Trading terms

# Trading Platform

A trading platform is the software typically provided by your broker used to make trades through their system and for managing your account.

# Leverage

Leverage is using something small to control something large.

# Liquidity

Liquidity is the ability to quickly convert an asset into cash without a big effect on the price.

# Oversold

Oversold is when a currency pair is considered to have been pushing in the short direction in a short period of time.

# Technical Indicators

A technical indicator is a graphical representation of price action. Technical Indicators can appear at the bottom of the chart or on top of the price.

# The Definition of Pip

The definition of pip is percentage in point.A pip is equal to 1/100th of 1 percent.If you buy the EUR/USD pair at 1.40 and sell it at 1.41 you have gained 100 pips.


# Margin

Margin is the amount of money required in your account to keep your trades on the market. If you are trading at 50:1 leverage and you have an open trade for 10,000USD, the margin required in your account to support that trade is around $200USD. You can figure out this number by dividing your trade size by your leverage amount. So 10,000/50 = 200

# Market Maker

A Market Maker is a company that offers buy and sell prices and takes the other side of the customers trade.

# Overbought

Overbought is when a currency pair is considered to have been pushing in the long direction too quickly

# Limit Order

A limit order is an order placed away from the current market price.

# Demo Account

A demo account is a practice account used to help beginning traders learn to understand the trading platform and the market.

# Interbank

The Interbank is a network of one or more banks. The term is loosely used to describe a trading network for currency transactions that is made up of banks and large trading institutions.