Common Trading Terms in MT5 (Glossary)
| Number | Term | Meaning | Example in MT5 |
|---|---|---|---|
| 1 | Market Order | Order to buy/sell immediately at current price. | Buy EUR/USD now at 1.0650 |
| 2 | Pending Order | Order to buy/sell later at a chosen price. | Buy Limit Gold at 2300 |
| 3 | Bid Price | Price at which you can sell. | EUR/USD Bid = 1.0648 |
| 4 | Ask Price | Price at which you can buy. | EUR/USD Ask = 1.0650 |
| 5 | Spread | Difference between Bid & Ask (broker’s cost). | Spread = 2 pips |
| 6 | Stop Loss (S/L) | Price level to close trade to limit loss. | Buy at 1.0650, S/L at 1.0600 |
| 7 | Take Profit (T/P) | Price level to close trade to secure profit. | Buy at 1.0650, T/P at 1.0700 |
| 8 | Balance | Money in account excluding open trades. | $1,000 |
| 9 | Equity | Balance + floating P/L of open trades. | Balance $1,000 + open profit $50 = $1,050 |
| 10 | Margin | Funds locked to keep a position open. | $100 used margin |
| 11 | Free Margin | Equity – Margin = funds available for new trades. |
$950 free margin |
| 12 | Margin Level | (Equity Margin) x 100% → account health. | 1050 ÷ 100 × 100% = 1050% |
| 13 | Lot Size | Volume of trade (standard = 1 lot 100,000 units). | 0.10 lot = 10,000 units |
| 14 | Leverage | Multiplier allowing bigger positions with less capital. | 1:100 leverage → $100 controls $10,000 |
| 15 | Pip (Point) | Smallest unit of price movement. | EUR/USD: 0.0001 = 1 pip |
| 16 | Profit/Loss | Result of closed trades (gain or loss). | +$25 profit, -$10 loss |
| 17 | Swap | Overnight interest fee/credit for holding trades. | -$1.50 overnight swap |
| 18 | Commission | Broker fee per trade (if applicable). | $7 commission per lot |