Trading glossary
The words used in the lessons, in plain language. Each term names the lesson where it is discussed.
No term matches. Try a shorter word, or open the lessons.
A
- Ask priceoffer
- The lowest price a seller asks right now. You buy at this price.Covered in lesson 4
- Account balancebalance
- The money in the account, not counting positions that are still open.
B
- Bearishfalling
- Describes a falling price or a candle that closed below its open.Covered in lesson 3
- Bid pricebuy price
- The highest price a buyer offers right now. You sell at this price.Covered in lesson 6
- Brokerdealer
- The company that takes your order and executes it. Check what it is allowed to do where you live.Covered in lesson 1
- Bullishrising
- Describes a rising price or a candle that closed above its open.Covered in lesson 3
C
- Candlestickcandle
- A way to draw one slice of time: open, close, high and low.Covered in lesson 3
- CFDcontract for difference
- A contract on a price difference. You do not own the asset; profit or loss follows the price move.Covered in lesson 1
- Contract sizelot units
- The number of units in one lot. It changes with the instrument.Covered in lesson 4
D
- Demo accountpractice account
- A practice account with virtual money and real market prices. Nothing is lost and nothing is earned.Covered in lesson 7
- Dojidoji candle
- A candle whose open and close are almost the same, so the body is a thin line.Covered in lesson 3
E
- Equityaccount value
- The account value now: balance plus or minus the result of open positions.Covered in lesson 5
F
- Forexforeign exchange
- The market where currencies are exchanged. Currencies are always traded in pairs.Covered in lesson 1
H
- Hammerhammer candle
- A candle with a small body and a long lower wick.Covered in lesson 3
L
- Leveragegearing
- Opening a position larger than the money in the account. It enlarges losses exactly as much as gains.Covered in lesson 5
- Liquiditymarket depth
- How easily you can buy or sell without moving the price.
- Limit orderlimit
- An order that waits for the price you choose and fills at that price or better.Covered in lesson 4
- Lotposition size
- The standard size of one position. How large it is depends on the instrument.Covered in lesson 4
M
- Margincollateral
- The part of the balance held while a position is open.Covered in lesson 5
- Market ordermarket
- An order that fills at once at the price available at that moment.Covered in lesson 4
O
- Open positionposition
- A trade that has been opened and not yet closed.Covered in lesson 5
P
- Pending orderwaiting order
- An order that is not active yet and waits for a price level you set.Covered in lesson 4
- Pipprice step
- The smallest usual step of a price move in forex.Covered in lesson 1
Q
- Quote currencycounter currency
- The second currency of a pair. The price of the pair is stated in it.Covered in lesson 1
R
- Resistanceupper level
- A price zone where rises have stopped several times.Covered in lesson 3
- Risk-reward ratioreward to risk
- How much you stand to gain compared with how much you stand to lose on one trade.Covered in lesson 5
S
- Spinning topspinning top candle
- A candle with a small body and wicks on both sides: neither side won the day.Covered in lesson 3
- Spreadprice gap
- The gap between the ask and the bid. The first cost of every position.Covered in lesson 6
- Stop lossstop
- An order that closes the position by itself if the price reaches the loss level you chose.Covered in lesson 5
- Supportlower level
- A price zone where falls have stopped several times.Covered in lesson 3
- Swapovernight fee
- A small fee or credit for a position held past the daily rollover.Covered in lesson 6
T
- Take profitprofit target
- An order that closes the position by itself if the price reaches the profit level you chose.Covered in lesson 5
- Terminaltrading platform
- The program or web page where you see prices, place orders and follow positions.
V
- Volatilityprice swings
- How fast and how far the price moves. The higher it is, the higher the risk.Covered in lesson 5
W
- Wickshadow
- The thin line above or below the body of a candle: the price went there but did not stay.Covered in lesson 3