Forex Glossary

The price at which you can buy a currency pair or instrument.

The price at which you can sell a currency pair or instrument.

The decline from a peak to a trough in account equity or strategy performance.

Account balance plus or minus unrealized profit/loss from open positions.

Funds available to open new positions; equity minus used margin.

The ability to control a larger position with a smaller amount of capital.

An order to buy/sell at a specified price or better.

How quickly an instrument can be bought or sold at stable prices.

A standardized transaction size. 1.0 lot in FX typically equals 100,000 units.

Funds required to open and maintain a leveraged position.

An order to buy or sell immediately at the best available price.

A unit of price movement, usually the fourth decimal place (0.0001) for FX majors.

The process of extending the settlement date of an open position to the next trading day.

The difference between the expected transaction price and the price at which it is executed.

The difference between the bid and ask prices, typically measured in pips.

An order to close a position once price reaches a specified level to limit losses.

An order to buy/sell once price reaches a specified level, becoming a market order.

Overnight financing charge or credit applied when positions are held past rollover.

An order to close a position once price reaches a specified level to lock in gains.

The degree of variation of a trading price series over time.