Christine Lagarde

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Christine Madeleine Odette Lagarde is a French politician and lawyer serving as President of the European Central Bank since November 2019.

Leverage

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Leverage is the use of debt (borrowed capital) in order to undertake an investment. Leverage is expressed in ratios, for example 100:1. If a trader uses a leverage of 100:1, the broker will set aside $1,000 from the traders account in order to control a $100,000 position. Most professional forex traders trade with a small leverage (i.e. 20:1, 10:1, or even lower) to save their accounts from high losses. Unexperienced traders often use a high leverage of 1:100 or 1:200 which often eliminates their account quickly.

Limit Order

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A limit order is a type of order to buy or sell a currency at a specific price or better. We typically use limit orders when we re-enter an order after the previous trade was closed with a profit.

Liquidity

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As a trader we generally speak of market liquidity, which refers to the extent to which a market, such as a country’s stock market or currency market, allows assets or currencies to be bought and sold at stable, transparent prices. When the spread between the bid and ask prices grows, the market becomes more illiquid.

Long

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Taking a long position means BUY. In forex, going long means that a trader is buying the base currency and selling the quote currency. For example, if we go long or buy EUR/USD, we buy euros (EUR) and sell U.S. dollars (USD).

Lot

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A standard lot is the equivalent of 100,000 units of the base currency in a forex trade. A mini lot refers to 10,000 units, a micro lot to 1,000 units and a nano lot to 100 units.