Learn essential terms with the help of our alphabetically ordered introduction to the world of CFDs, FX and binaries

60-Second Option

Also known as Quick Option. A binary trade with a 60-seconds expiry time.

American Option

Unlike European Options (binaries) an American option can be exercised at any time during its lifespan. You do not need to wait until the maturity date to be exercised, thus increasing the value of the option.

Amount for Withdrawal

When you withdraw funds from your tradovest account, you’re required to request a minimum withdraw amount of $100 for wire transfer and $50 for all other payment methods.


The market price at which traders can buy a financial asset. The ask price is one parameter that is used when calculating the spread and the expiry level of an asset.

Ask Price

The price quote used by the market maker to sell the base currency.

Asset/Underlying Asset

A term used in to describe a derivative traded asset whose price can be derived from another asset. Derivatives are exchanged for cash and do not include the exchange of the physical asset. Underlying assets are used when a trader enters a contract based on the price of these assets without the need for ownership.

Asset Sub-categories

Forex - such as EUR/USD, EUR/GBP, AUD/USD, etc.
Stocks - such as Google, Coca-Cola, Amazon, etc.
Commodities - such as gold, coffee, crude oil, etc.
Indices - such as NASDAQ, FTSE, CAC40, etc.

At-the-Money (ATM)

When a position is closed while the current price of the underlying asset is exactly the same as when the position was opened.

Available Margin

The trading account funds available for trading (and not currently used for any open position).


The total amount of funds held in your account, excluding P&L (profits and losses) of currently open positions.

Bid Price

The price quote for which the market maker will buy the base currency.

Binaries (or Binary Options)

A trading instrument that offers a fixed, predetermined payout (profit), if the asset on which the position was opened reaches the trader’s predicted direction upon expiry time.

Call (or UP)

A call option is opened when a trader speculates that the price of an asset will be above the strike price of the option upon expiry time.

Current Price

The live market price of an underlying asset. Once the position has been opened this live price becomes the strike price. The current price of an asset is determined objectively by real-time data providers.

Entry Rate/Strike Price

The asset’s market price quoted when the position is executed.


Your trading account balance, including P&L (profit and loss) of all open positions.

Expiry time

The exact time when the position closes. The expiry time is a crucial factor in the outcome of the binary position. The choice of expiry time offered for each asset varies according to market conditions. It is vital for an investor to plan carefully the timeframes of his binary positions.

Exposure Coverage

The Net Exposure (%) covered by your equity.

Fundamental Analysis

A method of evaluating the performance of a financial asset by utilizing financial, economic, geopolitical and additional factors. The goal of fundamental analysis is to aggregate and examine factors that can have an effect on the market price of the asset. These factors are diverse and include overall company performance, revenue, expense, liabilities, industrial environment conditions etc.

GTC (Good-Till-Cancelled) Order

An order that can be placed to buy or sell an asset at a pre-determined price. This order stays active until it is either retracted by the trader or the position is executed. GTC orders are an alternative to opening a number of day orders, that will expire at the end of the trading day.

GTC orders are usually pre-set to expire 30-90 days after the opening of the position.

High/Low Option

A type of binary position, in which a trader predicts whether the asset’s market price will expire above (High) or below (Low) its current price, on a predetermined expiry time (1 minute to 1 month).

If Done Order

An IDO is a two-step order; the first step is usually a limit and is automatically activated when the predetermined market price is reached. The second step is only activated when the first step has been executed. It can either be a stop loss or a take profit order.

In-the-Money (ITM)

Your position is ITM when the current price is above the strike price in a DOWN position, or if the current price is below the strike price in an UP position. A position that yields return upon completion is an ITM position.


A simple financial mechanism that enables you to open positions that exceed the value of your initial investment. Leverage is expressed as a ratio. tradovest offers a leverage ratio that ranges from 25:1 (25 times the amount invested) to 200:1 (200 times the amount invested). You can trade major forex assets using a leverage as high as 200:1.

Limit Order

A limit order is usually used to take profit at a predetermined level. It basically allows you to pre-set the price at which you wish to buy or sell the asset. A limit order is highly useful in volatile markets, where every second may result in major price drops or climbs.

Maintenance Margin

The minimum amount of equity currently used to maintain your open positions. If your equity falls below the minimum, you get a margin call (alert) and your open positions will automatically close. Also known as "minimum maintenance" or "maintenance requirement."

Margin Call

A margin call is activated when your equity reaches the required Maintenance Margin minimum. You then receive a demand from your broker to deposit additional funds and avoid having your positions automatically closed. There is also an option to close or reduce open positions.

Margin Usage

A term used to describe the percentage of your entire equity that is currently used in your open positions. It is highly important to predetermine your margin usage even before you lay out your trading strategies. The ideal margin usage percentage differs according to your goals and trading preferences.

Market Maker

Also known as a liquidity provider, a market maker is any company or individual that quotes both buy and sell prices in a financial asset with the purpose of profiting on the bid-offer spread. For example, a brokerage firm that offers to buy or sell a stock on a regular basis and at a publicly quoted market price.

Net Exposure

The percentage difference between a trading portfolio’s long and short exposure. This percentage measures the extent to which your portfolio is exposed to market fluctuations. It’s advised to adjust the net exposure in accordance with your investment outlook – bullish, bearish or neutral.

One Touch Option

A binary trade type that lets you choose a certain value (point) which the market price has to reach (at least once) before the expiry time. If the value you selected was “touched” – your position is a winning position.

Open P&L

The total of profits and losses in all your currently open trades.

Order Execution

The term “execution” is used to describe the completion of a buy or sell order for a financial asset. The execution of an order is activated not when the position is placed, but rather with it is completely filled by the broker. The broker’s job is to determine the best way to execute the position and where to direct it (market makers/stock exchange floor etc.).

Out of the Money (OTM)

Your position is OTM when the current price is above the strike price in an UP position, or if the current price is below the strike price in a DOWN position. A position that yields return upon completion is an ITM position.


PIP (point in percentage) is the smallest price move that a given exchange rate can make. For example, in major currency pairs the PIP would represent the four decimal place: 0.0001.


An investment in a specific currency pair, stock, commodity or index. A position can either be profitable or unprofitable, depending on the price market movements. Opening a position consists of selecting an asset, prediction the direction and investing an amount.


A put option is opened when a trader speculates that the price of an asset will be below the strike price of the option upon expiry time.

Range Option

A binary trade type that lets you choose a certain price range (upper and lower boarders). In a call (UP) option the price must stay higher than the strike price and lower than the upper bound and vice versa for a put (DOWN) option.


When a position is held after markets close, it "rolls over" to the next value date. This transition is subjected to a swap charge or credit. Rollover/swap rates are calculated in points and are automatically converted into the account’s currency.


A spread is the difference between the bid price (the price in which you buy an asset) and the ask price (the price in which you sell an asset).

Technical Analysis

A method used for evaluating a financial asset by researching the statistical data related to its past performance. Technical analysis is conducted by studying charts and graphs to identify possible patterns that may be indicators of future market performance.

Trading Hours

Each market (US, Europe, Asia etc.) has different trading hours and/or trading days; in addition to holidays. Thus, each asset is traded in different trading hours.


Refers to the general direction of an asset’s market price. The most common strategy is to trade with the trend. Detecting a trend allows traders to make informed speculations based on the probability of the future direction of market prices.

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