26/09/2025
Some common trading terminologies across crypto, forex and stocks — simplified for clarity: 💰
📊 Market Basics
•Bull Market → A market that’s rising or expected to rise.
•Bear Market → A market that’s falling or expected to fall.
•Liquidity → How easily an asset can be bought/sold without major price change.
•Volatility → How fast and how much prices move up or down.
💹 Orders & Ex*****on
•Market Order → Buy/sell immediately at the current market price.
•Limit Order → Buy/sell only at a set price or better.
•Stop-Loss (SL) → An order that closes a trade automatically to limit losses.
•Take Profit (TP) → An order that closes a trade automatically when profit target is hit.
•Entry → The price point where you open a trade.
📈 Position Terms
•Long → Betting that the price will go up (buying).
•Short → Betting that the price will go down (selling borrowed asset).
•Leverage → Borrowing funds to trade larger than your capital (e.g., 10x leverage).
•Margin → The money you must deposit to open a leveraged trade.
•Liquidation → Forced closure of your trade when your margin runs out.
⚖️ Risk & Analysis
•Pips → Smallest unit of price movement in forex (e.g., 0.0001).
•Spread → Difference between buy (ask) and sell (bid) prices.
•Support → Price level where buyers often step in to stop a fall.
•Resistance → Price level where sellers often step in to stop a rise.
•Breakout → When price moves strongly above resistance or below support.
•Trend → General direction of the market (uptrend, downtrend, sideways).
📚 Trading Styles
•Scalping → Very short-term trades, seconds to minutes.
•Day Trading → Enter and exit within the same day.
•Swing Trading → Holding trades for days or weeks to catch bigger moves.
•Position Trading → Long-term holding, based on fundamentals.