Trading Glossary
Trading terminology defined precisely, with calculations that show what each term means for a real position. Each entry connects to related concepts and to the calculator that applies.
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- PipA pip is the standard unit of price movement on a currency pair.
- LeverageLeverage is the ratio between a position's total value and the margin held as collateral by the broker.
- MarginMargin is the capital reserved by the broker as collateral when a leveraged position opens.
- SpreadSpread is the difference between the bid and ask price quoted for a financial instrument.
- Stop-lossA stop-loss is an order to close an open position automatically when price reaches a specified level beyond the entry price, in the loss-making direction.
Foundational terms
The first ten terms cover the mechanics that every position runs against — price units, costs, leverage, sizing, and order behaviour. Each entry includes a worked calculation using current rates.