BrokaBoy/Glossary

Trading glossary

12 terms you will meet on every broker's website, written the way someone would actually explain them to you.

ECN vs Market Maker

Two broker models: an ECN routes your order to outside liquidity, a market maker takes the other side itself.

Borrowed buying power that lets you control a position larger than your own deposit.

A bank or institution that continuously quotes buy and sell prices your broker can route orders to.

The standardised quantity of an instrument you buy or sell in a single trade.

A warning that your account equity has fallen too low to keep your open positions funded.

A guarantee that you cannot lose more than the money in your trading account.

The smallest standard price increment in a currency pair - usually the fourth decimal place.

The difference between the price you expected on an order and the price you actually got.

The gap between the buy and sell price of an instrument - the broker's built-in cost of trading.

A resting order that closes a losing position automatically at a price you set in advance.

The interest you pay or receive for holding a leveraged position overnight.

A resting order that closes a winning position automatically once your target price is reached.