Trading basics
The essentials every trader needs — bid and ask, spread, pips, lots, long versus short and more.
- ArtigoBid and AskThe best buy price (bid) and best sell price (ask) in the market.
- ArtigoSpreadThe difference between the bid and the ask — an instant cost of trading.
- ArtigoPipThe smallest standard price move in forex, usually the fourth decimal.
- ArtigoLot SizeThe standardised quantity of a trade — standard, mini or micro.
- ArtigoLong vs ShortBuying to profit from a rise (long) or selling to profit from a fall (short).
- ArtigoBull vs Bear MarketA sustained rise (bull) versus a sustained decline (bear) in prices.
- ArtigoLiquidityHow easily an asset trades without moving its price.
- ArtigoVolumeThe number of units traded — a measure of participation and conviction.