Trading Glossary+339

A-Book is a forex execution model where the broker routes client orders directly to external liquidity providers, earning via spreads or commissions rather than taking the opposite side of client trades.

Account balance is the amount of funds currently in a trading account, excluding unrealized profit or loss from open positions.

An account extension is an additional time period a trader can purchase or obtain to extend a trading challenge or evaluation before it expires.

The account number is a unique identifier assigned to each trading account by a broker or prop firm.

An account reset restores a trading evaluation or challenge account back to its initial balance and rules, usually for a fee and under specific conditions.

Aggregated refers to financial or order data that has been combined from multiple sources or venues into a single stream, such as aggregated liquidity or aggregated volumes.

Agriculture, in trading, refers to agricultural commodities such as wheat, corn, soybeans, coffee, or cotton that are traded on commodity markets.

Algorithmic trading uses computer algorithms to automatically generate and execute trading orders based on predefined rules, often at high speed and frequency.

An all-time high is the highest price an asset has ever reached, often watched as a key psychological level where new buyers and profit-takers compete.

Alpha is the return a strategy or portfolio generates above its expected benchmark return, representing the value added by skill rather than overall market movement.

Anti-Money Laundering (AML) refers to laws and procedures that require brokers and financial firms to detect, prevent, and report attempts to disguise illegally obtained funds as legitimate trading activity.

An API is a software interface that allows external applications, trading bots, or platforms to connect to a broker or exchange to send orders and receive market data programmatically.

Arbitrage is a strategy that seeks to profit from price differences of the same or related assets across different markets or instruments, typically with low risk and short holding periods.

ASIC is Australia's financial regulator, overseeing brokers, markets, and financial services to protect investors and enforce fair conduct.

The ask price is the lowest price at which a seller is willing to sell an asset at a given moment.

An asset class is a category of financial instruments, such as equities, bonds, forex, commodities, indices, or cryptocurrencies, that share similar characteristics and behave similarly in the market.

ATAS (Advanced Trading Analytical Software) is a professional trading and analytics platform, often used for order flow analysis and futures trading.

Average True Range (ATR) is a volatility indicator that measures the average range between high and low prices, including gaps, over a given period.

Augmented trading is an approach where human decision-making is combined with self-learning AI tools to improve analysis, execution, and risk management.

Average daily trading volume is the average number of shares or contracts traded in a security or market per day over a specified period.

The Average Directional Index (ADX) is a technical indicator that measures the strength of a trend, without indicating its direction.

B-Book is a broker model where the broker internalizes client trades, effectively taking the opposite side and not routing orders to external liquidity providers.

Backtesting is the process of evaluating a trading strategy using historical price data to see how it would have performed in the past.

A bear market is a prolonged period of declining prices, typically defined as a drop of 20% or more from recent highs in a major index or asset.

Bearish describes a market view or condition where prices are expected to fall.

Best execution is a regulatory duty requiring brokers to take all reasonable steps to obtain the most favourable result for clients' orders, considering price, costs, speed, and likelihood of execution.

Beta measures how much an asset's price moves relative to the overall market; a beta above 1 means it is more volatile than the market, below 1 means less.

The bid price is the highest price a buyer is currently willing to pay for an asset.

Bloomberg is a global financial data and news provider known for its professional terminal used by institutional traders and analysts.

The board of directors is a group of individuals elected to represent shareholders and oversee a company's management and strategic decisions.

Bollinger Bands are a volatility indicator made of a moving average with an upper and lower band placed a set number of standard deviations away, widening when volatility rises and narrowing when it falls.

Break of Structure (BOS) is a price-action/SMC concept where the market breaks a significant swing high or low, indicating a potential shift or continuation in trend.

The break-even point is the price level at which a trade or portfolio neither makes a profit nor incurs a loss after costs.

In SMC/ICT terminology, a breaker block is a prior order block that failed and was violated by price, which can later act as a zone of interest or support/resistance.

A breakout occurs when price moves beyond a key support, resistance, or consolidation area, often accompanied by increased volume and volatility.

Broker neutral refers to a trading platform or technology that can connect to multiple brokers or liquidity providers without being tied to one specific broker.

Bullish describes a market view or condition where prices are expected to rise.

A buy limit order is a pending buy order placed below the current market price, used to enter long positions at a better price during pullbacks.

A buy stop is a pending order placed above the current market price that triggers a buy position once price reaches the specified level, often used to enter breakouts.

Buying power is the amount of capital available to a trader to open new positions, including leverage if applicable.

