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AFT Glossary of Common Trading

🧩 Basic Terms Pip / Spread: The smallest price movement in forex (e.g., EUR/USD from 1.1000 → 1.1001 = 1 pip). Lot: Sta...

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🧩 Basic Terms

  • Pip / Spread: The smallest price movement in forex (e.g., EUR/USD from 1.1000 → 1.1001 = 1 pip).

  • Lot: Standard trading unit, 1 standard lot = 100,000 base currency.

  • Leverage: A mechanism that allows controlling larger positions with smaller capital.

  • Margin: Minimum funds frozen when opening a position.

  • Equity: Account balance + floating profit/loss.

  • Free Margin: Funds available to open new positions or absorb market moves.

  • Stop Out: Forced liquidation when equity falls below a certain ratio (e.g., 10%).

📊 Order & Execution Terms

  • Market Order: Executed immediately at current market price.

  • Limit Order: Pending order placed at a better price level.

  • Stop Loss: Automatic close to limit losses.

  • Take Profit: Automatic close to lock profits.

  • Slippage: Difference between execution price and requested price.

  • Close Position: Closing an existing trade manually or automatically.

  • Open Position: Active trade not yet closed.

  • Entry / Open: Opening a new position.

💼 Fund-Related Terms

  • Deposit: Funding your trading account.

  • Withdrawal: Withdrawing funds from the account.

  • Balance: Account funds excluding floating P/L.

  • Swap / Rollover: Interest charged/earned for holding overnight positions.

  • Swap-Free: Account type exempt from swap charges.

  • Negative Balance Protection: Prevents accounts from going below zero.

📈 Analysis & Indicator Terms

  • Technical Indicator: Tools for analyzing price movements (MA, MACD, RSI, etc.).

  • Support / Resistance: Key lower support and upper resistance levels.

  • Bullish / Bearish: Uptrend / Downtrend outlook.

  • Candlestick Chart: Chart showing open, high, low, close prices.

  • Timeframe: Chart interval (e.g., 1M, 1H, Daily).

📌 This glossary explains common trading terms to help beginners quickly understand platform functions.

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