Trading glossary
The words you'll meet in challenges, the platform and your dashboard — explained simply.
A
- Ask
- The price at which you can buy. Buy orders fill at the ask.
B
- Balance
- Account value from closed trades only. Open profit or loss is not included.
- Bid
- The price at which you can sell. Sell orders and long positions close at the bid.
C
- Consistency rule
- A rule requiring that your best trading day is not more than a set share of your total profit.
- Contract
- The unit of trading for futures. Each contract has a fixed value per point (for example $50 on ES).
D
- Daily loss limit
- The maximum your equity may fall below the day's starting reference (00:00 UTC) before the account is breached.
- Drawdown
- The decline from a peak in equity to a later low.
E
- Equity
- Balance plus the floating profit or loss of open positions. Loss limits are measured on equity.
- Expectancy
- The average amount you expect to win or lose per trade: win rate × average win − loss rate × average loss.
F
- Funded account
- The account you receive after passing the evaluation. It has no profit target, only loss limits, and pays a profit split.
K
- KYC
- "Know your customer" — one-time identity verification required before the first payout.
L
- Leverage
- The ratio between position value and the margin needed to open it, for example 1:100.
- Limit order
- An order to buy below or sell above the current price. It fills at its price or better.
- Lot
- The standard unit of forex volume. One lot of EURUSD equals 100,000 euros.
M
- Margin
- Equity set aside to keep a position open. Margin = position value ÷ leverage.
- Margin level
- Equity ÷ used margin × 100. Below the stop-out level, positions are closed automatically.
- Maximum loss
- The absolute floor for equity. It can be static or trailing.
P
- Partial close
- Closing only part of a position's volume to lock in profit while keeping the rest open.
- Pip
- The standard price step for most forex pairs: 0.0001 (0.01 on JPY pairs).
- Profit split
- Your share of the profit on a funded account, 90% at Axora Funded.
- Profit target
- The balance gain required to pass an evaluation phase.
S
- Scaling plan
- Automatic capital increases for consistent funded traders.
- Slippage
- The difference between the requested price and the executed price, common in fast markets.
- Spread
- The difference between ask and bid — the built-in cost of every trade.
- Stop loss
- An order that closes a position at a set loss level.
- Stop-out
- Automatic closing of positions when margin level falls too low.
T
- Take profit
- An order that closes a position at a set profit level.
- Tick
- The minimum price movement of an instrument, for example 0.25 points on ES.
- Trailing drawdown
- A maximum loss floor that rises with your highest equity and stops at the starting balance.
- Trailing stop
- A stop loss that follows the price at a set distance once the trade is in profit.