The price at which a seller is willing to sell a currency pair. The ask price is always higher than the bid price.
Adding to a losing position at a lower price, reducing the average entry price. Generally considered a dangerous practice.
The first currency in a pair. In EUR/USD, EUR is the base currency. The pair shows how much of the quote currency is needed to buy one unit of the base currency.
A market sentiment expecting prices to fall. A bearish trader believes the market will go down.
The price at which a buyer is willing to purchase a currency pair. The bid price is always lower than the ask price.
A market sentiment expecting prices to rise. A bullish trader believes the market will go up.
A type of price chart showing the high, low, open, and close for a specific period. The "body" shows open/close, "wicks" show high/low.
A derivative product allowing traders to speculate on price movements without owning the underlying asset.
The peak-to-trough decline during a specific period, usually expressed as a percentage. A 10% drawdown means your account fell 10% from its highest point.
A computerized system that automatically matches buy and sell orders, typically offering tighter spreads.
The current value of your trading account, including all open positions. Equity = Balance + Floating P/L.
The price at which a trader enters a position (buys or sells).
The emotional urge to enter a trade because you see price moving without you. One of the most dangerous trading emotions.
Analyzing economic data, news, and financial reports to predict price movements.
Borrowed capital that amplifies both gains and losses. 1:100 leverage means controlling $100,000 with $1,000.
Buying an asset expecting its price to rise. "Going long" means buying.
The standardized quantity of a currency pair. Standard lot = 100,000 units. Mini lot = 10,000. Micro lot = 1,000.
The amount of money required to open and maintain a leveraged position. Think of it as a "good faith deposit."
A broker's demand for additional funds when your account equity falls below the required margin level.
The smallest price move in forex. For most pairs, 1 pip = 0.0001. For JPY pairs, 1 pip = 0.01.
The number of lots traded. Proper position sizing is crucial for risk management.
The ratio of potential profit to potential loss. A 1:2 R:R means risking $100 to make $200. TTF recommends minimum 1:2 for all trades.
The interest paid or earned for holding a position overnight. Depends on the interest rate differential between the two currencies.
Selling an asset expecting its price to fall. "Going short" means selling.
The difference between expected entry price and actual fill price, common during high volatility or low liquidity.
The difference between the bid and ask price. This is the broker's commission on each trade.
An order to close a position at a predetermined price to limit losses. Essential for risk management.
Key price levels where buying (support) or selling (resistance) pressure has historically been strong.
An order to close a position at a predetermined price to secure profits.
Analyzing price charts, patterns, and indicators to predict future price movements.
The period each candlestick represents. Common timeframes: 1M, 5M, 15M, 1H, 4H, D, W.
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