Forex & Cripto Glossary for Beginners

Essential trading terminology explained simply.

PIPS

The smallest price movement in forex. For USD/JPY, 1 pip = 0.01 yen.

SPREAD

The difference between bid and ask price. A primary trading cost.

LEVERAGE

Trading larger positions with smaller margin. 1:100 means $1 controls $100.

LOT

Trading unit. 1 standard lot = 100,000 currency units.

MARGIN

Collateral required to maintain an open position.

STOP-LOSS

An order to automatically close a position at a set price to limit losses.

TAKE-PROFIT

An order to automatically close a position at a target profit level.

SWAP

Interest rate differential charged/credited for holding positions overnight.

ZERO-CUT

System preventing negative balance. No margin calls. Common in offshore FX.

MT4

MetaTrader 4. The world's most popular forex trading platform.

MT5

MetaTrader 5. Successor to MT4 with more timeframes and faster processing.

ECN

Electronic Communication Network. Direct connection to multiple liquidity providers.

NDD

No Dealing Desk. Order execution without dealer intervention.

SCALPING

Ultra-short-term trading strategy taking small, repeated profits in seconds to minutes.

KYC

Know Your Customer. Identity verification required for guia de abertura de conta.

DEFI

Decentralized Finance. Financial services on blockchain without traditional banks.

PROP-FIRM

Proprietary trading firm. Companies providing traders with capital and sharing profits.

COPY-TRADING

Automatically replicating another trader's positions in your account.

Expert Advisor. Automated trading programs running on MT4/MT5.

CFD

Contract for Difference. Trading price movements without owning the underlying asset.

⚠️ CFD and crypto trading carries high risk.