24 essential Forex & CFD terms every trader must know.
Tap any term for a plain-English definition. Then practise on demo.
Ask = price you buy at. Bid = price you sell at. Difference = spread.
In EUR/USD, EUR is base, USD is quote. Price shows how much quote buys 1 base.
Trade price movement without owning the asset. Forex, gold, indices, crypto all offered as CFDs.
Risk-free MT5 account with virtual funds. Open free demo →
Balance = closed P/L. Equity = balance + floating P/L.
Automated MT5 strategy. Backtest on demo before live.
Equity minus used margin. Funds available to open new trades.
Holding buy + sell on same symbol to offset risk. Allowed on DOYOS MT5.
Controls large position with small deposit. Magnifies profit AND loss. See risk guide.
Trade size. 1.0 FX lot = 100,000 units. 0.01 = micro, ideal for beginners.
Long = buy, profit if price rises. Short = sell, profit if price falls.
Deposit locked to hold a leveraged position. Calculate in margin calculator.
Warning then auto-close when margin level falls too low. Keep level above 200%.
Smallest move (0.0001 on most pairs, 0.01 on JPY). 10 pips on 1 lot ≈ $100 on EUR/USD.
Lots traded, derived from risk % ÷ stop distance. See pip calculator.
Buy/Sell Stop or Limit set for future price. Manage from MT5 toolbox.
Reward vs risk (e.g. 1:2 risks $100 to make $200). Aim 1:2 minimum.
Buy/sell cost. DOYOS with competitive spreads. See Spreads.
Auto exit at loss cap (SL) or profit target (TP). Always set both.
Overnight holding fee/credit. Priority Trading Service (Islamic) accounts are swap-free — see Swap-Free.
Fill at different price in fast markets/news. Use limit orders, avoid red news.
Floor/ceiling where price often bounces. Core of chart reading.
Trend = directional; Range = sideways. Trade breakouts in London, ranges in Asia (hours).
How fast price moves. Gold & crypto high; EUR/CHF calmer. Size down when high.
