Glossary
Spread
The spread is the difference between the bid and ask price. It represents the cost of trading and is how most brokers make money.
Stop Loss
A stop loss is a predefined order that automatically closes a trade at a specified price to limit losses. It is the most essential risk management tool.
Support
Support is a price level where buying pressure is strong enough to prevent the price from falling further. It acts as a floor on price movement.
Swap
Swap is the interest differential between two currencies in a pair, charged or credited when a position is held overnight.
Take Profit
Take profit is a pending order that automatically closes a trade when the price reaches a specified profit target.
Technical Analysis
Technical analysis studies price charts and statistical indicators to forecast future price movements. Based on the idea that price reflects all known information.
Trailing Stop
A trailing stop automatically adjusts the stop loss level as the price moves in your favor, locking in profits while allowing the trade to continue running.
Volatility
Volatility measures the rate and magnitude of price changes in a financial instrument. High volatility means large price swings; low volatility means stable prices.
Volume
Volume represents the total number of shares, contracts, or lots traded during a specific period. It confirms trend strength and potential reversals.