What Is a Pip in Trading? Definition, Decimal Places, and Pip Value Calculation
A pip is the smallest standardised price move in a tradeable instrument. What it means in forex, commodities and indices, and how to calculate pip value.
Read definitionRisk Warning: Forex and CFDs are complex instruments and require knowledge of the risks involved. Losses are likely to exceed potential profits and may exceed your initial deposit. Prices may fluctuate and securities may become valueless. Do not deposit money you cannot afford to lose.
Plain-English definitions of the core CFD and forex mechanics, from spreads and margin to pips, lots, swaps, and slippage.
A pip is the smallest standardised price move in a tradeable instrument. What it means in forex, commodities and indices, and how to calculate pip value.
Read definitionA lot is a standardised unit of trade size in forex and CFDs. Standard, mini and micro lots, plus contract sizes for gold, silver, oil and indices.
Read definitionA swap is the overnight financing charge or credit applied to a CFD position held past rollover. See live Vanto swap values and how triple-swap day works.
Read definitionThe spread is the difference between the bid and ask price, the built-in cost of opening a CFD position. See live Vanto spreads across forex, gold, and indices.
Read definitionMargin is the deposit required to open and hold a leveraged CFD position. Learn used margin, free margin, margin level, and how margin calls and stop-outs work.
Read definitionSlippage is the gap between the price you expected and the price your order actually filled at. Learn positive vs negative slippage and what drives it on MT5.
Read definitionLeverage is the ratio of a position's size to the deposit behind it. What 1:100 means, how it differs from margin and how it scales both gains and losses.
Read definitionHawkish means a central bank leans toward tighter policy and higher rates, dovish toward easier policy. Learn the signal words and why surprises move markets.
Read definitionThe margin one lot locks on every Vanto instrument at the maximum leverage of its class, from the live September 2026 feed.
Read definitionA CFD pays the price difference between opening and closing a position, with no ownership of the asset. Three worked Vanto examples.
Read definitionThe risk-reward ratio compares what a trade risks with what it targets. Break-even and spread-drag tables show why win rate matters too.
Read definitionA buy limit buys below the current price, a buy stop buys above it. How all six MT5 pending orders trigger, why buys fill on the Ask, and what happens on a gap.
Read definitionA hedging account in MT5 keeps every trade as a separate position; a netting account merges them. How each mode works, what locking costs, and Close By.
Read definitionYoY means year-over-year: change against the same period a year earlier. How it differs from MoM, what base effects do, and why forex reacts to the surprise.
Read definitionA trailing stop moves the stop loss behind the price as a trade gains. How it works in MT5, a worked gold example, and why it stops when the terminal closes.
Read definitionMinimum lot size is the smallest position an instrument accepts, set per symbol not per account. Why it is 0.01 on forex, 40 on Dogecoin and 10 on the VIX.
Read definitionContract size is the amount of the underlying one lot represents. How it sets notional value, point value and margin, with figures per Vanto asset class.
Read definitionThe stop-out level is the margin level at which positions close automatically. Vanto's is 50% on both accounts. How it is calculated and how close it is.
Read definitionTriple swap day is the weekly rollover that books three days of financing: Wednesday for forex and metals, Friday for indices and energy, never for crypto.
Read definitionOpen an MT5 account with Vanto and start trading forex, indices, commodities, and cryptocurrencies.