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Explore clear definitions, everyday examples and lesson contexts.
Showing 12 of 26 matching terms
The average result in a stated sample of completed cases under a consistent unit and cost convention.
Example: Invented results +4, +2, −3 and 0 total +3 across four cases, giving a sample mean of +0.75.
Keep in mind: This describes that sample, not the next trade or a guaranteed future average.
A holding-style label commonly used for very short intraday positions seeking small price movements. Exact duration and execution rules must be stated.
Example: A teaching specification may define a case lasting minutes rather than using the label alone.
Keep in mind: The label does not make costs small or execution safe.
An opinion or attitude measured by a specified survey or indicator, with its population and method identified.
Example: A survey counts positive opinions; a holdings report records positions. Those are different measurements.
Keep in mind: Opinions, account counts and position quantities cannot be treated as interchangeable probabilities of a price move.
A period when the normal business hours of two financial centres overlap. The actual UTC window depends on the date and local clocks.
Example: Two shops in different time zones can be open at the same time for part of the day.
Keep in mind: An overlap is not a promise of a profitable or inexpensive trade.
A position that sells the base currency and buys the quote currency of a pair. Its price exposure benefits from a fall in the pair, before costs.
Example: It reverses the direction of the long-position idea: a later lower buy-back price would be favourable before costs.
Keep in mind: Do not confuse selling a pair with selling both currencies.
The equal-weight arithmetic mean of observations in a rolling window. When the window moves, the oldest observation leaves and the newest enters.
Example: Invented prices 10, 12 and 14 have a three-observation average of 12.
Keep in mind: The chosen input, timeframe and window matter; an average is not a forecast.
The difference between a reference or expected execution price and the actual fill, which can be favourable or adverse.
Example: A checkout price differs from the earlier shelf price; the receipt records the price actually accepted.
Keep in mind: Actual-fill P&L already reflects the fill: do not deduct the same execution difference again.
Treating other people’s apparent approval or behaviour as evidence when making a judgment. It can influence choices without verifying a claim.
Example: A queue outside a restaurant suggests popularity, but does not prove every meal suits your needs.
Keep in mind: Followers, testimonials and agreeing messages are not a complete trading-performance record.
Taking a position mainly because you expect its price to change in your favour, rather than because you need it for an immediate practical use.
Example: A traveller converts money for a hotel bill. Someone buying currency only to sell it after a hoped-for rise has a different purpose.
Keep in mind: Purpose matters; the same currency can be used in different ways.
An exchange arranged for settlement under the market’s spot convention, rather than a separately agreed future delivery date. The exact timing depends on the transaction.
Example: Someone arranges currency for a near-term supplier payment instead of fixing a rate for a payment several months away.
Keep in mind: Spot does not always mean instant delivery; retail price contracts may have different terms.
The ask minus the bid at a stated moment. It is often quoted in pips. The spread is not a separate bill in every pricing model, but it is an inherent difference between the two quoted sides.
Example: An invented 1.1000/1.1002 EUR/USD quote has a 0.0002 spread: two pips under the stated convention.
Keep in mind: The spread is a difference between sides, not necessarily a separately billed fee.
A conventional Forex position-size label often representing 100,000 units of the base currency. Actual contract specifications must be checked.
Example: Think of a labelled bulk package: the label describes quantity, not the deposit required to hold it.
Keep in mind: A standard lot is not the same as 100,000 units of required margin.
An indicator locating a selected close within the recent high-to-low range, often with additional smoothing.
Example: With low 10, high 20 and close 15, a basic illustrative %K is 50: (15−10)/(20−10) × 100.
Keep in mind: A zero-width range needs special handling; record the selected version and smoothing rules.
The stated price distance between an entry reference and a stop or invalidation reference, using the applicable direction and quote sides.
Example: An invented long entry at 1.1000 and exit reference at 1.0980 are 20 conventional 0.0001 pips apart.
Keep in mind: A distance is not a cash amount or a guarantee that an ordinary stop fills at the reference price.
An instruction that activates a limit order after a separate trigger, combining an activation condition with an acceptable-price boundary.
Example: An alert tells a shopper to start looking, but the shopper still refuses to pay above a written limit.
Keep in mind: Price control can leave the order unfilled while existing exposure continues.
An exit instruction intended to reduce exposure after adverse movement. Its trigger and execution behaviour depend on the chosen order and product.
Example: A demo learner writes an adverse-movement exit condition before entering a position.
Keep in mind: An ordinary stop-loss is not a guarantee that losses cannot exceed a planned amount.
An instruction activated by a stated trigger. A conventional stop-market order then seeks market execution under the applicable rules.
Example: A water-level alarm says when to respond; it does not hold the water at the alarm mark.
Keep in mind: The trigger price and eventual fill price can differ.
A provider-defined condition allowing or requiring forced closure of exposure under its margin or liquidation rules.
Example: A demo account reaches a specified closure condition and the provider begins closing positions under its documented process.
Keep in mind: A stop-out is not your ordinary stop-loss instruction, and closure prices or order may differ from expectations.
Straight-through processing: a label commonly used for automated transaction processing or routing. It does not by itself define the customer’s legal counterparty.
Example: An online order can move automatically between systems instead of someone retyping each detail.
Keep in mind: Automated routing is not proof that you trade directly with an outside bank.
A deliberately stated adverse set of assumptions used to examine potential effects, rather than a prediction or guaranteed worst case.
Example: If two hypothetical account-currency position results are −4 and −6 in the same scenario, their combined result is −10 before any omitted items.
Keep in mind: State conversion, costs and execution assumptions; more adverse outcomes may still be possible.
A move through a selected structure reference under a stated price, timeframe and confirmation rule.
Example: A worksheet identifies a prior confirmed low and requires a later completed close below it to label a break.
Keep in mind: The chart classification does not establish an available fill, a permanent trend or a guaranteed return.
Treating an unrecoverable past commitment as a reason to commit more now, instead of assessing the current decision on relevant future consequences.
Example: I spent two hours studying this case, so I must enter it, ignores whether it meets the current rule.
Keep in mind: Time already spent cannot make a false condition true or remove present risk.
A chosen price area where earlier declines paused or turned upward in a stated chart record.
Example: A learner marks a zone around several earlier lows and watches what later prices actually do.
Keep in mind: The label describes a reference area, not a floor that must hold.
A local high selected using an explicit comparison or turning-point rule. Its confirmation time depends on that rule.
Example: In an invented 10, 12, 11 sequence, 12 is a local high under a one-neighbour-on-each-side rule after 11 is observed.
Keep in mind: If the rule needs later bars, the swing was not confirmed at the high itself.
A local low selected using an explicit comparison or turning-point rule. Its confirmation time depends on that rule.
Example: In an invented 10, 8, 9 sequence, 8 is a local low under a one-neighbour-on-each-side rule after 9 is observed.
Keep in mind: Changing the rule or timeframe changes which lows are selected.
A holding-style label commonly used for positions lasting several days, with exact entry and exit rules defined separately.
Example: An observation exercise tracks a fictional case across several daily periods.
Keep in mind: Longer holding can add overnight, weekend, financing and event exposure.