The total amount of money in your trading account, including your initial deposit and the net profit or loss from all closed positions. It does not include the floating profit or loss from open positions – those are reflected in your equity.

After-hours trading takes place outside of regular trading hours. In the US, typically after-hours trading happens between 16:00 and 20:00 ET - and provides investors with an opportunity to react to news and events that occur after the market closes.

A variation of the Volume Weighted Average Price (VWAP), this indicator calculates the average price of an asset starting from a specific point in time, helping traders identify important price levels.......

A trading strategy that exploits price differences of the same currency pair across different markets or brokers. Traders buy at a lower price in one market and simultaneously sell at a higher price in another, profiting from the discrepancy. In modern forex markets, arbitrage opportunities are rare and short-lived due to technology and high-frequency trading.

The period when Asian financial markets are active, primarily Tokyo and Sydney. Generally runs from 23:00 GMT to 08:00 GMT. This session typically sees lower volatility compared to London and New York sessions, though it's the most active time for JPY and AUD pairs.

The price at which the market is willing to sell a currency pair. This is the price you pay when opening a long (buy) position. The ask price is always slightly higher than the bid price, and the difference between them is the spread.

Market slang for the Australian Dollar. Australia's economy is heavily dependent on commodity exports, so the AUD is often correlated with commodity prices, particularly gold and iron ore. It's considered a "risk-on" currency that tends to strengthen when global economic sentiment is positive.

Using computer programs or trading robots (Expert Advisors) to automatically execute trades based on predetermined criteria. These systems can monitor markets 24/5, execute trades faster than humans, and remove emotional decision-making from the trading process.

The difference between a country's exports and imports. A trade surplus (more exports than imports) generally strengthens a currency, while a trade deficit (more imports than exports) can weaken it. This is a key fundamental indicator watched by forex traders.

A type of price chart where each bar represents a specific time period and displays four key prices: open, high, low, and close (OHLC). The vertical line shows the high and low, while small horizontal lines indicate the opening (left) and closing (right) prices.

The base currency is the first currency in a currency pair and indicates the value of one unit of that currency relative to the second currency, called the quote currency.

A market condition characterized by falling prices and pessimistic sentiment. Typically defined as a decline of 20% or more from recent highs. In a bear market, traders often employ short-selling strategies to profit from falling prices.

A bearish market sentiment indicating a decline in asset prices.

The highest price a buyer is willing to pay for an asset.

The price at which the market is willing to buy a currency pair. This is the price you receive when closing a long position or opening a short (sell) position. The bid price is always lower than the ask price.

The difference between the bid and ask prices. The spread represents the broker's commission and is a key cost of trading. Major currency pairs typically have tighter spreads due to higher liquidity, while exotic pairs have wider spreads.

A popular technical indicator consisting of three lines: a middle moving average and upper/lower bands based on standard deviation. The bands expand during high volatility and contract during low volatility. Prices touching the upper band may indicate overbought conditions, while touching the lower band may suggest oversold conditions.

A bond is a fixed-income investment in which an investor lends money to an entity (corporate or governmental) that borrows the funds for a defined period, earning either a fixed or variable interest rate.

When price moves beyond a defined support or resistance level with increased momentum and volume. Successful breakouts often lead to significant price moves in the direction of the break. False breakouts occur when price briefly breaks a level then reverses.

A financial intermediary that provides traders access to the forex market. Brokers offer trading platforms, leverage, market analysis tools, and execute trades on behalf of clients. They earn revenue through spreads, commissions, or both. Choosing a regulated broker like Pipze is crucial for security and fair trading conditions.

A market condition characterized by rising prices and optimistic sentiment. Bull markets are typically associated with strong economic growth and positive investor confidence. Traders focus on buying strategies and look for dips as entry opportunities.

A pending order to buy a currency pair at a specified price lower than the current market price. The order will only execute if the price drops to your specified level. This allows traders to enter positions at better prices without monitoring the market constantly.

Buy-and-Hold is a passive investment strategy in which an investor buys a security and holds it for an extended period of time, often several years or more.

Market slang for the GBP/USD currency pair. The term originated in the 19th century when exchange rates between London and New York were transmitted via transatlantic cable. Professional traders and market commentators still commonly use this terminology today.

