Glossary
Limit Order
A limit order is a pending order to buy or sell at a specified price or better. It ensures price precision but does not guarantee execution.
Liquidity
Liquidity describes how easily an asset can be bought or sold without affecting its price. High liquidity means tight spreads and fast execution.
Long Position
A long position means buying an asset with the expectation that its price will rise. Profits increase as the price goes up.
Lot
A lot is the standard unit of measurement in forex trading. One standard lot equals 100,000 units of the base currency.
MACD (Moving Average Convergence Divergence)
MACD is a trend-following momentum indicator that shows the relationship between two moving averages. It consists of the MACD line, signal line, and histogram.
Margin
Margin is the collateral required to open and maintain a leveraged trading position. It acts as a good faith deposit with your broker.
Margin Call
A margin call occurs when your account equity falls below the broker's margin requirement, prompting a warning or automatic closure of positions.
Market Order
A market order is an instruction to buy or sell immediately at the best available current price. It guarantees execution but not price.
Moving Average
A moving average smooths price data to identify trends. The most common types are Simple Moving Average (SMA) and Exponential Moving Average (EMA).
Open Position
An open position is an active trade that has been executed but not yet closed. It carries unrealized profit or loss until it is settled.