TRADER'S DICTIONARY: KEY TERMS AND CONCEPTS
Learn about trends, volatility, orders, technical indicators, and other important aspects of trading. Expand your vocabulary for more successful trading.
Attention! This article is for informational purposes only and does not contain recommendations or calls to action.
The review has been prepared by the Trader’s Diary team. You can get Trader’s Diary by leaving your e-mail in the form below.
The review has been prepared by the Trader’s Diary team. You can get Trader’s Diary by leaving your e-mail in the form below.
Buy - the purchase of an asset with the aim of its subsequent sale at a higher price.
Buy limit - a type of order that sets a price level for the purchase or sale of stocks, currency, or other financial instruments.
Bar - a graphical representation of price data for a specific period of time, containing information about the opening price, closing price, highest and lowest prices during this period.
Exchange - an organized platform where trading of financial instruments such as stocks, bonds, commodities, or currencies takes place.
Broker - an intermediary that provides access to financial markets and allows traders to buy and sell assets such as stocks, bonds, currencies, and commodities.
Bull Market - a period in trading when asset prices are constantly rising, and investors expect further increases.
Volatility - the degree of price variability of financial instruments in the market.
Market Depth - an indicator reflecting the quantity of buy and sell orders for securities at different price levels.
Technical Analysis - a method in which price movement charts of financial instruments (e.g., stocks, currencies, commodities) are studied and analyzed.
Gap - a price discrepancy between the closing price of one trading session and the opening price of the next, where the price opens significantly higher or lower than the previous closing.
Deposit - an amount that a trader deposits into their account with a broker to carry out buying and selling operations of financial instruments in the market.
Divergence - a discrepancy between the price of an asset and an indicator used for market analysis.
Diversification - a strategy of distributing investments across different assets or markets to reduce risk.
Dividend - a payment that a company makes to its shareholders from its profits.
Trader's Journal - records and analyses in which a trader documents their transactions and results, as well as notes their thoughts and emotions during trading.
Investor - an individual or organization that invests funds in financial instruments such as stocks, bonds, futures, or currencies, with the aim of profiting from changes in their value.
Investments - the purchase of financial assets (such as stocks, bonds, or commodities) with the aim of obtaining profit from their growth or dividends.
Index - a numerical measure representing the aggregate value of a specific group of stocks or other financial instruments. For example, the S&P 500 index reflects the state of the American stock market by including 500 leading companies, demonstrating their influence and contribution to the US economy.
Historical data - information about past prices, trading volumes, and other factors related to the asset market.
Capitalization - the total value of a company in the financial market, determined by multiplying the current price of its shares by the total number of shares in circulation.
Order book - a list of all open orders to buy and sell assets, sorted by price and volume.
Quote - the current price of an asset in the market, usually expressed as a bid and ask price.
Leverage - a financial instrument that allows a trader to increase their trading positions using borrowed funds.
Liquidity - the ability to quickly and easily sell or buy an asset at the current market price without significantly affecting its value.
Limit order - a type of order in which a trader sets a price at which they want to buy or sell an asset, and the transaction is executed only at this price or better.
Listing - the process of adding an asset to a trading platform or exchange, allowing traders to trade this asset on an open market.
Long - a position in which a trader buys an asset, expecting its growth.
Margin - the amount of money or securities that a trader deposits to open and maintain their positions.
Margin call - a situation where a broker requires a trader to replenish their account to cover losses or maintain an adequate margin level.
Market maker - a financial company or trader that provides constant liquidity and is ready to buy or sell securities in the market.
Bear market - a period in trading when asset prices decline, contributing to pessimistic sentiment and sales.
Volume - the amount of assets, securities, or goods that have been bought or sold in the market over a specific period of time.
Order - a trader's request to open a position.
Support - a price level below which it is expected that the asset will be supported or will not decrease.
Profit - the gain that a trader receives from a successful trade or investment.
Profit factor - the ratio of the profit amount to the loss amount in trading or investing, used to assess the profitability of a strategy or system.
Rally - a rapid and significant increase/decrease in market prices, usually accompanied by increased investor interest.
Profitability - an indicator reflecting the return on investments or trading operations.
Risk management - the process of managing risks in trading, including risk identification, analysis, and control to minimize potential losses.
Market order - an order sent by a trader for immediate execution of a transaction at current market prices.
Candlestick - a graphical representation of price changes of a financial instrument over a certain period of time.
Sell - the operation of selling an asset on the financial market to make a profit.
Scalping - a short-term trading strategy where a trader aims to profit from small changes in asset prices.
Moving averages - a statistical indicator used to smooth price data and determine the overall trend direction.
Stop-loss - a pre-defined price at which a trader automatically exits a position to limit losses.
Stochastic oscillator - a technical indicator used to measure the relative strength and speed of an asset's price change.
Timeframe - a time interval for analyzing price movements in the market.
Take-profit - a pre-set price at which a trader closes a position to lock in profit.
Technical analysis - a method of studying financial markets based on chart analysis and statistical data.
Trading session - a period of time during which trading takes place in the market.
Trading terminal - software that allows traders to execute buying and selling operations of financial instruments.
Trader - a person engaged in trading on financial markets.
Trend - the direction of price movement in the market over a certain period of time.
Averaging - a method in trading where an investor acquires additional assets at an average price to reduce the overall acquisition cost.
Fiat currency - an officially recognized form of government money, such as dollars, euros, or yen.
Flat - a market situation where the price of an asset remains stable and significant changes are not observed.
