Long Position
A long position is a “buy” position in a CFD, initiated at the current ask price.
Margin
The initial deposit required to open and maintain a leveraged CFD trade.
Maintenance Margin
The maintenance margin is the minimum amount of equity that must be maintained in your account to keep an open leveraged position.
Margin Call
A margin call is a requirement to deposit additional funds or face automatic liquidation of your positions by the broker, typically triggered by significant losses on leveraged trades.
Market Maker
A market maker is a broker or entity that facilitates trades by quoting bid and ask prices, with their compensation for this service reflected in the bid-ask spread.
Market Order
A market order is an instruction to execute a trade at the best available price in the market, guaranteeing execution but not a specific price.
Micro Lot
A micro lot consists of 1,000 units of the base currency.
Negative Balance Protection
Negative balance protection ensures that you cannot lose more than the funds available in your trading account, preventing your balance from going into negative territory.
Order
An order is a client’s instruction to a brokerage company to perform a trade operation, such as buying or selling a financial instrument.
Overnight Financing
Additionally, if you hold a CFD position overnight, you may incur overnight funding charges, which are essentially interest payments for the leveraged capital.