A calendar spread is an options or futures strategy that involves buying and selling the same underlying with the same strike but different expiration dates.

A candlestick chart is a price chart where each candle shows the open, high, low, and close for a specific time period.

Capitulation is a phase of intense selling where traders or investors give up on maintaining positions, often marking a potential market bottom.

A carry trade is a forex strategy where a trader borrows in a low-interest-rate currency to invest in a higher-yielding currency, profiting from the interest rate differential.

A central bank is a national or supranational authority that manages a country's currency, money supply, and interest rates, and often oversees the banking system.

A Contract for Difference (CFD) is a derivative product where traders speculate on price movements without owning the underlying asset, settling only the difference between entry and exit prices.

The CFTC is the U.S. agency that regulates derivatives markets, including futures, options, and swaps, working to protect participants from fraud and manipulation.

Chaikin Money Flow (CMF) is a volume-weighted indicator that measures buying and selling pressure over a specified period.

Challenge duration is the time window allowed to complete a prop-firm or trading evaluation, meet profit targets, and respect risk rules.

A price channel is a chart pattern created by drawing parallel trendlines across swing highs and lows, showing the range within which price oscillates.

To close a position is to execute a trade that reduces or fully exits an existing open position, realizing profit or loss.

A closed market is a market that is not open to foreign participants or has strict controls on foreign capital flows.

A commodity is a basic raw material or primary agricultural product that is traded on exchanges, such as oil, gold, wheat, or coffee.

A commodity forward is a customized, over-the-counter contract to buy or sell a specific quantity of a commodity at a predetermined price on a future date.

The commodity market is where raw materials and primary products are traded via spot, futures, options, and other derivatives.

A commodity option is an options contract that gives the holder the right, but not the obligation, to buy or sell a specific commodity at a set price by a certain date.

A commodity swap is a derivative where two parties exchange cash flows, typically swapping fixed payments for payments linked to commodity prices.

Consolidation is a period when price moves sideways within a range, reflecting a balance between buyers and sellers before a likely breakout.

Financial contracts are legally binding agreements, such as swaps, forwards, futures, or options, that define rights and obligations to buy, sell, or exchange financial instruments.

Correlation measures the statistical relationship between two assets' price movements, ranging from -1 (inverse) to +1 (perfectly aligned).

The Consumer Price Index measures the average change in prices of a basket of consumer goods and services over time, serving as a key gauge of inflation that influences interest rate expectations.

A cross currency pair is a forex pair that does not include the U.S. dollar, such as EUR/JPY or GBP/CHF.

A cryptocurrency is a digital asset designed to work as a medium of exchange, using cryptography to secure transactions and control new unit creation.

The cup and handle is a bullish chart pattern with a rounded bottom (cup) followed by a smaller consolidation (handle) before a potential breakout upward.

Currency is the official monetary unit of a country or region, used as a medium of exchange in forex trading.

A currency pair quotes the value of one currency against another, for example EUR/USD, where the first is the base currency and the second is the quote currency.

A currency swap is a derivative where two parties exchange cash flows and principal in different currencies, often for hedging or funding reasons.

CySEC is Cyprus's financial regulator and a common licensing authority for forex and CFD brokers operating across the European Union under MiFID rules.

A dark pool is a private trading venue where large orders can be executed anonymously without being displayed in the public order book.

A day order is an order that is valid only for the current trading session and is cancelled if not filled by the end of the day.

Day trading is a style of trading where all positions are opened and closed within the same trading day, avoiding overnight exposure.

A demand zone is a price area where buying interest has historically been strong enough to stop declines and push price higher.

A demo account is a simulated trading account that allows traders to practice with virtual funds under live or delayed market conditions.

Depth of Market shows the available bid and ask orders at different price levels, revealing order book liquidity.

A derivative is a financial contract whose value is derived from the performance of an underlying asset, index, rate, or commodity.

Derivative trading involves buying and selling derivative contracts for speculation, hedging, or arbitrage purposes.

Divergence occurs when price moves in one direction while an indicator (such as RSI or MACD) moves in the opposite direction, often signaling a potential reversal.

Diversification is spreading capital across different assets, markets, or strategies so that the poor performance of one has a limited impact on the overall portfolio.

A doji is a candlestick whose open and close are almost identical, producing a very small body that reflects indecision between buyers and sellers and can signal a potential reversal.

The Dollar Index measures the value of the U.S. dollar against a basket of major foreign currencies, indicating the dollar's overall strength.

