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Trader’s glossary
Key market terms in plain words. Start typing a word or choose a section.
Terms: 42
- 10-K / 10-Q Economy
- Annual and quarterly financial reports of US public companies in the SEC EDGAR database.
- Ask Basics
- The seller’s price — you buy at it. Always higher than Bid by the spread.
- Bid Basics
- The buyer’s price — you sell and close buys at it.
- Breakout Analysis
- The price moving and holding beyond a support or resistance level.
- Central bank rate Economy
- The price of money in the economy. A rate hike usually strengthens the currency.
- CFD Basics
- Contract for difference: the trade result follows the asset’s price change, but you do not buy the asset itself.
- Currency pair Basics
- The rate of one currency against another. The first is the base, the second the quote: EUR/USD = how many dollars a euro costs.
- Drawdown Risk
- The decline of an account from peak to trough, in percent.
- Equity Risk
- The balance plus the current result of open positions.
- Fibonacci levels Analysis
- Levels at 23.6%, 38.2%, 50% and 61.8% of a price move where pullbacks often end.
- Gap Orders
- A price jump with no trades between levels — often after weekends or news.
- GDP Economy
- The value of all goods and services a country produces in a period. The main measure of growth.
- Hawks and doves Economy
- “Hawks” favour high rates to fight inflation, “doves” favour low rates to support growth.
- Hedging Risk
- Opening an opposite position to reduce the risk of an existing one.
- Inflation (CPI) Economy
- The rise in consumer basket prices. High inflation pushes central banks to raise rates.
- Japanese candlestick Analysis
- A way to show the price for a period: open, high, low and close.
- Leverage Risk
- A loan from the broker that lets you open a trade larger than your own funds. It multiplies both profit and loss. We trade without leverage by default; leverage only on a separate request, subject to conditions.
- Limit order Orders
- A pending order to enter at a better price: Buy Limit below the market, Sell Limit above it.
- Liquidity Basics
- The ability to buy or sell an asset quickly without noticeably moving the price.
- Long position Basics
- Buying in expectation of a price rise.
- Lot Basics
- The standard trade size. In forex 1 lot = 100,000 units of the base currency.
- Margin Risk
- The amount locked on the account while a position is open. Without leverage it equals the trade value.
- Market order Orders
- A trade at the current price, executed immediately.
- Moving average Analysis
- The average price over the last N candles. Smooths noise and shows direction.
- NFP Economy
- The number of new US non-farm jobs. Released on the first Friday of the month.
- Pip Basics
- The smallest meaningful price change: 0.0001 for most currency pairs, 0.01 for yen pairs.
- PMI Economy
- Purchasing Managers’ Index. Above 50 means growth, below 50 contraction.
- Resistance Analysis
- A level where price rises have repeatedly stopped.
- Risk per trade Risk
- The share of the deposit you lose if the Stop Loss triggers. 1–2% is recommended.
- Safe-haven assets Economy
- Assets investors flee to in crises: gold, the Swiss franc, the yen, US Treasuries.
- Short position Basics
- Selling in expectation of a price fall.
- Slippage Orders
- Execution at a price different from the requested one — usually during sharp market moves.
- Spread Basics
- The difference between Ask and Bid. The main cost of opening a trade.
- Stop Loss Orders
- The level at which a position closes with a limited loss.
- Stop order Orders
- A pending order to enter on a breakout: Buy Stop above the market, Sell Stop below it.
- Stop Out Risk
- Forced closing of positions when the margin level falls to the set minimum.
- Support Analysis
- A level where price declines have repeatedly stopped.
- Swap Basics
- A charge or credit for holding a position overnight. Depends on the interest rate differential.
- Take Profit Orders
- The level at which a position closes with the planned profit.
- Timeframe Analysis
- The period of one candle on the chart: from a minute to a month.
- Trend Analysis
- A persistent direction of price movement: up, down or sideways.
- Volatility Basics
- The range of price swings. High volatility means more opportunity and more risk.
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