Candlesticks are a visual representation of the size of price fluctuations.

The most popular charting method in forex trading, originating from 18th-century Japanese rice traders. Each candlestick displays four prices: open, high, low, and close. Green/white candles indicate bullish periods (close above open), while red/black candles show bearish periods (close below open). Candlestick patterns provide powerful insights into market psychology and potential reversals.

A carry trade is a strategy in which a trader borrows funds in a currency with a low-interest rate and invests in a currency with a higher interest rate to profit from the interest rate differential.

The cash conversion cycle (CCC) is a financial measurement that calculates how long, in days, it takes for a company to turn their investments and resources into revenue.

A central bank is a financial institution responsible for managing a country's monetary policy and issuing its currency.

The primary monetary authority of a country responsible for implementing monetary policy, setting interest rates, and managing the national currency. Major central banks include the Federal Reserve (US), European Central Bank (EU), Bank of Japan, and Bank of England. Their policy decisions are among the most significant market-moving events in forex.

A financial derivative allowing traders to speculate on price movements without owning the underlying asset. In forex, trading CFDs means you're speculating on currency price movements without physically exchanging currencies. CFDs offer leverage, the ability to profit from both rising and falling markets, and access to multiple markets from one platform.

Commodities are raw materials turned into finished goods which are sold to consumers. There are two main types of commodities, hard commodities and soft commodities. Hard commodities are commodities which are mined, such as gold or oil, while soft commodities are agricultural products, such as coffee or wheat.

Any currency pair that doesn't include the US Dollar. Common crosses include EUR/GBP, EUR/JPY, and GBP/JPY. While crosses offer diversification opportunities, they typically have wider spreads and lower liquidity than major pairs.

The quotation of two different currencies, with one currency quoted against the other. The first currency is the base currency and the second is the quote currency. Pairs are categorized as major (involving USD), minor (majors without USD), and exotic (major + emerging market currency).

A trading style where all positions are opened and closed within the same trading day. Day traders avoid overnight risk and swap charges by closing all positions before market close. This style requires quick decision-making, strong technical analysis skills, and the ability to manage multiple trades throughout the day.

A practice trading account with virtual money that simulates real market conditions. Demo accounts allow beginners to learn trading mechanics, test strategies, and familiarize themselves with the trading platform risk-free. Pipze offers unlimited demo accounts with real-time market data.

The funds you transfer into your trading account to begin trading. Brokers have varying minimum deposit requirements. Pipze offers multiple secure payment methods including bank transfers, credit/debit cards, and e-wallets for convenient deposits.

The reduction in account equity from a peak to a trough, measured as a percentage. Maximum drawdown is a key risk metric showing the largest peak-to-trough decline. Professional traders monitor drawdown carefully as it indicates the largest potential loss during a particular period.

The central bank responsible for monetary policy in the Eurozone, managing the euro and serving 19 EU member countries. ECB interest rate decisions, quantitative easing programs, and President statements significantly impact EUR value and European markets.

A schedule of upcoming economic data releases, central bank meetings, and other market-moving events. Traders use economic calendars to anticipate volatility and plan trades around high-impact announcements like Non-Farm Payrolls (NFP), GDP releases, and interest rate decisions.

Your account balance plus or minus any unrealized profit or loss from open positions. Unlike account balance which only includes closed trades, equity fluctuates in real-time as market prices move. Equity is used to calculate margin level and determines if you'll receive a margin call.

The official currency of the Eurozone, used by 19 European Union countries. The EUR is the world's second most traded currency after the USD. EUR/USD is the most liquid and actively traded currency pair globally. European economic data and ECB policy primarily determine EUR value.

Currency pairs consisting of one major currency (typically USD) and one emerging market currency, such as USD/TRY (Turkish Lira), USD/ZAR (South African Rand), or USD/MXN (Mexican Peso). Exotic pairs feature wider spreads, lower liquidity, and higher volatility due to political and economic instability in emerging markets.

An automated trading program for MetaTrader platforms that executes trades based on predefined algorithms. EAs can monitor multiple pairs simultaneously, execute trades 24/5, and eliminate emotional decision-making. They're particularly useful for implementing consistent strategies without manual intervention.