Donchian Channels plot the highest high and lowest low over a specified period, highlighting breakouts and volatility.

A double bottom is a bullish reversal pattern where price forms two similar lows and then breaks above the interim high.

A double top is a bearish reversal pattern where price forms two similar highs and then breaks below the interim low.

Drawdown is the decline from a peak in account equity or investment value to a subsequent low, usually expressed as a percentage.

Earnings refer to the profits generated by a company or, in trading, the realized gains from successful trades over a period.

An ECN broker connects traders directly to an electronic communication network of liquidity providers, offering tight spreads and transparent pricing.

An economic calendar lists scheduled macroeconomic data releases and events that can impact the financial markets.

Elder Force Index is a technical indicator that combines price direction, extent of price change, and volume to assess buying and selling pressure.

Elliott Wave Theory is a form of technical analysis that suggests markets move in repetitive waves driven by collective investor psychology.

An engulfing pattern is a two-candle reversal pattern where the second candle's body fully engulfs the previous candle's body, signaling potential reversal.

Equity is the sum of account balance plus or minus unrealized profit or loss from open positions.

ESMA is the European Union's financial markets regulator, known for harmonising rules across member states, including retail leverage caps and protections for forex and CFD traders.

An ETF is an investment fund that trades on an exchange like a stock and typically tracks an index, sector, commodity, or basket of assets, offering instant diversification with intraday liquidity.

A Eurobond is a bond issued in a currency different from the country or market where it is issued.

An exchange is an organized marketplace where securities, commodities, or derivatives are traded under regulated rules.

The exchange rate is the price of one currency expressed in units of another currency.

Expert advisor fee is a fee charged for automated trading programs or for professional advisory services in trading.

A Fair Value Gap is a price area, often seen as a gap between candles, where little to no trading occurred and that price may later revisit.

A fakeout, or false breakout, occurs when price briefly breaks a key level to lure traders in, then quickly reverses back, trapping those who entered on the move.

The FCA is the United Kingdom's financial regulator, supervising brokers and firms to ensure market integrity and protect consumers.

Fibonacci extensions are projected levels, based on Fibonacci ratios, used to estimate potential price targets beyond the current swing.

Fibonacci retracements are horizontal levels based on Fibonacci ratios used to identify potential support or resistance during a pullback.

Financial services are services provided by the finance industry, including banking, investment management, insurance, and brokerage.

In trading, a firm is a financial company such as a broker-dealer, prop firm, or asset management company.

A fixed interest rate stays constant over the life of a loan or bond, rather than fluctuating with market rates.

Flags and pennants are short-term continuation patterns following a strong price move, consolidating before the trend resumes.

A floating spread is a variable difference between bid and ask prices that changes with market conditions and liquidity.

The FOMC is the branch of the U.S. Federal Reserve that sets monetary policy and interest rates; its scheduled meetings and statements are major market-moving events.

A foreign exchange swap involves exchanging principal and interest payments in one currency for those in another, then reversing the exchange later.

Forex (foreign exchange) is the global market where currencies are traded against one another.

Fundamental analysis evaluates an asset's intrinsic value by studying economic data, financial statements, interest rates, and broader conditions, rather than chart patterns; it is the counterpart to technical analysis.

A funded account is a trading account backed by a prop firm's capital, given to traders who successfully pass an evaluation.

Funding refers to the capital provided to an account for trading, either from personal funds, investors, or a prop firm.

A funding fee is an upfront cost paid by traders to enter a prop firm challenge or obtain access to a funded evaluation account.

The funding rate is a periodic payment exchanged between long and short traders in perpetual futures markets, keeping the contract price aligned with the underlying spot price; longs pay shorts when it is positive and vice versa.

Futures are standardized contracts obligating the buyer to purchase, and the seller to sell, an asset at a set price on a future date.

A futures commission merchant is an entity that solicits and accepts orders to buy or sell futures contracts and accepts funds from customers.

Gambling is taking high-risk actions with money or assets in hopes of large gains, often without a solid strategy or edge.

A gap occurs when an asset's price opens significantly above or below the previous closing price, leaving a gap on the chart.

A gap trading strategy seeks to exploit price gaps, for example by fading or following the gap depending on context and volume.

Gross Domestic Product is the total value of goods and services produced by a country over a period, used as the broadest measure of economic activity and growth.

Gentoo is a Swiss investment company and partner in certain trading ecosystems; it is not a generic trading concept but a specific entity.

GmbH is a German abbreviation for a limited liability company (Gesellschaft mit beschränkter Haftung).

