TRADER'S DICTIONARY

A market phase where institutional traders slowly build buy positions without moving the price significantly. Usually happens in a range.

The price at which the market is prepared to sell a currency pair. You buy at the Ask.

The belief that prices will go down.

The price at which the market is prepared to buy a currency pair. You sell at the Bid.

A Smart Money Concept (SMC) term where price breaks a previous high (in an uptrend) or low (in a downtrend), confirming the continuation of the trend.

The belief that prices will go up.

A charting method that shows the Open, High, Low, and Close price for a specific time period.

When a central bank wants to lower interest rates to stimulate the economy. Usually bad for the currency.

The reduction of one's capital after a series of losing trades. Usually expressed as a percentage.

A price range where there was aggressive buying or selling, leaving an imbalance that price often returns to fill.

When a central bank wants to raise interest rates to fight inflation. Usually good for the currency.

Borrowed capital to increase the potential return of an investment. It also increases the risk.

The ability to buy or sell an asset quickly without affecting its price. In SMC, it refers to areas where Stop Losses are resting.

The volume size of a trade. 1.00 Lot = 100,000 units of currency.

A broker's demand for an investor to deposit additional money or securities so that the account is brought up to the minimum maintenance margin.

The last candle before a strong move that breaks structure/captures liquidity. Considered an institutional footprint.

Percentage in Point. The smallest price move that an exchange rate can make based on market convention.

Slang for losing a lot of money or blowing an account.

A trading style specializing in profiting off small price changes. Trades last minutes.

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

The difference between the Bid and the Ask price. This is the broker's fee.

A pending order to close a losing position to prevent further losses.

A style of trading that attempts to capture gains in an asset over a period of a few days to several weeks.

A pending order to close a profitable position once it reaches a certain price.

Slang for a trader with massive capital who can move the market.