Spread 

The forex spread is the difference between a forex broker's sell rate and buy rate when exchanging or trading currencies. Spreads can be narrower or wider, depending on the currency involved, the time of day a trade is initiated, and various economic or market conditions.

Pip

A pip (percentage in point) represents the change in value between two currencies. For example, if the EUR/USD moves from 1.2250 to 1.2251 it has moved by 0.0001 or one Pip (1.2251 – 1.2250 = 0.0001).

Tick

A tick is the smallest increment an individual instrument can move. It is similar to a pip, but it may not measure every increment equally. For example, a tick on one instrument may be measured in increments of 0.0001, whereas another instrument may be measured in increments of 0.25.

Point 

A point is a shift in the dollar amount. For example, if a share price went from $25 to $30, traders would say it has moved 5 points. In forex, a point is used to refer to the 5th decimal place. Please note: On the MT4/MT5 trading platform, spreads are shown in points (1 pip = 10 points).

Lots

A lot represents a unit of a particular instrument being traded, with different minimum and maximum lot sizes applicable to different products.

Most forex pairs can be traded from a minimum of 0.01 lots (also known as a microlot), regardless of the account type. The maximum trade size varies between 100 lots for major currency pairs, 50 lots for minor currency pairs, and 20 lots for exotic currency pairs. For other instruments, the maximum and minimum lot sizes varies as follows:

• Commodity Cash CFDs: Minimum of 1 lot and a maximum of 400 lots.
• Bullion Spot CFDs: Minimum trade sizes start from a micro lot (0.01) and can go up to 20 lots.
• Commodity Future CFDs: Similar to Bullion Spot CFDs, minimums start from micro lots (0.01) but with a lower maximum of 10 lots (depending on the specific commodity).
• Index Cash CFDs: Minimum trade size is fixed at 1 lot, while the maximum varies by index, reaching up to 1000 lots for some.
• Index Futures CFDs: Micro lot (0.01) is the minimum entry point. The maximum trade size is typically 10 lots, with an exception for the China50.fs index, which allows up to 20 lots.