The quote currency is the second currency listed in a currency pair in the foreign exchange (Forex) market. It represents the amount of that currency needed to buy one unit of the base currency, which is the first currency in the pair. For example, in the EUR/USD pair, the U.S. dollar (USD) is the quote…
A pip, short for “percentage in point” or “price interest point,” is the standard unit of measurement used to express the change in value between two currencies in a forex pair. For most currency pairs, one pip equals 0.0001, or one-hundredth of a percent. For example, if the EUR/USD moves from 1.1050 to 1.1051, that’s…
A One Cancels the Other (OCO) order is a type of conditional order used in trading that combines two separate orders. When one of the orders is triggered and executed, the other is automatically cancelled. This allows traders to plan for multiple market scenarios while ensuring that only one of the two outcomes takes place….
Options are financial derivatives that give the buyer the right, but not the obligation, to buy or sell an underlying asset at a predetermined price within a specific time frame. There are two main types of options: call options, which give the right to buy, and put options, which give the right to sell. Traders…
Non-Farm Payrolls (NFP) is a key economic indicator released monthly by the U.S. Bureau of Labor Statistics. It measures the total number of paid workers in the U.S., excluding employees in farming, government, private households, and nonprofit organizations. NFP data provides a snapshot of employment trends. It is considered a strong indicator of overall economic…
A net position refers to the overall exposure a trader or institution has in a particular financial instrument, after accounting for all buy (long) and sell (short) positions. It represents the difference between total long and total short positions. If a trader holds more buy positions than sell positions, the net position is net long;…
A market maker broker is a type of brokerage firm that provides liquidity by creating a market for traders. Instead of routing client orders directly to the broader market or interbank network, the broker itself acts as the counterparty to the trade. This means when a trader opens a buy position, the market maker sells…
A margin call occurs when a trader’s account equity falls below the required margin level set by the broker. This typically happens when open positions move against the trader, causing losses that reduce the available funds in the account. The broker then issues a margin call as a warning that more funds must be deposited…
Margin is the amount of money a trader needs to deposit to open and maintain a leveraged trading position. It acts as a security deposit that allows traders to control a much larger position than their actual account balance. For example, if a broker offers 1:100 leverage, a trader can open a $100,000 position with…