Key Trading Terms

What does the ask price mean?

Last updated: March 19, 2026

The ask price is the lowest price a seller is willing to accept for a currency pair. It is displayed on the right side of a quote.

Example: If GBP/USD is quoted as 1.3200 / 1.3203, then 1.3203 is the ask price.

In the Verodus simulated trading environment, ask prices replicate real market behavior.

What does the bid price mean?

Last updated: March 19, 2026

The bid price is the highest price a buyer is willing to pay for a currency pair. It is displayed on the left side of a quote.

Example: In the quote 1.3200 / 1.3203, 1.3200 is the bid price.

Verodus mirrors real-market bid pricing within its simulation.

What are the most important things to remember about bid and ask?

Last updated: March 19, 2026

  • Bid: Highest price a buyer offers
  • Ask: Lowest price a seller accepts
  • The difference between them is called the spread

Tighter spreads generally indicate higher liquidity. These mechanics are fully replicated within the Verodus trading simulator.

What causes slippage and how does it affect me?

Last updated: March 19, 2026

Slippage occurs when an order is executed at a different price than requested. This typically happens during:

  • High volatility
  • News events
  • Low liquidity conditions

Slippage can result in either a better or worse execution price.

Example: A take-profit set at 1.0850 may execute at 1.0847 (better) or 1.0854 (worse).

Verodus includes realistic slippage modeling to reflect live trading conditions.

What is a swap and why do I pay or receive it?

Last updated: March 19, 2026

A swap (rollover or overnight interest) reflects the interest rate differential between the two currencies in a pair.

  • Applied when positions are held past the daily rollover time
  • Can result in either a cost or a credit

Swap values can be viewed in Platform 5 under:

  • Mobile: “Properties”
  • Desktop: “Specification”
Why is there a triple swap charge?

Last updated: March 19, 2026

A triple swap is applied once per week (typically Wednesday) to account for the weekend holding period (Friday through Monday).

  • Charged or credited at approximately 3× the standard daily rate
When does rollover happen and why do spreads widen?

Last updated: March 19, 2026

Rollover occurs at the end of each trading day when open positions are carried forward.

  • Liquidity typically decreases
  • Volatility may increase
  • Spreads often widen temporarily

This behavior is accurately simulated within Verodus.

What is margin and how much do I need?

Last updated: March 19, 2026

Margin is the portion of your account balance reserved as collateral to maintain open positions.

It depends on:

  • Position size
  • Leverage
  • Instrument traded

Excessive margin usage can restrict your ability to open additional trades.

What leverage level does Verodus provide?

Last updated: March 19, 2026

Verodus provides up to 1:100 leverage for instruments.

  • Enables larger position exposure with less capital
  • Increases both potential gains and potential losses

All trading must remain within defined drawdown limits.

What exactly is equity?

Last updated: March 19, 2026

Equity represents the real-time value of your account:

Equity = Balance ± Unrealized (floating) P&L

This is the primary metric used to monitor drawdown limits in both evaluation and funded accounts.

What is spread and why does it matter?

Last updated: March 19, 2026

Spread is the difference between the bid and ask price, measured in pips.

Example: If USD/JPY is quoted 149.50 / 149.53, the spread is 3 pips.

  • Trades must first overcome the spread to reach break-even
  • Spreads are tighter during high liquidity periods
  • Spreads widen during news events, holidays, and rollover

Verodus uses competitive, realistic spreads that reflect live-market conditions.