Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd. You should consider whether you understand how CFDs or our other products work and whether you can afford to take the high risk of losing your money.

The industry’s
most important terms explained.

Discover a wealth of financial terms and definitions that every trader should know.

Forex Glossary



A unit to measure the amount of the deal. The value of the deal always corresponds to an integer number of lots.

Long position

A position that appreciates in value if market prices increase. When the base currency in the pair is bought, the position is said to be long.


The ability of a market to accept large transaction with minimal to no impact on price stability.


The closing of an existing position through the execution of an offsetting transaction.

Limit order

An order with restrictions on the maximum price to be paid or the minimum price to be received. As an example, if the current price of USD/JPY is 117.00/05, then a limit order to buy USD would be at a price below 117.00.


The London Inter-Bank Offered Rate. Banks use LIBOR when borrowing from another bank.


Also called margin. The ratio of the amount used in a transaction to the required security deposit.

Leading Indicators

Statistics that are considered to predict future economic activity.