— Glossary
Every term, clear.
Trading Terms Glossary
41 terms
A
Ask
The buy price of a financial product — the price level at which an investor can purchase it.
B
Bid
The sell price of a financial product — the price level at which an investor can sell it.
Bull Market
A market condition in which prices are generally trending upward.
Bear Market
A market condition in which prices are generally trending downward.
C
CFD
Contract for Difference — a financial product that lets you profit from price movement without physically owning the underlying asset.
Crypto CFD
A trading product that lets you profit from the price movements of digital assets without physically owning them.
D
Drawdown
The percentage or amount by which an account declines from its highest value to its lowest value.
Day Trading
A trading strategy in which positions are opened and closed within the same day, avoiding overnight carrying costs.
E
Economic Calendar
A tool showing the dates and times of developments — such as interest rate decisions, inflation data, and employment reports — that can affect the markets.
Execution
The process by which an order is carried out in the market; speed and price quality affect execution quality.
F
Forex
The global currency market where the world's currencies are bought and sold, open 24 hours a day, 5 days a week.
H
Hedging
A strategy of opening an offsetting position to balance the risk of an existing position.
I
Index
A financial product tracking the average performance of a selected group of shares on an exchange, tradable as a CFD.
L
Leverage
A trading mechanism that allows an investor to open a position larger than the collateral they hold.
Liquidity
The ease with which an asset can be bought or sold quickly without a loss in value.
Long Position
A buy-side position opened in expectation that the price will rise.
Lot
The standard unit of measurement for trade size in the forex market (standard/mini/micro lot).
M
MACD
A technical indicator that tracks the relationship between two moving averages to signal trend changes.
Margin
The amount of collateral required in an account to open and maintain a leveraged position.
Margin Level
The ratio of account equity to margin used, tracked to monitor the risk of open positions.
Margin Call
A warning notice sent to an account holder when the margin level falls below a set threshold.
Micro Lot
A trade size of 1,000 units, suited to smaller accounts.
Mini Lot
A trade size of 10,000 units.
N
NFP (Non-Farm Payrolls)
A high-impact monthly economic report on the state of the U.S. labor market.
O
Order
An instruction submitted to a trading platform to open or close a position.
P
Pip
The smallest standard unit of price movement for a currency pair.
PMI
Purchasing Managers' Index — a leading indicator measuring economic activity in the manufacturing and services sectors.
Position
An open buy or sell trade held by an investor in the market.
R
Resistance Level
A zone where price tends to meet selling pressure during a rally.
S
Support Level
A zone where price tends to meet buying pressure during a decline, often slowing the downward move.
Slippage
The execution of an order at a price different from the one requested, caused by high market volatility or low liquidity.
Short Position
A sell-side position opened in expectation that the price will fall.
Spread
The difference between the buy price (Ask) and the sell price (Bid); one of the core components of trading cost.
Standard Lot
A trade size of 100,000 units.
Stop Loss
An order that automatically closes a position once the market price reaches a level set by the investor.
Swap
The overnight carrying cost or credit that may be applied to an account when a position is carried over to the next day.
T
Take Profit
An order type that automatically closes an open position once the price reaches the investor's target level.
Technical Indicator
A mathematical tool calculated from historical price and volume data to help evaluate likely price movements.
Trend
The general direction — up, down, or sideways — that a price sustains over time.
V
Volume
The total amount of trading activity that occurs over a given period.
Volatility
The degree of price fluctuation over a given period.
Educational content is for general information purposes only and does not constitute investment advice.
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