Professional terminology that must be known when conducting foreign exchange transactions，Introduction to Fundamentals of Foreign Exchange Trading：

Hand count

Unlike the calculation method where one hand equals 100 shares in stock trading, in foreign exchange trading, one hand represents 100000 benchmark currencies. For example, if you long one hand in EUR/USD, it is equivalent to long 100000 euros and short 100000 dollars.

The mini hand represents the 10000 base currency. For example, if you long 1 mini hand EUR/USD, you are equivalent to long 10000 euros and short 10000 dollars.

Spread 

Similar to the stock market, each exchange rate has two quotes, the buy price (seller's price) and the sell price (buyer's price). The difference between the two prices is called the spread. Generally speaking, a currency pair with a lower spread has higher liquidity.

commission

For some platforms, not only do they need to pay the spread cost, but they also need to pay a certain amount of commission. The commission size is often related to the size of the trading position, and specific platform policies need to be checked.

Overnight interest

Any position held after 5pm New York time is considered to be held overnight. When the interest rate of the purchased currency is higher than that of the sold currency, traders can earn overnight interest. When the interest rate of the purchased currency is lower than that of the sold currency, traders need to pay overnight interest. Different trading platforms have different policies and preferential rules for overnight interest. Please refer to the specific webpage.

Buy (long)

Apples cost 3 yuan each, and you bought 2. This is a simple buy, also known as long buying.

Sell (Ping Duo Cang)

When an apple costs 5 yuan each, you sell the apples you previously bought for 3 yuan each. This is a simple sell, also known as closing the long position. It is worth noting that only if you have bought apples before can you sell them now.

Short selling

When the apples cost 5 yuan each, you borrow 2 apples from farmer Uncle A and sell them at a price of 5 yuan each. This is a short selling, and the difference from simple selling is that the short selling chips are borrowed from others (to be repaid later), while the selling chips are what you have in your own hands.

Closing positions (buying to close positions)

When an apple costs 3 yuan each, you buy 2 apples from farmer B and return them to farmer A, which is a short position closing behavior, also known as buying to close the position.