Trading terms and definitions

A stop order, or stop-loss order, is a type of order that is placed by a trader to buy or sell an asset once it reaches a certain price level, known as the stop price. The stop price is set at a level that is worse than the current market price for a sell order, and better than the current market price for a buy order.

A margin call that occurs when the value of your account falls below the minimum margin requirement we have set to maintain the open positions.

A predetermined margin level at which we will automatically close your open positions.

A term used in technical analysis to refer to a price level where the downward movement of an asset is expected to stop or reverse due to buying pressure. Support level is the opposite of resistance.

A trading tool to estimate the swap rate required to keep positions open overnight. 

Use our Swap calculator to calculate your swap rates.

A type of trading account that isn't charged interest on positions held overnight. This account is available on Deriv MT5.

Compare Swap-free and Standard accounts on the Deriv MT5 page.

The swap rate associated with holding a long position (or buy position) in a financial instrument overnight.

The swap rate associated with holding a short position (or sell position) in a financial instrument overnight.

A trading strategy in which positions are held for several days to weeks taking advantage of price swings in the market.

This stock market index tracks the performance of the 20 largest and most liquid companies listed on the SIX Swiss Exchange.

Browse more Stock Indices you can trade on Deriv.

A unique identifier used to represent a particular trading asset or instrument on a trading platform.

A feature that allows you to set your targeted level of profit to maximise in the event the market moves in your favour. When the market value reaches the set amount, the trade will be closed automatically and the earnings will be deposited into your account.

The expected difference between the bid price and the ask price of a financial instrument.

Understanding the target spread is important for assessing trading costs, evaluating profitability, and managing risk effectively.

Technical analysis in trading is a method of evaluating and predicting price movements in financial markets by analysing historical market data. It is often used in combination with fundamental analysis.

Tick in trading refers to the minimum upward or downward movement in the asset price.

The total profit or loss of your trade contract based on the current market price.

An essential tool that tracks and documents trading activities you have executed to measure your overall trading performance.

The fixed limits placed on a trading account to control the amount of risk you can take and the extent of your market exposure, including open positions. These limits can apply to various trading activities, and helps you manage your investments within defined boundaries.

A trader's strategy to systematise their approach to trading.

A detailed description of the specific parameters and requirements for executing trades on a particular trading platform.

Trading times refer to the specific time periods during which a particular trading instrument is available for trading. Knowing the trading hours is vital to plan your trading activities effectively, take advantage of market opportunities, and manage risk.

The action of transferring money from between your Wallet and your Deriv MT5 trading account.

The general direction of an asset's price movement over a certain period of time. You can use trend analysis to identify chart patterns and potential opportunities for profit.

A trendline is a line drawn on a price chart that connects two or more price points, used to identify the direction of a trend and potential support/resistance levels.

A security feature that requires you to provide two forms of verification before accessing your trading account or executing transactions. 2FA involves inputting a password or PIN and using a code from a mobile app like Authy or Google Authenticator to reduce the risk of unauthorised access.

The Financial Times Stock Exchange 100 Index (the "Footsie"). It tracks the stock performance of the top 100 companies on the London Stock Exchange based on their market capitalisation.

Check out all the Stock Indices offered on Deriv.

This refers to the asset, security or index on which a derivative contract is based.

A market condition where an asset's price is consistently increasing over a period of time.

The S&P 500 Index (SPX). It tracks the stock performance of the 500 largest publicly traded companies on the New York Stock Exchange (NYSE) and NASDAQ.

See what other Stock Indices are available for trading on Deriv.

Also known as the NASDAQ 100. It tracks the performance of the 100 largest non-financial companies on the NASDAQ stock exchange in the United States.

Discover other Stock Indices offered on trading on Deriv.

Value at risk is the statistical measure used to estimate the maximum potential loss on a trading portfolio of financial instruments over a specific time period, at a particular level of confidence.

Also referred to as market volatility, it is the degree to which the asset's price fluctuates over time.

High volatility means that the price of an asset is fluctuating rapidly, while low volatility means that the price is relatively stable.

The volume of trade refers to the number of units of a particular trading instrument that you wish to buy or sell in a trade.

The maximum amount of a particular trade instrument that you're allowed to trade across all your open and pending orders.

The Deriv Wallet is a hub for managing your funds. You can make deposits into and withdrawals from your Wallet, and transfer funds between your Wallet and your Deriv MT5 account to trade.

Also known as the Dow Jones Industrial Average. It tracks the stock performance of the 30 largest publicly traded companies on the New York Stock Exchange (NYSE) and NASDAQ.

Explore more Stock Indices available for trading on Deriv.

The action of transferring money from the main trading account to your preferred payment account.

Learn more about how withdrawals work on our Deposits and withdrawals page.

The return on investment generated by a trading strategy or portfolio of financial instruments. It is usually expressed as a percentage of the amount invested or the current market value of the investment.