TRADING BASICS
Glossary and FAQ
Glossary
- Break even (BE)
- The point where the trade is neither in profit nor loss. Set BE: move the Stop Loss to your entry. Close at BE: close the trade right away at the entry price.Watch lesson
- BUY / SELL
- The trade direction. BUY means you expect price to rise. SELL means you expect it to fall.Watch lesson
- Demo account
- A practice account with virtual money. Use it until the basics feel obvious before trading real money.
- Entry zone
- The price area where the position is opened, either in layers or as one trade.Watch lesson
- Layering
- Opening the position in several parts at different prices inside the entry zone, usually 10 to 25 pips apart. The total risk is split across layers, not increased.Watch lesson
- Leverage
- Lets you open a position larger than your account. It magnifies both gains and losses, which is why position size and the Stop Loss matter.
- Lot
- The unit of trade size. On gold 1 lot is 100 ounces and 0.01 lots is one ounce. The bigger the lot, the more one pip moves your account.Watch lesson
- Margin
- The collateral your broker sets aside from your account to keep a position open.
- Margin call
- When your account equity falls too close to the margin in use. The broker warns you and may start closing positions automatically.
- MT5 (MetaTrader 5)
- The trading app used to open and close trades. Works on phone and computer.
- Pip
- The smallest commonly used unit of price movement. On gold one pip is 0.10 dollars of price, so a one dollar move is 10 pips.Watch lesson
- Position size
- How many lots you trade. The signal gives the levels, you choose the size, and the size decides the risk.Watch lesson
- Risk free trade
- A trade whose Stop Loss has been moved to the entry. A loss is no longer possible, but profit is still open.Watch lesson
- Risk management
- Rule of thumb on gold: at most 0.01 lots for every 100 euros in the account. Risk is always measured up to the Stop Loss.Watch lesson
- Spread
- The difference between the buy and sell price. That is why every trade starts slightly negative.
- Stop Loss (SL)
- A preset price level where the trade closes automatically if price turns against you. It caps the maximum loss before the trade. Always set one.Watch lesson
- Swap
- A small interest charge or credit on positions held open overnight.
- Take Profit (TP)
- A preset price level where the trade closes automatically in profit. The target is decided in advance, not mid trade.Watch lesson
- TP1, TP2, TP3, TP4
- The signal's four profit targets in order, nearest first. Four positions are opened, each with its own TP.Watch lesson
- XAUUSD
- Gold priced in US dollars.Watch lesson
Frequently asked questions
Do I need a Stop Loss every time?
Yes, on every trade without exception. Without one, a single trade can take the whole account.
How big should my position be?
On gold at most 0.01 lots per 100 euros in the account. About 0.05 lots on 500 euros, about 0.10 lots on 1000 euros. Start on a demo account.
How much is one pip worth?
It depends on your position size. On gold about 0.10 dollars at 0.01 lots, about 1 dollar at 0.10 lots and about 10 dollars at 1 lot.
Does layering increase my risk?
Not if done right. The same position size is split across the layers, for example 0.10 lots as 0.03, 0.03 and 0.04.
What does BE mean in a group message?
Set BE: move your Stop Loss to the entry, making the trade risk free. Close at BE: close the trade, or the part asked for, right away at the entry price.
May I move my Stop Loss if the trade goes against me?
No. The Stop Loss is not moved on your own unless the trader says so.
What if price has already left the entry zone when I see the signal?
Do not chase the price. At a worse price the risk and reward no longer match the signal. Follow the group's instructions.
Can I start with no experience?
Yes. Watch the Trading basics videos, take the quiz and practise on a demo account until it feels obvious. Only then use real money.
Why is my application pending?
Every application is checked by hand. Your first name, last name, UID, phone number and email must match your Vantage account exactly. You can fix them on your application status page.
Does following the signals guarantee profit?
No. Trading always carries a risk of loss, and you can lose the money you put in. Only trade money you can afford to lose.