Glossary

Glossary of trading terms

This glossary defines commonly used trading terms across Forex, Crypto (Spot & Futures), and Synthetic Indices.

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A
Account Balance
The total amount of money in a trading account, excluding open trade profits or losses.
Accumulation
A phase where large market participants build positions quietly before a significant move. A market phase where institutional participants build positions at relatively stable prices before a significant expansion or trend.
ADX (Average Directional Index)
A technical indicator used to measure trend strength.
Algorithmic Price Delivery
The concept that price moves according to predefined algorithms designed to seek liquidity and rebalance inefficiencies, rather than moving randomly.
Algorithmic Trading
Trading executed automatically based on pre-defined rules and algorithms.
Altcoin
Any cryptocurrency other than Bitcoin.
API Trading
Automated trading using application programming interfaces to execute trades programmatically.
Asia Range
The high–low range formed during the Asian trading session, often used as a liquidity reference for London and New York.
Ask Price
The price at which the market is willing to sell an asset. (The lowest price at which a seller is willing to sell a cryptocurrency.)
B
Balance Sheet Risk
Exposure arising from holding positions during major economic or financial events.
Balanced Price Range (BPR)
An overlap of two opposing Fair Value Gaps indicating partial equilibrium in price.
Base Currency
The first currency in a trading pair (e.g., BTC in BTC/USDT).
Bear Market
A market characterized by falling prices.
Bid Price
The price at which the market is willing to buy an asset.
Blockchain
A decentralized, immutable ledger that records cryptocurrency transactions.
Break in Market Structure (BMS)
A confirmed violation of a previous structural high or low, signaling a potential shift in market intent.
Break of Structure (BOS)
A market structure concept indicating a potential trend continuation after a key high or low is broken.
Breakaway Gap
A strong imbalance signaling the start of a new price leg.
Breakout
A price move beyond a key support or resistance level.
Broker
A firm that provides traders access to financial markets.
Buy-Side Liquidity (BSL)
Clusters of buy orders (typically above equal highs or key resistance) targeted by institutions to facilitate sell-side executions.
C
Candlestick
A price chart representation showing open, high, low, and close prices.
Capital
The money allocated for trading.
CFDs (Contracts for Difference)
CFDs are derivative financial instruments that allow traders to speculate on the price movement of an asset without owning the underlying asset. When trading a CFD, the trader and the broker exchange the difference between the opening price and the closing price of a position. CFDs are commonly used to trade forex, indices, commodities, stocks, and cryptocurrencies through brokers.
Change of Character (CHoCH)
An early indication of a potential trend reversal, identified when price violates a minor internal structure opposite the prevailing trend.
Chart Pattern
A recognizable price formation used to anticipate future price movement.
Cold Wallet
An offline cryptocurrency storage method used for enhanced security.
Consolidation
A period where price moves sideways within a range, often preceding expansion or manipulation..
Continuation Pattern
A corrective price structure that supports the prevailing trend.
Counter-Trend
Trading against the prevailing market trend.
Cross Margin
A margin mode where all available account balance is shared across open positions.
D
Daily Bias
The directional expectation for the trading day based on higher-timeframe analysis.
Dealing Range
The defined high-to-low range used to measure premium and discount zones.
Decentralized Exchange (DEX)
A peer-to-peer crypto exchange operating without intermediaries.
DeFi (Decentralized Finance)
Blockchain-based financial services without traditional intermediaries.
Demo Account
A simulated trading account using virtual funds.
Deriv
A platform offering Synthetic Indices and other derivatives.
Derivatives
Financial contracts whose value is derived from an underlying cryptocurrency.
Discount Array
A collection of tools (OBs, FVGs, lows) used to identify buy zones below equilibrium.
Discount Zone
The lower portion of a defined trading range (typically below the 50% equilibrium), where buying opportunities are considered more favorable.
Distribution
A phase where institutional participants offload positions after accumulation, often preceding a market reversal or decline. A phase where large players reduce or exit positions.
Drawdown
The reduction of account equity from a peak to a trough.
E
Economic Calendar
A schedule of economic events and data releases.
Entry Point
The price level at which a trade is opened. (The price at which a crypto trade is opened).
Equal Highs / Equal Lows
Price levels where multiple highs or lows form at similar prices, representing pooled liquidity.