The central bank of the United States, responsible for implementing US monetary policy, setting interest rates, and maintaining economic stability. Fed decisions on interest rates, quantitative easing, and policy statements are among the most influential events in global forex markets, directly impacting USD strength.

A technical analysis tool based on the mathematical Fibonacci sequence, used to identify potential support and resistance levels. Key retracement levels are 23.6%, 38.2%, 50%, 61.8%, and 78.6%. Traders use these levels to predict where price corrections might end and the main trend might resume.

A special order type that must be executed immediately in its entirety or cancelled completely. If the full order quantity isn't available at the specified price, the entire order is automatically cancelled. FOK orders are useful in highly liquid markets when you need immediate execution of a complete order.

The unrealized profit or loss on your currently open positions. This value fluctuates continuously with market prices until you close the position, at which point it becomes realized profit or loss. Floating P/L is included in your equity calculation but not in your account balance.

The global decentralized market for trading currencies. The forex market is the world's largest financial market with over $7.5 trillion in daily trading volume. It operates 24 hours a day, 5 days a week, allowing traders to respond to global events and opportunities around the clock. Participants include central banks, commercial banks, institutions, corporations, and retail traders.

A customized agreement to exchange currencies at a specified future date and predetermined exchange rate. Forward contracts are primarily used by businesses to hedge against currency risk. Unlike futures, forwards are not standardized or traded on exchanges.

A method of evaluating currencies by analyzing economic indicators, political events, and social factors. Fundamental traders examine GDP growth, inflation rates, employment data, interest rates, and geopolitical developments to predict long-term currency movements. This approach contrasts with technical analysis which focuses on price patterns and charts.

A price discontinuity on a chart where no trading occurred. Gaps commonly appear after weekends when markets reopen at different levels than Friday's close, or following major news events during market hours. Many traders use gap-filling strategies, as prices often retrace to fill gaps.

The official currency of the United Kingdom, also known as Sterling. GBP is the world's fourth most traded currency. It's known for relatively high volatility, especially following Brexit. Major GBP pairs include GBP/USD (Cable) and EUR/GBP. The Bank of England's monetary policy primarily drives GBP value.

Buying a currency pair with the expectation that its value will rise. In a long position, you profit when the base currency strengthens against the quote currency. "Going long" reflects a bullish outlook on the asset.

Selling a currency pair with the expectation that its value will fall. In forex, you can short sell without first owning the asset. Short positions profit when the base currency weakens against the quote currency. "Going short" reflects a bearish outlook.

A systematic trading strategy that places buy and sell orders at regular intervals above and below a set price level, creating a grid. This method aims to profit from normal market volatility without predicting direction. Grid trading works best in ranging markets but can incur significant losses in strong trending markets.

A risk management strategy involving taking offsetting positions to reduce exposure to adverse price movements. Hedging allows traders and businesses to protect existing positions from potential losses. While hedging limits risk, it also caps potential profits.

Algorithmic trading using powerful computers to execute thousands of orders at extremely high speeds, often in microseconds. HFT firms exploit tiny price discrepancies and market inefficiencies. This strategy requires sophisticated technology and infrastructure not accessible to retail traders.

A mathematical calculation based on historical price, volume, or open interest data used in technical analysis. Indicators help traders identify trends, momentum, volatility, and potential reversal points. Common indicators include Moving Averages, RSI, MACD, and Bollinger Bands.

The cost of borrowing money, set by central banks. Interest rates are fundamental drivers of currency values – higher rates typically attract foreign investment and strengthen a currency, while lower rates can weaken it. Interest rate differentials between countries influence carry trade strategies.

Trading style where positions are opened and closed within a single trading day. Intraday traders focus on short-term price movements using technical analysis on lower timeframes (5-minute to 1-hour charts). This approach avoids overnight risk and swap charges.

The official currency of Japan and the third most traded currency globally. JPY is considered a "safe-haven" currency that tends to strengthen during market uncertainty. USD/JPY is the second most traded forex pair. The Bank of Japan's ultra-loose monetary policy has kept JPY relatively weak for years.

