Glossary

    A
  • Extrapolates the behavior of a financial metric (such as volatility, returns, interest rates) from a specific time period to a full year.
  • Ask
    The lowest price at which sellers are willing to sell an asset to potential buyers.
  • B
  • The first currency listed in a currency pair.
  • Bid
    The highest price at which buyers are willing to buy an asset from potential sellers.
  • C
  • A medium of exchange for goods and services, often issued and regulated by a central authority.
  • Relative value of two currencies used to determine the rate at which one currency can be exchanged for another.
  • E
  • An instruction to buy or sell an instrument when its price reaches a predetermined level.
  • The current market value of all the positions a trader holds. Higher exposure magnifies potential gains or losses.
  • H
  • The practice of holding simultaneous long and short positions in the same instrument.
  • L
  • The use of borrowed capital to open positions larger than what the actual capital permits.
  • An instruction to buy or sell an instrument at a specific price or better
  • To buy and hold an instrument with an intention to sell at a higher price later
  • M
  • The required collateral or good faith deposit to open and maintain a leveraged position.
  • The greater of 0 and your net asset value minus your margin used.
  • An alert 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.
  • A process by which your positions are automatically closed when your account falls below a predetermined threshold.
  • Margin Used is always 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.
  • An instruction to buy or sell an instrument at the current market price.
  • N
  • NAV calculated at the current mid prices only for margin calculations.
  • 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
  • A trade that hasn’t been closed by making an opposite transaction.
  • An instruction to buy or sell an instrument under the specified conditions
  • P
  • 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.
  • A collection of financial instruments held by an investor or financial institution.
  • S
  • A strategy to sell an instrument a trader doesn’t own with an intention to buy at a lower price later
  • The difference between the bid and the ask price.
  • An instruction to close open positions on an instrument when its price reaches a certain level, designed to limit a trader's potential losses in a trade.
  • An instruction to buy or sell at a predetermined price.
  • T
  • An instruction to close open positions on an instrument when its price reaches a certain level, designed to lock in an investor's potential profits in a trade.
  • A trade is the actual execution of buying or selling an asset, resulting in a completed transaction.
  • A trailing stop is a type of stop order that automatically adjusts as the market price of an asset moves in your favor.
  • U
  • The profit or loss calculated on your open positions based on the current bid or ask prices, but it remains unrealized until the positions are closed.
  • Unrealized P/L calculated using the current mid prices for margin calculations
  • V
  • A measure by which the price of an instrument is expected to fluctuate or has fluctuated over a given period.

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