Trading Glossary

The price at which a seller is willing to sell an asset. Also known as the offer price.

The price at which a buyer is willing to purchase an asset.

A market condition where prices are rising or are expected to rise.

A market condition where prices are falling or are expected to fall.

A financial derivative that allows traders to speculate on price movements without owning the underlying asset.

The use of borrowed capital to increase the potential return of an investment.

The amount of money required to open and maintain a leveraged trading position.

The smallest price move that a currency pair can make, typically 0.0001 for most pairs.

The difference between the bid and ask price of an asset.

An order placed to automatically close a position when it reaches a certain price level to limit losses.

An order placed to automatically close a position when it reaches a certain profit level.

A measure of how much the price of an asset fluctuates over time.

The ease with which an asset can be bought or sold without affecting its price.

The study of historical price data and charts to predict future price movements.

The analysis of economic factors and company financials to determine an asset's intrinsic value.

Buying an asset with the expectation that its price will rise.

Selling an asset with the expectation that its price will fall.

A technical indicator that smooths out price data by creating a constantly updated average price.

A momentum indicator that measures the speed and magnitude of price changes.

A price level where buying pressure is expected to prevent further decline.

A price level where selling pressure is expected to prevent further rise.

The interest earned or paid for holding a position overnight.

The difference between the expected price of a trade and the actual executed price.

The practice of buying and selling assets within the same trading day.