Forex GlossaryTrading Terms

How to use this glossary

Forex trading has its own vocabulary — a mix of finance, economics, and platform-specific jargon that can feel impenetrable when you are starting out. This glossary collects the terms that matter most in day-to-day trading, with definitions written for traders rather than textbooks. Every entry is meant to answer the question "what does this actually mean for my next trade?"

Use the search bar to jump to a specific term, or browse alphabetically using the letter navigation below. Click any term to expand its full definition with examples and related concepts. If a definition references another term you do not recognise, the related terms are linked — you can drill down without losing your place.

Categories you will see here

• •Market mechanics: bid, ask, spread, pip, lot, leverage, margin, swap. The building blocks of every trade.
• •Order types: market, limit, stop, OCO, trailing stop. How you express your intent to the platform.
• •Technical analysis: support, resistance, candlestick, RSI, MACD, Fibonacci, moving average — the chart-reading lexicon.
• •Fundamental analysis: CPI, NFP, interest rates, central bank policy, GDP, PMI — the economic data that moves prices.
• •Risk management: drawdown, risk-reward ratio, position sizing, expectancy, Sharpe ratio. The vocabulary of staying in the game.
• •Regulation & broker terms: FSCA, FAIS, KYC, AML, segregated accounts, STP, ECN, dealing desk — what to look for in a broker.

If a term is missing, let us know — we add new entries based on questions from real traders. Once you feel comfortable with the vocabulary here, jump into our Forex 101 guide or the South Africa pillar guide to put the terms in context.