Trading terms, in your language.

The smallest price movement in a currency pair, usually the 4th decimal place.

The difference between the bid (sell) and ask (buy) price — the cost of a trade.

A standardized trade size. One standard lot = 100,000 units of the base currency.

Borrowed capital that lets you control a larger position with less money. It amplifies both profit and loss.

The deposit required to open a leveraged position. It is collateral, not a fee.

Bid is the price you can sell at; ask is the price you can buy at. The gap between them is the spread.

A licensed firm that gives you access to the market and executes your trades.

Your account balance plus the floating profit or loss of open positions.

An order that closes your position automatically at a preset price to limit loss.

An order that closes your position automatically at a preset price to lock in profit.

An instruction to buy or sell at a specific time or price.

An order placed now that executes only when the price reaches a level you set.

The drop from a peak to a trough in your equity — how much you lost before recovering.

The ratio of potential loss to potential gain. A 1:2 ratio risks 1 to make 2.

Opening a second position to offset the risk of an existing one.

The difference between the price you expected and the price your order actually filled at.

A price chart showing open, high, low and close for a period in one candle.

A price level where buying interest tends to stop the price from falling further.

A price level where selling interest tends to stop the price from rising further.

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

Expecting or seeing rising prices. A bull market goes up.

Expecting or seeing falling prices. A bear market goes down.

How fast and how far price moves. High volatility means bigger, faster swings.

How easily an asset can be bought or sold without moving its price much.

Evaluating an asset by its economic, financial and news factors.

Studying price charts, patterns and indicators to forecast future moves.

A very short-term style that aims for many small profits within minutes.

Holding positions for days to weeks to capture medium-term price swings.

Opening and closing all positions within the same trading day.

A company that funds traders to trade its capital in exchange for a profit share.

A candle whose high exceeds the candles either side (or low, below). The objective marks structure is read from.

A close beyond the swing point that defined the trend. A wick through is a sweep, not a break.

A break carried by a large-bodied candle closing decisively beyond the level — as opposed to drift, where nobody is behind it.

Price trading through an obvious level to fill the stop orders clustered beyond it, then reversing. The close decides whether it was a sweep or a break.

A band of price left untraded by a one-sided three-candle move. Price often returns to it.

How far an instrument typically moves in one period. A stop inside 1x ATR is inside normal noise.

What one trade is worth on average, in R. (Win rate x avg win) − (loss rate x avg loss). The only figure that says whether an edge exists.

The amount risked on a trade. A 2R win makes twice what a loss would have cost. Makes results comparable across instruments and account sizes.

Levels at 38.2%, 50% and 61.8% of a swing. They matter because many traders draw them, not because of natural mathematics — which also makes them dense stop clusters.

Nominal yield minus expected inflation. The strongest driver of gold — and why gold can fall during high inflation.

Whether your broker passes your order to the market (A-book, aligned) or takes the other side themselves (B-book, your loss is their revenue).

A prop-firm loss limit whose floor follows your equity high. You can breach it while still in profit — unlike a static floor fixed at the starting balance.

The prevailing market condition — trending, ranging, high or low volatility. A regime change requires a measurable change, not a feeling.

Shuffling your own trade results many times to see what drawdown a different ordering could have produced. Size for the 95th percentile, not the one you happened to get.

A close beyond the swing point that defined the trend. Continuation in the trend direction; reversal against it. A wick through is a sweep, not a BOS.

The first break against the prevailing trend — a warning that momentum is shifting. Treated as a reason to stop adding, not as a signal to reverse.

A term for an obvious level placed to attract orders before a sweep. Describes real order clustering, but the intent it implies cannot be observed on a retail chart — treat it as a name for a pattern, not as evidence.

The last opposite-colour candle before a strong move. A rough proxy for where the move originated — useful where it coincides with structure, not verifiable on its own in spot FX.

The upper and lower halves of a marked range. Buying in the lower half (discount) gives a shorter stop than buying near the high — the benefit is the ratio, not a prediction.

A name for the high-volume hours — typically the London open and the London–New York overlap. The underlying fact (volume and spreads vary sharply by hour) is well established; the specific windows taught vary between sources.

Account types where orders are passed to liquidity providers rather than held by the broker. Usually raw spread plus commission — compare total round-turn cost, not the advertised spread.

An account that does not charge or pay overnight interest, for traders whose faith prohibits riba. Brokers usually recover the cost through wider spreads or an administration fee — check which.

Overnight interest paid or received for holding a position past the daily rollover. On some pairs it quietly consumes a winning trade held for weeks.

Automatically mirroring another account’s trades in your own. Their risk settings become yours — check position sizing and drawdown limits before connecting anything.

An automated program that trades an MT4/MT5 account by rules. Only as good as the rules and the testing behind it — most prop firms restrict or prohibit them.

The share of profits a funded trader keeps, typically 70–90%. Compare it alongside the drawdown rule — a higher split on a rule you cannot survive is worth nothing.

A prop-firm condition voiding a payout if one day contributed too large a share of total profit. Not advertised on the front page, and it ends real attempts.

The three US releases that move FX most: employment (first Friday), inflation, and the Fed decision. Spreads widen several times over and stops can slip badly.

The probability of losing a defined portion of the account before your edge produces results. Dominated by position size, not by the size of the edge.

How far an instrument typically travels in a day. A target beyond the remaining ADR is unlikely to be reached in the session.

A stop that follows price in the profitable direction only. Locks in gains; never widens. Not the same as a trailing drawdown, which is a prop-firm rule.