Trading Glossary
Essential terms every trader needs to know.
Pip
The smallest unit of price change in a currency pair, usually the fourth decimal place.
Leverage
The use of borrowed capital to increase the size of a potential trade.
Spread
The difference between the bid price and the ask price of a currency pair.
Margin
The collateral required to open or maintain a leveraged position.
Stop Loss
An order placed with a broker to sell an asset when it reaches a certain price, to limit loss.
Take Profit
An order placed with a broker to close a trade once it has reached a specific profit level.