Key Terms:
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PIP – Point in Percentage (0.0001)
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Position Size – The leverage you use for a position (10,000, 20,000, 30,000)
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Candle – The body of the full candlestick
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Wick – The highest and lowest point of a time frame
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Base Currency
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CFD – Contract for difference
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Margin – The amount of money you need to place a trade
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Margin Call – When your equity drops below a certain amount
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Market Order – Entering the market at the current rate
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Entry Order – Entering the market at a rate of your choosing
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Leverage – The amount of money the broker is putting into your account (400:1 generally speaking)
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Volume – The position size you take
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Contract Size – The position size of a CFD
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Long/Buy – Buy position
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Short/Sell – Sell position
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Spread – The brokerage fee
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Slippage – When the market opens at a different rate to the close from Friday to Monday
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Swaps – The overnight fees
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Stop Loss – Where your trade will close at a loss
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Take Profit – Where your trade will close at a profit
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Consolidation – The market is trending sideways
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Bullish – Positive view
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Hawkish – Positive view
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Bearish – Negative View
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Dovish – Negative View
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Sentiment – Overall direction of the market
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Technical Analysis – Interpreting the charts and candlestick patterns
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Fundamental Analysis – The news, global economy
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Negative Trend – The price is moving lower
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Positive Trend – The price is moving higher
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Ascending Wedge – The price is moving higher in a narrowing band
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Descending Wedge – The price is moving lower in a narrowing band
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Pull Back – When the market has a correction from a large move
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Support – A key level below the market price
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Resistance – A key level above the market price
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Break Out – When the price breaks below or above a support or resistance level
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Cable – The GBP
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Greenback – The USD
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Hedge – Placing the same trade in the opposite direction
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Handle – A key level on the charts
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Kiwi – The NZD
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Loonie – The CAD
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Liquidation – You do not have sufficient equity to hold positions
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Liquidity – The amount of money in circulation