Glossary
Forex Trading Glossary
Trading has a vocabulary problem. Every term sounds harder than it is. This glossary explains the words you actually meet on a chart — in plain English, with real examples, and no hype. Start with the basics below, then go deeper in our education hub.
Core terms, explained
Three of the most-searched questions in forex, answered properly.
What is a pip in forex?
The smallest standard price move in a currency pair — plus pipettes, pip value, and worked examples.
ReadWhat is copy trading?
How mirroring another trader's positions works, the real pros and cons, and how to follow our desk for free.
ReadWhat is an order block?
The Smart Money Concepts level that marks where institutions absorbed flow — how to spot it and trade it.
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The full A–Z glossary
46 forex and Smart Money Concepts terms, defined in plain English. Browse the list below, or press ⌘ K (Ctrl K on Windows) anywhere on the site to search them instantly.
Balance
The settled cash in your account — the total of all closed (realised) profits and losses.
ReadBid / Ask
The two sides of a quote — the bid is where you can sell, the ask is where you can buy; the gap between them is the spread.
ReadBreak of Structure (BOS)
Price breaking a prior swing high or low in the direction of the trend, confirming it continues.
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Candlestick
A price bar showing the open, high, low and close for a period — the basic unit of chart reading.
ReadChange of Character (CHoCH)
The first structural break against the prevailing trend — an early signal that momentum may be shifting.
ReadCopy Trading
Automatically mirroring another trader's positions in your own account, in proportion to your capital.
ReadCopy trading (deep dive)
How mirroring another trader's positions works, the real pros and cons, and how to follow our desk for free.
ReadCurrency Pair
Two currencies quoted against each other — the base currency priced in terms of the quote currency.
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Leverage
Borrowed buying power that lets you control a large position with a small deposit — and that magnifies both gains and losses.
ReadLimit Order
An order to buy or sell at a specified price or better, rather than at the current market price.
ReadLiquidity
The pools of resting orders price is drawn toward — typically clustered above highs and below lows.
ReadLiquidity Sweep
A sharp push past a high or low that triggers resting stops before price reverses — also called a stop hunt.
ReadLot
The standardised unit of trade size in forex — a standard lot is 100,000 units of the base currency.
ReadLot Size
How many lots (units) you trade on a position — the lever that converts a pip move into account dollars.
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Margin
The deposit a broker holds as collateral to open and maintain a leveraged position.
ReadMargin Call
A broker warning that your equity has fallen too low to support your open positions.
ReadMarket Structure
The sequence of swing highs and lows that defines whether a market is trending or ranging.
ReadMitigation
When price returns to an order block or imbalance so earlier positions can be managed before continuation.
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Pip
The smallest standard price move in a currency pair — the unit traders use to measure gains, losses and spreads.
ReadPip (deep dive)
The smallest standard price move in a currency pair — plus pipettes, pip value, and worked examples.
ReadPip Value
What a single pip is worth in money — it depends on the pair and your position size.
ReadPosition Sizing
Deciding how large a trade to take so that a loss costs a fixed, pre-planned amount.
ReadPremium & Discount
Whether price is expensive or cheap relative to the midpoint of a range — buy in discount, sell in premium.
ReadProfit Factor
Gross profit divided by gross loss — how many dollars you make for every dollar you lose.
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Range
A market moving sideways between a defined support floor and resistance ceiling.
ReadRetail vs Institutional
The two sides of the market — individual traders versus large institutions — and why the difference matters.
ReadRisk-Reward Ratio
How much you stand to make versus how much you risk on a trade — the core of long-term profitability.
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Slippage
The difference between the price you expected and the price you actually got on a fill.
ReadSmart Money
The large, well-informed participants — banks and institutions — whose order flow drives the market.
ReadSpread
The gap between the bid and ask price — the built-in cost of opening a trade.
ReadStop Loss
A pre-set order that closes a losing trade at a defined price, capping the loss.
ReadSupply & Demand
Zones where institutional selling (supply) or buying (demand) overwhelmed the other side and moved price.
ReadSupport & Resistance
Price levels where buying or selling has repeatedly stepped in — floors and ceilings on the chart.
ReadSwap
The interest charged or earned for holding a forex position open overnight.
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Take Profit
A pre-set order that closes a winning trade at a target price, locking in the gain.
ReadTrading Session
The major market hours — Asian, London and New York — that shape liquidity and volatility through the day.
ReadTrend
The dominant direction of price — a sequence of higher highs and lows, or lower highs and lows.
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From definitions to a real edge.
Once the vocabulary clicks, our education hub walks through how the desk actually reads structure, liquidity, and order flow on live charts.