Spot Deal: A deal taking part between two parties who can deliver a certain amount of different currencies to each other within 2 business days of each other (excluding Canadian dollar where the trade is executed within 1 business day) Market Order This is the execution you make when deciding to buy a currency. In other words you see a currency exchange rate quote on screen and you place a ‘market order’ when you click the button to execute the trade.
Entry Orders:This is basically and advance order, you decide at what price you want to buy or sell a currency and you place an ‘entry order’. As soon as the currencies reaches this rate your trade is exacted.
Stop-Loss Order: This is a function offered by some brokers which is aimed at reducing your risk, you can decide the maximum and minimum amount of profit or loss you want to exit a trade at. In other words if you decide you are happy to make $1,000 from one trade but don’t want to lose anymore than $1,000 should the trade go the other way you can place this safety net on your trade.
Bid: This is the currency rate that you wish to buy or sell at.
Offer: This is the currency rate you will actually get when buying or selling
Spread: The difference between the bid and offer rates
Pip: This is the last decimal of the exchange rate with the exception of the Japanese Yen where it is the second decimal.
Lot: The amount of units of the base currency when you enter the market.
Margin: The minimum amount of money you need for each lot to trade, for example the margin may be 1 lot for $100 and therefore you would need $300 in your account to trade 3 lots.
Trend: The direction the market is currently moving in.
Long Position: This is used to describe a market in a long-term buy trend
Short Position: This is used to describe a market in a short-term sell trend
