What Is Lot? Meaning & Example

A pip is a standard unit of price movement in forex, usually the fourth decimal place for most pairs and the second for yen pairs. Pips are used to measure gains, losses and spreads.

Leverage means using borrowed money or derivatives to control a larger position than your own capital alone allows. It magnifies both gains and losses.

Position sizing is deciding how much money to put into a single trade or investment. Good sizing limits the damage any one loss can do to your account.