A golden cross occurs when a short-term moving average crosses above a long-term one, seen as bullish, while a death cross is the opposite crossover, seen as bearish.

A Good Till Cancelled order stays active across sessions until it is either executed or manually cancelled by the trader, unlike a day order that expires at the close.

Grid trading is a strategy that places buy and sell orders at regular price intervals, aiming to profit from price oscillations without predicting direction.

Gross market value is the sum of the absolute values of all outstanding derivatives positions, measuring overall exposure without netting.

A hammer is a bullish candlestick pattern with a small body and long lower wick, appearing after a decline and suggesting potential reversal.

A hanging man is a bearish candlestick pattern visually similar to a hammer but appearing after an uptrend, suggesting potential reversal.

Hawkish and dovish describe central bank stances: hawkish leans toward raising interest rates to fight inflation, while dovish leans toward lower rates to support growth.

The head and shoulders is a reversal chart pattern with three peaks, the middle one higher than the other two, indicating a potential end of an uptrend.

In trading, a heatmap visually represents data such as market performance or order book depth using color intensity.

A hedge fund is a pooled investment vehicle that often uses complex strategies, leverage, and derivatives to seek absolute returns.

A hedge fund manager is the entity or individual responsible for running a hedge fund's portfolio and investment strategies.

Hedging is opening a position designed to offset potential losses on another, reducing exposure to adverse price moves, for example shorting a correlated asset to protect a long position.

High-frequency trading uses powerful computers and ultra-low-latency connections to execute large numbers of orders in fractions of a second.

Hidden liquidity refers to non-displayed orders or parts of orders that do not appear in the public order book but can still be executed.

A high watermark is the highest peak in a fund's value used to calculate performance fees so managers are paid only on new profits.

An iceberg order is a large order split into smaller visible parts, with the full size hidden to reduce market impact.

Ichimoku Cloud is a technical indicator that provides support/resistance levels, trend direction, and momentum through multiple averaged lines and a shaded 'cloud' area.

An index product is a derivative or security based on an index, such as index futures, index options, or credit index products.

Inflation is the general rise in prices over time, which erodes purchasing power and influences central bank interest rate decisions that move financial markets.

An inside bar is a candlestick pattern where the entire range of the bar is within the high and low of the previous bar, indicating consolidation.

Insider trading is the illegal practice of trading a security based on material non-public information, giving an unfair advantage over other market participants.

An instant funded account is a prop firm account that gives a trader access to firm capital immediately, without passing an evaluation or challenge, usually in exchange for a higher upfront fee and stricter trading or payout rules.

An institutional trader trades on behalf of large organizations such as banks, hedge funds, pension funds, or insurance companies.

A financial instrument is any asset or contract that can be traded, such as stocks, bonds, futures, options, or currencies.

Intraday refers to price movements and trading that occur within a single trading day.

Investing is allocating capital to assets with the expectation of generating income or capital appreciation over time.

An investment is an asset acquired with the goal of generating future income or profit.

An investment bank helps companies and governments raise capital and provides advisory services for mergers, acquisitions, and other transactions.

An investor is a person or entity that allocates capital to assets or projects expecting financial returns.

An IPO is the first sale of a private company's shares to the public on a stock exchange, allowing it to raise capital and giving investors access to its stock.

An ISIN is a 12-character alphanumeric code that uniquely identifies a specific security globally.

An Islamic account is a trading account compliant with Sharia law, offering swap-free conditions and no interest charges on overnight positions.

The Jensen Index, or Jensen's alpha, measures a portfolio's excess return over the expected return from the Capital Asset Pricing Model (CAPM).

Keltner Channels are volatility-based envelopes set above and below an exponential moving average, typically using ATR to set the channel width.

In ICT/SMC contexts, a kill zone is a specific time-of-day window when liquidity and volatility are expected to be higher and setups more likely.

Know Your Customer (KYC) is a regulatory process requiring financial institutions to verify client identity and assess risk before providing services.

Latency arbitrage is a high-speed strategy that exploits time delays between price feeds or venues, trading on stale quotes before they update.

LDT, or Last Day to Trade, is the final date on which a security can be traded before expiration or key corporate events.

Leverage is the use of borrowed capital to increase trading exposure beyond the trader's own funds.

A leverage cap is a regulatory limit on the maximum leverage a broker may offer retail clients, for example around 30:1 on major forex pairs in the EU and UK, designed to reduce the risk of large losses.

A limit order instructs the broker to buy or sell at a specific price or better, providing price control but no guarantee of execution.

