Trading Glossary

Market Basics

Market

A place where assets like stocks, gold, and currencies are bought and sold.

Liquidity

How easily you can enter or exit a trade without big price changes.

Trend

The general direction of the market: up, down, or sideways.

Volatility

How quickly and sharply prices move.

Technical Analysis

Support

A price area where buyers usually push the price upward.

Resistance

A price area where sellers usually push the price downward.

Breakout

When the price breaks above resistance or below support and continues moving.

Candlesticks

A chart format showing open, high, low, and close for a period.

RSI Indicator

Shows market strength and if an asset is overbought or oversold.

MACD Indicator

Shows trend strength and potential trend reversals.

Risk Management & Strategies

Stop Loss

An automatic order to close a trade at a specific loss level.

Take Profit

An automatic order to close a trade at a preset profit.

Leverage

Borrowed capital that increases both potential profit and risk.

Risk Management

Controlling trade size to protect your capital.

Risk/Reward Ratio

How much you risk compared to how much you aim to gain.

Trading & Orders

Market Order

Instant buy/sell at the current market price.

Limit Order

Buy/sell at a specific price you choose.

Long Position

Buying because you expect the price to rise.

Short Position

Selling because you expect the price to fall.

Margin

The amount of money required to open a leveraged trade.

Forex

Bullish / Bearish

Bullish = expecting price to rise. Bearish = expecting price to fall.

Currency Pair

Example: EUR/USD — the first currency is the base currency.

Pip

The smallest movement in forex prices.

Stocks & Investing

Market Cap

The total value of a company (shares × price).

Volume

The number of shares traded within a timeframe.

EPS (Earnings Per Share)

A measure of a company’s profitability.

Crypto

Blockchain

A secure, transparent way of storing data.

Wallets

Where digital assets are stored (hot or cold).

Dominance

Bitcoin’s share of the total crypto market.