Risk
#position-size
Position Size
Position size is the amount of a market, asset, lot size, contract size, or unit size taken on a trade. It should be based on risk, account size, stop-loss distance, and instrument specifications.
Trading Glossary
Trading terms explained clearly.
A practical trading glossary for FX, futures, equities, funded accounts, risk management, technical analysis, Fibonacci, execution, and trading psychology.
Use this as a reference while you study, plan trades, compare funding pathways, build discipline, and work through the wider KickStart Trading ecosystem.
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Showing 246 terms
Risk
#risk-per-trade
Risk Per Trade
Risk per trade is the amount of capital a trader is willing to lose if a single trade fails. Serious traders usually define this before entering the market.
Risk
#risk-reward-ratio
Risk / Reward Ratio
Risk/reward ratio compares the potential loss on a trade against the potential gain. For example, risking 1 to make 2 creates a 1:2 risk/reward profile.
Risk
#r-multiple
R-Multiple
R-multiple expresses trade performance in relation to the amount risked. A +2R trade made twice the original risk, while a -1R trade lost the planned risk.
Risk
#stop-loss
Stop Loss
A stop loss is a pre-planned exit level used to limit risk if the market moves against the trade. It is one of the most important risk-control tools in trading.
Risk
#take-profit
Take Profit
A take-profit level is a planned exit point where a trader intends to close a trade for profit if the market reaches the target.
Risk
#drawdown
Drawdown
Drawdown is the decline from an account high to a lower balance or equity level. It measures how much capital has been lost from a previous peak.
Risk
#max-drawdown
Maximum Drawdown
Maximum drawdown is the largest allowed or recorded loss from a high point. In funded trading, breaching max drawdown can result in account failure.
Risk
#break-even-rate
Break-Even Rate
Break-even rate is the win rate required for a strategy to avoid losing money at a given average risk-to-reward profile, before costs are considered.
Risk
#win-rate
Win Rate
Win rate is the percentage of trades that close in profit. It should be analysed alongside average win size, average loss size, risk-to-reward, and execution quality.
Risk
#loss-rate
Loss Rate
Loss rate is the percentage of trades that close at a loss. Losing trades are normal, but traders must keep losses controlled and consistent with their risk plan.
Risk
#expectancy
Expectancy
Expectancy estimates the average result a trading strategy may produce over time by considering win rate, average win size, average loss size, and trading costs.
Risk
#account-equity
Account Equity
Account equity is the current value of an account including open profit or loss. It can differ from account balance when trades are still open.
Risk
#account-balance
Account Balance
Account balance is the account value after closed trades and transactions, excluding unrealised profit or loss from open positions.
Capital Preservation
Capital preservation is the priority of protecting trading capital before pursuing aggressive returns. It is central to professional risk management and funded-account survival.
Risk
#risk-of-ruin
Risk of Ruin
Risk of ruin is the probability that a trader loses enough capital to make continuing the strategy impossible. It increases with poor risk control, overleveraging, and emotional trading.
Risk
#reward-to-risk
Reward-to-Risk
Reward-to-risk compares the potential reward of a trade to the amount being risked. A 2:1 reward-to-risk setup targets twice the planned risk.
Risk
#exposure
Exposure
Exposure is the amount of market risk a trader has open at one time. Exposure can come from one large position or multiple correlated positions.
Risk
#correlation-risk
Correlation Risk
Correlation risk happens when multiple trades move together because they are connected by the same currency, market driver, or broader theme. It can make risk larger than it appears.
Funding
#trailing-drawdown
Trailing Drawdown
Trailing drawdown is a loss limit that moves upward as the account grows, usually until it reaches a lock point. Traders must understand how it is calculated before trading funded accounts.
Funding
#static-drawdown
Static Drawdown
Static drawdown is a loss limit that stays fixed rather than trailing upward with account growth. It can make risk boundaries easier to understand.
