Forex Trading Glossary | A-Z Terminology

A key economic indicator released by the US Department of Labor representing the total number of paid workers in the US minus farm employees, government employees, private household employees, and employees of nonprofit organizations.

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O

Order Block

A market behavior that indicates the accumulation of orders from financial institutions.

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P

Pip

The smallest standard unit of price change in a currency pair.

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Pipette

A fractional pip, representing 1/10th of a standard pip.

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Pip Value

The monetary value of a single pip movement in a given forex trade.

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Q

Quote Currency

The second currency in a currency pair.

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Quote

The current market price of a currency pair, consisting of a bid and an ask price.

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R

Resistance

A price level where selling interest is strong enough to prevent the price from rising further.

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Risk/Reward Ratio

A measure of the potential profit closer to the potential loss of a trade.

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Rollover

The interest paid or earned for holding a position overnight.

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S

Scalping

A trading strategy that attempts to make many small profits on small price changes.

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Short Position

Selling an asset with the expectation that its price will fall.

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Slippage

The difference between the expected price of a trade and the price at which it is actually executed.

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Smart Money Concepts (SMC)

A trading methodology that attempts to track the actions of institutional investors.

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Spread

The difference between the bid and ask price.

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Stop Loss

An order placed to close a position automatically if price moves against you.

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STP (Straight Through Processing)

A broker model that passes orders directly to liquidity providers without manual intervention.

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Support

A price level where buying interest is strong enough to prevent the price from falling further.

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Swap

The interest charged or paid for holding a position overnight.

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Spread Betting

A tax-free derivative strategy (in the UK) where participants bet on the price movement of an underlying asset without owning it.

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T

Take Profit

An order placed to close a position automatically once a targeted profit price is reached.

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Technical Analysis

Forecasting future price movements based on historical price data and chart patterns.

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Trend

The general direction in which the market is moving.

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V

Volatility

The measure of how much the price of an asset fluctuates over time.

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VIX (Volatility Index)

A real-time market index that represents the market's expectation of 30-day forward-looking volatility.

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W

Whales

Individuals or entities that hold enough capital to influence market prices.

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Trader's Glossary

A

Arbitrage

Ask Price

Appreciation

A-Book

Algorithm Trading (Algo Trading)

B

Base Currency

Bearish

Bid Price

B-Book

Break of Structure (BOS)

Bullish

C

Candlestick Chart

Carry Trade

CFD (Contract for Difference)

Copy Trading

Currency Pair

D

Dealing Desk (DD)

Depreciation

Drawdown

E

ECN (Electronic Communication Network)

Equity

Exchange Rate

Expert Advisor (EA)

F

Forex (Foreign Exchange)

Fundamental Analysis

FOMC (Federal Open Market Committee)

G

Gapping

H

Hedging

High-Frequency Trading (HFT)

I

Imbalance (IMB)

Indicators

L

Leverage

Limit Order

Liquidity

Long Position

Lot

M

Margin

Margin Call

Market Maker

Market Order

Margin Level

N

NFP (Non-Farm Payrolls)

O

Order Block

P

Pip

Pipette

Pip Value

Q

Quote Currency

Quote

R

Resistance

Risk/Reward Ratio

Rollover

S

Scalping

Short Position