Question 1

What does Arbitrage mean in trading?

Accepted Answer

A trading strategy that exploits price differences of the same financial asset in different markets.

Question 2

What does Ask Price mean in trading?

Accepted Answer

The lowest price a seller is willing to accept for a currency pair.

Question 3

What does Appreciation mean in trading?

Accepted Answer

An increase in the value of a currency relative to another currency.

Question 4

What does A-Book mean in trading?

Accepted Answer

A broker model where client orders are passed directly to a liquidity provider.

Question 5

What does Base Currency mean in trading?

Accepted Answer

The first currency listed in a currency pair.

Question 6

What does Bearish mean in trading?

Accepted Answer

A market sentiment where prices are expected to fall.

Question 7

What does Bid Price mean in trading?

Accepted Answer

The highest price a buyer is willing to pay for a currency pair.

Question 8

What does B-Book mean in trading?

Accepted Answer

A broker model where the broker acts as the counterparty to client trades.

Question 9

What does Break of Structure (BOS) mean in trading?

Accepted Answer

A concept in Smart Money Concepts (SMC) indicating a continuation of the current trend.

Question 10

What does Bullish mean in trading?

Accepted Answer

A market sentiment where prices are expected to rise.

Question 11

What does Candlestick Chart mean in trading?

Accepted Answer

A type of chart that displays the high, low, open, and closing prices of a security for a specific period.

Question 12

What does Carry Trade mean in trading?

Accepted Answer

A strategy of borrowing a low-interest currency to buy a high-interest currency.

Question 13

What does CFD (Contract for Difference) mean in trading?

Accepted Answer

A derivative contract that allows traders to speculate on price movements without owning the underlying asset.

Question 14

What does Copy Trading mean in trading?

Accepted Answer

A feature allowing traders to automatically copy the positions of experienced investors.

Question 15

What does Currency Pair mean in trading?

Accepted Answer

The quotation of two different currencies against each other.

Question 16

What does Dealing Desk (DD) mean in trading?

Accepted Answer

A broker that operates as a market maker, taking the opposite side of client trades.

Question 17

What does Depreciation mean in trading?

Accepted Answer

A decrease in the value of a currency relative to another.

Question 18

What does Drawdown mean in trading?

Accepted Answer

The peak-to-trough decline in an investment or trading account.

Question 19

What does ECN (Electronic Communication Network) mean in trading?

Accepted Answer

A type of broker that connects traders directly to liquidity providers.

Question 20

What does Equity mean in trading?

Accepted Answer

The total value of a trading account given current market prices.

Question 21

What does Exchange Rate mean in trading?

Accepted Answer

The price of one currency expressed in terms of another.

Question 22

What does Forex (Foreign Exchange) mean in trading?

Accepted Answer

The global decentralized marketplace for trading national currencies.

Question 23

What does Fundamental Analysis mean in trading?

Accepted Answer

Evaluating a currency's value by analyzing economic, social, and political forces.

Question 24

What does Gapping mean in trading?

Accepted Answer

When a price jumps from one level to another without trading in between.

Question 25

What does Hedging mean in trading?

Accepted Answer

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

Question 26

What does Imbalance (IMB) mean in trading?

Accepted Answer

A Smart Money Concept describing an area of inefficient price action.

Question 27

What does Indicators mean in trading?

Accepted Answer

Mathematical calculations based on price and volume used to predict market movements.

Question 28

What does Leverage mean in trading?

Accepted Answer

Using borrowed capital to increase the potential return of an investment.

Question 29

What does Limit Order mean in trading?

Accepted Answer

An order to buy or sell a currency at a specific price or better.

Question 30

What does Liquidity mean in trading?

Accepted Answer

The ability of an asset to be bought or sold quickly without affecting its price.

Question 31

What does Long Position mean in trading?

Accepted Answer

Buying an asset with the expectation that its price will rise.

Question 32

What does Lot mean in trading?

Accepted Answer

The standardized unit of trade size in forex.

Question 33

What does Margin mean in trading?

Accepted Answer

The amount of money required to open and maintain a leveraged position.

Question 34

What does Margin Call mean in trading?

Accepted Answer

A notification that your account equity has fallen below the required margin level.

Question 35

What does Market Maker mean in trading?

Accepted Answer

A broker that provides liquidity by quoting buy and sell prices.

Question 36

What does Market Order mean in trading?

Accepted Answer

An order to buy or sell immediately at the best available current price.

Question 37

What does Order Block mean in trading?

Accepted Answer

A market behavior that indicates the accumulation of orders from financial institutions.

Question 38

What does Pip mean in trading?

Accepted Answer

The smallest standard unit of price change in a currency pair.

Question 39

What does Pipette mean in trading?

Accepted Answer

A fractional pip, representing 1/10th of a standard pip.

Question 40

What does Quote Currency mean in trading?

Accepted Answer

The second currency in a currency pair.

Question 41

What does Resistance mean in trading?

Accepted Answer

A price level where selling interest is strong enough to prevent the price from rising further.

Question 42

What does Risk/Reward Ratio mean in trading?

Accepted Answer

A measure of the potential profit closer to the potential loss of a trade.

Question 43

What does Rollover mean in trading?

Accepted Answer

The interest paid or earned for holding a position overnight.

Question 44

What does Scalping mean in trading?

Accepted Answer

A trading strategy that attempts to make many small profits on small price changes.

Question 45

What does Short Position mean in trading?

Accepted Answer

Selling an asset with the expectation that its price will fall.

Question 46

What does Slippage mean in trading?

Accepted Answer

The difference between the expected price of a trade and the price at which it is actually executed.

Question 47

What does Smart Money Concepts (SMC) mean in trading?

Accepted Answer

A trading methodology that attempts to track the actions of institutional investors.

Question 48

What does Spread mean in trading?

Accepted Answer

The difference between the bid and ask price.

Question 49

What does Stop Loss mean in trading?

Accepted Answer

An order placed to close a position automatically if price moves against you.

Question 50

What does STP (Straight Through Processing) mean in trading?

Accepted Answer

A broker model that passes orders directly to liquidity providers without manual intervention.

Prop Firms Comparison

Prop Trading Firms Reviews

Prop Trading Firms Reviews

Core Tools

Calculators & Data

Trader's Glossary

A

Arbitrage

Ask Price

Appreciation

A-Book

Algorithm Trading (Algo Trading)

Account Reset (Prop Firm)

B

Base Currency

Bearish

Bid Price

B-Book

Break of Structure (BOS)

Bullish

C

Candlestick Chart

Carry Trade

CFD (Contract for Difference)

Copy Trading

Currency Pair

Challenge (Prop Firm)

Consistency Rule

D

Dealing Desk (DD)

Depreciation

Drawdown

Drawdown (Prop Firm)

E

ECN (Electronic Communication Network)

Equity

Exchange Rate

Expert Advisor (EA)

Expert Advisor (EA)

F

Forex (Foreign Exchange)

Fundamental Analysis

FOMC (Federal Open Market Committee)

Funded Account

G

Gapping

H

Hedging

High-Frequency Trading (HFT)

I

Imbalance (IMB)

Indicators

Instant Funding

L

Leverage

Limit Order

Liquidity

Long Position

Lot

M

Margin

Margin Call

Market Maker

Market Order

Margin Level

N

NFP (Non-Farm Payrolls)

News Trading (Prop Firm)

O

Order Block

One-Step Challenge

P

Pip

Pipette

Pip Value

Prop Trading Firm

Profit Split

Payout Proof

Profit Target

Q