Funding
#daily-loss-limit
Daily Loss Limit
Daily loss limit is the maximum amount an account may lose in a trading day. In funded trading, breaching this rule can lead to account failure.
Funding
#funded-account
Funded Account
A funded account gives a trader access to trading capital under defined rules, limits, payout terms, and risk controls set by the funding provider.
Funding
#evaluation
Evaluation
An evaluation is a trading assessment where a trader must meet profit targets and risk rules before becoming eligible for a funded account.
Funding
#instant-funding
Instant Funding
Instant funding allows a trader to begin with a funded account without completing a traditional evaluation phase first, subject to specific rules and drawdown limits.
Funding
#profit-target
Profit Target
A profit target is the amount of profit a trader must reach to complete an evaluation phase or planned trade objective.
Funding
#consistency-rule
Consistency Rule
A consistency rule limits how much of a trader’s total profit can come from one outsized trading day. It is designed to encourage stable trading behaviour.
Funding
#equity-based-drawdown
Equity-Based Drawdown
Equity-based drawdown is calculated using account equity, meaning open profits and losses may affect the drawdown level or breach calculation.
Funding
#balance-based-drawdown
Balance-Based Drawdown
Balance-based drawdown is calculated from closed account balance rather than open equity. Traders should still check the exact rules for each funded account.
Funding
#one-step-challenge
One-Step Challenge
A one-step challenge is a funding evaluation where the trader usually needs to complete one main phase while meeting profit targets and following risk rules.
Funding
#two-step-challenge
Two-Step Challenge
A two-step challenge is a funding evaluation with two phases. Traders usually need to demonstrate profitability and rule-following across both stages.
Funding
#profit-split
Profit Split
Profit split is the percentage of eligible trading profit paid to the trader after payout rules, verification, and provider conditions are met.
Funding
#payout
Payout
A payout is a withdrawal or profit distribution from a funded account, subject to provider rules, eligibility, trading behaviour, KYC, and account terms.
Funding
#kyc
KYC
KYC means Know Your Customer. It is an identity verification process that may be required before account access, contract approval, or payout eligibility.
Funding
#scaling-plan
Scaling Plan
A scaling plan is a funded-account growth structure where account size, capital access, or trader permissions may increase after performance and rule requirements are met.
Funding
#payout-phase
Payout Phase
A payout phase is a stage in some funding models where traders must meet specific requirements before receiving an eligible payout or progressing to the next stage.
Funding
#inactivity-rule
Inactivity Rule
An inactivity rule requires traders to remain active within a defined period. Breaching inactivity requirements can affect account status or eligibility.
Execution
#pip
Pip
A pip is a standard unit of price movement in forex. Pip size depends on the currency pair and quote format.
Execution
#pip-value
Pip Value
Pip value is the money value of a one-pip movement for a given position size. It helps traders calculate risk and potential reward in forex trades.
Execution
#lot-size
Lot Size
Lot size refers to the standardized trading volume used by a broker or platform. In forex, one standard lot typically represents 100,000 units of the base currency.
Execution
#spread
Spread
Spread is the difference between the bid and ask price. It is a trading cost and can affect entries, exits, stop placement, and short-term strategy performance.
Execution
#slippage
Slippage
Slippage occurs when an order is filled at a different price than expected. It can happen during volatile markets, news events, or low-liquidity conditions.
Execution
#leverage
Leverage
Leverage allows traders to control a larger market position with a smaller amount of margin. It can amplify both gains and losses.
Execution
#margin
Margin
Margin is the amount of capital required to open or maintain a leveraged position. Margin requirements vary by market, platform, broker, and account type.
Execution
#trade-management
Trade Management
Trade management is the process of handling an open trade, including stop placement, target planning, partial exits, risk reduction, and exit decisions.
Execution
#entry
Entry
An entry is the point where a trader opens a position. A good entry should be based on a planned setup, risk level, and invalidation point.
Execution
#exit
Exit
An exit is the point where a trader closes a position, either for profit, loss, risk reduction, or because the original trade idea is no longer valid.
