Glossary What is initial margin? The initial deposit of collateral required to enter into a position as a guarantee on future performance. What is Take Profit? Any pending Order that is attached to the Open Position or another pending Order for closing the position usually with a profit What is Stop Loss? An order to buy/sell at an agreed price (one could also have a pre-arranged stop order, whereby an open position is automatically liquidated when a specified price is reached or passed). What is a CFD? Mean the Contract for Differences on spot FOREX, stocks, indices, commodities, cryptocurrencies, and any other underlying Financial Instrument offered by the Company and available for trading What is POINTS, PIPS? The term used in currency market to represent the smallest incremental move an exchange rate can make. (Depending on context, normally one basis point, i.e., 0.0001 in the case of EUR/USD, GBD/USD, USD/CHF and .01 in the case of USD/JPY.) What is spread? The difference between the bid and offer (ask) prices; used to measure market liquidity (Narrower spreads usually signify high liquidity). What is leverage? The ratio of the amount used in a transaction to the required security deposit (also referred to as margin). What is a currency pair? The two currencies that make up a foreign exchange rate (For Example, EUR/USD). What is a volatility? A statistical measure of a market or a security’s price movements over time, calculated by using standard deviation (associated with high volatility is a high degree of risk).