Glossary Glossary Do you want to speak the language of online trading? Here are the basic terms that you should know to step into this exciting adventure. Once you have learned the ABC of online trading, you can level up your knowledge and take a deep dive with your personal account manager. They will explain to you all details about the charts and technical analysis tools, as well as the names of the trends. Now, make your first PIP into the world of online trading. What is initial margin? The initial margin is the amount of money needed for opening a position, excluding fees. What is Take Profit? Take Profit is a pending order to close a position if it has reached a certain, previously specified rate. What is Stop Loss? Stop Loss is a pending order to close a position if it has reached a specific, previously specified rate. The objective is to limit loss. What is a CFD? Mean the Contract for Differences on spot FOREX, stocks, indices, commodities, cryptocurrencies, and any other underlying Financial Instrument offered by the Company and available for trading What is PIP? The pip is the most basic unit used for measuring in forex trading. In pips, traders measure the change of an exchange rate in value. One pip is the smallest step that the exchange rate can make no matter in which direction. In most cases, one pip means a change in the fourth decimal place because most of the currency pairs are quoted to the fourth decimal place. What is spread? The spread is the difference between the bid (selling) and ask (buying) price. For example, if the AUD/USD was quoted as 0.7000/0.7003, then the spread is three pips. What is leverage? The leverage is a powerful tool that can magnify your investment by 5, 10, or 20 times! Keep in mind that the bigger trading volume could expose you to a bigger possible risk of losing your investment. What is a currency pair? The two currencies that make up a foreign exchange rate (For Example, EUR/USD). What is a cryptocurrency? A cryptocurrency is a form of digital money. It has no physical appearance and is based on data encryption technology. The first and still most popular cryptocurrency in the world is Bitcoin. There are a lot of similar currencies out there, using the same basic logic as Bitcoin.