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

Trade settlement timelines, meaning "trade date plus X days."
T+2: Standard for most equities.
T+1: Becoming the norm in many markets (e.g., U.S. in 2024).
T+0: Same-day settlement (common in crypto and spot FX).

An order to automatically close a trade once it reaches a set profit target.

The study of price charts, patterns, and indicators to forecast future price movements.
Popular Tools: RSI, MACD, Moving Averages, Bollinger Bands.

The smallest possible price movement of a security.
Example: A tick for a futures contract might be 0.25 points.

The minimum price increment in which a security can move or be quoted.
Regulated by: Exchange rules (e.g., NYSE, CME)

A condition on an order specifying how long it remains active.
Types:

  • GTC (Good Till Cancelled)
  • IOC (Immediate or Cancel)
  • FOK (Fill or Kill)
  • DAY (Expires at close)

A dynamic stop-loss that adjusts with price movement, locking in profits while allowing room for trend continuation.
Example: Set 10% below market price, and it rises with the price but never goes backward.