Trading glossary
Plain-language definitions of common trading terms.
Pip
The smallest standard price move in a currency pair, usually the fourth decimal place.
Spread
The difference between the buy (ask) and sell (bid) price.
Leverage
Using borrowed capital to control a larger position than your deposit alone would allow.
Margin
The funds you set aside to open and maintain a leveraged position.
Lot
A standard unit of trade size. One standard lot is 100,000 units of the base currency.
Swap
The overnight financing charge or credit for holding a position open.
Stop loss
An order that closes a position at a set price to limit your loss.
Take profit
An order that closes a position at a set price to lock in a gain.