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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.
10 terms shown · 59 terms recorded in total
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Scalping
Scalping attempts to take very small price moves repeatedly, holding positions for seconds or minutes. Targets are short in pips, so the spread and slippage mak…
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Slippage
Slippage is the difference between the price you expected and the price an order was actually filled at. It happens when the market moves while the order is tra…
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Spread
The spread is the gap between the bid price and the ask price, and it is the cost of opening a trade at the quoted market. A new position starts at zero value a…
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Standard Lot
A standard lot is 100,000 units of the base currency and is the largest commonly used fixed size. Because one pip on a standard lot is worth approximately ten d…
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Stop Loss
A stop loss is an order that closes a position automatically if the price moves against it by a set distance. It converts an open-ended risk into a defined one…
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Stop-Out
A stop-out is the automatic closure of positions by the broker when the margin level falls to a preset percentage, for example fifty percent. The broker chooses…
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Support
Support is a price area where repeated selling pressure has previously slowed or reversed a fall. It is an area rather than a single line, and its strength is o…
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Swap
Swap is the interest adjustment applied to a position held overnight, reflecting the rate difference between the two currencies in the pair. Long positions can…
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Swing Trading
Swing trading holds positions for several days to a few weeks, aiming at one leg of movement rather than intraday noise. It usually relies on higher timeframes,…
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Sydney Session
The Sydney session opens the trading day and is usually the quietest of the four, with thin liquidity and narrow ranges. It overlaps with the end of the New Yor…
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