“Going long” means you're betting the price will rise.

About this quiz

Trading jargon does real damage to beginners, and not only because it is confusing. It creates a gap between what you think you agreed to and what you actually signed up for. Someone who does not know what a spread is cannot compare two brokers on cost. Someone unclear on margin does not understand what a stop-out means until it happens to their account.

This quiz covers the vocabulary that appears in broker documents and platform screens: pips, spreads, leverage, margin, lots, swaps and stop-losses. The goal is not fluency for its own sake — it is being able to read a broker's fee schedule and account terms and understand exactly what you will be charged and under what circumstances your positions can be closed without your say-so.

Key takeaways

A pip is the standard unit of price movement; pip value scales with position size.
The spread is the gap between buy and sell price — a cost you pay on every trade.
Margin is the deposit your position requires; a stop-out closes trades when it runs low.
Swap fees apply to positions held overnight and add up on longer holds.