Trading glossary
Plain-English definitions of the terms used in our lessons.
1
2
3
A
- A-setup
- Absorption
- Acceptance
- Acceptance check
- Assignment
- ATM offering
- ATR (average true range)
- Averaging down
B
- Balanced market
- Bias
- Bid/ask spread
- Blended R
- Bracket order
- Breadth
- Break of structure (BOS)
- Break-even win rate
- Breakdown
- Breakeven
- Breakeven stop
- Breakeven win rate
- Breakout
- Buying power
C
- Call
- Candle body
- Candle close
- Candle midpoint
- Cash-secured put
- Catalyst
- Chandelier stop
- Chase
- Chop
- Climactic bar
- Climax candle
- Confirmation close
- Confirmation tape
- Confirmed higher low
- Confluence
- Continuation
- Cooldown timer
- Cooling-off period
- Correct pass
- Covered call
D
- Daily stop
- Days to expiration (DTE)
- Debit
- Decaying impulse
- Defined risk
- Delta
- Demand zone
- Dilution
- Disqualifier
- Drill reset
E
- Earnings rule
- Effective cost basis
- Entry trigger
- Equal highs / equal lows
- Execution timeframe
- Expectancy
- Extrinsic value
F
- Fade
- Failed bounce
- Failed breakout
- Failed expansion
- Failed reclaim
- Fair value
- Fear exit
- First pullback
- Flipped level
- Float
- Follow-through
- FOMO
- Fresh zone
- Friction
G
H
- Halt resumption
- Hard cap
- Hard stop
- HH, HL, LH, LL
- Hidden-candle mode
- Hidden-candle replay
- High of day (HOD)
- Higher high / higher low (HH/HL)
- Higher low
- Holding period
- Hope hold
I
- Ideal entry
- If-then plan
- Implied volatility (IV)
- Impulse
- Impulse candle
- Intrinsic value
- Invalidation
- Invalidation level
- IV crush
- IV rank
K
L
- LEAPS
- Level 2
- Limit order
- Limit up / limit down halt
- Liquidity
- Liquidity cap
- Liquidity pool
- Lottery ticket
- Lower low / lower high (LL/LH)
- LULD
M
- Market structure shift (MSS)
- Max daily loss
- Mean reversion
- Measured move
- Mental stop
- Micro-MSS
- Mid price
- Moneyness
- MOU / letter of intent
O
- Open interest
- Opening range (OR)
- Options chain
- OR high (ORH)
- OR low (ORL)
- OR midpoint
- ORB
- ORB trap
- OTC (over-the-counter)
- Overtrading
P
- Partial exit
- Pause-predict-reveal
- Penny stock
- Pin risk
- Plan exit
- Plan trade
- Position delta
- Position size
- Pre-trade checklist
- Premarket high (PMH)
- Premature exit
- Premium
- Premium at risk
- Price alert
- Process grade
- Protected swing
- Pullback
- Pullback count
- Pump-and-dump
- Put
R
- R per share
- R-multiple
- Range
- Range expansion
- Range extreme
- Range midpoint
- Read vs. plan
- Realized loss
- Reclaim
- Registered direct offering
- Rejection
- Rejection candle
- Rejection high
- Relative volume
- Relative volume (RVOL)
- Rep
- Replay
- Replay review
- Resumption auction
- Resumption candle
- Resumption range
- Retest
- Revenge trade
- Revenge trading
- Reversal
- Reverse split
- Risk budget
- Risk per share
- Role reversal
- Rotation
- Rotational day
- Round down rule
- Runner
S
- Scaling in
- Scaling out
- Scratch trade
- Shelf registration (S-3)
- Slippage
- Slippage buffer
- Speed bump
- Spread
- Spread width
- Starter position
- Stop buffer
- Stop hunt
- Stop order
- Stop run
- Stop-limit order
- Stop-market order
- Straddle
- Strike price
- Structural divergence
- Supply zone
- Sweep extreme
- Swing high
- Swing low
- Swing point
- Sympathy play
T
- T1 and T2
- Theta
- Time & sales (the tape)
- Time stop
- Total open risk
- Trade cap
- Trader state
- Trailing stop
- Trap high
- Trapped breakout
- Trapped traders
- Trend day
- Trend maturity
- Trigger candle
- Two-close confirmation
- Typical price