Trading Terms & Terminologies

Here are common trading terminologies across crypto, forex and stocks — simplified for clarity:

Market Basics

• Bull Market → A market that’s rising or expected to rise.

• Bear Market → A market that’s falling or expected to fall.

• Liquidity → How easily an asset can be bought/sold without major price change.

• Volatility → How fast and how much prices move up or down.

Orders & Execution

• Market Order → Buy/sell immediately at the current market price.

• Limit Order → Buy/sell only at a set price or better.

• Stop-Loss (SL) → An order that closes a trade automatically to limit losses.

• Take Profit (TP) → An order that closes a trade automatically when profit target is hit.

• Entry → The price point where you open a trade.

Position Terms

• Long → Betting that the price will go up (buying).

• Short → Betting that the price will go down (selling borrowed asset).

• Leverage → Borrowing funds to trade larger than your capital (e.g., 10x leverage).

• Margin → The money you must deposit to open a leveraged trade.

• Liquidation → Forced closure of your trade when your margin runs out.

Risk & Analysis

• Pips → Smallest unit of price movement in forex (e.g., 0.0001).

• Spread → Difference between buy (ask) and sell (bid) prices.

• Support → Price level where buyers often step in to stop a fall.

• Resistance → Price level where sellers often step in to stop a rise.

• Breakout → When price moves strongly above resistance or below support.

• Trend → General direction of the market (uptrend, downtrend, sideways).

Trading Styles

• Scalping → Very short-term trades, seconds to minutes.

• Day Trading → Enter and exit within the same day.

• Swing Trading → Holding trades for days or weeks to catch bigger moves.

• Position Trading → Long-term holding, based on fundamentals