Every term you'll meet, defined simply.
| Pip | The smallest standard price move in FX (usually 0.0001). |
| Spread | The gap between the bid and the ask price. |
| Leverage | Borrowed exposure — magnifies both gains and losses. |
| Margin | Collateral required to hold a leveraged position. |
| Drawdown | Peak-to-trough drop in account equity. |
| Volatility | How much price moves over a period (e.g. realized stdev of returns). |
| Liquidity | How easily you can enter/exit without moving price. |
| Slippage | Difference between expected and filled price. |
| Position size | How many units you hold — set by your risk, not your hope. |
| R-multiple | Profit/loss expressed as a multiple of your initial risk (R). |
| Mean reversion | The idea that price tends to revert toward an average. |
| Momentum | The tendency of trends to persist in the short term. |
| Market regime | The prevailing character of the market (trending, ranging, volatile). |
| Correlation | How two instruments move relative to each other (−1 to +1). |
⚠ Educational only. Market data may be delayed. Nothing here is financial advice, a recommendation, or a signal to buy or sell. Trading involves risk of loss.