Reference

Forex Glossary

Every trading term you need to know — clearly defined, with practical context.

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B

A market condition characterised by rising prices and positive sentiment.

A market condition characterised by falling prices and negative sentiment.

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

Electronic Communications Network — a type of broker that provides direct market access.

A standardised unit of currency trade volume. 1 standard lot = 100,000 units.

Borrowing capital to increase potential return on an investment.

The ease with which an asset can be bought or sold without affecting its price.

Collateral deposited with a broker to open and maintain a leveraged position.

The smallest price move in a forex pair, typically 0.0001 for most pairs.

A comparison of potential profit to potential loss on a trade.

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

An order to automatically close a trade at a specified loss level.

Overnight interest charged or credited for holding a position past market close.

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

Straight Through Processing — orders routed directly to liquidity providers.

An order to automatically close a trade when a specific profit level is reached.