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 1:200, a trader can trade a notional amount 200 times greater than his/her available capital (i.e. $200 for each $1).