CFD
A contract for difference tracks the price movement of an underlying market without owning the asset.
Risk-aware example: You can lose money if the market moves against the position.
Glossary
Plain-English trading terms with risk-aware examples.
Use the glossary before reading market pages or opening a demo order ticket. Each term includes a simple explanation and a caution.
Demo-first reminder
Learn the vocabulary, practice with virtual funds, and read the risk disclosure before considering live products.
Risk
Orders
Forex
Costs
Execution
Account
Spread
The difference between the buy and sell price quoted on a market.
Risk-aware example: A wider spread means the trade starts farther from break-even.
Pip
A small price movement unit often used in Forex pairs.
Risk-aware example: Small pip moves can become large when leverage or position size is high.
Margin
Capital set aside to open and maintain a leveraged position.
Risk-aware example: If margin falls too low, positions may be closed or restricted.
Leverage
Using a smaller deposit to control larger market exposure.
Risk-aware example: Leverage magnifies gains and losses, including fast losses.
Stop-loss
An order designed to close a position at a chosen loss level.
Risk-aware example: Stops may slip during gaps or volatile conditions.
Take-profit
An order designed to close a position at a target level.
Risk-aware example: Targets can be missed if price reverses before reaching them.
Slippage
The difference between expected execution price and actual execution price.
Risk-aware example: Slippage can increase losses during fast markets.
Liquidity
How easily a market can be traded without large price impact.
Risk-aware example: Low liquidity can widen spreads and make exits harder.
Volatility
How much and how quickly a market price changes.
Risk-aware example: High volatility can trigger stops or margin pressure quickly.
Swap or overnight fee
A cost or credit for holding certain leveraged positions overnight.
Risk-aware example: Fees can affect longer-held trades and should be checked first.
Drawdown
A decline from a trading account peak to a lower value.
Risk-aware example: Large drawdowns can damage both capital and decision discipline.
Turn vocabulary into practice.
After reading a term, open the related Academy module and test the idea in a demo environment.