Execution
#partial-close
Partial Close
A partial close is when a trader closes part of an open position while leaving the rest running. It can be used to secure profit or reduce exposure.
Execution
#breakeven
Breakeven
Breakeven is the point where a trade or account has no net profit or loss. Traders may also move a stop loss to breakeven to reduce risk after price moves in their favour.
Execution
#market-order
Market Order
A market order is an instruction to buy or sell immediately at the best available current price. It prioritises execution speed over exact price.
Execution
#limit-order
Limit Order
A limit order is an instruction to buy or sell at a specified price or better. It gives price control but does not guarantee the order will be filled.
Execution
#pending-order
Pending Order
A pending order is an order set in advance to trigger only if price reaches a specified level. Common examples include limit orders and stop orders.
Execution
#liquidity
Liquidity
Liquidity describes how easily a market can be bought or sold without causing major price movement. Higher liquidity usually supports smoother execution.
Execution
#volatility
Volatility
Volatility measures how much and how quickly price moves. High volatility can create opportunity, but it can also increase risk, slippage, and emotional pressure.
Execution
#high-impact-news
High-Impact News
High-impact news refers to scheduled economic or market events that can create sharp volatility, spread widening, slippage, and increased trading risk.
Execution
#bid-price
Bid Price
Bid price is the price at which a trader can sell a market. It is one side of the bid/ask spread and affects trade entry and exit pricing.
Execution
#ask-price
Ask Price
Ask price is the price at which a trader can buy a market. The difference between bid and ask is the spread.
Execution
#commission
Commission
Commission is a trading fee charged by a broker, platform, or provider. It should be considered alongside spread, slippage, and account rules.
Execution
#swap
Swap
Swap is an overnight financing adjustment that may be charged or credited when a leveraged position is held past rollover time.
Execution
#rollover
Rollover
Rollover is the point when an open position is carried into the next trading day. It can involve swap charges or credits depending on the instrument and platform.
Technical Analysis
#candlestick
Candlestick
A candlestick displays price movement over a chosen time period, typically showing open, high, low, and close. Candlesticks help traders read market behaviour.
Technical Analysis
#wick
Wick
A wick is the thin line above or below a candlestick body, showing price rejection, volatility, or movement beyond the open and close.
Technical Analysis
#support
Support
Support is a price area where buying interest may appear and slow or reverse a decline. It is not a guarantee that price will hold.
Technical Analysis
#resistance
Resistance
Resistance is a price area where selling pressure may appear and slow or reverse an advance. Traders use it as part of market structure analysis.
Technical Analysis
#market-structure
Market Structure
Market structure describes how price forms highs, lows, trends, ranges, breaks, and shifts. It helps traders understand context before planning entries.
Technical Analysis
#higher-high
Higher High
A higher high occurs when price creates a peak above the previous significant high. It can be part of an uptrend structure.
Technical Analysis
#lower-low
Lower Low
A lower low occurs when price creates a low beneath the previous significant low. It can be part of a downtrend structure.
Technical Analysis
#trend
Trend
A trend is a directional market movement. Uptrends generally form higher highs and higher lows, while downtrends form lower lows and lower highs.
Technical Analysis
#breakout
Breakout
A breakout occurs when price moves beyond a key support, resistance, range, or structure level. Traders should confirm context before acting on breakouts.
Technical Analysis
#fibonacci-retracement
Fibonacci Retracement
Fibonacci retracement uses percentage levels to measure potential pullback areas within a larger market move. It is often used with trend and structure analysis.
Technical Analysis
#fibonacci-extension
Fibonacci Extension
Fibonacci extension levels are used to project possible target areas beyond the original price swing. They can support trade planning and target selection.
Technical Analysis
#confluence
Confluence
Confluence occurs when multiple independent pieces of analysis point toward the same area or idea. It can strengthen a trading plan but does not remove risk.
