Market order
An instruction to trade immediately at the best available price; execution is prioritized over price certainty.
Trading and Financial Markets Glossary
Plain-language definitions for essential trading, risk, market and security concepts.
Limit order
An instruction to trade only at a specified price or better; execution is not guaranteed.
Leverage
Borrowed exposure that magnifies both gains and losses. Leverage does not improve the quality of a trade.
Margin
Collateral reserved to support a leveraged position. Available margin falls as exposure or unrealized losses increase.
Liquidation
Forced position closure when collateral can no longer support required margin.
Volatility
The speed and size of price changes. Higher volatility usually requires smaller position size and wider evidence-based stops.
Volume
A measure of trading activity. Its meaning and reliability depend on the market and data venue.
Moving average
A rolling average of price used to describe direction and smooth noise; it is delayed by design.
RSI
A momentum oscillator that compares recent gains and losses. Overbought or oversold does not guarantee reversal.
MACD
A trend and momentum indicator derived from moving averages; signals lag price and need context.
ATR
Average True Range estimates recent price movement and can help normalize stop distance and position size.
Trading journal
A structured record of setup, risk, execution, outcome and decision quality used for review and improvement.
Backtesting
Testing explicit rules on historical data while accounting for bias, costs and sufficient sample size.
Broker security
Use regulated providers where applicable, unique passwords, multi-factor authentication and withdrawal safeguards.
Scam awareness
Treat guaranteed returns, urgency, secret systems and requests for seed phrases or remote access as warning signs.
Bid
Highest available buying price.
Ask
Lowest available selling price.
Spread
Difference between bid and ask.
Long
A position that benefits if price rises.
Short
A position that benefits if price falls.
Stop Loss
A predefined loss-limiting exit; execution may vary.
Take Profit
A predefined exit at a target.
Risk-to-Reward (R:R)
Planned reward distance compared with planned risk.
Liquidity
Ability to transact with limited price impact.
BOS
Break of a relevant structural point.
CHOCH
An early structural behavior change, not a certain reversal.
Order Block (OB)
An ICT/SMC area interpreted as the origin of displacement.
Fair Value Gap (FVG)
A three-candle imbalance; context, not an automatic entry.
Drawdown
Decline from an equity peak to a later trough.
Slippage
Difference between expected and executed price.
Stop Order
An order activated at a trigger price.
Funding Rate
Periodic transfer aligning perpetual contracts and spot.
Swap
Overnight financing on some leveraged positions.
Pip
A conventional unit for many FX price changes.
Educational content only — not financial advice and no guarantee of profit.