Market slang for the New Zealand Dollar. Like the AUD, the Kiwi is commodity-linked and considered a risk-on currency. It's particularly sensitive to dairy prices as dairy is New Zealand's largest export. The Reserve Bank of New Zealand's monetary policy and global risk sentiment primarily drive NZD movements.

The ability to control a large position with a relatively small amount of capital. Expressed as a ratio (e.g., 1:100), leverage amplifies both potential profits and losses. While leverage allows traders to maximize returns on successful trades, it also increases the risk of significant losses. Responsible leverage use is crucial for long-term trading success.

An order to buy or sell at a specific price or better. Buy limit orders are placed below current price; sell limit orders above current price. Limit orders guarantee price but not execution – they only trigger if the market reaches your specified level.

The ease with which an asset can be bought or sold without significantly affecting its price. High liquidity means narrow spreads and efficient execution. Major currency pairs like EUR/USD have exceptional liquidity, while exotic pairs have lower liquidity. The forex market is the world's most liquid financial market.

A position opened by buying a currency pair, profiting when price rises. Long positions reflect a bullish view – you believe the base currency will strengthen against the quote currency. You hold a long position until you close it by selling.

Market slang for the Canadian Dollar, named after the loon bird featured on the one-dollar coin. CAD is closely tied to oil prices as Canada is a major oil exporter. The US-Canada economic relationship means CAD often tracks US economic performance. USD/CAD is among the most actively traded pairs.

The standardized trading size in forex. A standard lot is 100,000 units of the base currency, a mini lot is 10,000 units, and a micro lot is 1,000 units. Lot size determines your position value and pip value. Proper lot sizing based on account size and risk tolerance is fundamental to money management.

A momentum indicator showing the relationship between two moving averages. The MACD consists of the MACD line, signal line, and histogram. Crossovers between the MACD and signal lines generate buy/sell signals, while the histogram shows momentum strength. It's one of the most popular technical indicators for identifying trend changes.

The most actively traded currency pairs, all including the US Dollar. The major pairs are EUR/USD, USD/JPY, GBP/USD, USD/CHF, AUD/USD, USD/CAD, and NZD/USD. These pairs account for the majority of forex trading volume and feature the tightest spreads and highest liquidity.

The amount of capital required to open and maintain a leveraged position. Margin is essentially a good-faith deposit held by your broker. It's not a fee but collateral ensuring you can cover potential losses. Margin requirements vary based on leverage and instrument.

A warning from your broker that your account equity has fallen below the required margin level. If you don't deposit additional funds or close positions to reduce exposure, the broker may automatically close positions to prevent further losses. Margin calls indicate you're trading beyond your account's risk capacity.

An instruction to buy or sell immediately at the best available current price. Market orders guarantee execution but not price – you accept the current market rate. They're used when immediate position entry/exit is more important than getting a specific price.

An advanced multi-asset trading platform offering sophisticated charting tools, technical indicators, automated trading capabilities via Expert Advisors, and copy trading. MT5 supports forex, stocks, commodities, and indices. Pipze offers MT5 with competitive execution, comprehensive analysis tools, and mobile trading capabilities.

A widely used technical indicator that smooths price data by creating an average price over a specified period. Simple Moving Averages (SMA) weight all periods equally, while Exponential Moving Averages (EMA) give more weight to recent prices. MAs help identify trends and potential support/resistance levels.

A broker feature ensuring you cannot lose more money than deposited in your account, even during extreme market volatility. If your account goes negative, the broker absorbs the loss. Pipze offers negative balance protection on all retail accounts, providing crucial risk protection.

A key US economic indicator released monthly by the Bureau of Labor Statistics, showing the change in employment excluding farm workers, government employees, and non-profit organizations. NFP releases typically create significant volatility in USD pairs as they indicate economic health and influence Federal Reserve policy decisions.

An active trade that hasn't been closed. Open positions are exposed to market movements and show floating profit or loss. Positions remain open until you manually close them, they hit stop loss/take profit levels, or the broker closes them due to insufficient margin.

An instruction to your broker to execute a trade at specified conditions. Order types include market orders (immediate execution), limit orders (execution at specified price or better), stop orders (triggered when price reaches a level), and others. Understanding order types is essential for effective trade execution and risk management.