Technical Analysis
#swing-high
Swing High
A swing high is a local price peak where the market turns lower. Traders often use swing highs to analyse structure, stops, entries, and targets.
Technical Analysis
#swing-low
Swing Low
A swing low is a local price trough where the market turns higher. It can help define structure, support, invalidation levels, and trend context.
Technical Analysis
#pullback
Pullback
A pullback is a temporary move against the main trend. Traders may use pullbacks to look for entries with better risk/reward when trend conditions remain valid.
Technical Analysis
#range
Range
A range is a market condition where price moves between support and resistance without a clear sustained trend.
Technical Analysis
#trendline
Trendline
A trendline is a diagonal line drawn across swing highs or swing lows to help visualise trend direction, structure, and possible reaction areas.
Technical Analysis
#timeframe
Timeframe
A timeframe is the chart period used to view price movement, such as 5-minute, 1-hour, 4-hour, or daily candles. Different timeframes show different levels of context.
Technical Analysis
#multi-timeframe-analysis
Multi-Timeframe Analysis
Multi-timeframe analysis compares higher and lower chart timeframes to align market context, trade direction, entry timing, and risk placement.
Technical Analysis
#price-action
Price Action
Price action is the study of price movement itself, often using candlesticks, structure, trend, support, resistance, and market behaviour without relying entirely on indicators.
Psychology
#trading-plan
Trading Plan
A trading plan is a written framework that defines strategy, risk, rules, setups, execution process, review habits, and when not to trade.
Psychology
#trading-journal
Trading Journal
A trading journal records trades, decisions, emotions, mistakes, screenshots, and lessons. It helps traders identify patterns and improve over time.
Psychology
#revenge-trading
Revenge Trading
Revenge trading happens when a trader tries to quickly win back losses through emotional or impulsive trades. It is one of the most dangerous habits in trading.
Psychology
#overtrading
Overtrading
Overtrading means taking too many trades, often from impatience, boredom, emotional pressure, or lack of rules. It can damage discipline and account performance.
Psychology
#discipline
Discipline
Discipline is the ability to follow a trading plan, respect risk limits, avoid emotional decisions, and accept that not every market condition requires a trade.
Psychology
#emotional-discipline
Emotional Discipline
Emotional discipline is the ability to make trading decisions based on a plan rather than fear, greed, frustration, excitement, or revenge.
Psychology
#fomo
FOMO
FOMO means fear of missing out. In trading, it often causes traders to chase moves late, enter without confirmation, or abandon their plan because they feel urgency.
Psychology
#trading-edge
Trading Edge
A trading edge is a repeatable advantage that gives a trader a reason to expect positive results over a large sample of trades when managed properly.
Psychology
#patience
Patience
Patience is the ability to wait for valid conditions instead of forcing trades. It helps traders avoid low-quality setups, overtrading, and emotional entries.
Psychology
#impulse-trading
Impulse Trading
Impulse trading is entering or exiting trades without following a plan. It often comes from emotion, boredom, fear, greed, or frustration.
Psychology
#confirmation-bias
Confirmation Bias
Confirmation bias is the tendency to seek information that supports an existing trade idea while ignoring evidence that contradicts it.
Psychology
#loss-aversion
Loss Aversion
Loss aversion is the tendency to feel losses more strongly than gains. In trading, it can cause poor exits, hesitation, revenge trading, or refusal to accept valid losses.
Psychology
#process-over-outcome
Process Over Outcome
Process over outcome means judging trading decisions by whether the plan was followed, not simply whether one trade won or lost.
Psychology
#sample-size
Sample Size
Sample size is the number of trades used to evaluate a strategy or behaviour pattern. A small sample can be misleading and should not be overinterpreted.
Psychology
#backtesting
Backtesting
Backtesting is reviewing historical market data to assess how a strategy or setup may have performed under past conditions.
Psychology
#forward-testing
Forward Testing
Forward testing is applying a strategy in real-time market conditions, usually on demo or small risk, to observe performance and execution quality going forward.
