10 terms that every trader should know
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10 terms that every trader should know

?? Тrend – clearly seen market movement in one direction

?? Volatility – the strength of the exchange rate variation

?? Spread – the real time difference between the Bid and Ask prices of one currency for another one

?? Liquidity – the feature of one asset to change for another one. A bigger liquidity gives an opportunity to make a big deal without being affected by a significant change in price

?? Slippage – the number of market movements from the time of placing an order until its execution. It is the situation when orders are executed at better/worse price than the one indicated in the order. For example, this might happen during high market volatility

?? Hedging – the use of one financial instrument to reduce risk, which is connected with the influence of unfavorable market factors on the price of another financial instrument, associated with the first one or the cash flows that they generate

?? Equity – an indicator that characterizes the trader's account status at the moment. It is calculated as follows: equity = balance + floating profit – floating loss

?? Bid – the price at which you can sell currency. The Bid price is lower than the Ask price

?? Ask – the price at which you can buy currency. The Ask price is bigger than the Bid price

?? Deposit – funds put on the account for further transactions.


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