Essential trading terms and definitions to help you understand the forex market
The price at which a trader can buy a currency pair
The price at which a trader can sell a currency pair
The difference between the bid and ask price
The smallest price movement in forex trading
Standard unit of measurement in forex (100,000 units of base currency)
The ability to control a large position with a small amount of capital
The amount of money required to open and maintain a leveraged position
An order to close a position automatically at a predetermined loss level
An order to close a position automatically at a predetermined profit level
The interest rate differential charged for holding a position overnight
Note: This is a basic glossary. For comprehensive trading education, visit our Trading Academy .