Base Currency
The base currency is the first currency in a forex pair. In EUR/USD, EUR is the base currency, and price shows how much USD is needed to buy one euro.
Quote Currency
The quote currency is the second currency in a forex pair. In GBP/USD, USD is the quote currency, and it is used to express the value of one pound.
Currency Pair
A currency pair shows two currencies traded against each other. Forex traders analyse whether the base currency may strengthen or weaken relative to the quote currency.
FX
#major-pairs
Major Pairs
Major pairs are the most actively traded forex pairs involving the US dollar and another major currency, such as EUR/USD, GBP/USD, USD/JPY, or USD/CHF.
FX
#minor-pairs
Minor Pairs
Minor pairs, also called cross-currency pairs, are major global currencies traded against each other without the US dollar, such as EUR/GBP or AUD/JPY.
Exotic Pairs
Exotic pairs combine a major currency with the currency of a smaller or emerging economy. They often have wider spreads, lower liquidity, and higher execution risk.
FX
#cross-pair
Cross Pair
A cross pair is a forex pair that does not include the US dollar. Cross pairs can offer opportunity but may behave differently from dollar-based pairs.
Exchange Rate
An exchange rate is the price of one currency expressed in another currency. Forex traders seek to profit from changes in exchange rates over time.
Direct Quote
A direct quote expresses the value of a foreign currency in terms of the domestic currency. Quote conventions vary by country and trading platform.
Indirect Quote
An indirect quote expresses the value of the domestic currency in terms of a foreign currency. Traders should understand quote format before calculating pip value or risk.
Forex Session
A forex session is a major trading period within the 24-hour currency market, such as the Asian, London, or New York session.
Asian Session
The Asian session is the trading period centered around Tokyo, Sydney, and other Asia-Pacific markets. It can be quieter than London or New York but still creates important price action.
London Session
The London session is one of the most liquid and active forex trading sessions. Many major forex moves begin or accelerate during London hours.
New York Session
The New York session is a major forex session that overlaps with London for part of the day. This overlap can create strong volume, volatility, and execution risk.
Session Overlap
A session overlap occurs when two major forex sessions are open at the same time. The London-New York overlap is often one of the most active periods in forex.
Forex Rollover Time
Forex rollover time is the daily point when brokers apply overnight financing adjustments. Spreads may widen and liquidity can change around rollover.
Interest Rate Differential
Interest rate differential is the difference between two countries’ interest rates. It can influence currency valuation, carry trades, and longer-term forex flows.
FX
#carry-trade
Carry Trade
A carry trade involves buying a currency with a higher interest rate while selling a lower-yielding currency. It can be affected by risk sentiment, central banks, and volatility.
Central Bank
A central bank manages monetary policy, interest rates, and financial stability for a country or currency area. Central bank decisions can strongly influence forex markets.
Monetary Policy
Monetary policy refers to central bank actions such as changing interest rates, asset purchases, or guidance. Forex traders monitor policy because it affects currency expectations.
Rate Decision
A rate decision is when a central bank announces whether interest rates will rise, fall, or remain unchanged. These events can create sharp currency volatility.
Consumer Price Index
Consumer Price Index, or CPI, measures inflation by tracking changes in consumer prices. CPI releases can affect central bank expectations and currency movement.
Non-Farm Payrolls
Non-Farm Payrolls, or NFP, is a major US employment report. It often creates volatility in USD pairs, gold, indices, and broader risk sentiment.
Purchasing Managers Index
Purchasing Managers Index, or PMI, measures business activity in sectors such as manufacturing or services. Strong or weak PMI data can influence currency expectations.
Safe-Haven Currency
A safe-haven currency is a currency traders may buy during uncertainty or risk-off conditions. The US dollar, Japanese yen, and Swiss franc are commonly watched examples.
Commodity Currency
A commodity currency is often influenced by commodity prices because the country is a major exporter of resources. AUD, CAD, and NZD are commonly discussed examples.
