{"id":10852,"date":"2025-01-29T13:06:38","date_gmt":"2025-01-29T13:06:38","guid":{"rendered":"https:\/\/unitedpips.com\/knowledgebase\/resources\/topic-index\/learn-forex\/forex-terms-ezd_ampersand-definitions\/"},"modified":"2025-03-17T13:13:56","modified_gmt":"2025-03-17T13:13:56","slug":"forex-terms-glossary","status":"publish","type":"docs","link":"https:\/\/unitedpips.com\/knowledgebase\/docs\/topic-index\/learn-forex\/forex-terms-glossary\/","title":{"rendered":"Forex Terms & Definitions"},"content":{"rendered":"\t\t
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Margin Call vs. Stop-Out Level<\/strong><\/h3>
  • Margin Call:<\/strong> A broker’s warning that your account balance has fallen below the required margin percentage. You must deposit more funds or close positions to avoid liquidation.<\/li>
  • Stop-Out Level:<\/strong> If no action is taken, the system automatically closes losing trades, starting with the least profitable, to meet margin requirements.<\/li><\/ul>

    Example for UnitedPips Standard Account:
    \u2714 Margin Call Level:<\/strong> 60% (Warning issued)
    \u2714 Stop-Out Level:<\/strong> 30% (Auto-close of trades begins)<\/p>

    Forward Deal<\/strong><\/h3>

    A contract to buy or sell currency at a fixed future date and exchange rate<\/strong>. Used to hedge against exchange rate fluctuations.<\/p>

    Trailing Stop<\/strong><\/h3>

    A dynamic stop-loss order<\/strong> that adjusts upward as the market moves in your favor, locking in profits while protecting against losses.<\/p>

    Ask and Bid Price<\/strong><\/h3>
    • Bid Price:<\/strong> Highest price a buyer is willing to pay for a currency pair.<\/li>
    • Ask Price:<\/strong> Lowest price a seller is willing to accept.<\/li>
    • The bid price is always lower than the ask price.<\/strong><\/li><\/ul>

      Bullish & Bearish Markets<\/strong><\/h3>
      • Bullish:<\/strong> Prices are rising (buying pressure).<\/li>
      • Bearish:<\/strong> Prices are falling (selling pressure).<\/li><\/ul>

        Currency Pair<\/strong><\/h3>

        Forex trades involve currency pairs<\/strong>, with:
        \u2714 Base Currency:<\/strong> First currency in the pair.
        \u2714 Quote Currency:<\/strong> Second currency in the pair, showing how much is needed to buy one unit of the base currency.<\/p>

        Example: GBP\/JPY = 150.50<\/strong> (1 British pound = 150.50 Japanese yen).<\/p>

        Leverage<\/strong><\/h3>

        Leverage allows traders to control larger positions with a small deposit<\/strong>.
        \u2714 Example: 1:100 leverage<\/strong> \u2013 A $100 deposit<\/strong> controls $10,000<\/strong> in currency.
        \u2714 Higher leverage = higher profit potential & risk<\/strong>.<\/p>

        Lot Sizes in Forex<\/strong><\/h3>

        \u2714 Standard Lot:<\/strong> 100,000 units
        \u2714 Mini Lot:<\/strong> 10,000 units
        \u2714 Micro Lot:<\/strong> 1,000 units
        \u2714 Nano Lot:<\/strong> 100 units<\/p>

        Order Types<\/strong><\/h3>

        \u2714 Market Order:<\/strong> Executes immediately at the current market price.
        \u2714 Pending Orders:<\/strong> Execute only when price reaches a predetermined level.<\/p>

        Types of Pending Orders<\/strong><\/h4>

        \u2714 Buy Limit:<\/strong> Buy when the price drops to a set level.
        \u2714 Buy Stop:<\/strong> Buy when the price rises to a set level.
        \u2714 Sell Limit:<\/strong> Sell when the price rises to a set level.
        \u2714 Sell Stop:<\/strong> Sell when the price drops to a set level.<\/p>

        Other Order Types<\/strong><\/h4>

        \u2714 Take Profit:<\/strong> Closes a position at a target profit level.
        \u2714 Stop Loss:<\/strong> Closes a position to limit losses.<\/p>

        Pip (Percentage in Point)<\/strong><\/h3>

        A pip<\/strong> is the smallest price movement in forex, typically 0.0001<\/strong> for most currencies (except JPY, where it’s 0.01).<\/p>

        \u2714 Example: EUR\/USD moves from 1.3000 to 1.3010 = 10 pips.<\/strong><\/p>

        Pip Value Calculation for 1 Standard Lot (100,000 units):<\/strong>
        \u2714 USD\/JPY: 112.40:<\/strong> (0.01 \/ 112.40) \u00d7 100,000 = $8.89 per pip<\/strong>
        \u2714 EUR\/USD: 1.1290:<\/strong> (0.0001 \/ 1.1290) \u00d7 100,000 = $8.85 per pip<\/strong><\/p>

        Long vs. Short Positions<\/strong><\/h3>

        \u2714 Long Position:<\/strong> Buying an asset expecting its price to rise (also called “Buy”).
        \u2714 Short Position:<\/strong> Selling an asset expecting its price to fall (also called “Sell” or “Short”).<\/p>

        Traders profit by going long in bullish markets<\/strong> and short in bearish markets<\/strong>.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

        Margin Call vs. Stop-Out Level Margin Call: A broker’s warning that your account balance has fallen below the required margin percentage. You must deposit more funds or close positions to avoid liquidation. Stop-Out Level: If no action is taken, the system automatically closes losing trades, starting with the least profitable, to meet margin requirements. Example […]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":9546,"menu_order":38,"comment_status":"open","ping_status":"closed","template":"","doc_tag":[],"class_list":["post-10852","docs","type-docs","status-publish","hentry","no-post-thumbnail"],"acf":[],"_links":{"self":[{"href":"https:\/\/unitedpips.com\/knowledgebase\/wp-json\/wp\/v2\/docs\/10852","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/unitedpips.com\/knowledgebase\/wp-json\/wp\/v2\/docs"}],"about":[{"href":"https:\/\/unitedpips.com\/knowledgebase\/wp-json\/wp\/v2\/types\/docs"}],"author":[{"embeddable":true,"href":"https:\/\/unitedpips.com\/knowledgebase\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/unitedpips.com\/knowledgebase\/wp-json\/wp\/v2\/comments?post=10852"}],"version-history":[{"count":7,"href":"https:\/\/unitedpips.com\/knowledgebase\/wp-json\/wp\/v2\/docs\/10852\/revisions"}],"predecessor-version":[{"id":11151,"href":"https:\/\/unitedpips.com\/knowledgebase\/wp-json\/wp\/v2\/docs\/10852\/revisions\/11151"}],"up":[{"embeddable":true,"href":"https:\/\/unitedpips.com\/knowledgebase\/wp-json\/wp\/v2\/docs\/9546"}],"wp:attachment":[{"href":"https:\/\/unitedpips.com\/knowledgebase\/wp-json\/wp\/v2\/media?parent=10852"}],"wp:term":[{"taxonomy":"doc_tag","embeddable":true,"href":"https:\/\/unitedpips.com\/knowledgebase\/wp-json\/wp\/v2\/doc_tag?post=10852"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}