Stock market - a platform where stocks and other securities of companies are traded, allowing investors to buy and sell assets.
Fundamental analysis - a method of studying financial markets based on the analysis of fundamental factors such as economic data, company financial reports, and macroeconomic indicators.
Short - a position where a trader sells an asset, expecting its decrease.
Buy limit - a type of order that sets a price level for the purchase or sale of stocks, currency, or other financial instruments.
Bar - a graphical representation of price data for a specific period of time, containing information about the opening price, closing price, highest and lowest prices during this period.
Exchange - an organized platform where trading of financial instruments such as stocks, bonds, commodities, or currencies takes place.
Broker - an intermediary that provides access to financial markets and allows traders to buy and sell assets such as stocks, bonds, currencies, and commodities.
Bull Market - a period in trading when asset prices are constantly rising, and investors expect further increases.
Volatility - the degree of price variability of financial instruments in the market.
Market Depth - an indicator reflecting the quantity of buy and sell orders for securities at different price levels.
Technical Analysis - a method in which price movement charts of financial instruments (e.g., stocks, currencies, commodities) are studied and analyzed.
Gap - a price discrepancy between the closing price of one trading session and the opening price of the next, where the price opens significantly higher or lower than the previous closing.
Deposit - an amount that a trader deposits into their account with a broker to carry out buying and selling operations of financial instruments in the market.
Divergence - a discrepancy between the price of an asset and an indicator used for market analysis.
Diversification - a strategy of distributing investments across different assets or markets to reduce risk.
Dividend - a payment that a company makes to its shareholders from its profits.
Trader's Journal - records and analyses in which a trader documents their transactions and results, as well as notes their thoughts and emotions during trading.
Investor - an individual or organization that invests funds in financial instruments such as stocks, bonds, futures, or currencies, with the aim of profiting from changes in their value.
Investments - the purchase of financial assets (such as stocks, bonds, or commodities) with the aim of obtaining profit from their growth or dividends.
Index - a numerical measure representing the aggregate value of a specific group of stocks or other financial instruments. For example, the S&P 500 index reflects the state of the American stock market by including 500 leading companies, demonstrating their influence and contribution to the US economy.
Historical data - information about past prices, trading volumes, and other factors related to the asset market.
Capitalization - the total value of a company in the financial market, determined by multiplying the current price of its shares by the total number of shares in circulation.
Order book - a list of all open orders to buy and sell assets, sorted by price and volume.
Quote - the current price of an asset in the market, usually expressed as a bid and ask price.
Leverage - a financial instrument that allows a trader to increase their trading positions using borrowed funds.
Liquidity - the ability to quickly and easily sell or buy an asset at the current market price without significantly affecting its value.
Limit order - a type of order in which a trader sets a price at which they want to buy or sell an asset, and the transaction is executed only at this price or better.
Listing - the process of adding an asset to a trading platform or exchange, allowing traders to trade this asset on an open market.
Long - a position in which a trader buys an asset, expecting its growth.
Margin - the amount of money or securities that a trader deposits to open and maintain their positions.
Margin call - a situation where a broker requires a trader to replenish their account to cover losses or maintain an adequate margin level.
Market maker - a financial company or trader that provides constant liquidity and is ready to buy or sell securities in the market.
Bear market - a period in trading when asset prices decline, contributing to pessimistic sentiment and sales.
Volume - the amount of assets, securities, or goods that have been bought or sold in the market over a specific period of time.
Order - a trader's request to open a position.
Support - a price level below which it is expected that the asset will be supported or will not decrease.
Profit - the gain that a trader receives from a successful trade or investment.
Profit factor - the ratio of the profit amount to the loss amount in trading or investing, used to assess the profitability of a strategy or system.
Rally - a rapid and significant increase/decrease in market prices, usually accompanied by increased investor interest.
Profitability - an indicator reflecting the return on investments or trading operations.
Risk management - the process of managing risks in trading, including risk identification, analysis, and control to minimize potential losses.
Market order - an order sent by a trader for immediate execution of a transaction at current market prices.
Candlestick - a graphical representation of price changes of a financial instrument over a certain period of time.
Sell - the operation of selling an asset on the financial market to make a profit.
Scalping - a short-term trading strategy where a trader aims to profit from small changes in asset prices.
Moving averages - a statistical indicator used to smooth price data and determine the overall trend direction.
Stop-loss - a pre-defined price at which a trader automatically exits a position to limit losses.
Stochastic oscillator - a technical indicator used to measure the relative strength and speed of an asset's price change.
Timeframe - a time interval for analyzing price movements in the market.
Take-profit - a pre-set price at which a trader closes a position to lock in profit.
Technical analysis - a method of studying financial markets based on chart analysis and statistical data.
Trading session - a period of time during which trading takes place in the market.
Trading terminal - software that allows traders to execute buying and selling operations of financial instruments.
Trader - a person engaged in trading on financial markets.
Trend - the direction of price movement in the market over a certain period of time.
Averaging - a method in trading where an investor acquires additional assets at an average price to reduce the overall acquisition cost.
Fiat currency - an officially recognized form of government money, such as dollars, euros, or yen.
Flat - a market situation where the price of an asset remains stable and significant changes are not observed.
Stock market - a platform where stocks and other securities of companies are traded, allowing investors to buy and sell assets.
Fundamental analysis - a method of studying financial markets based on the analysis of fundamental factors such as economic data, company financial reports, and macroeconomic indicators.
Short - a position where a trader sells an asset, expecting its decrease.