Navigate the CFD Market — Independent Reviews & Analysis

Forex Basics

Pip

A pip is the smallest standard unit of price change in forex trading. For most pairs, it equals 0.0001 (one ten-thousandth). Essential for measuring profit and loss.

Lot

A lot is the standard unit of measurement in forex trading. One standard lot equals 100,000 units of the base currency.

Forex (Foreign Exchange)

Forex is the global decentralized market for trading currencies. It is the largest financial market in the world with a daily volume exceeding $7.5 trillion.

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.

Bid Price

The bid price is the highest price a buyer is willing to pay for a financial instrument. It represents the demand side of a market quote.

Ask Price

The ask price is the lowest price a seller is willing to accept for a financial instrument. Also known as the offer price, it is one half of a currency quote.