Trading Basics
Swap
Swap is the interest differential between two currencies in a pair, charged or credited when a position is held overnight.
Short Position
A short position means selling an asset first, then buying it back later. Traders profit when the price falls. Also called shorting or going short.
Rollover / Swap
Rollover or swap is the interest earned or paid for holding a forex position overnight. It is based on the interest rate differential between the two currencies.
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.
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.
Long Position
A long position means buying an asset with the expectation that its price will rise. Profits increase as the price goes up.
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.
Good Till Cancelled (GTC)
GTC is an order duration that keeps a pending order active until it is filled or manually cancelled by the trader.
Buy Limit / Sell Limit
Pending orders to buy below or sell above the current price. Buy limit executes at a lower price; sell limit executes at a higher price.