Equilibrium
The midpoint (50%) of a defined price range, used to determine premium and discount pricing.
Equity
Account balance plus or minus unrealized profits and losses.
Exchange
A platform where cryptocurrencies are bought, sold, and traded.
Execution
The process of placing and filling a trade order.
Expansion
A strong impulsive price movement following accumulation or manipulation.
F
Failed Auction
When price attempts to move higher or lower but lacks follow-through.
Fair Value Gap (FVG)
A price imbalance created by aggressive buying or selling, where little to no trading occurred between candles. Often revisited by price for rebalancing.
Fakeout
A false breakout that quickly reverses.
False Breakout
A move beyond a key level that fails to hold, frequently used to trap retail traders and capture liquidity. Also called a fakeout.
Fundamental Analysis
Analysis based on economic, financial, and news factors.
Funding Rate
A periodic payment exchanged between long and short traders in perpetual futures to keep price aligned with spot
Futures Contract
An agreement to buy or sell an asset at a future date and price (An agreement to buy or sell a cryptocurrency at a predetermined price and date.).
G
Gap
A price area where no trading occurs between sessions for-example over the weekends.
Gas Fee
The transaction fee required to process operations on a blockchain network.
Grid Trading
A strategy using multiple buy and sell orders at fixed intervals.
H
Hedging
Hedging is a risk management technique used to reduce or offset potential losses by opening a second position that moves in the opposite direction to an existing position or exposure. The primary objective of hedging is capital protection, not profit maximization.
Higher High (HH)
A price peak higher than the previous peak.
Higher Low (HL)
A price low higher than the previous low.
HODL – (Hold On Dear Life)
A slang term meaning to hold crypto assets long-term regardless of volatility.
Hot Wallet
An internet-connected wallet used for frequent transactions.
I
Imbalance
A price area where buying or selling pressure is uneven.
Indicator
A mathematical calculation applied to price or volume.
Inducement
A deliberate price movement designed to encourage traders to enter positions before price reverses toward the true institutional objective. A move designed to lure traders into premature positions before reversal.
Initial Margin
The minimum collateral required to open a futures position.
Institutional Order Flow
Large-volume transactions that drive true market direction.
Institutional Trader
Large entities such as banks or hedge funds.
Internal Range Liquidity (IRL)
Liquidity resting within a defined trading range.
Internal Structure
Short-term market structure used for precise entries within a higher-timeframe bias.
Isolated Margin
A margin mode where risk is limited to a single position.
J
Journal (Trading Journal)
A record of trades used for performance review and improvement.
K
Key Level
A significant price level where reactions are expected.
Kill Zones
High-probability trading windows (London Open, New York Open, New York PM).
L
Leverage
Borrowed capital used to increase market exposure.
Limit Order
An order to buy or sell at a specified price or better.
Liquidation
Forced closure of a leveraged position when margin requirements are no longer met.
Liquidity
Liquidity refers to the availability of buy and sell orders in the market that allow large transactions to be executed efficiently, with minimal price disruption. In trading, liquidity is not just volume; it is where orders are resting and how price is engineered to access them. Markets move primarily to seek liquidity, not randomly.
Liquidity Grab
A move designed to trigger stop losses before reversing.
Liquidity Sweep
A rapid price movement that targets and consumes stop orders above highs or below lows.
London Close Manipulation
Price behavior designed to rebalance positions before the NY session.
Lot Size
The standardized quantity of an asset traded.
Lower High / Lower Low
Structure confirming bearish market conditions.
M
Maintenance Margin
The minimum equity required to keep a futures position open.
Maker / Taker
Fee classification based on whether an order adds or removes liquidity.
Manipulation
A price phase where institutions move price against the anticipated direction to generate liquidity before expansion.
Margin
Funds required to open and maintain leveraged positions.
Margin Call
A broker demand for additional funds when margin is insufficient.
Market Order
An order executed immediately at current market price.
Market Structure
The sequence of highs and lows defining trend direction & market intent.
Market Structure Shift (MSS)
A change in trend confirmed by a break of key structural levels.
N
New York Open
A critical timing window often associated with liquidity grabs and reversals.
New York Session
The most liquid and volatile trading session.
News Trading
Trading based on economic announcements.
No Slippage
Order execution at the requested price without deviation.
