Entering Forex trading can be overwhelming, not to mention all the technical terms. To make it simpler to begin, here are 10 Forex terms that all new traders should know:

1. Pip (Point in Percentage)
The smallest unit of price movement in a currency pair. In the majority of pairs, it’s the fourth decimal place (0.0001). It’s employed to quantify price movement and profit/loss.

2. Lot
A “lot” refers to how large a trade is. A standard lot is 100,000 units of the base currency. There are also mini (10,000) and micro (1,000) lots.

3. Leverage
Leverage allows the trader to trade with larger positions for a smaller amount of capital. An example would be 1:100 leverage where you can trade $100,000 for just $1,000.

4. Spread
It is the variation between the ask (sell) and bid (buy) price of a currency pair. It is the broker’s commission and trading cost to you.

5. Margin
Margin is the amount of money required to open a leveraged position. It’s an deposit to keep your trade ongoing.

6. Base Currency
It’s the initial currency in a currency pair (e.g., EUR in EUR/USD). It’s the currency you’re selling or buying.

7. Quote Currency
This is the secondary currency within a pair (the USD in EUR/USD). It represents how much quote currency is needed to buy one unit of base currency.

8. Bullish / Bearish
“Bullish” means expecting the price to rise. “Bearish” means expecting the price to fall. Traders like to label themselves as bulls or bears based on their expectations.

9. Stop-Loss
A stop-loss is a stop-buy order to close a trade at a specific price to limit potential losses.

10. Take-Profit
Take-profit is an order for automatically closing a trade upon reaching a profit target—avoiding having to sit by the market every time.
Mastering these basic Forex terminology terms will have you bolder in the markets and less likely to do silly things. With more experience, these phrases will be instinctive. Keep learning and keep your wits about you!