Pips
The smallest unit of price for any foreign currency. Digits added to or subtracted from the fourth decimal place, i.e. 0.0001. Also called Points or Forex Pips.
Political Risk
Exposure to changes in governmental policy which will have an adverse effect on an investor's position.
Position
The netted total holdings of a given currency.
Premium
In the currency markets, describes the amount by which the forward or futures price exceed the spot price.
Price Transparency
Describes quotes to which every forex market participant has equal access.
Profit /Loss or "P/L"
The actual "realized" gain or loss resulting fromtrading activities on Closed Positions, plus the theoretical "unrealized" gain or loss on Open Positions that have been Mark-to-Market.
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