Limit up and limit down are exchange-imposed price boundaries for a session, beyond which trading can be halted or restricted.

Limited risk refers to strategies where the maximum possible loss is known and capped, such as buying options rather than selling them uncovered.

A liquid asset can be quickly converted into cash with minimal price impact, such as major currency pairs or large-cap stocks.

A liquid market has many buyers and sellers, tight spreads, and the ability to execute large orders without significant price impact.

Liquidation is the forced closing of a trader's positions by the broker when margin is insufficient to keep them open, often occurring after a margin call goes unmet.

Liquidity is the ease with which an asset can be bought or sold in the market without causing large price movements.

A liquidity grab or sweep is a price move that takes out resting stop orders or liquidity at key levels before reversing.

A liquidity pool is a collection of orders or capital at specific price levels or in a venue that provides liquidity to the market.

A liquidity provider is an institution or firm that quotes both buy and sell prices and stands ready to trade, supplying liquidity to markets or brokers.

A live funded trader is a trader who has passed a prop firm's evaluation and now trades with the firm's real or risk-linked capital.

To be long is to buy an asset expecting its price to rise.

Long-term refers to holding periods of months or years, focusing on major trends or fundamental factors.

A lot is the standardized quantity of an asset in a trade, such as 100,000 units for a standard forex lot.

The London Stock Exchange is one of the world's largest stock exchanges, based in London, UK.

MACD is a trend-following momentum indicator based on the difference between two moving averages and a signal line.

Margin is the capital required to open and maintain leveraged positions, often expressed as a percentage of the total exposure.

A margin call is a broker's demand for additional funds when account equity falls below the required margin level, warning the trader to add capital or reduce positions before they are closed.

In finance, the market is any venue, physical or electronic, where buyers and sellers trade financial instruments.

Market capitalization is the total value of a company's outstanding shares, calculated as share price times the number of shares, used to gauge company size.

Market data includes real-time and historical information such as prices, quotes, and volumes for traded instruments.

Market execution fills an order at the best available price in the market without guarantee of exact price.

A market maker continuously quotes bid and ask prices and stands ready to buy or sell, earning the spread and providing liquidity.

Market manipulation is illegal conduct that artificially distorts the price or volume of an asset, such as spoofing, pump-and-dump schemes, or spreading false information.

A market order is an order to buy or sell immediately at the best available price.

Market Profile is a charting method displaying price distribution over time, often using letters or blocks to show where price spent the most time.

Market research is the process of gathering and analyzing data about market conditions, competition, and customer behavior.

A market-making strategy posts both bid and ask orders to earn the bid-ask spread while managing inventory and risk.

The martingale strategy increases position size after losses to recover previous losses when a winning trade eventually occurs, at the cost of rising risk.

Max daily drawdown is the maximum amount a trader is allowed to lose in a single day before breaching account or prop firm rules.

Maximum account drawdown is the allowed cumulative loss from the highest equity point; breaching it usually ends a challenge or funded account.

A mean reversion strategy assumes price will revert toward its historical average, taking trades against extreme moves.

Micro futures are smaller-sized futures contracts designed to make futures trading accessible with lower capital requirements.

MiFID II is a European Union framework regulating investment services and trading venues, setting requirements for transparency, investor protection, and best execution.

In SMC/ICT trading, a mitigation block is a price zone where institutions may mitigate or reduce prior exposure, often acting as a reaction zone.

The Money Flow Index is a volume-weighted momentum indicator that identifies overbought and oversold levels.

A moving average smooths price data over a set period to help identify trend direction and potential support/resistance.

Multi-asset refers to portfolios or funds that invest across several asset classes, such as stocks, bonds, commodities, and currencies.

The Nasdaq-100 is a stock index of 100 of the largest non-financial companies listed on the Nasdaq exchange.

An NDD broker routes client orders directly to liquidity providers without intervention from a dealing desk.

Negative balance protection is a rule, common for retail accounts in the EU and UK, that prevents a trader's account from going below zero, so losses cannot exceed the deposited funds.

Net exposure is the difference between total long and total short exposure, often expressed as a percentage of capital.

Net market value is the market value of derivative positions after netting long and short exposures within a product type.

A news trader builds strategies around economic releases or news events, aiming to profit from volatility spikes.

News trading focuses on opening trades based on the anticipated or actual impact of economic or corporate news.

The NFA is the self-regulatory organisation for the U.S. derivatives industry, registering and overseeing futures and forex firms under CFTC authority.

