Trading glossary
Clear definitions of common trading terms.
CFDContract for Difference
A derivative that tracks the price difference between opening and closing a position without ownership of the underlying asset.
SpreadBid-ask difference
The difference between the buy and sell price, commonly measured in pips.
LeveragePosition multiplier
A mechanism that controls a larger position with less capital and magnifies both gains and losses.
PipStandard price unit
A standard unit of price movement in foreign exchange; for many currency pairs it is 0.0001.
ECNElectronic Communications Network
An execution model that connects orders with market participants or liquidity providers.
STPStraight Through Processing
An execution model that routes orders to liquidity providers without manual dealer intervention.
SlippageExecution price difference
The difference between the expected order price and the actual execution price.
Margin callInsufficient margin warning
A warning or action triggered when account equity falls below the required margin level.
KYCKnow Your Customer
Identity and risk checks financial firms perform before or during a customer relationship.
ICFInvestor Compensation Fund
A Cyprus investor compensation mechanism with eligibility and coverage limits.
FSCSFinancial Services Compensation Scheme
The United Kingdom compensation scheme for eligible customers of failed authorized firms.
Segregated client fundsClient money held separately
An arrangement that keeps eligible client money separate from a firm's operating funds.