Glossary
- Pip
- The smallest standard price increment for a pair. One pip is 0.0001 on most pairs and 0.01 on JPY crosses.
- Spread
- The gap between the bid and the ask. It is a cost you pay the moment a position opens, before the market moves at all.
- Leverage
- Borrowed exposure. At 1:100, a 1% adverse move consumes the whole margin committed to that position.
- Margin call
- The point at which your equity no longer supports your open positions and the broker may close them for you.
- Drawdown
- The fall from a peak in your equity to the lowest point that follows, usually expressed as a percentage.
- Swap
- The financing charge or credit applied for holding a position overnight, based on the interest differential.
- Slippage
- The difference between the price you expected and the price you were filled at, common in fast markets.
- Lot
- A standard contract unit. One standard lot is 100,000 units of the base currency; a micro lot is 1,000.
Education is not advice.
Nothing in the Academy is a recommendation to buy or sell any instrument, and no example should be
read as a prediction. Material is general and does not account for your circumstances. If you need
advice specific to your situation, speak to a licensed adviser in your country.