Glossary of Terms

Search common forex trading terms and definitions from A to Z.

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Below is a glossary of terms that are used in the online trading industry. Select the first letter of the word you are seeking from the list above to jump to the appropriate section of the glossary.

Leverage

The use of borrowed capital for an investment in order to significantly increase the profits that can be made from it. For example, with a leverage ratio of 1:30, a trader can trade a notional amount 30 times greater than his/her available capital (i.e. $30 for each $1).

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 this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.