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Basic Trading

Welcome to FPG Basic Trading - Learn, Practice, and Excel in the World of Trading with Expert Guidance, Unleash Your Trading Potential.

Trading Terminologies

Trading terminologies refer to the specialized vocabulary and terms used in the world of financial markets and trading. Understanding these terms is essential for investors, traders, and market participants to communicate effectively and navigate the complexities of trading

Pip

The smallest unit of measurement in forex trading, representing the change in value of a currency pair.

Spread

The difference between the bid (selling) price and the ask (buying) price of a currency pair, indicating the cost of trading.

Margin

The collateral required to open and maintain a leveraged position in the forex market.

Leverage

The ability to control a larger position in the market with a smaller amount of capital, amplifying potential profits or losses.

Lot

A standardized unit of measurement for forex trades. Standard lots are typically 100,000 units of the base currency.

Long

A position opened with the expectation that the value of the base currency will increase.

Short

A position opened with the expectation that the value of the base currency will decrease.

Stop Loss

An order placed to automatically close a trade at a specific price level, limiting potential losses.

Take Profit

An order placed to automatically close a trade at a specific price level, securing potential profits.

Margin Call

A notification from the broker requesting additional funds to maintain open positions due to insufficient margin.

Equity

The current value of an account, including open positions and floating profits or losses.

Currency Pair

The two currencies being traded in the forex market, quoted in relation to each other.

Base Cureency

The first currency in a currency pair, used as a reference to determine value.

Quote Currency

The second currency in a currency pair, representing the value in which the base currency is quoted.

Bid Price

The price at which the market is willing to buy the base currency in a currency pair.

Ask Price

The price at which the market is willing to sell the base currency in a currency pair.

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