Non-Farm Payrolls is a closely watched monthly U.S. report showing the number of jobs added or lost outside the farming sector, often triggering sharp volatility across forex, indices, and gold.

On-Balance Volume is a cumulative volume indicator that adds volume on up days and subtracts volume on down days to show buying/selling pressure.

An OCO order links two orders so that if one is executed, the other is automatically cancelled.

Open interest is the total number of outstanding futures or options contracts that have not yet been closed or delivered.

An open market is a market accessible to all participants with relatively few barriers to entry or restrictions.

An open position is a trade that has been entered but not yet closed, leaving the trader exposed to market movements.

Options are derivatives giving the holder the right, but not the obligation, to buy or sell an underlying asset at a specific price by a certain date.

In SMC/ICT trading, an order block is a price zone where institutions are thought to have placed large orders, often preceding strong moves.

The order book is a real-time list of buy and sell orders at different price levels for a specific asset.

Overnight refers to holding a trade open past the market's daily rollover time. Positions kept overnight incur swap fees (unless the account is swap-free) and are exposed to gaps or sudden price moves during the hours when markets are closed or less liquid.

Overnight positions are trades kept open after the market's close or overnight session, exposing traders to overnight risk.

Overtrading is taking too many trades, often due to emotional or undisciplined behavior, which can harm performance and risk control.

Pair trading is a market-neutral strategy that involves going long one asset and short a related asset, aiming to profit from relative performance.

Parabolic SAR is a trend-following indicator that plots dots above or below price to signal potential trend direction and reversals.

A partial close reduces the size of an open position by closing a portion of it while keeping the rest active.

The Pattern Day Trader rule is a U.S. regulation requiring a minimum account equity (typically 25,000 USD) for accounts that make four or more day trades within five business days in a margin account.

Payout is the amount of profit withdrawn or paid out to a trader, often after applying the agreed profit split.

Perpetual futures are derivative contracts, common in crypto, that have no expiry date and use a funding rate mechanism to keep their price close to the underlying spot price.

A pin bar is a candlestick with a small body and long wick, indicating strong rejection of a price level and potential reversal.

A pip is a standardized unit of movement in forex prices, typically the fourth decimal place for most currency pairs.

Pivot points are calculated levels used as potential support and resistance, often based on the prior period's high, low, and close.

Position sizing is determining how large a trade should be based on risk tolerance, stop-loss distance, and account size.

Price action is a trading approach that focuses on raw price movements and patterns rather than on indicators.

A price level is a specific price on a chart that acts as support, resistance, or a key reference point.

Profit is the positive difference between the sale and purchase prices of a trade after transaction costs.

Profit split is the agreed division of trading profits between a trader and a prop firm or capital provider.

A profit target is a predefined price or return at which a trader plans to close a trade or complete a challenge.

A prop firm challenge is an evaluation phase where traders must hit profit targets and obey risk rules to qualify for a funded account.

A prop trader is a trader who trades a firm's capital rather than their own, typically sharing the profits with the firm.

Prop trading is proprietary trading where a financial firm trades for its own account, seeking direct market gains.

Proprietary trading is trading by a firm using its own capital instead of executing client orders for a commission.

A proprietary trading firm provides traders with firm capital to trade under defined risk rules, usually after an evaluation process.

A pullback is a temporary move against the prevailing trend, offering a potential entry point before the trend resumes.

A purchase is the act of buying an asset or product, exchanging money for ownership or rights.

Quantitative easing is a monetary policy where central banks buy financial assets to inject liquidity and lower long-term interest rates.

A quantitative trader uses mathematical models, statistics, and algorithms to design and execute trading strategies.

QUANTOWER is a multi-asset trading platform used by advanced traders for forex, CFDs, crypto, options, futures, and stocks.

A rally is a period of sustained price increases within a larger trend or after a decline.

A range trading strategy buys near support and sells near resistance in a sideways market, assuming price will stay within the range.

Regulation refers to rules and oversight by authorities designed to ensure fair, transparent, and stable financial markets.

A Renko chart uses fixed-size bricks based on price movement only, ignoring time, to filter out noise and highlight trends.

A requote occurs when a broker cannot fill an order at the requested price and offers a new price instead.

A retail trader trades with personal funds, not on behalf of an institution or client accounts.

Revenue is the total income generated from business activities, including trading profits or fees.

A reversal is a change in the direction of a prevailing trend, from bullish to bearish or vice versa.

Risk is the possibility of losing some or all of the capital invested in a trade or portfolio.

