Trading Dictionary
Complete A-Z guide to trading terminology. Master the language of trading with our comprehensive dictionary.
Popular Trading Terms
Breakout
A price movement through an identified level of support or resistance.
Bull Market
A market condition characterized by rising prices and optimistic investor sentiment.
Bear Market
A market condition where prices fall 20% or more from recent highs.
Stop Loss
An order placed to sell a security when it reaches a certain price, designed to limit losses.
Day Trading
The practice of buying and selling securities within the same trading day.
Moving Average
A trend-following indicator that smooths out price action by creating a constantly updated average price.
RSI (Relative Strength Index)
A momentum oscillator that measures the speed and magnitude of price changes, ranging from 0 to 100.
Candlestick
A type of price chart that displays the high, low, open, and closing prices of a security.
Browse by Category
All Trading Terms A-Z
B
Bid Price
The highest price that a buyer is willing to pay for a security.
Breakout
A price movement through an identified level of support or resistance.
Bull Market
A market condition characterized by rising prices and optimistic investor sentiment.
Bear Market
A market condition where prices fall 20% or more from recent highs.
E
F
FOMO (Fear of Missing Out)
The anxiety that an exciting or interesting event may currently be happening elsewhere, often leading to impulsive trading decisions.
Fibonacci Retracement
A technical analysis tool that uses horizontal lines to indicate areas of support or resistance at key Fibonacci levels.
G
H
I
L
M
Moving Average
A trend-following indicator that smooths out price action by creating a constantly updated average price.
MACD (Moving Average Convergence Divergence)
A trend-following momentum indicator showing the relationship between two moving averages.
Margin
Borrowed money used to purchase securities, or the amount required to open a leveraged position.
Market Maker
A firm or individual that provides liquidity by continuously buying and selling securities.
O
Options
Financial derivatives that give the buyer the right, but not obligation, to buy or sell an asset at a set price.
Order Flow
The analysis of buy and sell orders entering the market to predict price direction.
Overbought
A condition where a security's price has risen too far too fast and may be due for a pullback.
P
Pattern Day Trader
A regulatory designation for traders who execute four or more day trades within five business days.
Pivot Point
A technical indicator used to determine overall market trend and potential support/resistance levels.
Position Sizing
The process of determining how many units to trade based on account size and risk tolerance.
R
RSI (Relative Strength Index)
A momentum oscillator that measures the speed and magnitude of price changes, ranging from 0 to 100.
Resistance
A price level where selling pressure is expected to prevent further price increases.
Risk-Reward Ratio
The comparison between potential profit and potential loss on a trade.
S
Stop Loss
An order placed to sell a security when it reaches a certain price, designed to limit losses.
Scalping
A trading strategy that attempts to profit from small price changes, often holding positions for minutes or seconds.
Short Selling
Selling borrowed securities with the intention of buying them back later at a lower price.
Slippage
The difference between expected trade price and actual execution price.
Support
A price level where buying pressure is expected to prevent further price declines.
Swing Trading
A trading style that attempts to capture gains over a period of days to weeks.
T
Take Profit
An order that closes a position once it reaches a specified profit level.
Technical Analysis
The study of historical price patterns and indicators to forecast future price movements.
Trailing Stop
A stop loss order that moves with favorable price movement to lock in profits.
Trend
The general direction in which a market or security price is moving.
V
What is a Trading Dictionary?
A trading dictionary is a comprehensive reference guide that defines and explains terminology used in financial markets. Whether you're learning about technical analysis, understanding market mechanics, or exploring different trading strategies, our dictionary provides clear, concise definitions with practical examples.
Why Use Our Trading Dictionary?
- Comprehensive Coverage: Over 3,000 trading terms explained
- Real Examples: Each term includes practical trading examples
- Related Terms: Discover connected concepts to deepen understanding
- Category Organization: Browse terms by topic area
- Regular Updates: New terms added as markets evolve
Essential Trading Categories
Our dictionary covers all aspects of trading including technical analysis (chart patterns, indicators), market mechanics (order types, market structure), trading styles (day trading, swing trading), risk management (position sizing, stop losses), and much more.