Trading Glossary

The price at which a currency pair is offered for sale. Also known as the offer price.

The price at which a currency pair can be sold. The highest price a buyer is willing to pay.

The difference between the bid and ask price of a currency pair.

The smallest price move in a currency pair, typically the fourth decimal place.

The ability to control a large position with a relatively small amount of capital.

The required deposit to open a leveraged trading position.

An order to close a position at a predetermined loss level to limit risk.

An order to close a position at a predetermined profit level.

A price level where buying interest is strong enough to prevent further decline.

A price level where selling interest is strong enough to prevent further advance.

A market characterized by rising prices and optimistic sentiment.

A market characterized by falling prices and pessimistic sentiment.

The standard trading unit in forex, typically 100,000 units of the base currency.

Two currencies quoted against each other, showing the exchange rate.

The first currency in a currency pair, which is being bought or sold.

The second currency in a currency pair, used to quote the price.

A technical indicator that smooths price data by creating a constantly updated average price.

Relative Strength Index - a momentum oscillator measuring speed and change of price movements.

Gross Domestic Product - the total value of goods and services produced by a country.

The cost of borrowing money, set by central banks to control monetary policy.

The difference between expected and actual execution price of a trade.

The peak-to-trough decline in account value during a specific period.