Risk warning: Trading is risky. Your capital is at risk. FT Global Ltd is regulated by IFSC.
Risk warning: Trading is risky. Your capital is at risk. FT Global Ltd is regulated by IFSC.

Forex Glossary

The Industry's Most Important Terms Explained

The forex industry is made up of countless definitions and it's easy to forget a few along the way. But because no forex education can be complete without a glossary of forex terms, we've compiled one which aims at explaining key definitions in the simplest way possible. This way, you'll never be lost or confused again!


Reward-to-Risk Ratio

It is the ratio of potential profits to potential losses.  For example, if a trade suffers a 50 pip loss, then the expected return may be 150 pips, if 3:1 reward-to-risk is used.

Category: Trading

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