Language of the desk

Forex glossary

Shared vocabulary so live class, courses, and journals speak the same language.

Forex and CFDs are leveraged products and can result in loss of capital. Choudhary Forex Trader provides education only — no profit guarantee, no fund management, no signal-as-advice model.

Pip

Smallest usual price increment for FX pairs; used to measure stop distance and P/L.

Lot

Position size unit. Standard lot = 100,000 units of base currency (broker models vary).

Spread

Difference between bid and ask. Your first cost before any strategy edge.

Swap / Rollover

Overnight financing cost or credit for holding positions across day roll.

Risk unit (R)

Your planned loss if stop hits. Results are measured in multiples of R.

Drawdown

Peak-to-trough equity decline. Process desks cap daily/weekly drawdown in rules.

Liquidity

Ease of trading size without moving price. Session and news change liquidity fast.

Session

Market hours bucket: Asia, London, New York — each with different character.

Bias

Higher-timeframe directional lean before looking for entries.

Playbook

Written setups you are allowed to take — everything else is forbidden.

BE (Break-even)

Moving stop to entry after partial profit to reduce risk of a winner turning loser.

Prop firm

Evaluation/funded account model. Still trading with rules — education does not remove risk.

CFD

Contract for difference. Leveraged product; you can lose more than expected if risk is unmanaged.

Slippage

Fill worse than expected price — common in news and thin liquidity.

Glossary · Choudhary Forex Trader