Glossary

A
• Annualised
  Extrapolates the behavior of a financial metric (such as volatility, returns, interest rates) from a specific time period to a full year.
• Ask
  The prevailing sell price.
B
• Base currency
  The first currency listed in a currency pair.
• Bid
  The prevailing buy price.
C
• Currency
  A medium of exchange for goods and services, often issued and regulated by a central authority.
• Currency pair
  Relative value of two currencies used to determine the rate at which one currency can be exchanged for another.
E
• Entry Order
  An instruction to buy or sell an instrument when its price reaches a predetermined level.
• Exposure
  The current market value of all the positions a trader holds. Higher exposure magnifies potential gains or losses.
H
• Hedging
  The practice of holding simultaneous long and short positions in the same instrument.
L
• Leverage
  The use of borrowed capital to open positions larger than what the actual capital permits.
• Limit order
  An instruction to buy or sell an instrument at a specific price or better
• Long position
  A position taken in anticipation of a rising market. To go long means to open a ‘buy’ position.
M
• Margin
  The required collateral to open and maintain a leveraged position.
• Margin available
  The greater of 0 and your net asset value minus your margin used.
• Margin call
  An alert that may be triggered when the estimated value of your account is less than your used margin and you are required to deposit additional funds or close open positions to prevent margin closeout.
• Margin close out
  A process by which your positions are automatically closed when your account falls below a predetermined threshold.
• Margin Required
  The amount of margin that would be needed to open a new position(s) of the given trade size(s) at any point in time.
• Market order
  An instruction to buy or sell an instrument at the current market price.
N
• NAV_mid
  NAV calculated at the current mid prices only for margin calculations.
• Net Asset Value (NAV)
  The current value of a trader’s account in its home currency including the balance and the unrealized profit or loss calculated at the current bid or ask price.
O
• Open position
  A trade or collection of trades that haven’t been closed.
• Order
  An instruction to buy or sell an instrument under the specified conditions
P
• Pending order
  A pending order is an unexecuted trade instruction, waiting for specific conditions to be met before becoming an active order.
• PIP
  Smallest price movement in a currency pair, usually measured to the fourth decimal.
• Portfolio
  A collection of financial instruments held by an investor or financial institution.
S
• Short position
  A position taken in anticipation of the price falling. To short means to open a ‘sell’ position.
• Spread
  The difference between the bid and the ask price.
• Stop loss order
  An instruction to close an open position when the price reaches a certain level, designed to limit a trader's potential losses.
• Stop order
  An instruction to buy or sell at a predetermined price.
T
• Take profit order
  An instruction to close a position when the price reaches a certain level, designed to lock in an investor's potential profits.
• Trade
  The actual execution of buying or selling an asset, resulting in a completed transaction.
• Trailing stop order
  A trailing stop is a type of stop order that automatically adjusts as the market price of an asset moves.
U
• Unrealised P/L
  The profit or loss calculated on your open positions based on the current bid or ask prices, which remains unrealised until the positions are closed.
• UPL_mid
  Unrealised P/L calculated using the current mid prices for margin calculations
V
• Volatility
  A measure by which the price of an instrument is expected to fluctuate or has fluctuated over a given period.