Trading glossary

The foreign exchange market. A currency pair expresses the value of one currency in another, such as EUR/USD.

A contract based on the change in an underlying asset's price, without owning that asset. Costs and leverage depend on the contract.

The difference between bid and ask prices. It is one trading cost and can change with liquidity, account type and market conditions.

A conventional Forex price unit: usually 0.0001, or 0.01 for JPY pairs. Its monetary value depends on the pair and position size.

A pipette is one tenth of a pip. With five/three decimal quotes, a platform point commonly means a pipette; with four/two, it may equal a pip.

A unit of position size. A standard Forex lot usually represents 100,000 base-currency units. Other instruments can have different contract sizes.

Exposure larger than the margin committed. Leverage amplifies the impact of price movements and can accelerate losses; it is not extra account equity.

Funds required to open or maintain a position. Margin is not a maximum-loss limit. Requirements and forced-close rules vary by broker and instrument.

An instruction intended to close a position at a loss threshold. Gaps and slippage can cause execution at a different price.

An instruction to close a position at a profit target. It does not guarantee that the market will reach the target.

A charge or credit for holding a position across the broker's rollover time. It depends on the asset, direction, account and day.

The difference between the requested price and the execution price. It may be favourable or unfavourable, especially when prices move quickly.

A decline from a previous balance or equity peak. Prop firm rules may measure it daily, overall, intraday or on a trailing basis.

The ability to buy or sell with available counterparties. Lower liquidity can increase spreads and make execution more difficult.

The extent of price variation over a period. High volatility can create fast movements in both directions and increase risk.

A programme for MetaTrader that automates tasks or trading rules. Automation does not guarantee profit and requires compatible files and settings.

MetaTrader 4 and MetaTrader 5 are different platforms. An indicator or EA made for one should not be assumed to work on the other.

A company offering trading programmes under its own rules. Accounts may be simulated, and challenges, funding and payouts depend on the programme agreement.

A return of part of eligible trading costs, subject to the programme's terms and confirmed activity. It is not a trading profit or a guaranteed payment.

An authorisation tied to a legal entity, activities and jurisdiction. A licence under the same brand does not automatically cover every group company or country.