Glossary | Gulfbrokers

Stop Loss

Stop Loss

The stop order is used for minimizing of losses if the financial instrument price has started to move in an unprofitable direction.

Margin Call

Margin Call

Margin call in trading usually refers to a situation when a broker informs their client, a trader, to deposit additional funds when the trader does not have enough margin to open or maintain an open position....

Margin

Margin

Margin in trading usually means the necessary guarantee funds so as to open or maintain open positions in a transaction.

Lot

Lot

A lot is a fixed quantity of units and depends on the instrument traded.

Pip

Pip

Used in forex, a pip is one-hundredth of one percent, or the fourth decimal place (0.0001).

Leverage

Leverage

Leverage, or more precisely a financial leverage in trading, is a tool to multiply profits, though the risk of the corresponding multiplication of loss emerges at the same time.

Swap

Swap

A swap in CFD trading means an interest added or withdrawn for holding open position overnight.

Spread

Spread

Spread in CFD trading is the difference between the bid price and ask price of an underlying asset in the same time.

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