Trading Terms To Remember In it’s Simplest Form

Fundamental Analysis - The News

Technical Analysis - On The Charts

Ask Price - The Price The Broker Asking For

Bid Price - The Price Others are Willing To Pay 

Market Order  - The Price You Pay When you don’t want to wait to buy or sell

Buy Limit - A Price You are willing to pay if the price go down pass a certain point 

Sell Limit - A Price Set Above where price currently is and if price gets there your willing to sell 

Lot size/ Position size - In crypto & forex A lot size is similar to what they call shares in the stock market. You have

. Standard Lot {100,000 units} = 1.00 Lot Size

. Mini Lot { 10,000 Units } = 0.10 Lot Size

. Micro Lot { 1,000 Units } = 0.01 Lot Size

. Nano Lot { Below 1,000 Units }

Let us say in crypto or forex you want to buy 100,000 units {1 Lot Size} of Oranges/USD

The oranges against the USD is $1.05 USD. If you want to buy 100,000 Units of oranges that’s $1.05 you will pay 100,000 Unit x $1.05 = $105,000 USD

So with this being said every time the price moves 1 pip at a standard lot size that is $1.05 every move it makes . This could be great if price go in your favor or it can be really devastating if prize goes against your favor. So I highly recommend as a beginner start with a micro or nano lot size until you get familiar with how much each lot size affects your account.

Stop Loss - The price you want to get out of a trade if price ever get there. { In other words the risk your willing to pay if price goes against your analysis }. 

Take Profit  - The Price You want to collect your money if price ever gets there 

Bull or Bullish : Buy- Long: When The Price Is Going up in price. This is when you look for BUYING opportunities.

Bear or Bearish: Sell - Short: When the market is going down in price. this is when you look for SELLING opportunities.

Scaling In/Scaling Out The Moment You start adding more trades to your position/ The Moment You start taking profit from you trade if you do not want to close all the trade at once. 

Spread The difference between the Buying and The Selling Price

Leverage The ability to use a smaller amount of money to control a larger amount of money {RISKY so NEVER over leverage

Margin Borrowing Money From the broker to trade 

Slippage The difference between The expected price and the price the trade actually executed

Volume The total number of coins/contracts/shares exchanged between buyers and sellers within a certain timeframe 

Liquidity  How easily a asset can be bought or sold at a stable price 

Uptrend When price is maintaining a series of Higher Highs and Higher Lows {When Price is going up}

Downtrend When Price is maintaining a series of lower lows and lower highs {When price is going down}

Consolidation When price is stuck between a certain range and not breaking support or resistance 

Support A Area where price is hard to break below {The Floor}

Resistance A Area where price is hard to break above {It’s Like A Ceiling}

Break Of Structure When Price Break a certain area in the market either it was support or resistance 

Retest When Price Pull Back after a Break out 

Entry When You Place A Trade