Basic Forex trading terms

• Spread: The difference between the buy (Ask) and sell (Bid) price of a currency pair.
• Lot: Standard transaction volume on the Forex market equal to 100,000 units of the base currency.
• Margin: Collateral required to open a position.
• Leverage: Financial leverage, which allows a trader to manage large sums of money using borrowed funds from the broker.
• Pip: The minimum change in the price of a currency pair, usually 0.0001 for most pairs.
• Take Profit: The level at which the profit on an open position is automatically fixed.
• Stop Loss: The level at which the loss is automatically recorded to limit losses.
• Bull Market: A market dominated by rising prices.
• Bear Market: A market dominated by falling prices.
• Orders: Broker's instructions for buying or selling a currency pair at a certain price.