This trading glossary defines the terms used across RavixPrime, from currency quotes and margin rules to share settlement and crypto custody. Each entry is written to stand on its own, with a sentence or two on why the term matters in practice; where a longer answer exists, the definition links to it. Use the letters to jump, or your browser's find function to search.
Some words mean different things in different markets. "Equity" is the value of a trading account in forex but ownership of a company in shares; "margin" is a deposit to a trader and a profit percentage to an accountant; "exchange" can mean a regulated stock market or a crypto trading platform that answers to far fewer rules. Where that happens, the entry says which sense we use.
The definitions describe how terms are generally used by retail providers and regulators in the UK, EU, US and Australia. Individual firms can define things slightly differently in their contracts, and the contract is what counts if there is ever a dispute, so treat these entries as a guide to the questions to ask rather than as legal definitions.
- Ask price
- The price at which you can buy, always slightly above the bid; the gap is the spread. Also called the offer. A buy position opens at the ask and is valued, and later closed, at the bid, which is why a new position starts slightly negative.
- Base currency
- The first currency in a pair. In GBP/USD the pound is the base, and the price shows how many dollars one pound costs. Lot sizes are measured in the base currency, so one lot of GBP/USD is £100,000. See how forex trading works.
- Bid price
- The price at which you can sell. Market makers buy from you at the bid and sell to you at the ask. Charts on many platforms are drawn from bid prices, so a buy stop can trigger at a level the chart never seems to reach.
- Block reward
- New coins paid to the miner or validator who adds a block. Bitcoin's reward halves every 210,000 blocks and stands at 3.125 BTC. Transaction fees are paid on top. See what Bitcoin is.
- CFD
- Contract for difference: a deal with a provider that settles, in cash, how far an asset's price moved while the position was open, with no ownership of the asset itself. Usually leveraged and charged overnight financing. Retail CFD clients in the UK and EU are covered by leverage caps and negative balance protection.
- Circulating supply
- The number of coins or tokens currently available to trade, excluding locked or unissued units. It is used to calculate market capitalisation and is often reported by the project itself. See cryptocurrency list prices.
- Clone firm
- A fraudulent operation that copies the name, licence number or website design of a genuine authorised firm to appear legitimate. The defence is to contact firms only through the details on the regulator's own register. See scam warning signs.
- Cross pair
- A currency pair that does not include the US dollar, such as EUR/GBP or AUD/JPY. Pip values on crosses need a second exchange rate to convert into dollars, and spreads are often wider than on the majors.
- Custody
- Who holds an asset on your behalf. A share broker holds shares through a nominee; a crypto platform holds the private keys to coins left with it. Custody arrangements decide what happens to your assets if the firm fails.
- Dividend
- A share of company profits paid to shareholders, usually in cash. Its yield is the annual dividend divided by the share price. Dividends are decided by the board and can be cut or cancelled.
- Equity
- In a trading account, the balance plus or minus the profit or loss on open positions; it is the figure margin rules watch. In company terms, equity means ownership in the form of shares.
- Ex-dividend date
- The date from which a share trades without the right to the next dividend. You must own the share before it to be paid, and the price usually drops by about the dividend amount on that day.
- Fully diluted valuation
- A coin's price multiplied by its maximum supply, showing what the market capitalisation would be if every planned token existed today. A large gap between this and market capitalisation points to future supply unlocks.
- Halving
- The scheduled cut in Bitcoin's block reward by half, every 210,000 blocks or roughly every four years. Halvings occurred in 2012, 2016, 2020 and 2024; the next is expected around 2028.
- Leverage
- Using borrowed exposure so that a small deposit controls a larger position, expressed as a ratio such as 30:1. It multiplies gains and losses by the same factor. See the margin calculator.
- Limit order
- An instruction to buy at or below, or sell at or above, a stated price. It controls the price you pay or receive but may not be filled if the market never reaches your level.
- Liquidity
- The ease of trading an asset in size without pushing its price around. High liquidity usually means narrow spreads and little slippage; liquidity can vanish quickly around news or at weekends.
- Lot
- The standard trade unit in forex: 100,000 units of the base currency. A mini lot is 10,000 and a micro lot 1,000. A gold lot is commonly 100 ounces, but always check the provider's contract specification.
- Margin
- The deposit a provider holds while a leveraged position is open, equal to the position value divided by the leverage. It is collateral, not a cost and not a limit on losses.
- Margin close-out
- The automatic closing of positions when equity falls too far relative to the margin used. For UK and EU retail CFD clients it must apply at a 50% margin level, and positions may be closed at unfavourable prices.
- Margin level
- Equity divided by margin used, shown as a percentage. It falls as losses grow and as new positions are added, and it is the number that triggers margin calls and close-outs.
- Market capitalisation
- Price multiplied by the number of shares or coins in circulation. It measures total market value, which makes it far more useful than unit price when comparing two companies or two tokens.
- Market order
- An instruction to trade immediately at the best available price. It guarantees a fill in normal conditions but not the price, so it is exposed to slippage in fast or thin markets.
- Negative balance protection
- A rule that a retail client cannot lose more than the funds in the trading account. It is required for retail CFD clients in the UK and EU; outside those regimes a gap could leave you owing money.
- Nominee account
- An arrangement in which a broker's nominee company is the registered holder of your shares while you remain the beneficial owner. It keeps administration simple and, with client asset rules, separates your shares from the broker's own assets.
- Pip
- The conventional step used to measure currency moves, equal to 0.0001 on most pairs and 0.01 where the yen is involved. On a standard lot of a USD-quoted pair one pip is worth $10. See the pip calculator.
- Private key
- The secret that signs, and therefore authorises, every payment out of a crypto address. Whoever holds it controls the funds, and it is usually backed up as a recovery phrase. Losing it means losing access; revealing it means losing the funds.
- Quote currency
- The second currency in a pair, in which the price is expressed. In EUR/USD it is the dollar, so profits and losses on that pair arrive in dollars.
- Recovery phrase
- Twelve or twenty-four words, in order, that can rebuild a crypto wallet's private keys on any compatible device. No genuine platform, wallet maker or support agent will ever ask for it.
- Rollover
- The daily extension of open forex positions at 17:00 New York time, when swap is charged or credited. Spreads often widen for a short period around it.
- Segregated account
- A bank account holding client money separately from a firm's own funds, so it is not available to the firm's creditors if the firm fails. Regulated brokers in major markets must use them.
- Slippage
- The difference between the expected price of a trade and the price at which it is actually filled. It is most common on market and stop orders during fast moves, and it can occasionally work in your favour.
- Spread
- The difference between the bid and ask prices, and the basic cost of every trade. It widens when liquidity is thin. See trading fees explained.
- Stablecoin
- A token engineered to track an outside value, most commonly the US dollar, using reserve assets, collateral or code. A stable price does not mean the issuer or the platform holding it is risk-free. See what USDT is.
- Stop-loss
- An order that closes a position when the price reaches a set level, to limit the loss. It becomes a market order when triggered, so it is not guaranteed unless sold as a guaranteed stop.
- Swap
- The overnight financing charged or paid on a leveraged position, based on interest rate differences plus the provider's markup. In forex it is usually tripled on Wednesdays to cover the weekend.
- T+1
- Settlement one business day after the trade date. US shares have settled on T+1 since May 2024, which affects when sale proceeds become available.
- Taker fee
- The fee a crypto platform charges for an order that fills immediately against existing orders. Orders that rest on the book and add liquidity often pay a lower maker fee.
- Wallet
- Software or hardware that stores crypto private keys and signs transactions. Custodial wallets are run by a platform; self-custody wallets leave the keys, and the responsibility, with you.