The language of trading

  • Pip — the smallest standard price move (usually the 4th decimal). Your gains and losses are measured in pips.
  • Lot — the size of your trade. 1 standard lot = 100,000 units. Mini = 0.1, Micro = 0.01.
  • Leverage — borrowing from your broker to control a larger position. Powerful but dangerous.
  • Margin — the deposit required to open a leveraged trade.
  • Spread — the bid/ask difference; your entry cost.
  • Long / Short — buying (expecting up) / selling (expecting down).

Learn these well — every future lesson builds on them.