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Trading Glossary

Glossary trade refers to a type of trading strategy where traders use a predefined set of terms, definitions, or concepts to make informed decisions. It often involves industry-specific jargon, financial metrics, and analytical tools to navigate markets effectively.

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Long-legged doji

A rare candlestick pattern showing a balance between buying and selling pressure in the same trading period, appearing as a candlestick with a small body and equally long shadows.

Lot

A measurement used to count the size of a single trade. Typically, investors start trading with 1 lot.

Lot-based commission

A fee charged by brokers for facilitating a trade that is based on the lot size.

Major pairs

Forex pairs that include major currencies, including EUR/USD, USD/JPY, GBP/USD, and USD/CHF.

Margin

Margin is the initial deposit that a trader makes to a broker to cover credit risks and maintain a leveraged position. This is also known as collateral.

Margin call

A request by a brokerage to inform a trader to make an additional deposit in order to meet margin requirements.

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