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…
Lot size refers to the standardized quantity of a financial instrument being traded, most commonly used in the Forex market. In Forex, one standard lot is equal to 100,000 units of the base currency in a currency pair. There are also smaller lot sizes to accommodate different account sizes and risk levels: a mini lot…
A liquidity provider is a financial institution or individual that offers buy and sell prices for a particular asset, ensuring there is enough volume for traders to execute orders efficiently. In Forex and other financial markets, liquidity providers are typically large banks, hedge funds, or market makers that supply the market with continuous pricing. They…
Leverage in trading refers to the ability to control a larger position in the market with a relatively smaller capital. It is typically expressed as a ratio, such as 1:10 or 1:100, meaning that for every $1 of your own money, you can trade with $10 or $100, respectively. Leverage is commonly offered by brokers,…
Liquidity refers to how easily and quickly an asset can be bought or sold in the market. This occurs without causing a significant change in its price. In trading, a highly liquid market—such as the Forex market—has many buyers and sellers, allowing trades to be executed almost instantly at stable prices. Low liquidity, on the…
Kiwi is a common trading slang used to refer to the New Zealand dollar (NZD) in the Forex market. The nickname comes from the kiwi bird, a national symbol of New Zealand. It is widely recognized by traders around the world. When someone says they’re trading the “Kiwi,” they usually mean they are involved in…
Jobless Claims refer to the number of people who file for unemployment benefits after losing their jobs. This economic indicator is released weekly, primarily in the United States. It serves as a real-time snapshot of the labor market’s health. There are two main types: Initial Jobless Claims, which count new applications, and Continuing Claims, which…