Trading Glossary
Plain English definitions of the trading terms used across the MarketsAll platform, each with a worked example.
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Stop-Loss vs Take-Profit: What Is the Difference?
Stop-loss vs take-profit explained: what each order does, how they behave differently when the price reaches them, how to read the ratio between them, and what a trailing stop actually...
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What Is Slippage in Trading?
What is slippage? Learn why orders fill at a different price from the one you clicked, when it is most likely, why it can be positive as well as negative,...
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Balance vs Equity vs Free Margin: What Is the Difference?
Balance, equity, free margin and margin level explained with one worked example — what each number means on MT5, how they move when a trade moves, and which one triggers...
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What Is Swap or Overnight Financing in Trading?
What is swap in trading? Learn how overnight financing is calculated, why it can be a credit or a debit, what triple-swap day means, and how it changes the economics...
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What Is a Lot in Trading?
What is a lot in trading? Learn what standard, mini and micro lots mean, how lot size sets your exposure and pip value, and why the same lot means different...
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What Is a Pip and How Is Pip Value Calculated?
What is a pip? Learn where the pip sits in a currency quote, how it differs from a point, and how to calculate pip value for any pair and position...
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What Is a Spread in Trading?
What is a spread in trading? Learn how the bid-ask spread works, how to calculate what it costs you per trade, and why it widens when markets get busy or...
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What Is Margin in Trading?
What is margin in trading? Explore initial margin, maintenance margin, free margin, margin level calculations, and liquidation stop-out rules. Margin in financial trading is the cash collateral required by a...
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What Is Leverage in Trading?
Learn what leverage is in trading, how leverage ratios work, the relationship between leverage and margin, and how leverage magnifies both gains and losses. Leverage in trading is a facility...
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What Is CFD Trading and How Does It Work?
What is CFD trading? Learn how contracts for difference work, how leverage and margin function, the true cost of trading, and key risks before opening a trade. A Contract for...