Glossary

The trading glossary

Every trading term, explained simply, with a concrete example. A clear starting point before the training.

18 terms

The basics

Long position (going long) →
Going long means buying an asset expecting its price to rise, so you can sell it higher later.
Short selling (going short) →
Going short means betting on a falling asset: you sell it borrowed, then buy it back cheaper later.
Stock (share) →
A stock is a unit of ownership in a publicly traded company. Holding one means you own a small fraction of the business.
Volatility →
Volatility measures how much and how fast an asset's price moves. The higher it is, the faster the price swings.

Order types

Bid and Ask →
The bid is the best price someone will buy at; the ask is the best price someone will sell at.
Limit order →
A limit order sets your maximum buy price (or minimum sell price). You control the price, not the certainty of a fill.
Market order →
A market order fills immediately at the best available price. You choose speed over an exact price.
Spread →
The spread is the gap between the bid and the ask. It is a hidden cost you pay on every round trip.

Technical analysis

Support and resistance →
Support is a price level where declines tend to stall; resistance is a level where rises tend to stall.
Volume →
Volume is the number of shares traded over a period. It measures the interest and strength behind a price move.

Chart patterns

Ascending triangle →
An ascending triangle is an often bullish pattern: a flat resistance tested repeatedly, with higher lows squeezing price upward.
Cup and handle →
The cup and handle is a bullish pattern: a rounded bottom shaped like a cup, followed by a small pullback (the handle), then an upside break.
Double bottom →
A double bottom is a bullish reversal pattern: two troughs at the same level that price holds, followed by an upside break.
Double top →
A double top is a bearish reversal pattern: two peaks at the same level that price fails to break, followed by a downside break.
Head and shoulders →
Head and shoulders is a bearish reversal pattern: three peaks, the middle one (the head) higher than the two shoulders, often signalling a drop.
Inverse head and shoulders →
The inverse head and shoulders is a bullish reversal pattern: three troughs, the middle one lowest, often signalling a rise.

Risk management

Stop-loss →
A stop-loss automatically closes your position if the price hits a loss level you set in advance.

Products & markets

Leverage →
Leverage lets you control a position bigger than your capital. It amplifies gains and losses alike.

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