Terms

Capital

Nominal value –

Balance/Deposit is the cash amount in USD you have in your account.

Rollover is moving open positions from one trading day to the next.

Swap (broker fee charged during rollover).

Long positions – bought and are owned.

Short positions – owed, but not owned.

positions forcibly closed (“liquidated“)

Unrealized/Floating P/L – P/L earned/lost if current opened position is closed. 

Realized P/L – P/L earned/lost when opened position is closed

1 Standard Lot = 100,000 units (volume).

1 mini lot = 10,000 units (volume)

Equity = Balance + Floating P/L

Free (Usable) Margin = Equity – Used Margin

Margin Level = (Equity / Used Margin) x 100%

Margin Call = Floating Losses > Used Margin (i.e. Equity < Used Margin)

Stop Out Level = Equity is lower than a specific percentage of your Used Margin. = Margin Level falls to a specific percentage (%) level = your open positions are “liquidated” by your broker starting with the most unprofitable one until your Margin Level is back above the Stop Out Level.

Margin = For example, if you want to buy $100,000 worth of USD/JPY, you only put up a portion, like $3,000 (3%).

Nominal/Notional Value e.g. If we own 100 shares of stock at $50.00 per share, we have $5000 of Notional Value at risk.

Required Margin = ???

Used Margin = Total Required Margin

Free Margin = ???