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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- CostsPip A pip is the standard unit of price movement on a currency pair.
- RiskLeverage Leverage is the ratio between a position's total value and the margin held as collateral by the broker.
- RiskMargin Margin is the capital reserved by the broker as collateral when a leveraged position opens.
- CostsSpread Spread is the difference between the bid and ask price quoted for a financial instrument.
- RiskStop-loss A 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.
- RiskLot size Lot size is the standardised quantity of an instrument traded in a single position.