By starting to trade (even on an online demo account), a newbie will gradually learn almost all of these terms, but a brief overview of the terms is useful for future careers in online trading. These are just basic terms involved in online trading, not a full list of essential terms for a forex trader.

Trading-Related Terms

Pip: The smallest price increment in a currency. For example, the difference of 1.3015 and 1.3016 in EURUSD is one pip.

Position: A view expressed by a trader through the buying or selling of currencies, and can also refer to the amount of currency either owned or owed by an investor.