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Plain-English definitions of the terms you'll run into across every lesson — bookmark this page and come back whenever a term is unfamiliar.
The smallest standard price move a currency pair can make — usually the fourth decimal place (0.0001) for most forex pairs.
The size of a trade. A standard lot is 100,000 units of the base currency; a mini lot is 10,000; a micro lot is 1,000.
The difference between the bid (sell) price and the ask (buy) price of an instrument — one of the main trading costs.
The amount of your own capital required to open a leveraged position — a good-faith deposit, not a fee.
Borrowed buying power that lets you control a larger position than your account balance alone would allow, e.g. 1:100. It magnifies both gains and losses.
A warning (or automatic action) that occurs when your account equity falls too close to the margin required to keep your open positions, often forcing positions to be reduced or closed.
An order that automatically closes a trade once price reaches a level you set, capping how much you can lose on that trade.
An order that automatically closes a trade once price reaches a target level you set, locking in a gain.
The bid is the highest price a buyer is currently offering; the ask is the lowest price a seller will currently accept.
The difference between the price you expected a trade to execute at and the price it actually filled at, usually during fast-moving markets.
An overnight financing fee (or credit) charged on a leveraged position held open past the daily rollover time.
How easily an instrument can be bought or sold without significantly moving its price. High liquidity means tighter spreads and smoother execution.
How much and how quickly an instrument's price moves over a given period. Higher volatility means larger, faster price swings in both directions.
Going "long" means buying, expecting the price to rise. Going "short" means selling first, expecting the price to fall.
The decline in account balance or equity from a previous peak, usually expressed as a percentage — a key measure of risk.
Contract for Difference — an agreement to exchange the price difference of an instrument between opening and closing a position, without owning the underlying asset.
An order to buy or sell immediately at the best currently available price.
An order to buy or sell only at a specific price or better — it won't fill until the market reaches that price.
Price zones where an instrument has historically tended to reverse or pause — support below price, resistance above.
The general direction an instrument's price is moving over a given timeframe — up, down, or sideways.
The number of units (shares, contracts, lots) traded in a given period — higher volume generally means more liquidity and a more reliable price move.
The ratio between how much you stand to lose if a trade hits its stop-loss versus how much you stand to gain if it hits its take-profit.
Deciding how large a trade to take, typically based on risking a fixed, small percentage of account balance per trade.
A practice trading account using real market prices with simulated money, used to learn a platform or test a strategy without financial risk.
An automated trading program (on MetaTrader) that executes a strategy's rules without manual intervention.
A schedule of upcoming economic data releases and central bank events, organized by date and expected market impact.
How closely two instruments tend to move in relation to each other — positively (same direction), negatively (opposite), or not at all.
A single number tracking the combined performance of a basket of stocks (e.g. the S&P 500), used as a shorthand for how a market is doing overall.
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