* PIPS - A pip is the smallest amount by which a currency quote can change. Paying a 1 pip spread on a $10000 trade translates into a $1 cost to make the trade.
* LEVERAGE - The amount of leverage controlls how much equity you need to take on a margin position. A 100:1 leverage means that you can make a $10 000 trade with just $100 in your account. (Note that a high degree of leverage can work against you as well as for you.) |