Risk management is the process of identifying, measuring, and controlling trading risks through position sizing, stop-losses, and diversification.

Risk of ruin is the probability that a trader will lose enough capital to be unable to continue trading.

Risk per trade limit is a rule defining the maximum percentage of account equity that can be risked on a single position.

Risk-free describes an investment theoretically free of default risk, often approximated by government bonds in a stable country.

The risk-reward ratio compares the amount risked on a trade (the stop-loss distance) to the potential gain (the profit target), for example 1:2 meaning one unit risked for two units of expected reward.

Rithmic is a low-latency futures trading infrastructure and data service favored by active and algorithmic traders.

Rollover is the daily process where open positions are extended to the next trading day. During rollover, swap or overnight financing fees are applied, and spreads may temporarily widen due to reduced liquidity. Forex positions settle T+2, which is why rollover adjustments occur every day at the broker's designated server time.

The Relative Strength Index (RSI) is a momentum oscillator ranging from 0 to 100 that measures the speed and magnitude of price moves, commonly used to identify overbought (above 70) and oversold (below 30) conditions.

Rules are the conditions and constraints that govern trading behavior, risk limits, and account management, especially in prop firms.

The S&P500 is a stock index that tracks 500 large companies listed on U.S. exchanges.

A scaling plan is a policy by which a prop firm increases a trader's account size when performance and risk criteria are met.

Scalping is a trading style that aims to capture very small price movements in a short time, often with many trades per day.

The SEC is the U.S. agency that regulates securities markets, enforcing disclosure rules and protecting investors against fraud in stocks, bonds, and related products.

Segregated accounts are client funds kept separate from a broker's own operating money, so that client capital is protected if the broker becomes insolvent.

A sell limit order is a pending sell order placed above the current market price, used to enter short positions at a more favourable price after a retracement.

A sell stop is a pending order placed below the current market price that triggers a sell position once price reaches the specified level, typically used to enter downside breakouts.

A share certificate is a legal document proving ownership of a specific number of company shares.

The share market is the marketplace where shares of publicly listed companies are issued and traded.

Shares represent units of ownership in a company, entitling holders to a portion of profits and, sometimes, voting rights.

The Sharpe ratio measures risk-adjusted return by dividing a strategy's excess return over the risk-free rate by its volatility; a higher value indicates better return per unit of risk.

To short an asset is to sell it with the expectation of buying it back later at a lower price, profiting from a decline.

A short squeeze is a sharp price rise that forces traders holding short positions to buy back to cover their losses, which pushes the price even higher in a feedback loop.

Slippage is the difference between the expected execution price and the actual execution price, often occurring during volatility or low liquidity.

Smart money refers to capital controlled by informed, institutional, or professional traders considered more knowledgeable than average retail traders.

Smart Money Concepts is a price-action framework focusing on liquidity, order blocks, market structure, and institutional order flow.

Smart Order Routing automatically sends orders to the venues or liquidity providers offering the best price and execution quality.

The spot market is where assets are bought and sold for immediate delivery and settlement at the current price, as opposed to futures or forward contracts settled later.

The spread is the difference between the bid and ask prices of an asset.

A stablecoin is a cryptocurrency designed to keep a stable value by pegging to a reference asset such as the U.S. dollar, used to move in and out of crypto positions without high volatility.

Statistical arbitrage uses quantitative models to exploit small pricing inefficiencies across related securities, often in a market-neutral way.

The Stochastic Oscillator is a momentum indicator comparing a closing price to its recent high-low range to identify overbought or oversold conditions.

Stochastic RSI applies the Stochastic formula to RSI values to refine overbought and oversold signals.

Stocks are equity instruments representing ownership in a company, often entitling holders to dividends and voting rights.

A stop hunt is a deliberate push to trigger stop-loss orders around a known liquidity area before price reverses.

A stop limit order triggers a limit order once the stop price is reached, giving control over execution price but without guaranteed execution.

A stop-loss is an order placed to close a trade at a predetermined price to limit losses.

Straight Through Processing is an order-routing model where trades are passed directly to liquidity providers without manual intervention.

A supply zone is a price area where selling interest has historically been strong enough to halt price advances and push price lower.

Support and resistance are price levels where a trend tends to pause or reverse: support is where buying interest typically halts declines, and resistance is where selling interest typically caps advances.

A swap (also called overnight fee or rollover fee) is the interest adjustment applied when a position is held overnight. It can be positive or negative, depending on the interest rate difference between the two currencies in a forex pair or the broker's conditions. Swap is charged or credited automatically when a trade stays open past the daily rollover time.