Dollar Index
The US Dollar Index measures the dollar against a basket of major currencies. Forex traders use it to understand broader USD strength or weakness.
Currency Strength
Currency strength compares how strong or weak one currency is relative to others. It can help traders avoid analysing a pair in isolation.
FX
#risk-on
Risk-On
Risk-on describes market conditions where traders are more willing to take risk. It can support higher-yielding currencies, equities, and growth-sensitive markets.
FX
#risk-off
Risk-Off
Risk-off describes defensive market conditions where traders reduce risk exposure. It can support safe-haven currencies and pressure risk-sensitive assets.
Economic Calendar
An economic calendar lists scheduled data releases, speeches, central bank decisions, and market events. Traders use it to prepare for volatility and avoid unmanaged news risk.
Forex Broker
A forex broker provides access to currency markets through a trading platform. Traders should review regulation, spreads, execution quality, fees, and platform reliability.
FX
#ecn-account
ECN Account
An ECN account connects traders to electronic liquidity providers and may offer tighter spreads with commission. Execution quality still depends on broker conditions and liquidity.
FX
#stp-broker
STP Broker
An STP broker routes orders directly to liquidity providers rather than acting as a traditional dealing desk. Traders should still compare spreads, commission, and execution conditions.
Demo Account
A demo account lets traders practice in simulated market conditions without risking real money. It is useful for learning platforms, testing process, and building discipline.
Live Account
A live account uses real capital and real execution conditions. Emotional pressure is usually higher than on demo, so risk control becomes even more important.
FX
#pipette
Pipette
A pipette is a fractional pip, usually one-tenth of a pip. Some forex platforms quote prices with pipettes for more precise pricing.
Standard Lot
A standard lot in forex typically represents 100,000 units of the base currency. Traders must understand lot size because it directly affects pip value and risk.
FX
#mini-lot
Mini Lot
A mini lot in forex typically represents 10,000 units of the base currency. It is smaller than a standard lot but still requires proper position sizing.
FX
#micro-lot
Micro Lot
A micro lot in forex typically represents 1,000 units of the base currency. It can help smaller accounts control risk more precisely.
Forex Contract Size
Forex contract size defines how many units are controlled by a lot or position. It helps determine pip value, exposure, and required margin.
Currency Exposure
Currency exposure is the amount of risk a trader has to one currency across open positions. Multiple trades can create hidden exposure to the same currency theme.
FX
#usd-pair
USD Pair
A USD pair is any forex pair that includes the US dollar. Because the dollar is globally important, USD pairs are often affected by US data and Federal Reserve expectations.
FX
#yen-cross
Yen Cross
A yen cross is a forex pair involving the Japanese yen and another non-USD currency, such as EUR/JPY or GBP/JPY. Yen crosses can be sensitive to risk sentiment.
Dollar Cross
A dollar cross is a forex pair involving the US dollar. Traders often monitor dollar crosses together to understand broad USD strength or weakness.
Spread Widening
Spread widening happens when the gap between bid and ask prices increases. It often occurs during news, rollover, low liquidity, or market stress.
Forex Liquidity
Forex liquidity refers to how easily currency pairs can be traded without major price disruption. Major pairs are usually more liquid than exotic pairs.
Forex Volatility
Forex volatility describes how much a currency pair moves over a given period. Volatility can create opportunity but also increases risk and emotional pressure.
Currency Correlation
Currency correlation measures how closely currency pairs move together. Understanding correlation helps traders avoid stacking hidden risk across similar positions.
FX
#news-spike
News Spike
A news spike is a sudden price move caused by economic data, central bank commentary, or unexpected headlines. Spikes can create slippage and poor entries if unmanaged.
Futures
#futures-contract
Futures Contract
A futures contract is a standardized agreement to buy or sell an asset at a future date under exchange-defined specifications.
Futures
#contract-month
Contract Month
Contract month identifies the delivery or expiration month of a futures contract. Traders must know the active contract to avoid analysing or trading the wrong market.
