Forex glossary | Brokerscout.ai

Glossary

Open position A position in a currency that has not yet been offset.

Example:

A trader held an open position in the forex market, holding a position in the EUR/USD currency pair, expecting that changes in the exchange rate would bring him profit at the close of the trade.
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Pip A minimum change in the value of a financial instrument. A pip is also the penultimate (in some cases, the last) character in the quote of a currency pair.

Example:

The trader fixed profit in several pips, having made successful transactions on the Forex market, thanks to careful analysis and strategic approach to trading.
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Profit A positive financial result of a trading or speculative operation, investment of funds that exceeds the amount of the initial investment.

Example:

The trader was pleased to note an increase in his profit by closing profitable transactions in the financial market in accordance with the chosen trading strategies.
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Range The difference between the minimum (min) and maximum (max) prices of a trading instrument that has been shown over a certain period of time is called the range.

Example:

The trader has determined the current range of prices in the market, taking into account the minimums and maximums in order to make informed decisions about entering trades and managing risk.
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Required margin Required Margin is the amount of money a trader needs to open a position of the required size.

Example:

The trader actively monitors the level of required margin in his account to avoid automatically closing positions due to insufficient funds when market conditions change.
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Risk Warning

Before embarking on Forex trading, it is essential to thoroughly evaluate your investment objectives, level of experience, and risk tolerance. Never allocate funds that you cannot afford to lose.

Off-exchange foreign exchange transactions carry significant risks, encompassing leverage, credit risk, limited regulatory protections, and market volatility. These factors can significantly influence currency prices and liquidity.

Furthermore, the leverage inherent in forex trading means that market fluctuations can result in substantial gains or losses relative to your initial investment. If market conditions go against you, you may risk losing your entire initial margin and be required to inject additional funds to maintain your position. Failure to meet margin requirements may lead to position liquidation and subsequent losses for which you bear responsibility

Before embarking on Forex trading, it is essential to thoroughly evaluate your investment objectives, level of experience, and risk tolerance. Never allocate funds that you cannot afford to lose.

Off-exchange foreign exchange transactions carry significant risks, encompassing leverage, credit risk, limited regulatory protections, and market volatility. These factors can significantly influence currency prices and liquidity.

Furthermore, the leverage inherent in forex trading means that market fluctuations can result in substantial gains or losses relative to your initial investment. If market conditions go against you, you may risk losing your entire initial margin and be required to inject additional funds to maintain your position. Failure to meet margin requirements may lead to position liquidation and subsequent losses for which you bear responsibility