Trading glossary
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8 terms
- Bid / Ask (ราคาเสนอซื้อ / ราคาเสนอขาย)
Bid is the price you can sell at; Ask is the price you can buy at. Ask is always a little higher than Bid.
- Free Margin (มาร์จิ้นส่วนที่เหลือ)
Free Margin is the part of your account equity not locked as used margin, so it is available to open new trades or absorb losses.
- Leverage (เลเวอเรจ / ตัวคูณเงินทุน)
Leverage lets you control a larger trade than your own money would allow, using borrowed buying power. It magnifies both gains and losses.
- Lot (ล็อต)
A lot is the standard unit of trade size in forex. A standard lot is 100,000 units of the base currency, a mini lot is 10,000 and a micro lot is 1,000.
- Margin (มาร์จิ้น)
Margin is the part of your account balance that your broker sets aside to keep a leveraged trading position open. It is a deposit, not a fee.
- Margin Call (มาร์จิ้นคอล)
A margin call is a warning that your margin level has fallen too low, so you must add funds or reduce positions to keep your trades open.
- Pip (พิป)
A pip is the standard small step in a currency price, usually 0.0001, and it is used to measure price moves and to work out profit or loss.
- Spread (ส่วนต่างราคา)
The spread is the difference between the bid price (where you can sell) and the ask price (where you can buy). It is a basic cost of trading.