Glossary
CFD (Contract for Difference)
A CFD is a derivative contract that lets traders speculate on price movements without owning the underlying asset. Popular for forex, stocks, commodities, and indices.
Chart Pattern
Chart patterns are recognizable formations on price charts that suggest future price direction. They include reversal and continuation patterns.
Commission
Commission is a fee charged by brokers for executing trades. It can be a flat rate per lot, a percentage of trade value, or built into the spread.
Currency Pair
A currency pair quotes two currencies against each other in forex trading. The first is the base currency, the second is the quote currency.
Day Trading
Day trading is buying and selling financial instruments within the same trading day. All positions are closed before market close to avoid overnight risk.
Demo Account
A demo account is a practice trading account with virtual money. It replicates real market conditions, allowing traders to test strategies risk-free.
Drawdown
Drawdown measures the decline from peak to trough in a trading account. It indicates the maximum loss a trader has experienced and is a key risk metric.
ECN Broker
An ECN broker routes trades directly to a network of liquidity providers, offering tight spreads, transparent pricing, and no dealing desk intervention.
Economic Calendar
An economic calendar lists scheduled economic events and data releases that can impact financial markets. Essential for fundamental analysis and news trading.
Equity
Equity is the current value of your trading account including unrealized profits and losses from open positions. It represents your real-time account worth.