A - Z Trading Terms

# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

A sustained upward movement in the price of a security or market, often following a decline.

Describes an asset that trades between a defined high and low price over a period, without a clear trend.

A notification system that taps you on the shoulder the moment your trade setup is detected — so you act fast and never miss out.

The continuous automated process of searching financial instruments for certain conditions or patterns as new market data arrives. On HAMMER Pro, real-time scanning lets traders set custom parameters or scripted logic to identify trading opportunities immediately as market conditions change. Example: Scanning for stocks exhibiting a “death cross” or for intraday breakouts. Customisation: HAMMER Pro supports both built-in and user-coded scans using C# for highly tailored strategies.

The profit or loss on a completed trade. This means a position has been initiated and then closed. It also includes any and all fees and commissions associated with the transaction.

Adjusting the proportions of assets in a portfolio to maintain desired risk/reward profiles or asset allocations.
Example: Selling appreciated assets and buying underweighted ones.

An amount paid to the borrower of easy-to-borrow stocks as an incentive to borrow.

A substantial slip in economic output that impacts the broad economy and lasts for at least a few months. While a technical recession is defined as 2 consecutive quarters of real GDP declines, it is possible to experience two consecutive shallow declines in real GDP without being in recession.

A momentum oscillator used in technical analysis to measure the speed and change of price movements.
Scale: 0–100

  • 70 = Overbought
  • <30 = Oversold

An individual investor who buys and sells securities for personal accounts, not on behalf of an organization.

A performance metric used to evaluate the efficiency of an investment.
Formula: (Profit / Cost) × 100

A chart pattern indicating a potential change in trend direction.
Examples: Head and Shoulders, Double Top, Double Bottom

The set of strategies and tools used to limit losses and protect trading capital. This can involve setting stop-loss orders, position sizing, portfolio diversification, and monitoring real-time risk metrics. On HAMMER Pro, traders can use the built-in Risk Terminal to monitor and optimise risk in real time across multiple accounts.

Compares the potential reward of a trade to the potential loss.
Ideal: Traders often aim for at least 2:1. Example: Risking $100 to potentially gain $200 = 2:1.

In forex, it's the interest paid or earned for holding a position overnight. In futures, it means moving from a near-term contract to a longer-term one before expiry.

A complete trade cycle, including both opening and closing of a position.
Example: Buy 100 shares → Sell 100 shares = 1 round trip.

A warning signal where the price and the Relative Strength Index (RSI) disagree — often a clue that a reversal is near.