brokers
Pip – Pip is one of the most common terms you will hear. A pip refers to the smallest amount of movement a currency pair can make. So for example, if the EUR/USD goes from 1.3428 to 1.3429, that one pip. You could say “the EUR/USD moved one pip.” If it goes from 1.3428 down to 1.3400, you could say “the EUR/USD went down 28 pips.”
Leverage – Leverage refers to using borrowed money. Assume you have $10,000 to invest. If you buy $10,000 of something and it doubles, you now have $20,000.
But sometimes your broker will loan you money (which you must pay interest on). If you have $10,000 and your broker loans you another $10,000, you can now buy $20,000 worth of something. If it doubles your account is now worth $40,000. Remember that you must pay back the borrowed money ($10,000) so you get to keep $30,000 of the $40,000 after you pay back the $10,000 loan.