Points, Pips
The term used in currency market to represent the smallest incremental move an exchange rate can make. Depending on context, normally one basis point (0.0001 in the case of EUR/USD, GBD/USD, USD/CHF and .01 in the case of USD/JPY).
Position
A binding commitment to buy or sell a given amount of financial instruments, such as securities, currencies or commodities, for a given price.
It can refer to the amount of a currency either bought or sold by an investor.
Premium
In the currency markets, it is the amount of points added to the spot price to determine a forward or futures price.
Profit/Loss (P&L)
The actual "realized" gain or loss resulting from trading activities on Closed Positions, plus the theoretical "unrealized" gain or loss on Open Positions that have been Mark-to-Market.
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