The Glossary for the FCLite API documentation
Instrument refers to the specific asset that a trader is buying or selling, such as a currency pair, commodity, index, or stock. Each instrument has its own characteristics, including volatility, liquidity, and trading hours, which can affect a trader's strategy and risk management.
Account refers to a trading account that a trader opens in order to place trades in the foreign exchange market. The account serves as the platform through which the trader can execute trades, manage their positions, and access various trading tools and resources that the broker may offer.
Position refers to the state of a trader's open trades in a particular instrument. A position can be either long or short, depending on whether the trader has bought or sold the instrument. The trader can hold a position for any length of time, from seconds to years. The goal of position trading is to profit from market movements over an extended period of time, rather than making quick gains through short-term trades.
Order refers to an instruction to buy or sell a specific instrument at a specified price. In other words, an order is the means through which a trader can initiate a trade. Orders come in different types, including market orders, limit orders, stop orders, and trailing stop orders. Each type of order has its own unique features and uses.
Market order is an order to be executed immediately at the best available price in the market. Market orders are typically used when the trader wants to enter or exit a position quickly or when the trader wants to ensure that their order is executed.
Entry order is an order placed at a specified price level to initiate a new position when the market reaches that price level. It waits for the market to reach the specified price before executing the trade.
Stop order is an order to automatically execute a trade when the price of a specific instrument reaches a certain level, known as the stop price. There are two types of stop orders: a 'stop-loss order' to limit potential losses and a 'stop-entry order' to enter the market at a certain price. A stop-loss order is designed to limit the amount of loss that a trader is willing to take on an existing position, and when the market reaches the specified stop price, the order will be triggered and the position will be closed automatically. A stop-entry order is used to buy or sell an instrument when its price reaches a certain level, and it is used to enter a new market position.
Limit order is an order to buy or sell a specific instrument at a specified price or better. In other words, it is an order to execute a trade at a certain price or below it, in the case of a buy limit order, or at a certain price or above it, in the case of a sell limit order. Limit orders are typically used when the trader wants to enter the market at a specific price point or when the trader wants to take profits at a specific level. Limit orders are often used in conjunction with stop orders to manage risk and maximize profit potential.
Historical price refers to past pricing information of a specific currency pair or instrument. Traders use historical price data to analyze and identify patterns and trends in the market, which can help inform their trading strategies.