Glossary

Leverage is the use of borrowed funds to control a market position larger than the trader's own capital, amplifying both potential gains and potential losses.

Liquidity describes how quickly and cheaply an asset can be converted into cash without significantly affecting its price.

Lot size is the standardized quantity of a currency or instrument traded in one position, such as a standard lot of 100,000 units in forex, which determines how much each price movement is worth.

A low-spread broker is a trading provider that offers relatively narrow differences between bid and ask prices, reducing the built-in cost traders pay each time they open or close a position.