A suggestion for entering a trade on a currency pair, usually at a specific price and time. Forex signals are generated by an analyst or an automated Forex robot.
A standardized unit of measurement in Forex trading. One standard lot is typically 100,000 units of the base currency. There are also mini lots (10,000 units) and micro lots (1,000 units).
The use of borrowed money to increase the potential return of an investment. In forex, leverage allows traders to control larger positions than they could with their own capital alone.
The smallest price move that a given exchange rate can make based on market convention. Usually, a pip refers to the fourth decimal place of a price (0.0001).
The amount of money required in your account to open a position. Margin is used to create leverage.
The difference between the bid price and the ask price of a currency pair. This is effectively the broker’s commission for executing a trade.
The price at which the market (or your broker) will buy a specific currency pair from you. Thus, at this price, the trader can sell the base currency.
The price at which the market (or your broker) will sell a specific currency pair to you. Thus, at this price, the trader can buy the base currency.
An order placed with a broker to buy or sell once the currency reaches a certain price. A stop-loss is designed to limit an investor’s loss on a position.
A type of limit order that specifies the exact price at which to close out an open position for a profit.
A market condition in which the prices of securities are falling, and widespread pessimism causes the negative sentiment to be self-sustaining.
A market condition in which the prices of securities are rising or are expected to rise.
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