Indicators
SPREAD
The spread is the difference between two comparable sizes. The wider the spread, the higher the risks. It is a key figure in business and is one of the most important indicators in the in financial market. The bid-ask spread reflects the gross profit margin of credit institutions. From their point of view, they sell to the higher ask price and buy at the lower bid price. Bid and ask prices are available in stock exchange trades as well as in trades made offside the stock exchange. In contrast, regarding securities, it shows that no stock exchange turnover happened and although there might have been a demand, no suitable offer was received, or it was an offer in the market but not within the price range preferred by potential buyers.
Bid-ask spread = bid price - ask price
LOT
LOT refers to the unit in Forex trading and represents the contract sizes. On the foreign exchange market (Forex), 1 lot in contracts refers to 100,000 units of the base currency, e. g. regarding the currency pair EUR/USD, 1 lot is 100,000 Euro. Additional lot sizes are mini lots of 10,000 units or micro lots of 1,000 units.
In practice, due to the leverage effect, you do not have to actually place 100,000 currency units to be used to trade a standard lot.
1 LOT = 100,000 units (Forex)
SWAP
SWAP is an overnight fee: if you hold an asset as a forex trader overnight, a so-called swap will be charged to you.
Turnover
In business, the term "turnover" can have different meanings. However, it has special significance for commerce. In general, the term refers to the amount of shares traded by a unit like an individual traders, stock exchanges or countries. It may also refer to the activity level of trading in a particular portfolio.
P&L
P & L is the abbreviation for „profit and loss“. Trading documents provide information about how profitable a trader is.
