Glossary

Basics

• Rebate: a cost-optimisation method that returns part of the spread/commission to you.
• Spread: the difference between bid and ask; a common trading cost.
• Rebate per lot: the amount returned per 1 standard lot traded.
• Spread-based rebate: a rebate set as a percentage of the spread cost.
• Lot: a unit of volume; 1 standard lot is 100,000 base currency in FX, or 100 oz in gold.
• IB (Introducing Broker): an agent who introduces clients to a broker.

Trading & cost

• Leverage: a mechanism that amplifies trade size and risk.
• Margin: funds required to open a position.
• Margin call / Stop out: notice and forced closure when funds are insufficient.
• Swap (overnight interest): a fee or credit for holding a position overnight.
• Slippage: the gap between expected and executed price.
• Point: the smallest price increment.

Platforms & products

• ECN / STP: order execution models used by brokers.
• CFD: a contract settled on price difference, without delivering the asset.
• XAUUSD: spot gold against the US dollar.
• MT4 / MT5: popular trading terminals.

Rebate terms

• Payout cycle: how often rebates are settled (daily / weekly / monthly).
• IB link: the relationship between your account and the IB, determining rebate attribution.
• Drawdown: the fall from an account's peak.

General information only; not investment advice.