Trading Glossary

A comprehensive reference of trading and financial terms used across NEOMAAA's platform and documentation.

Ask Price

The price at which a trader can buy an asset. Also called the offer price. The ask is always higher than the bid.

Bid Price

The price at which a trader can sell an asset. The bid is always lower than the ask.

Spread

The difference between the bid and ask price of an instrument. Spreads can be fixed or floating. NEOMAAA offers floating spreads that vary with market conditions.

Pip

The smallest standard price movement in a currency pair. For most pairs, one pip equals 0.0001 (the fourth decimal place). For JPY pairs, one pip is 0.01.

Lot

A standardized unit of measurement for trade size. A standard lot in forex equals 100,000 units of the base currency. Mini lots (10,000), micro lots (1,000), and cent lots are also available.

Leverage

A mechanism that allows traders to control a larger position with a smaller amount of capital. Expressed as a ratio (e.g., 1:100). Leverage amplifies both potential profits and losses.

Margin

The amount of capital required to open and maintain a leveraged position. Margin = (Contract Size × Lot Size × Price) ÷ Leverage.

Margin Call

A warning triggered when account equity falls below a specified percentage of used margin. At NEOMAAA: 50% (Cent/Standard), 60% (Raw), 80% (Institutional).

Stop-Out

The equity level at which positions are automatically closed to prevent further losses. Positions are closed starting from the largest losing trade.

Stop Loss (SL)

An order that automatically closes a position when the price reaches a specified loss level. Essential for risk management.

Take Profit (TP)

An order that automatically closes a position when the price reaches a specified profit level, locking in gains.

Swap (Rollover)

An overnight interest charge or credit applied to positions held past the daily rollover time. Swap rates vary by instrument, direction (long/short), and are published in the trading conditions.

CFD (Contract for Difference)

A derivative that allows traders to speculate on price movements without owning the underlying asset. Profits or losses are based on the difference between opening and closing prices.

ECN (Electronic Communication Network)

A system that aggregates prices from multiple liquidity providers to offer competitive bid/ask quotes. NEOMAAA uses an ECN/STP hybrid model.

STP (Straight Through Processing)

An execution method where orders are routed directly to liquidity providers without a dealing desk. Reduces potential conflicts of interest.

Slippage

The difference between the expected execution price and the actual fill price. Slippage can be positive or negative and typically occurs during volatile markets or low liquidity.

Volatility

A statistical measure of the dispersion of price movements. Higher volatility means larger price swings and potentially greater risk and opportunity.

Liquidity

The degree to which an asset can be bought or sold without significantly affecting its price. Major forex pairs (e.g., EUR/USD) are highly liquid.

Long Position (Buy)

A trade opened with the expectation that the price will rise. The trader profits if the asset price increases.

Short Position (Sell)

A trade opened with the expectation that the price will fall. The trader profits if the asset price decreases.

Equity

The total value of a trading account, calculated as Balance + Unrealized P/L. Equity fluctuates with open positions.

Balance

The total amount of funds in a trading account excluding unrealized profits or losses from open positions.

Drawdown

The decline in account equity from a peak to a trough. Maximum drawdown measures the largest such decline and is a key risk metric.

Expert Advisor (EA)

An automated trading program that runs on MetaTrader 5. EAs can analyze markets, generate signals, and execute trades without manual intervention.

MetaTrader 5 (MT5)

A multi-asset trading platform developed by MetaQuotes. NEOMAAA exclusively uses MT5 for desktop, web, and mobile trading.

Scalping

A trading strategy that involves making many small trades over short time periods to capture small price movements. Scalping is permitted on all NEOMAAA accounts.

Hedging

Opening an opposite position on the same instrument to reduce exposure to price risk. MT5 supports hedging mode.

Major Currency Pair

A forex pair that includes the US dollar and one of the other most traded currencies (EUR, GBP, JPY, CHF, CAD, AUD, NZD). Major pairs have the highest liquidity.

Minor Currency Pair

A forex pair that does not include the US dollar but features other major currencies (e.g., EUR/GBP, AUD/NZD). Also called cross pairs.

Exotic Currency Pair

A forex pair combining a major currency with a currency from a developing economy (e.g., USD/TRY, EUR/ZAR). Exotics typically have wider spreads and higher volatility.

XAUUSD (Gold)

The trading symbol for gold priced in US dollars. One of the most actively traded precious metals in CFD markets.

Negative Balance Protection

A safeguard that prevents retail accounts from owing more than their deposited funds. If the account goes negative, it is reset to zero. Available on Cent, Standard, and Raw accounts at NEOMAAA.

Vault Yield System

A NEOMAAA feature allowing clients to allocate funds to a protected vault excluded from trading margin. Eligible activity may unlock yield credit up to 5% p.a. (indicative). Discretionary, not guaranteed.

Copy Trading

A feature that allows traders to automatically replicate the trades of experienced signal providers. Past performance does not guarantee future results.

VPS (Virtual Private Server)

A remote computer that runs trading software 24/7 without relying on the trader's personal device. Essential for running Expert Advisors continuously.

Order Types

MetaTrader 5 supports market orders (instant execution), limit orders, stop orders, stop-limit orders, and trailing stops.

Contract Size

The deliverable quantity of a financial instrument per lot. For forex, a standard lot = 100,000 units. Cent accounts use 100x smaller contracts.

Pip Value

The monetary value of a one-pip movement for a given position size and instrument. Depends on the lot size and account currency.

Fundamental Analysis

A method of evaluating assets by studying economic data, earnings reports, central bank policies, and geopolitical events that affect supply and demand.

Technical Analysis

A method of predicting price movements using historical price data, chart patterns, and technical indicators like moving averages, RSI, and MACD.

Bear Market

A market condition characterized by falling prices, typically defined as a decline of 20% or more from recent highs. Traders may short-sell in bear markets.

Bull Market

A market condition characterized by rising prices and general optimism. Traders typically go long in bull markets.

Resistance

A price level where selling pressure historically prevents further upward movement. Used in technical analysis to identify potential reversal points.

Support

A price level where buying pressure historically prevents further downward movement. A break below support may signal further declines.

Risk/Reward Ratio

The ratio of potential loss to potential gain in a trade. A 1:2 risk/reward ratio means risking $1 to potentially gain $2. Disciplined traders target favorable ratios.

Gap

A price jump between the close of one session and the open of the next, with no trading occurring in between. Gaps are common after weekends and during high-impact news.

DMA (Direct Market Access)

An order routing method that sends trades directly to the order books of liquidity venues. Available on Institutional accounts at NEOMAAA.

FIX API

Financial Information eXchange protocol — an industry-standard messaging format for electronic trading. Used by institutional clients for low-latency, high-frequency connectivity.

AML (Anti-Money Laundering)

A set of regulations and procedures designed to prevent the use of financial systems for money laundering. NEOMAAA complies with AML requirements as part of its AOFA regulatory obligations.

KYC (Know Your Customer)

The process of verifying a client's identity before allowing account opening. Requires government-issued ID and proof of address.