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Lagging indicator


An indicator in technical analysis that provides more reliable information, but with a delay.

Leading indicator


An indicator in technical analysis that predicts changes in currency rates ahead of time, but that is not always completely trustworthy.



When brokers allow traders to trade with large amounts of money than their initial investment. This allows traders to multiply their gains but should be used with caution as excessive leverage can very quickly lead to traders losing their initial investment and an end to their trading.

Limit Order


Either a “Take Profit” or “Stop Loss” order, a limit order is executed if a certain condition is met, for example if a currency exchange rate reaches a certain level.

Long Position


Being “long” on a currency is the same as buying that currency.



Usually fixed amounts of currency used for Forex transactions, such as US $10,000 or US $100,000.