A market condition where price has risen too quickly and may be due for a correction or reversal. Technical indicators like RSI (above 70) or Stochastic (above 80) help identify overbought conditions. However, strong trends can remain overbought for extended periods.

A market condition where price has fallen too quickly and may be due for a bounce or reversal. Indicators like RSI (below 30) or Stochastic (below 20) help identify oversold conditions. Like overbought conditions, strong downtrends can remain oversold longer than expected.

A pre-set order that executes automatically when price reaches a specified level. Types include buy/sell limit (enter at better price) and buy/sell stop (enter on breakouts). Pending orders allow traders to capture opportunities without constant market monitoring.

The smallest price increment in forex trading, typically the fourth decimal place (0.0001) for most pairs, or second decimal place (0.01) for JPY pairs. Pips measure profit/loss and spread costs. Understanding pip value based on lot size is essential for risk management.

A fractional pip, representing the fifth decimal place (0.00001) in most currency pairs. Some brokers quote prices to this precision, allowing for tighter spreads and more precise pricing. One pipette equals one-tenth of a pip.

A long-term trading strategy where positions are held for weeks, months, or even years. Position traders rely primarily on fundamental analysis and long-term trends, ignoring short-term volatility. This style requires patience and strong conviction in analysis.

A trading methodology based purely on historical price movements, candlestick patterns, support/resistance levels, and chart patterns without relying on indicators. Price action traders believe that price movement alone contains all necessary information for trading decisions.

A monetary policy tool where central banks purchase government bonds and other assets to inject liquidity into the economy. QE lowers interest rates and increases money supply, typically weakening the currency. It's used during economic downturns when conventional policy tools are exhausted.

The second currency in a currency pair, representing how much of this currency is needed to buy one unit of the base currency. In the quote, the quote currency value changes while the base currency remains at 1.

A strategy used when markets are moving sideways between defined support and resistance levels. Range traders buy near support and sell near resistance, profiting from price oscillations. This strategy fails in trending markets and requires clear range identification.

A price level where selling pressure historically overcomes buying pressure, preventing further upward movement. Resistance acts as a ceiling that price struggles to break through. When broken with conviction, former resistance often becomes new support.

The segment of the forex market where individual traders participate, as opposed to institutional trading. Retail traders access the market through online brokers like Pipze, typically trading smaller position sizes with leverage. The rise of retail forex has democratized currency trading.

The process of identifying, analyzing, and mitigating potential trading losses. Essential risk management techniques include position sizing, stop losses, diversification, and never risking more than 1-2% per trade. Proper risk management is the difference between long-term success and account wipeout.

The relationship between potential profit (reward) and potential loss (risk) on a trade. Professional traders typically aim for minimum 1:2 risk-reward ratios, meaning they risk $1 to potentially make $2. This allows profitability even with a win rate below 50%.

The interest paid or earned for holding a position overnight, based on the interest rate differential between the two currencies in the pair. Positive rollover means you earn interest; negative means you pay. Rollover occurs at 5 PM EST daily and triples on Wednesdays to account for weekends.

A momentum oscillator measuring the speed and magnitude of price movements on a scale of 0-100. RSI above 70 suggests overbought conditions; below 30 suggests oversold. It's one of the most popular indicators for identifying potential reversals, though it can remain in extreme zones during strong trends.

An ultra-short-term trading strategy aiming to profit from small price movements, typically holding positions for seconds to minutes. Scalpers make numerous trades daily, requiring tight spreads, fast execution, and significant time commitment. This high-frequency approach demands intense focus and quick decision-making.

A position opened by selling a currency pair, profiting when price falls. Short positions reflect a bearish view – you believe the base currency will weaken against the quote currency. In forex, short-selling is as easy as going long since you're always trading one currency against another.

The difference between the expected execution price and the actual price received. Slippage typically occurs during high volatility or low liquidity, such as major news releases or market gaps. Positive slippage gets better-than-expected prices; negative gets worse. Pipze's advanced execution technology minimizes slippage.

The difference between the bid (sell) and ask (buy) prices, representing the broker's commission. Tighter spreads mean lower trading costs. Spreads widen during low liquidity (e.g., overnight) or high volatility (news events). Pipze offers competitive spreads starting from 0 pips on major pairs.

