Clear definitions for the most important Forex & CFD terms — from “pips” and “spread” to “margin level” and “slippage”. Use this glossary to learn faster and trade with confidence.
Type a word like “pip”, “stop”, “margin”, “spread”, or “swap” — or jump using the A–Z filter.
The price you pay to buy an instrument. The difference between Ask and Bid is the spread.
A volatility indicator that estimates how much price typically moves over a set period.
The first currency in a Forex pair. Example: in EUR/USD, EUR is the base currency.
The price you can sell an instrument for. The difference between Bid and Ask is the spread.
A derivative that lets you trade price movement without owning the underlying asset.
A currency pair that does not include USD (for example, EUR/GBP).
The decline from your account’s peak equity to a lower equity point. Used to measure risk and performance stability.
Opening and closing trades within the same trading day to avoid holding overnight exposure.
Your account balance plus/minus floating profit and loss from open positions.
How your order is filled at the market. Fast markets can create slippage or partial fills.
Your unrealized profit or loss on open trades. It becomes “realized” when you close the trade.
Analysis based on economic data, interest rates, central bank policy, and macro events.
A sudden jump in price where no trading occurs in between. Often happens after weekends or major news.
The total size of all open positions without offsetting longs and shorts.
Opening positions designed to reduce risk by offsetting exposure (for example, long and short positions across related markets).
A calculation plotted on a chart to help analyze trend, momentum, or volatility.
A benchmark that tracks performance of a basket of stocks, like the S&P 500 or NASDAQ 100.
Forex pairs that include the Japanese Yen. Many quote pips differently due to price format (e.g., USD/JPY).
Identity verification requirements for account registration and security.
A tool that increases market exposure by allowing you to trade with a fraction of the position value (margin).
An order placed to buy below current price or sell above current price at a specified level.
The trade size unit. Bigger lots mean bigger pip value and greater potential profit/loss.
Funds set aside to open and maintain a leveraged position. Margin is a requirement, not a fee.
A measure of account health showing how close you are to margin call or stop-out thresholds.
An instruction to buy or sell at the best available price right now.
Fast price movement triggered by economic releases, geopolitical events, or central bank decisions.
Charges or credits for holding positions past a daily cutoff time, depending on instrument and direction.
A common unit used to measure movement in currency pairs (often the 4th decimal place for many pairs).
Choosing trade size based on risk tolerance, stop-loss distance, and account equity.
An order set to execute automatically later when price reaches your level (limit or stop orders).
The second currency in a pair. Example: in EUR/USD, USD is the quote currency.
A ratio comparing potential gain versus potential loss (example: 2:1 means aiming to make $2 for every $1 risked).
A price level where selling pressure has previously appeared. Traders often plan sells or take-profit zones near resistance.
The difference between Bid and Ask. It’s a core trading cost for many instruments.
When an order fills at a different price than requested due to fast markets or low liquidity.
An order that automatically closes your trade at a defined loss level to limit downside risk.
A price level where buying pressure has previously appeared. Traders often plan buys or stop placement near support.
Overnight financing cost/credit applied when holding positions past the daily cutoff time.
An order that closes a trade once price reaches a target profit level.
Analysis using price action, chart patterns, and indicators to find trade opportunities.
A sustained direction in price movement (uptrend, downtrend, or sideways range).
The profit or loss on open trades that hasn’t been locked in by closing the position.
How fast and how far price moves. Higher volatility increases both opportunity and risk.
Choppy price action that triggers entries then reverses quickly, often around news or low liquidity.
The ticker symbol commonly used for Gold priced in US Dollars (often traded as a metal CFD).
A measure of return on an investment or bond. Yields can influence currency and rate-sensitive markets.
A concept sometimes used to describe markets where one participant’s gain may come from another’s loss (costs and liquidity matter).
Use live prices to connect glossary terms to real markets (spread, volatility, support/resistance, and momentum).
Study a term → watch it live on the market → practice risk control on demo.