O
Open Interest (OI)
The total number of outstanding futures contracts.
Optimal Trade Entry (OTE)
A Fibonacci retracement zone (commonly 61.8%–79%) where price offers favorable risk-to-reward precision entries aligned with higher-timeframe bias.
Order Block
A price area where institutional buying or selling is believed to occur. The final bullish or bearish candle before an impulsive move.
Order Block (OB)
A price zone where institutional buying or selling occurred prior to a significant market move. Used as a high-probability reaction area.
Order Book
A real-time list of buy and sell orders on an exchange.
Overleveraging
Using excessive leverage relative to account size.
P
Perpetual Contract
A futures contract without an expiration date.
Pip
The smallest price movement in most Forex pairs.
Position Size
The volume of a trade (The amount of cryptocurrency being traded.).
Power of Three (AMD)
Accumulation, Manipulation, Distribution—core price delivery model.
Premium Zone
The upper portion of a defined price range (typically above the 50% equilibrium), where selling opportunities are considered more favorable.
Price Delivery
The structured movement of price through accumulation, manipulation, and distribution phases.
Pullback
A temporary price retracement within a trend.
Pump and Dump
A manipulative scheme involving rapid price inflation followed by a sell-off.
Q
Quote Currency
The second currency in a Forex pair (e.g., USD in EUR/USD).
R
Range
A price zone where the market trades sideways.
Range Expansion
A breakout from consolidation into directional movement.
Range High / Range Low
The upper and lower boundaries of a defined trading range used for premium and discount calculations.
Rebalancing
The process by which price revisits inefficiencies such as Fair Value Gaps to restore balance.
Retracement
A temporary counter-move within a trend.
Risk Management
Techniques used to control trading risk.
Risk-to-Reward Ratio (R:R)
The relationship between potential risk and reward.
ROI (Return on Investment)
Profit or loss expressed as a percentage of capital invested.
S
Sell-Side Liquidity (SSL)
Clusters of sell orders (typically below equal lows or support) targeted by institutions to facilitate buy-side executions.
Session High / Session Low
Key reference points for intraday liquidity.
Slippage
Slippage is the difference between the expected price of a trade and the actual price at which the order is executed. It occurs when market conditions prevent an order from being filled at the requested price. Slippage is most common in fast-moving or illiquid markets, and it can be positive or negative.
Smart Money
Institutional market participants with large capital.
Spot Trading
Buying or selling cryptocurrencies for immediate settlement.
Spread
The difference between bid and ask prices.
Stablecoin
A cryptocurrency pegged to a stable asset such as USD.
Stop Hunt
A price movement designed to trigger stop-loss orders and collect liquidity before reversing.
Stop Loss (SL)
An order to limit losses by closing a trade at a set price.
Support & Resistance
Key price levels where price tends to react.
Synthetic Indices
Algorithmically generated markets that simulate volatility.
T
Take Profit (TP)
An order to close a trade at a predetermined profit level.
Technical Analysis
Analysis based on price charts and indicators.
Time and Price Theory
The relationship between when and where price moves.
Trading Pair
Two cryptocurrencies or a crypto and fiat currency traded against each other (Two fiat currencies traded against each other).
Trading Session (Kill Zones)
Specific market sessions (e.g., London or New York) where liquidity and volatility are statistically higher.
Trend
The general direction of market movement.
Trend Continuation
A resumption of the prevailing market direction following a corrective or consolidation phase.
U
Unrealized P/L
Profit or loss on open trades not yet closed.
V
Volatility
The degree of price fluctuation (The rate and magnitude of price changes in cryptocurrency markets.).
Volume
The amount of an asset traded.
W
Wallet
A tool for storing and managing cryptocurrency assets.
Weekly Bias
Directional expectation derived from weekly structure.
Whale
An individual or entity holding large amounts of cryptocurrency capable of influencing price.
Whipsaw
Rapid price movement causing false signals.
Wyckoff Accumulation / Distribution
Foundational concepts influencing ICT market behavior theory.
Wyckoff Method
A market analysis framework focusing on accumulation, distribution, and the behavior of institutional participants.
X
XAG/USD
The trading pair representing Silver priced in US Dollars.
XAU/USD
The trading pair representing Gold priced in US Dollars.
Y
Yield
The return on an investment.
Z
Zone
A price area of interest rather than a single level.
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