Forex Glossary

This forex glossary explains the trading terms you meet at a broker, on a chart and in a prop firm’s rules. Each entry uses plain words and a worked example. It covers forex trading terms such as leverage, spread, margin call and micro lot, and futures trading terms such as futures contract, futures symbols and handle. Search a term or use the A to Z index below. Every entry names its sources and the day we checked them.

How to Use This Glossary

Use the A–Z index to jump to what you need:
  • Search or A–Z
  • Learn In Context
  • Keep It Practical

Our Editorial Standards

  • Plain English first
  • Verified sources: We cite official docs and regulators when relevant.
  • Neutral and practical
  • Kept fresh: We review and update definitions regularly as protocols and rules evolve.
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A-book is a process where forex brokers directly pass client orders to liquidity providers, ensuring transparent and fair execution of trades.
Advice in forex refers to recommendations or guidance offered by experts or automated systems on buying or selling currency pairs, aiming to help traders make informed decisions and optimize their trading strategies.
ADX, or Average Directional Index, measures the strength of a trend in the forex market, helping traders identify strong directional moves.
Algorithmic Trading leverages computer algorithms to execute trades at high speeds and volume, optimizing strategies in the forex market for efficiency and profitability.
Allocation in forex refers to the process of distributing funds among different currencies or assets to optimize returns and manage risk. It's about finding the right balance to maximize profits in the fluctuating currency markets.
Alpha in Forex trading signifies an investment strategy's ability to beat the market, or its "excess return" over a benchmark.
An American Option is a type of financial derivative allowing the holder to buy or sell an asset at any time before the expiration date, offering flexible execution.
AML stands for Anti-money Laundering, a set of laws and procedures designed to prevent the illegal generation of income through well-disguised financial transactions.
The Appropriateness Questionnaire assesses a forex trader's knowledge and experience, ensuring they understand the risks of trading complex financial instruments.
The Appropriateness Test is a regulatory procedure in finance, ensuring that investment services match an investor's knowledge, experience, and risk tolerance.
An Appropriateness Warning in forex alerts traders when a product may not be suitable for their experience level, helping to manage risk.
Arbitrage exploits price differences of identical financial instruments across different markets, ensuring risk-free profit by simultaneously buying and selling.
An Ascending Triangle is a bullish chart pattern characterized by a flat top and rising lower trendline, often indicating potential upward momentum in price movement.
Asian Session refers to the forex trading period that occurs during Asian market hours, highlighting active currency trading chiefly in Tokyo, Hong Kong, and Singapore markets. It's known for its distinct liquidity and volatility patterns, impacting global forex strategies.
ASIC, short for Application-Specific Integrated Circuit, is a chip designed for a specific task, vastly improving performance and efficiency in computing tasks like cryptocurrency mining.

Ask

Ask is the lowest price a seller is willing to accept for a currency pair in the forex market, reflecting immediate buying interest.
Average True Range (ATR) measures market volatility by decomposing the entire range of an asset price for that period. It helps traders understand the degree of price volatility and set stops in a more informed manner.
Average Hourly Earnings represent the change in income workers receive per hour of labor, serving as a key indicator of wage inflation and economic health.
A B-book in forex is a method where brokers manage trades internally, often resulting in the broker taking the opposite position to their clients' trades, without immediate execution in the external market.
Back Office refers to the behind-the-scenes areas of a forex firm handling settlements, clearances, record maintenance, and compliance, essential for smooth trading operations.
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FAQ

What is this glossary and who is it for?

It is a plain-English reference for anyone trading forex and CFDs, from complete beginners to active traders. If you have ever hit a term on a broker’s site or trading platform and were not sure what it meant, this is where to look it up. Definitions focus on what each term means for your trades, costs, and risk.

We review entries regularly and update them when platforms, products, or rules change. Trading conditions and regulation shift over time, so we treat the glossary as a living reference rather than a one-time write-up.

The core meaning of a term is the same everywhere, but how it applies can differ by region. Leverage limits, product availability, and rules such as negative balance protection vary by regulator, so we note where local conditions change what a term means in practice. Always check what applies where you live.

A broker’s help pages describe how that one broker works and are written to support its own product. Our glossary is independent and broker-neutral, so a term is explained the same way whoever you trade with. Where a broker uses a term differently, we say so.

No. Forex sits alongside CFDs on indices, commodities such as gold, shares, and more, so we cover the wider trading terms you meet too, including platform, order-type, regulation, and funding terms. If it shows up while you are trading, we aim to define it.

Yes. If a term is missing or you spot something that reads wrong, contact us at info@brokercatalogue.com. We read every message and update entries as trading terms and conditions change.