An order that automatically closes a losing position when price reaches a specified level, limiting potential losses. Stop losses are fundamental risk management tools that remove emotion from cutting losses. Every trade should have a stop loss based on technical analysis and risk tolerance.

The margin level at which the broker automatically closes your positions to prevent negative balance. This typically occurs when margin level drops to 20-50%. Stop out protection prevents traders from losing more than their account balance (with negative balance protection).

A price level where buying pressure historically overcomes selling pressure, preventing further downward movement. Support acts as a floor that price struggles to break through. When broken with conviction, former support often becomes new resistance.

The interest differential paid or earned for holding positions overnight. Based on the interest rate difference between the two currencies in the pair. Carry traders specifically seek positive swap opportunities to earn interest alongside potential price appreciation.

A medium-term trading strategy holding positions for days to weeks, capturing "swings" in market trends. Swing traders use both technical and fundamental analysis, focusing on major market movements rather than intraday noise. This style requires less screen time than day trading.

An order that automatically closes a winning position when price reaches a specified profit target. Take profit orders lock in gains without requiring constant monitoring. Traders typically set take profit levels based on technical analysis, risk-reward ratios, or profit targets.

A trading methodology using historical price data, chart patterns, and technical indicators to predict future price movements. Technical analysts believe that all information is reflected in price and that history tends to repeat. This contrasts with fundamental analysis which examines economic factors.

A dynamic stop loss that automatically follows price in your favor, locking in profits while allowing room for further gains. If price moves favorably, the trailing stop adjusts upward (for longs) or downward (for shorts). If price reverses, the stop remains at its last position.

The general direction of market movement over time. Uptrends feature higher highs and higher lows; downtrends show lower highs and lower lows; sideways trends move within a range. "The trend is your friend" is a fundamental trading principle – trading with the trend typically offers better probability of success.

The profit or loss on open positions, also known as floating P&L. This value constantly fluctuates with market prices and only becomes "realized" when you close the position. Unrealized P&L is included in equity calculations but not in account balance.

The official currency of the United States and the world's primary reserve currency. USD is involved in approximately 88% of all forex transactions. Its value is primarily driven by US economic data, Federal Reserve policy, and its status as a safe-haven currency during global uncertainty.

The rate and magnitude of price changes in a market. High volatility means large price swings; low volatility means minimal movement. Volatility creates trading opportunities but also increases risk. Major news events, economic data, and market uncertainty drive volatility. Traders use indicators like ATR (Average True Range) or Bollinger Bands to measure volatility.

The total number of trades or contracts executed in a given period. In forex, true volume is difficult to measure as it's a decentralized market, so most platforms show "tick volume" (number of price changes). High volume confirms trend strength; low volume suggests weak conviction.

A condition where price makes sharp movements in one direction then quickly reverses, causing losses for traders on both sides. Whipsaws are common during choppy, range-bound markets or around major news events. They're frustrating for traders as positions can hit stop losses before moving in the intended direction.

The process of transferring funds from your trading account to your bank account or payment method. Brokers have varying withdrawal policies, processing times, and potential fees. Pipze processes withdrawals efficiently with multiple payment options and transparent fee structures.

The forex market symbol for gold priced in US Dollars. While technically not a currency pair, gold is commonly traded in the forex market. XAU represents one troy ounce of gold. Gold often moves inversely to USD and serves as a safe-haven asset during economic uncertainty.

The official currency of Japan and the third most traded currency globally. JPY is known as a safe-haven currency that strengthens during risk-off periods. The Bank of Japan's ultra-loose monetary policy keeps JPY relatively weak. USD/JPY is the second most traded pair, accounting for about 13% of forex volume.

The return on investment, particularly from interest-bearing instruments. In forex, yield differences between countries drive carry trade strategies. Higher-yielding currencies tend to attract investment, strengthening them, while lower-yielding currencies may weaken.

The lower limit of interest rates at zero percent, below which conventional monetary policy loses effectiveness. When rates hit zero, central banks resort to unconventional tools like quantitative easing. Near-zero rates typically weaken a currency as returns on that currency's assets become minimal.