Forex glossary | 3
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Forex Glossary

Traders, especially beginners, may not know or understand some Forex terms, so we provide our users with a list of specialized terms with their definitions.

En TermEn Description
Free margin

determines the state of an account. Calculated according to the formula: Equity - Margin = Free margin

Hedging

operation that protects an asset or liability against a fluctuation in the foreign exchange rate

Initial margin

the funds cover required by the company for maintenance of open positions

Intraday trade

trade oriented at gaining profit within one day

Lot Size

a quantity base currency in one lot, that is specified in the contract

Margin trading

using borrowed money to buy securities, with the expectation of increasing profits. Margin trading can bring big returns, but is also risky

Market opening

trade opening after a weekend, holidays or after an interval between trading sessions

Market opening price gap

either of the following situations: – Market opening quote Bid is greater than market closing quote Ask; – Market opening quote Ask is less than market closing quoteBid

Market-makers

major banks and financial firms that pledge to provide liquidity by accepting the other side of a trade in a currency, security or futures contract

Non-trading operation

depositing or withdrawing funds from a trading account, or extending credit

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