Trading Glossary

From pip to drawdown — plain-English definitions of the terms every trader should know.

Learn

Speak The Language Of The Markets

Trading comes with its own vocabulary. Our glossary breaks down essential terminology so you can read charts, analysis and platform tools with confidence.

Essential Terms

Start With These

Pip

The smallest price movement in a currency pair, usually the fourth decimal place.

Spread

The difference between the bid and ask price of an instrument.

Leverage

Trading with exposure greater than your deposited capital.

Margin

The collateral required to open and maintain a leveraged position.

Drawdown

The decline from a peak in your account balance to its lowest point after.

Stop Loss

A pending order that closes a trade automatically at a set loss level.

Ready To Apply It?

Open a demo or live account and put the terminology into practice.

Open an Account