What Is Day Trading and How Does It Work?
Day trading is a speculative trading strategy where financial instruments are bought and sold within the same trading day, aiming to capitalize on short-term price movements. This approach contrasts with longer-term investment strategies, focusing instead on rapid execution and frequent transactions.
What Is Scalping in Trading?
Scalping is a high-frequency trading strategy that seeks to profit from small price movements by executing numerous trades within a short time frame.
What Is a Stop-Loss Order in Forex Trading?
A stop-loss order is a fundamental risk management tool used by traders and investors to automatically sell a security when its price falls to a predetermined level, thereby limiting potential losses.
What Is Slippage in Forex Markets?
Slippage refers to the difference between the expected price of a trade and the price at which the trade is actually executed. This phenomenon occurs in various financial markets, including equities, forex, and futures, and can significantly impact trading outcomes.
What Is a Swap in Finance?
In finance, a swap is a derivative contract in which two parties agree to exchange cash flows or financial instruments over a specified period.
What Is the Bid–Ask Spread and How Does It Impact Financial Markets?
The bid–ask spread is a fundamental concept in financial markets, representing the difference between the highest price a buyer is willing to pay (the bid) and the lowest price a seller is willing to accept (the ask). This spread serves as a key indicator of market liquidity and transaction costs, influencing trading strategies across various asset classes.
What Is a Pip in Forex Trading?
A pip, short for "percentage in point" or "price interest point," is a fundamental unit of measurement in the foreign exchange (forex) market, representing the smallest price movement that a currency pair can make based on market convention. Understanding pips is essential for traders to quantify price changes, calculate profits and losses, and manage risk effectively.
What Is a Margin Call in Finance?
A margin call is a demand by a broker for an investor to deposit additional funds or securities into their margin account when the account's equity falls below the required maintenance margin. This situation arises when the value of securities purchased on margin declines, reducing the investor's equity and potentially increasing the risk of the broker's loan.
What Is Margin and How Does It Affect Currency Trading?
Forex margin is a fundamental concept in currency trading, enabling traders to control larger positions with a smaller amount of capital. While it offers the potential for amplified profits, it also introduces significant risks, especially for those unfamiliar with its mechanics.
Leverage: Definition, Types, and Applications
Leverage is a fundamental concept in finance that involves using borrowed capital to increase the potential return on investment. It enables individuals and businesses to amplify their investment capacity beyond their own equity. While leverage can enhance returns, it also introduces additional risks, making its prudent application essential.

Straight‑Through Processing(STP)
Straight‑Through Processing (STP) is a method of automating financial transactions from initiation to final settlement without manual intervention. The concept applies to payments, securities trading, and other financial workflows, ensuring that all steps—data capture, validation, routing, approval, and settlement—are completed electronically in a continuous, uninterrupted process.

ECN Broker (Electronic Communication Network Broker)
An ECN broker is a type of financial intermediary—commonly in the forex and securities markets—that uses an Electronic Communication Network to link traders directly with multiple market participants, such as banks, liquidity providers, other brokers, and retail traders. Orders are matched automatically within the ECN without the broker acting as the counterparty, eliminating the conflict of interest often found with dealing desk models.

Market Maker
A market maker is a firm or individual that continuously quotes both buy prices (bids) and sell prices (asks) for a financial instrument, along with the sizes available at each price, with the goal of facilitating trading and maintaining market liquidity. Market makers stand ready to buy or sell from their own inventory, ensuring that transactions can occur without delay. They typically earn revenue from the spread between the bid and ask prices while assuming the risk of holding the asset.

Direct Market Access
Direct Market Access (DMA) refers to the electronic facility that allows traders to interact directly with the order books of financial exchanges without the intermediation of traditional broker-dealer dealing desks. Through DMA, market participants—typically institutional investors, hedge funds, and professional traders—can place buy and sell orders directly into the exchange’s trade-matching system, enabling faster execution and greater transparency.

Forex/FX
The foreign exchange market (commonly referred to as forex or FX) is a global decentralized marketplace for the trading of national currencies. It is the largest and most liquid financial market in the world, with a daily turnover exceeding USD 7 trillion in recent years. Transactions occur over‑the‑counter (OTC) rather than through a centralized exchange, enabling continuous trading across international time zones.

Currency Pairs: What They Are and How They Work
Learn what currency pairs are, their types, how they work, and how to calculate them. A beginner-friendly guide to understanding forex currency pairs with examples.

Base Currency Explained: A Beginner's Guide
Understand what base currency means in forex, how it functions in currency pairs, and how it affects trading, exchange rates, and risks—beginner-friendly guide.

What Is a Quote Currency? Complete Explanation for Beginners
Understand the meaning, function, and examples of quote currency in forex trading. Learn how it differs from the base currency and why it matters in international finance.

What Are Cross-Currency Pairs? Beginner’s Forex Guide
Learn what cross-currency pairs are, how they’re calculated, categorized, and used in forex trading. A simple and practical guide for beginner investors and traders.

Exchange Rate Explained: Definition, Types, and Impact
Understand what an exchange rate is, how it works, and why it matters. Learn about types of exchange rates, calculation methods, and their role in global finance.