Glossary of Terms

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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.


A numeral point a security or financial instrument’s price which denotes the smallest amount by which it can change. In forex, most currencies have four decimal places, and a pip is therefore one unit of the fourth decimal point (i.e. 0.0001 of the currency’s value). In some currencies, such as the Japanese yen, a pip may at the second decimal point – making it worth 0.01 of the currency.