FXNXT / LEARN
Trading glossary
Clear definitions of risk, spread, leverage, drawdown and data quality.
- Spread
- The difference between bid and ask, contributing to trading costs.
- Risk unit R
- Trade profit or loss divided by original risk, with costs disclosed.
- Drawdown
- A fall from an equity peak to a subsequent trough in the measured period.
- Break-even
- The price covering all included costs; it is not always the entry price.
- Liquidity
- The market's ability to absorb orders. Hidden orders cannot be verified from a chart screenshot alone.
- Stale data
- Values whose event timestamp exceeds the freshness limit, even if received now.