Understanding trading terminology is essential for any trader. Below is a glossary of key terms used in the financial markets to help you navigate the trading environment effectively.

Ask Price – The lowest price a seller is willing to accept for an asset.
​Asset – A financial instrument that can be traded, such as stocks, forex, or commodities.

Bid Price – The highest price a buyer is willing to pay for an asset.
​Broker – A firm or individual that executes trading orders on behalf of clients.
​Bull Market – A market condition where prices are rising or expected to rise.
​Bear Market – A market condition where prices are falling or expected to fall.

Candlestick Chart – A graphical representation of price movements using candlesticks.
​CFD (Contract for Difference) – A financial derivative allowing traders to speculate on price movements without owning the underlying asset.
​Commission – A fee charged by brokers for executing trades.
​Cut-Off Time – The deadline for trade execution or financial settlements.

Day Trading – A strategy where trades are opened and closed within the same trading day.
​Drawdown – The percentage decline from a trading account’s peak balance.
​Derivative – A financial contract whose value is derived from an underlying asset.

Equity – The total value of a trader’s funds, including unrealized profits and losses.
​Execution – The process of completing a buy or sell order.
​Expert Advisor (EA) – An automated trading algorithm used in platforms like MetaTrader.

Forex (Foreign Exchange) – The global market for trading currencies.
​Fundamental Analysis – Evaluating an asset based on economic indicators and financial statements.
​Futures – A contract to buy or sell an asset at a predetermined price in the future.

Gap – A price level difference between two consecutive trading sessions.
​Gross Profit – Total profit before deducting trading costs.

Hedge – A strategy used to minimize risk by offsetting positions.
​High-Frequency Trading (HFT) – Automated trading strategy executing a high number of trades in a short time.

Indicator – A mathematical calculation used to analyze price trends and signals.
​Index – A basket of stocks used to measure market performance.

Leverage – The ability to control a large position with a smaller amount of capital.
​Liquidity – The ease with which an asset can be bought or sold without affecting its price.

Margin – The collateral required to open and maintain a leveraged position.
​Market Order – An order executed at the current market price.
​MetaTrader (MT4/MT5) – A popular trading platform for forex and CFD trading.

Net Profit – Total earnings after deducting all expenses.
​Pip (Percentage in Point) – The smallest price movement in a forex pair.
​Portfolio – A collection of financial investments held by a trader.

Quote Currency – The second currency in a currency pair.
​Resistance Level – A price level where an asset struggles to move higher.
​Scalping – A trading strategy focused on making quick, small profits.
​Spread – The difference between the bid and ask price.

Take Profit – A predefined level at which a trade automatically closes in profit.
​Technical Analysis – The study of past market data to predict future price movements.
​Volatility – The degree of price fluctuation in a market or asset.

Whipsaw – A sharp price movement in one direction followed by a rapid reversal.
​Yield – The return generated on an investment.

This glossary provides an essential reference for traders at all levels. If you come across any unfamiliar terms, feel free to reach out to our support team for further clarification!