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- Here are some basic trading terms that every trader should know12:
- Currency Pair: The first terminology you will be introduced to when trading for the first time.
- Bid: The best possible price to buy or sell an asset.
- Ask: The best possible price tag to sell an asset.
- Pip: The term used to describe the lowest price movement.
- Spread: The difference between the bid and ask price.
- Stop-loss: A price where a trader accepts that the trade has gone wrong.
- Target / Take Profit: The price where a trade accepts that the trade has been successful.
- Square Off: Closing an open position.
- Long/Short Position: A long position is when a trader buys an asset with the expectation that it will increase in value. A short position is when a trader sells an asset with the expectation that it will decrease in value.
- Win Rate: The percentage of trades that are profitable.
- Reward to risk ratio: The ratio of the potential profit to the potential loss.
- Drawdown: The decline in account value from its peak to its low.
- Risk management: The process of identifying, assessing, and controlling risks.
Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.Beginner Trading Terms
- Currency Pair It is actually the first terminology you will be introduced to when trading for the first time. ...
- Bid The key goal is to "catch" the best possible price to buy or sell an asset. ...
mtrading.com/education/articles/forex-basics/trader…11 basic terms which every trader should know!
- 1. Stop-loss Stop-loss is a price where a trader accepts that the trade has gone wrong. ...
- 2. Target / Take Profit Target (also known as take profit) is the price where a trade accepts that the trade has been successful. ...
investmentabshuru.in/basic-terms-which-every-trad… - People also ask
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