Glossary

Learn the Trading Language

Find clear and simple explanations of essential trading terms to support your learning and decision-making.

Browse by Letter

Appreciation

An increase in the value of one currency relative to another in response to market demand, rather than by official action such as a revaluation.

Arbitrage

The simultaneous purchase and sale of an asset in different markets to exploit small differences in the asset’s listed price. It yields risk free profit from price imbalances.

Ask Price

The price at which a seller is willing to sell a currency pair. Also known as the ‘offer price’ or the ‘buy price’ for the trader.

Bid Price

The price at which a trader can sell an asset or currency pair. 

Breakout

When price moves beyond a key support or resistance level with strong momentum. 

Bull Market

A market where prices are generally rising. 

Bear Market

A market where prices are generally falling. 

Buy and Hold

A long-term approach where assets are held despite short-term price changes. 

Currency Pair

Two currencies traded against each other, where one is bought and the other is sold. 

Central Bank

An authority that manages a country’s currency, money supply, and interest rates. 

Candlestick Chart

A chart type showing open, high, low, and close prices for a time. 

Commission

A fee charged for executing trades on the platform. 

Commodities

Physical goods like oil, metals, or agricultural products that can be traded. 

CFD (Contract for Difference)

A product allowing trading on price movements without owning the asset. 

Circuit Breaker

A temporary halt in trading to prevent extreme volatility. 

Drawdown

The decline in account value from a peak to a lower point. 

Day Trading

Opening and closing trades within the same trading day. 

Dividend

A portion of a company’s earnings is distributed to shareholders. 

Exchange Rate

The value of one currency compared to another. 

Entry Point

The price level at which a trade is opened. 

Equity

Total account value including open profits and losses. 

ETF (Exchange Traded Fund)

A fund traded like a stock that tracks an index or assets. 

Fundamental Analysis

Evaluating markets using economic data, news, and global events. 

Futures

Contracts to buy or sell an asset at a future date. 

Forex

The global market for trading currencies. 

GDP (Gross Domestic Product)

Total value of goods and services produced by a country. 

Gap

A price jump where no trading occurs between levels. 

Hedging

Reducing risk by opening offsetting positions. 

High-Frequency Trading (HFT)

Algorithmic trading executing large volumes rapidly. 

Interest Rate

Rate set by central banks affecting borrowing and currency value. 

IPO (Initial Public Offering)

First sale of a company’s shares to the public. 

Initial Margin

Minimum amount required to open a leveraged position. 

J-Curve

Economic pattern showing decline followed by recovery after depreciation. 

JPY (Japanese Yen)

Official currency of Japan. 

KYC (Know Your Customer)

Identity verification process for compliance and security. 

Leverage

Using small capital to control larger positions. 

Liquidity

Ease of buying or selling an asset without affecting price. 

Limit Order

An order to buy or sell at a specific price. 

Lot Size

Standardized unit of trade volume. 

Margin

Funds required to open and maintain a leveraged trade. 

Margin Level

Ratio of equity to used margin. 

Momentum

Strength or speed of price movement. 

MACD

Indicators used to measure trends and momentum. 

News Trading

Trading is based on economic news or announcements. 

Nasdaq

Major U.S. stock exchange focused on tech companies. 

Order

Instructions to open or close a trade. 

Order Book

List of buy and sell orders at price levels. 

Overbought

Condition where prices may be too high and reversed. 

Pip

Smallest price movement in a currency pair. 

Portfolio

Collection of assets or trades. 

Position Trading

Long-term trading is held for weeks or months. 

Quote

Current asset price including bid and ask. 

Risk Management

Strategies used to control trading losses. 

Resistance Level

Price level where upward movement may stop. 

Roll-Over

Extending trade to the next trading period. 

RSI (Relative Strength Index)

Indicator measuring overbought/oversold conditions. 

Spread

Difference between bid and ask price. 

Stop Loss

Order to automatically close a trade to limit loss. 

Support Level

Price level where decline may stop. 

Scalping

Short-term trading for small quick profits. 

Short Selling

Selling expecting price to fall. 

Swing Trading

Holding trades for several days. 

Technical Analysis

Using charts and patterns to predict price movement. 

Trend

General market direction (up, down, sideways). 

Take Profit (TP)

Order to close a trade at profit level. 

Unrealized Profit/Loss

Profit or loss on an open trade. 

Underlying Asset

Actual assets behind a derivative product. 

Volatility

Level of price fluctuation. 

Volume

Number of trades executed in a period. 

Whipsaw

Sharp price moves in both directions. 

Yield

Return generated from an investment. 

Zone

Price area with strong support or resistance. 

Why Learn Trading Terms

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Register

Create your account and access the platform instantly.

Verify

Verify your identity with a quick KYC check

Funds

Add funds quickly with your preferred payment method.

Trade

Start trading your favourite assets instantly.

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