A

Ask

The price at which you can buy an instrument. Always the higher of the two prices quoted.

B

Base currency (account)

The currency your account balance, margin and profit or loss are held in. Chosen when the account is opened.

Bid

The price at which you can sell an instrument. Always the lower of the two prices quoted.

C

CFD

Contract for difference. An agreement to exchange the difference in an instrument's price between opening and closing a position, without owning the underlying asset.

Commission

A fixed charge per lot per side on Platinum and Premium accounts, shown as a separate line in your statement. Basic and Standard carry no commission.

Contract size

The amount of the underlying one standard lot represents: 100,000 units for forex, 100 troy ounces for gold, 1,000 barrels for oil.

E

Equity

Your account balance plus or minus the floating profit or loss on open positions.

Expert advisor (EA)

An automated trading program that runs inside MetaTrader 5. Permitted on all Arabian Markets accounts.

F

Free margin

Equity minus the margin currently used by open positions. The amount available to open new positions or absorb losses.

H

Hedging

Holding a long and a short position in the same instrument at the same time. Allowed on our platform.

L

Leverage

The ratio between the size of a position and the margin required to hold it. 1:100 means $1,000 of margin controls $100,000.

Liquidity provider

A bank or institution that supplies prices at which the broker's clients can trade. We aggregate several.

Lot

The standard unit of trade size. One lot equals the contract size; 0.1 lot is the minimum on all our accounts.

M

Margin

The deposit held against an open position. Returned when the position closes.

Margin call

A warning issued when equity falls to a set percentage of the margin used. The level differs by account.

Market execution

Orders are filled at the best available price when they reach the market, without requotes. The execution type on all our accounts.

N

Non-dealing-desk (NDD)

An execution model in which the broker passes client orders through to liquidity providers rather than taking the other side itself. How Arabian Markets executes.

P

Pending order

An instruction to open a position when the price reaches a level you set: buy limit, sell limit, buy stop, sell stop, and stop-limit variants.

Pip

The smallest standard price movement in a forex pair: 0.0001 for most pairs, 0.01 for yen pairs.

R

Rollover

The process of moving a commodity CFD from an expiring futures contract to the next one, with a price adjustment so the position stays open.

S

Segregated client account

A bank account holding client money only, kept separate from the broker's own funds. How Arabian Markets holds client money.

Slippage

The difference between the price you expected and the price you were filled at, usually in fast markets. Can be in your favour or against you.

Spread

The difference between the bid and the ask. On Basic and Standard accounts, the whole cost of a trade.

Stop loss

An order that closes a position at a set price to limit a loss. Set it before you open the trade, not after.

Stop-out

The level at which the platform begins closing positions automatically to protect the account, largest loss first.

Swap

The overnight financing adjustment for holding a leveraged position, credited or debited at the daily rollover time.

Swap-free account

An account with no overnight swap, available on request and subject to eligibility, with an administration fee after a set number of days.

T

Take profit

An order that closes a position at a set price to lock in a gain.

Trailing stop

A stop loss that follows the price at a set distance as the trade moves in your favour.

V

Volume

In trading, the size of a position in lots. In markets, the amount traded over a period.