Futures
#expiration-date
Expiration Date
Expiration date is when a futures contract stops trading or reaches final settlement. Traders should understand expiration before holding positions near contract rollover.
Futures
#front-month-contract
Front-Month Contract
The front-month contract is the nearest active futures contract, often the most liquid. Many short-term futures traders focus on the front month.
Futures
#futures-rollover
Futures Rollover
Futures rollover is the process of moving analysis or exposure from an expiring contract into the next active contract month.
Futures
#tick-size
Tick Size
Tick size is the minimum price increment a futures contract can move. It is essential for calculating risk, targets, and order placement.
Futures
#tick-value
Tick Value
Tick value is the money value of one minimum price movement in a futures contract. It connects price movement directly to profit and loss.
Futures
#point-value
Point Value
Point value is the dollar value of a full point move in a futures contract. It varies by instrument and must be understood before sizing trades.
Futures
#contract-specification
Contract Specification
Contract specification defines a futures product’s tick size, tick value, trading hours, expiration, margin, settlement, and other rules.
Futures
#initial-margin
Initial Margin
Initial margin is the amount required to open a futures position. It is set by exchanges and brokers and can change during volatile conditions.
Futures
#maintenance-margin
Maintenance Margin
Maintenance margin is the minimum equity required to keep a futures position open. Falling below it may trigger margin calls or liquidation.
Futures
#variation-margin
Variation Margin
Variation margin reflects daily gains and losses credited or debited through futures mark-to-market settlement.
Futures
#mark-to-market
Mark-to-Market
Mark-to-market is the daily process of valuing futures positions based on current settlement prices and applying gains or losses to the account.
Futures
#daily-settlement
Daily Settlement
Daily settlement is the official futures price used to calculate daily profit and loss, margin, and account adjustments.
Futures
#cash-settlement
Cash Settlement
Cash settlement means a futures contract is settled in cash rather than physical delivery of the underlying asset.
Futures
#physical-delivery
Physical Delivery
Physical delivery is when a futures contract can result in delivery of the underlying commodity or asset. Most retail traders avoid holding delivery contracts into that period.
Futures
#contract-multiplier
Contract Multiplier
Contract multiplier converts futures price movement into notional value or profit and loss. It is part of each contract’s specification.
Futures
#futures-notional-value
Futures Notional Value
Futures notional value is the total value controlled by a futures contract. It can be much larger than the margin posted.
Futures
#futures-leverage
Futures Leverage
Futures leverage allows a trader to control a large notional position with a smaller margin deposit. It can amplify both gains and losses.
Futures
#futures-exchange
Futures Exchange
A futures exchange lists and regulates standardized futures contracts. Examples include CME, CBOT, NYMEX, and COMEX.
Futures
#cme-group
CME Group
CME Group is a major derivatives marketplace that operates futures exchanges including CME, CBOT, NYMEX, and COMEX.
Futures
#globex
Globex
Globex is CME Group’s electronic trading platform for futures and options markets, allowing nearly 24-hour access to many contracts.
Futures
#e-mini
E-mini
An E-mini is a smaller futures contract compared with a full-size contract. E-mini index futures such as ES and NQ are widely traded.
Futures
#micro-e-mini
Micro E-mini
A Micro E-mini is a smaller version of an E-mini futures contract. It can help traders control risk with reduced contract size.
Futures
#es-futures
ES Futures
ES futures are E-mini S&P 500 futures. They track the S&P 500 index and are among the most actively traded equity index futures.
Futures
#nq-futures
NQ Futures
NQ futures are E-mini Nasdaq-100 futures. They often move quickly and can be sensitive to technology stocks, rates, and risk sentiment.
Futures
#ym-futures
YM Futures
YM futures are E-mini Dow futures. They track the Dow Jones Industrial Average and may behave differently from broader or tech-heavy index futures.
