Trading Glossary
Quickly understand essential trading terms and concepts with our easy-to-use glossary.
account equity
the total value of a trader's account, including both profits and losses from open positions.
ask price
the price at which a seller is willing to sell an asset. it is typically higher than the bid price.
asset
an item of value that can be traded, such as stocks, bonds, currencies, or commodities.
atr (average true range)
a technical indicator that measures market volatility by calculating the average range between high and low prices over a specified period.
bear market
a market characterized by falling asset prices. investor sentiment is pessimistic, and selling activity increases.
bearish
a market sentiment where traders expect prices to fall, leading them to sell assets.
bid price
the price at which a buyer is willing to purchase an asset. it is typically lower than the ask price.
broker
an individual or firm that facilitates the buying and selling of assets for traders and investors.
bull market
a market characterized by rising asset prices. investors are optimistic, leading to increased buying activity.
bullish
a market sentiment where traders expect prices to rise, leading them to buy assets.
buy stop order
an order to buy an asset when its price reaches a specified level, typically above the current market price.
candlestick chart
a type of chart used in technical analysis that shows the open, close, high, and low prices within a given time period. each "candlestick" represents a specific time frame.
capital gain
the profit made from selling an asset at a higher price than its purchase price.
capital loss
the loss incurred when an asset is sold for less than its original purchase price.
cfd (contract for difference)
a financial contract that allows traders to speculate on the price movement of an asset without actually owning it.
chart patterns
geometric shapes on a price chart, such as head and shoulders or double top, used to predict future price movements.
charting
the process of creating visual representations of price movements over time using various types of charts like candlestick, bar, and line charts.
commission
a fee paid to a broker for executing a trade on behalf of the trader.
currency pair
the two currencies being traded in the forex market, with one being bought and the other being sold (e.g., eur/usd).
day trading
the practice of buying and selling assets within the same trading day, with no positions held overnight.