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.

Market information as it happens, provided directly by an exchange to DMA traders. CFD brokers may delay or simulate data.

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

When a CFD broker offers a new price after you try to trade, often due to internal price controls.

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.