Swing trading aims to capture price swings over days to weeks, holding positions longer than day trades but shorter than long-term investing.

Systrade is an IT solutions provider for financial-sector companies and a partner in some prop-trading ecosystems.

A take-profit order automatically closes a position once a predefined profit level is reached.

Tax is a compulsory financial charge imposed by governments on income, including trading profits in many jurisdictions.

Technical analysis studies past price and volume data to identify patterns and trends for trading decisions.

A tick chart creates a new bar after a fixed number of trades, focusing on trade count rather than time.

A time frame is the length of time each bar or candle represents, such as 1 minute, 1 hour, or 1 day.

Trade latency is the time delay between sending an order and its execution, critical for high-frequency and scalping strategies.

A trading challenge is a structured evaluation where traders must hit targets and follow rules to prove their skills.

A trading platform is software that provides charting, order entry, and account management tools for traders.

Trailing refers to adjusting a stop-loss or other parameter dynamically as the market moves in the trader's favor.

A trailing stop is a dynamic stop-loss that automatically adjusts as the market moves in the trader's favour, locking in profits while allowing price to run.

A trend following strategy seeks to enter in the direction of an established trend and ride it as long as possible.

A trendline is a line drawn on a chart connecting successive highs or lows to visualize the direction of the trend.

Triple Swap Wednesday is the day when brokers apply three days of swap fees instead of one on forex positions held overnight. This compensates for the fact that the forex market settles T+2 (two business days after the trade). Holding a position past Wednesday's rollover time results in a triple swap because it accounts for Friday, Saturday, and Sunday.

The True Strength Index is a momentum oscillator that uses double-smoothed price changes to identify trend direction and turning points.

A trust company manages assets and acts as a fiduciary or trustee on behalf of individuals or institutions.

Turtle Trading is a famous trend-following system based on breakouts and strict risk management rules developed in the 1980s.

TWAP is an execution strategy that spreads an order evenly over a specified time to achieve an average price close to the time-weighted market price.

The unemployment rate is the percentage of the labor force that is jobless and actively seeking employment.

Unrealized P&L is the profit or loss on open positions that would be realized if they were closed at current market prices.

Trade value is the monetary worth of a trade, calculated as price per unit times the number of units traded.

Value area is the price range where a specified percentage of trading activity occurred, often around 70% of volume in Market Profile.

Virtual trading is practice trading using simulated accounts and virtual funds instead of real money.

The VIX is an index that measures the market's expected 30-day volatility from S&P 500 options, often called the fear gauge because it tends to spike when markets fall.

Volatility measures the degree of variation in an asset's price over time, often used as a risk indicator.

Volatility arbitrage seeks to profit from differences between implied volatility in options and the trader's expectations of realized volatility.

A volatility breakout strategy enters trades when price breaks out of a range or band after a period of low volatility.

Volume is the number of shares, contracts, or lots traded in a given period.

Volume Profile plots traded volume at each price level over a chosen period, highlighting high-activity price zones.

A VPS is a remote server used to run trading platforms 24/7 with low latency and stable connections, commonly used for automated or algorithmic trading.

VWAP is the average price of an asset over a period, weighted by traded volume, and is often used as a benchmark by institutions.

WACC is the weighted average of a company's cost of equity and cost of debt, used as a discount rate for investment decisions.

Wall Street is a metonym for the U.S. financial industry and the physical financial district in New York City.

Wash trading is a prohibited practice where a trader simultaneously buys and sells the same asset to create misleading, artificial activity or volume without real change in ownership.

A watchlist is a list of instruments a trader monitors closely for potential trading opportunities.

WTI is a benchmark grade of crude oil that serves as an underlying commodity for many oil futures contracts.

The wick (shadow or tail) is the thin line above or below a candlestick body indicating the highest and lowest traded prices in that period.

Win rate is the percentage of trades that close with a profit out of the total number of trades, useful only when read together with the risk-reward ratio.

The Wyckoff Method is a trading and investing approach focused on price cycles of accumulation, markup, distribution, and markdown, and on supply/demand.

XRP is the cryptocurrency associated with Ripple's distributed ledger technology, used for fast cross-border payments.

A year-end dividend is a special dividend declared at the end of a fiscal year, often reflecting higher-than-expected profits.

Yield is the income return on an investment, such as interest or dividends, expressed as a percentage of the investment's value.

A zero-balance account is a bank account that is automatically funded from a master account only with the amount needed to cover outgoing payments.