Bid, ask and spread
The bid is the price at which you can sell; the ask is the price at which you can buy. Their difference is the spread. Spreads can change with liquidity and market conditions.
Pip and tick
A pip is a conventional forex price increment, usually 0.0001 or 0.01 for yen pairs. A tick is the minimum price increment specified for an instrument. Pip and tick value depend on contract size and currency conversion.
Lot and contract size
A lot is a unit of trade size. A standard forex lot commonly represents 100,000 units of the base currency. Other CFDs can have different contract sizes; check the symbol specification in MT5.
Leverage and margin
Leverage allows exposure larger than the margin committed to a position. Margin is the collateral required to hold that exposure. Leverage amplifies the effect of price movements on your capital.
Equity and free margin
Equity is your account balance adjusted for open-position profit or loss. Free margin is equity less used margin. Falling equity may lead to margin calls or position closures under your account terms.
Commission and swap
Commission is a trading fee separate from the spread. Swap usually refers to overnight financing; Mercato accounts are swap-free. Confirm other applicable charges and the commission charging basis in your agreement.
Slippage and market gaps
Slippage is the difference between an expected order price and its actual fill. A gap is a price jump with no trading at intervening levels. Both can affect stop-loss execution.
CFD
A contract for difference is a derivative based on the price change of an underlying market. It does not give ownership of the underlying asset and carries leveraged trading risk.
Expert Advisor and backtest
An Expert Advisor is an automated program for a trading platform. A backtest evaluates a strategy using historical data. Historical results, even with realistic costs, do not guarantee future returns.