For the foreign exchange, the smallest pip is 1/10000, which means as the fourth decimal place. In case of EUR/USD, if the spread is 3, then the exchange rate can be like 1.2500/1.2503. In the currency pairs, the Japanese yen is the only exception. The exchange rate for USD/JPY only has two decimal place. For example, for the spread with 3, the exchange rate can be like 114.05/114.08. PIP means the smallest unit of the price. For EUR/USD, if the spread is 1 pip, the rice may be 1.2500/1`.2501.
The difference between the asking price and the biding price is called spread. For example, the bank quoted the exchange rate of USD/JPY is 113.20/25, means that the bank wants to pay 113.20 JPY for 1 dollar. At the same time, the bank wants to sell for one dollar as 113.25 JPY. This 0.05 differences between them is the spread. The spread is depended on the liquidity of each currency.
The currency pairs with no USD is cross currency pairs.
The foreign exchange market, or Forex, is the world's largest financial market, with the average daily turnover exceeding $3,200,000,000,000. Forexcurrency trading is buying one currency while selling another currency. The exchange rate of the currencies are floating, and the traded products are in the form of currency pairs. For example,the Euro/US dollar (EURUSD) or US dollar / Yen (USDJPY).
A broker's demand on an investor using margin to deposit additional money or securities so that the margin account is brought up to the minimum maintenance margin. Margin calls occur when your account value depresses to a value calculated by the broker's particular formula.This is sometimes called a "fed call" or "maintenance call.
Leverage is the ratio between the margin and the value of the position.
Overnight is to extend the settlement date of the opened positions to the next settlement date. For example, you sell one lot of USD/JPY on Tuesday, the trading must be delivery on Thursday, unless the yen positions to be extended overnight. Formax usually extend the undealed positions automatically at 0 o'lock in GMT time.This kind of extension can create swap rate.
The swap rate refers to the difference between the exchange rates. Each foreign exchange pair has two different currencies, each currency has different interest. If the interest of the buying currency is greater than the selling currency, then you can earn the swap rate, otherwise, you will pay the swap rate.
Day trade refers the position set up within 24 hours in the day and closed at GMT 0.
London gold/silver market is priced in dollars, with ounce as the measurement unit. London gold is100 ounces/lot; London silver is 5000 ounces/lot.
That is the net balance of the current account. It is including the profit and loss of current positions, and the balance varied when profit/loss changed.
Net - used margin = available margin
It is a protective mechanism. When the trading loss reach the setting level, the system will close the position in order to stop more loss happen.