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Forex glossary
Plain-language definitions of the terms used in forex and CFD trading. Each definition is a recorded row written by us — if a term is not listed, we have not written it yet rather than guessing at one.
5 terms shown · 59 terms recorded in total
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Parameter Optimisation
Optimisation means searching through combinations of settings to find the ones that produced the best result on a particular historical period. The danger is th…
Letter P
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Pip
A pip (percentage in point) is the usual smallest move quoted in a currency price. For most pairs it is the fourth digit after the decimal point, so EURUSD movi…
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Pipette
A pipette, sometimes called a point, is one tenth of a pip. Brokers show five decimal places on most pairs and three on yen pairs so that prices can be quoted m…
Letter P
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Position Size
Position size is how much of a pair you buy or sell, expressed in lots. The usual method works backwards from the risk: decide how much money you are prepared t…
Letter P
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Price Action
Price action is the practice of reading raw movement in price, usually on a candlestick chart, rather than relying on indicator outputs. It focuses on where pri…
Letter P
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