TRADING GLOSSARY
Leverage is the use of various financial instruments or borrowed capital such as margin, to increase the potential return on an investment.
Leverage Allows you to magnify your profit potential as well as your risk. By trading large volumes at a fraction of the underlying asset value cost, you are able to make significant profits off [...]
Limit Order – An order to open a position for fixed or lesser price or close the position for a fixed or better price. The price that is set is commonly referred to a limit price.
Liquidity – The measure of markets which describes the relationship between trading volume and price change.
Long – A position which is in a Buy direction. In Forex Trading, the primary currency when bought is long and another is short.
Loss – The result from closing long position at lower price than the original purchase price or closing a short position with higher rate than opening. A loss a can also be incurred when the spread between the bid and ask or commission paid to a broker trading firm is higher than the actual difference [...]
Lot – A definite amount of units or amount of money accepted for operations handling (usually it is a multiple of 100).
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