Comprehensive glossary of trading terms, forex terminology, and financial market concepts. Learn the language of trading with our detailed definitions and explanations.
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Most searched trading terminology
The difference between the bid and ask price of a currency pair. It represents the cost of trading and is measured in pips.
A tool that allows traders to control larger positions with a smaller amount of capital. It amplifies both profits and losses.
Percentage in Point - the smallest price move in forex trading. For most pairs, 1 pip = 0.0001 of the quoted price.
The amount of money required to open and maintain a leveraged position. It acts as collateral for the trade.
An order to close a position at a predetermined price to limit losses. It's a crucial risk management tool.
An order to close a position at a predetermined price to secure profits. It helps lock in gains.
The size of a trading position. Standard lot = 100,000 units, Mini lot = 10,000 units, Micro lot = 1,000 units.
Interest paid or earned for holding a position overnight. It's based on the interest rate differential between currencies.
The peak-to-trough decline in account value during a specific period. It measures the risk of a trading strategy.
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