Glossary
Buy / Sell — By trading Forex & CFDs you can participate on both sides of the markets rising and falling quotes. If you see rising quotes/prices, you could go Long/Buy; if you see falling quotes/prices, you could go Short/Sell.
Commission — On The Zero account, you get a "raw spread Zero" style, plus a $4.50 commission per 1 standard lot. With “The Classic”, you don`t pay trading commission on most instruments, our compensation is inside our spread.
Contract size — Equivalent to the traded amount on the Forex or CFD market, which is calculated as a standard lot size multiplied with lot amount. The Forex standard lot size represents 100,000 units of the base currency. For CFDs and other instruments the notional amounts differ for each product.
Instrument — Also referred to as "Symbol". The trading asset which you Buy or Sell.
Leverage — The ratio of position`s notional value to the amount of margin required for opening a position (e.g. leverage 1:100 means that EUR 100,000 contract requires as low as 1000 EUR margin). Fusion clients can request to change their leverage within the Hub for approval by our team.
Lot — Usual term for what MT4 calls “volume”.
1.00 refers to 1 standard lot or 100,000 units of the base currency.
0.10 refers to 1 mini lot or 10,000 units of the base currency.
0.01 refers to 1 micro lot or 1,000 units of the base currency.
E.g. 2 lots of EURUSD is 2.00 on the platform or $200,000 of notional currency.
Please note - In case with CFDs, 1 lot = 1 CFD.
Margin — This is how much capital (margin) is needed to open and maintain your position.
Pip value — Pip stands for percentage in points, and it is the most comment increment of currencies. For Forex instruments quoted to the 5th decimal point (e.g. EURUSD – 1.13451) 1 pip is equal to a price increment of 0.00010; for Forex instruments quoted to the 3rd place following the decimal point (e.g. USDJPY – 101.522) 1 pip is equal to a price increment of 0.010.
For indices, one pip is equal to a price increment of 1.0, which is also called an Index Point. For other instruments, one pip is equal to Tick Size.
Profit or “P&L”— Your profit or loss (marked with -) for a trading scenario you calculated.
SWAP / 3x SWAP — On currency pairs, from Wednesday (midnight from Wednesday to Thursday, 23:59 server time) triple swap is charged because it counts three days at once: Wednesday, Saturday, and Sunday.
Tick — The smallest quote change for an instrument, for example, 0.00001 for EURUSD rolling Forex and 0.1 points for DAX30 Index CFD