RockGlobal Glossary

Master the Markets: A Comprehensive Guide to Trading Terminology

A session open is the period when a major financial centre becomes active and market participation begins to increase.
Slippage is the difference between the expected price of a trade and the price it is actually filled at.
The spread is the difference between the bid and ask price and represents a primary trading cost in many markets.
Spread widening is when the bid-ask spread increases, often during volatility or reduced liquidity.
A stop loss is an order or level used to limit downside by closing a position if price moves against you.
A stop order becomes a market order once a trigger price is reached, and it is used to enter or exit at defined levels.
A stop out is the automatic closure of positions when margin levels fall below a defined threshold.
A stress test is a regulatory exercise used to assess whether major banks can withstand a severe economic downturn or market shock.
Supply in loss refers to coins or units estimated to be held below their acquisition price.
Support is a price area where falling price has previously slowed, paused, or reacted.
Support and resistance are price zones where buying or selling interest has historically been strong.
Support and resistance are chart areas where price has previously slowed, paused, or reacted.
Swing trading is a medium-term trading style focused on capturing part of a broader move over several days or weeks.
A take profit order is used to close a position at a specified level to lock in gains if reached.
Thin market describes conditions where there are fewer orders or less available depth close to the current market price, which can make price feel more sensitive to incoming buying or selling.
A thin market is a market with lighter liquidity and less depth near the current price, which can make prices more sensitive and fills less smooth.
A timeframe is the time interval used to display price data on a chart, such as 1H, 4H, or daily.
A timeframe is the interval used to display price movement on a chart, such as one minute, one hour, one day, or one week.
TINA stands for “There Is No Alternative” and is used to describe periods when investors keep favouring one asset class, often equities, because alternatives appear less attractive.
A trading session is the period when a major financial centre is most active and market participation is concentrated.
A trend describes a persistent direction in price movement over time.
Trend following is the practice of reading and working with an existing directional move rather than trying to call every turning point.
The underlying is the reference instrument whose price movement a derivative contract tracks.
The US Dollar Index (DXY) is a measure of the US dollar’s value against a basket of major currencies, often used as a quick gauge of broad USD strength or weakness.
USD strength describes periods where the US dollar appreciates broadly against other currencies, often driven by yields, policy expectations, growth differentials, and global risk sentiment.
Volatility describes how much and how fast prices move over time. Full:
VWAP is the volume-weighted average price and is used as a reference level for average trading price.
A whipsaw is a rapid move in one direction followed quickly by a reversal, often during news or low liquidity.
A whitelist is a controlled list of approved partners or sources used to manage how enquiries are introduced.
XAU/USD is the market symbol for the gold price quoted in US dollars.
Yields represent the effective return on bonds and are a key driver of FX, equities, and risk sentiment.
Zero-sum thinking is the belief that one participant’s gain must always come directly from another’s loss, which can oversimplify market structure.
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Risk Notice: Financial markets involve risk, and losses may occur. Information on this website is provided for general informational purposes only and does not constitute financial advice, an offer, or a solicitation. Any reference to financial instruments or markets does not take into account your individual objectives, financial situation, or needs. You should consider seeking independent professional advice before making any financial decisions.