“The quote my LP is giving me has a much different bid and ask than your quote, maybe I should short the pair and hope to make up some lost margin if the market goes on a bear trend towards your quote.” This type of conversation goes on daily, probably not in your living room. It’s happening somewhere. Knowing the jargon of the trading world, and even more so, the specific security you're trading, will help you understand exactly what's happening and how it affects what you're doing in the markets. Trader on the Street is one of the best ways to quickly pick up on different jargon terms and how to appropriately use them. They go through live trading discussions and discuss what they mean.
Margin and Free Margin are standard FOREX jargon you'll hear thrown around. But what do they mean and how do they effect you? Lets start with your leverage: