Designed for traders who are new to the forex market.
Ask Price
The price at which a currency pair can be purchased.
Bid Price
The price at which a currency pair can be sold.
Currency Pair
Two currencies traded against each other in the Forex market.
Base Currency
The first currency listed in a currency pair.
Quote Currency
The second currency in a currency pair, showing the value of the base currency.
Pip
The smallest standard price movement in a currency pair.
Spread
The difference between the buying (ask) and selling (bid) price.
Lot
A standardized unit used to measure trade size.
Market Order
An order executed immediately at the current market price.
Stop-Loss
An automatic order used to limit potential losses.
Take-Profit
An order set to close a trade at a predetermined profit level.
Leverage
A tool that allows traders to control larger positions with a smaller amount of capital.
Margin
The required deposit to open and maintain a leveraged trade.
Going Long
Buying a currency pair with the expectation of a price increase.
Going Short
Selling a currency pair with the expectation of a price decrease.
Volatility
The level of price movement within a specific time period.
Forex (FX)
The global market where currencies are traded.
Order Book
A real-time list of buy and sell orders for a specific financial instrument, showing price levels and order sizes.
For experienced traders seeking deeper market understanding.
CFD (Contract for Difference)
A derivative instrument that allows speculation on price movements without owning the underlying asset.
Drawdown
The decline in trading capital from its highest point due to losses.
Equity
The real-time account value, including open positions' profits and losses.
Fundamental Analysis
Market analysis based on economic data, interest rates, and geopolitical events.
Technical Analysis
The study of price charts and indicators to identify market trends and entry points.
Indicator
A mathematical calculation applied to price data to support trading decisions.
Resistance Level
A price zone where selling pressure may limit upward movement.
Support Level
A price area where buying interest may prevent further decline.
Liquidity
The ability to enter or exit positions without significantly impacting market price.
Hedging
A strategy used to reduce risk by opening offsetting positions.
Trailing Stop
A dynamic stop-loss order that adjusts as the market moves in favor of the trade.
News Trading
A trading approach based on market reactions to economic or political announcements.
NFP (Non-Farm Payrolls)
A major U.S. economic indicator measuring employment levels outside agriculture.
Gap
A sudden price movement between trading sessions with no transactions in between.
Slippage
The difference between the expected trade price and the actual execution price.
High-Frequency Trading (HFT)
Algorithm-based trading that executes large volumes of orders at extremely high speeds.
Zero-Sum Game
A market concept where profits gained by one participant equal losses incurred by another.
Arbitrage
The practice of taking advantage of price differences between markets by simultaneously buying and selling an asset.