Common Terms ✨️💫

* Ask Price: This is the price that when you want to buy something, the seller asks for it. It means he is saying "I will sell you this for that much".

* Bid Price: This is the price that when you want to sell something, someone says "I will buy this from you for that much". This is the price that the buyer wants. The difference between the two prices (Spread): This is the "difference between the price you buy at and the price you sell at". Consider it as the commission of your broker, or the profit of the one who arranges the market for you. Pip: This is the smallest "tick" or movement that the price of anything you are trading moves. Think of it like the millimeter of prices. Leverage: This is when you take money as a "loan" to increase your trade size. Instead of trading with just your money, you use extra money to earn more if you win, but be careful, if you lose, you will also lose more! Like a double-edged sword. Margin: This is the amount of money you need to have in order to open and keep a certain trade open. It is like the "down payment" you make to buy something on installment. * Long Position: This is when you buy something and you expect its price to "go up". So you are betting that this item will increase in price. Short Position: This is the opposite, when you sell something and you expect its price to "go down". So you are betting that this item will decrease in price. Volume: This is the number of times a particular stock or contract has been traded.