Essential Forex Terminology

The words every trader must know.

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).

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Standard, mini, micro, and nano lots explained with risk examples.

Understand the largest financial market in the world.

Learn buying, selling, and how profit is made.

Banks, institutions, and why price really moves.