Key Trading Terms Explained for Beginners

Many strategies rely on terms that define positions, strategies, or market conditions.

This strategy has limited profit and potentially unlimited loss if the price rises sharply.

Another option strategy is the short straddle, where a trader sells both a call and a Put option terminology at the same strike price.

Wrapping doesn’t change the value but makes ETH more flexible within DeFi ecosystems.

The Gravestone Doji is a candlestick pattern that signals a potential bearish reversal.

Pips help measure gains, losses, and volatility in currency markets.

This refers to the ability for traders to place orders directly into the market order book without intermediaries.

Another common concept is equity in trading, which refers to the total value of a trader’s account including unrealized profits and losses.

Margin in forex trading means the collateral required to open and maintain positions.

Each of these terms plays a role in building strategies and managing risk effectively.