should be reviewed before production launch.

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