Calculations

Lots refer to the specific units traded with currency pairs, which is essentially the number of currency units you wish to purchase or sell. There are three types of lots:

Micro Lot Size = 0.01 = Controls 1,000 currency units.

Mini Lot Size = 0.10 = Controls 10,000 currency units

Standard Lot Size = 1.00 Lot = Controls 100 000 currency units

If your account is in US Dollars and you are trading a pair of USDs as a base currency (e.g., EUR/USD), then the following is true:

1 pip trading 0.01 (Micro Lot) is equivalent to $0.10 USD.

1 pip trading at 0.10 (Mini Lot) is equivalent to $1.00 USD.

1 pip trading with 1.00 (Standard Lot) is equivalent to $10.00 USD

The wick, or shadow, is the vertical line above and below the body of the candle.

Candlesticks (or Japanese candlesticks) is a chart style used to present currency price movements. Each candlestick is a specific amount of time, depending on the timeframe. If you have a timeframe of 5 minutes, each candle is equivalent to 5 minutes (M5). If you are on the Daily (D1) timeframe, each candle is 24 hours.

Going long, or buying, is a bullish action to be taken by a trader. Simply put, being a bull or having a bullish feeling means that you believe a currency pair will increase in value, or go up. For example, saying that he's bullish on USD/JPY means that he believes that the price of the US dollar will rise against the Japanese Yen.

Shortening, or selling, is a bearish action to be taken by a trader. Simply put, being a bear or having a bearish feeling means that you believe a currency pair is going to fall in value, or go down. For example, saying it's bearish on EUR/USD means that he believes that the price of the euro will fall against the US dollar.

A market order is a direct entry into markets with the option of buying or selling at the current market price.

Limit orders are placed if you are only willing to enter a new position at a specific price. The order will only be filled if the market is trading at that price. A purchase-limit order is an order to purchase a currency pair at a market price once the market has reached or lower your specified price; that price must be lower than the current market price. A sell-limit order is an order to sell a currency pair at a market price when the market reaches or exceeds your specified price; that price must be higher than the current market price.

A stop order will only become a market order once the specified price has been reached. Buy-stop order is an order to purchase a currency pair at a market price when the market reaches or exceeds your specified price; that purchase price must be higher than the current market price. A sales stop order is an order to sell a currency pair at a market price once the market reaches your specified price or lower. That selling price must be lower than the current market price.

Leverage allows you to control a larger amount of money by using a limited amount of your own. For example, with a $1,000 account trading on a 100:1 leverage, you'll be able to control a $100,000 position.

Margin is the amount of money that you have to pay to open a business with your account in a good faith deposit. By using this example, the $1,000 margin traded at 100:1 leverage is your margin.

That is the threshold at which your broker will notify you before they cancel or close your position (s).

You're never going to want to see it. This means that you are over-leveraged on your account or do not have enough margin and your broker liquidates your position forcibly, thereby closing your trade(s) at market price.

Support refers to significant levels below current market prices and Resistance refers to significant levels above market prices. These levels are remarkable areas in which prices have reacted in the past and may do so again in the future.

In order to measure two swing points in price (elevated and low), the Fibonacci is a commonly used technical trade tool dividing the vertical range into percentages. This covers the retracing and extension of Fibonacci.

This refers to retracements as price percentages. Traders tend to seek confluence at levels of 23.6%, 61.8%, and 78.6%.

Leverages are offered from 1:1 to 100:1. The leverage depends on equity.

This applies to how you manage your trading account's risks. Never risk more than 2% per exchange, according to the general rule of thumb.

This is a fee charged for keeping the positions open for each instrument over a certain period of time. You can find full details of each instrument on our Contract Specifications page under Swap Free Fee and Swap Free Day Allowance sections.

Between 23:59:45 – 00:00:00 (EET), Monday to Friday.

In forex, the delivery of security or security shall be settled on the second working day following the agreement. All orders held from Wednesday to Thursday are charged three times as much due to the inclusion of weekend fees.