Trader's Glossary

Trader's Glossary

Abnormal Market Conditions:

A market that has a thin size of updates quickly.

Ask:

The price set by a trader to trade an instrument in the market.

This is the Available Margin:

The free margin.

Balance:

The funds deposited in or withdrawn from a client’s account. Balance is calculated on all the closed positions in a customer’s account.

Base Currency:

The first currency of a currency pair.

Bid:

A selling price for an open position. It is the price at which a market marker agrees on buying an instrument.

Buy Position:

A position that is open. Often it is expected increase in the market.

Central Bank:

The government run bank that looks after a country’s monetary.

CFD:

Stands for Contract for Difference. Object of transaction depending on fluctuations in price of a market.

Contract:

Standard unit of forex.

Currency Pair:

Trade instrument between two currencies.

Customer Account:

Each individuals record of transactions and order.

Floating Profit/Loss:

A variable value between customer’s equity and balance.

Leverage:

It is the ration of size to the margin.

Margin:

A security collateral that maintains a customer’s position open

Open Position:

A contract that can be bought or sold from a customer’s account

Point: It is also known as PIP:

The lease price change in a currency pair.

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