Glossary
The words you meet before anyone explains them. One line each, then enough to use them.
MarginThe amount your broker holds from your balance to keep a position open.LeverageA ratio that lets you open a position far larger than your balance.Lot (contract size)The unit a broker measures position size in.PipThe usual smallest price move, and the basis of every profit and loss figure.SpreadThe gap between the buy and sell price - your cost at the moment of entry.Swap (overnight interest)An amount charged or credited for holding a position past the daily close.EquityYour balance plus the profit or loss of everything currently open.DrawdownThe largest fall from an account's peak to the low that follows it.Margin callThe broker's warning that your equity has come close to the danger line.Stop outThe broker closing your positions automatically, to protect itself rather than you.Stop lossAn order that closes a position automatically at a price you set in advance.SlippageThe gap between the price you asked for and the price that actually filled.