Futures
#rty-futures
RTY Futures
RTY futures are E-mini Russell 2000 futures. They track small-cap US equities and can be sensitive to domestic growth and risk appetite.
Futures
#cl-futures
CL Futures
CL futures are crude oil futures. They can be affected by supply, demand, inventories, geopolitics, and energy-market news.
Futures
#gc-futures
GC Futures
GC futures are gold futures. Traders watch them for inflation expectations, interest rates, dollar strength, and safe-haven demand.
Futures
#zn-futures
ZN Futures
ZN futures are 10-Year Treasury Note futures. They are used to trade or hedge interest-rate expectations and bond-market movement.
Futures
#zb-futures
ZB Futures
ZB futures are US Treasury Bond futures. They represent longer-duration interest-rate exposure and can move significantly around macro events.
Futures
#limit-up
Limit Up
Limit up is the maximum allowed upward price movement for a futures contract during a specified period under exchange rules.
Futures
#limit-down
Limit Down
Limit down is the maximum allowed downward price movement for a futures contract during a specified period under exchange rules.
Futures
#price-limit
Price Limit
A price limit is an exchange-defined boundary that restricts how far a futures contract can move during a session or period.
Futures
#open-interest
Open Interest
Open interest is the number of outstanding futures contracts that have not been closed or settled. It helps traders assess participation and market depth.
Futures
#futures-volume
Futures Volume
Futures volume measures how many contracts trade during a period. Higher volume often improves liquidity and execution quality.
Futures
#basis
Basis
Basis is the difference between the cash price of an asset and the futures price. It is important in hedging, commodities, and spread analysis.
Futures
#contango
Contango
Contango is a futures curve condition where later-dated contracts trade above nearer contracts. It can reflect storage costs, financing, or market expectations.
Futures
#backwardation
Backwardation
Backwardation is a futures curve condition where nearer contracts trade above later-dated contracts. It can reflect tight supply or strong near-term demand.
Futures
#calendar-spread
Calendar Spread
A calendar spread is a futures strategy involving different contract months of the same market. It focuses on relative pricing rather than outright direction.
Futures
#intermarket-spread
Intermarket Spread
An intermarket spread involves related futures markets, such as different equity indices or energy products. It requires understanding correlation and relative value.
Futures
#futures-hedging
Futures Hedging
Futures hedging uses futures contracts to reduce or offset price risk in an underlying asset, portfolio, commodity, or business exposure.
Futures
#futures-speculation
Futures Speculation
Futures speculation involves trading futures to profit from price movement rather than hedging an existing exposure. It requires strict risk control.
Futures
#day-trading-margin
Day Trading Margin
Day trading margin is the reduced margin some brokers offer for intraday futures positions. It can increase risk if traders oversize positions.
Futures
#overnight-margin
Overnight Margin
Overnight margin is the margin required to hold futures positions outside day-trading hours. It is usually higher than intraday margin.
Futures
#first-notice-day
First Notice Day
First notice day is the first day a futures holder may be notified of delivery requirements. Retail traders usually avoid holding deliverable contracts into this period.
Futures
#last-trading-day
Last Trading Day
Last trading day is the final day a futures contract can be traded before expiration or settlement.
Futures
#clearinghouse
Clearinghouse
A clearinghouse stands between buyers and sellers of futures contracts to manage settlement, margin, and counterparty risk.
Futures
#futures-commission-merchant
Futures Commission Merchant
A futures commission merchant, or FCM, is a firm that accepts futures orders and holds customer margin under regulatory requirements.
Equities
#stock
Stock
A stock represents ownership in a company. Stock traders and investors seek to benefit from price appreciation, dividends, or both.
Equities
#share
Share
A share is a unit of ownership in a company. Public company shares can be bought and sold on stock exchanges or through brokers.
Equities
#common-stock
Common Stock
Common stock usually gives shareholders voting rights and potential participation in company growth through price appreciation and dividends.
Equities
#preferred-stock
Preferred Stock
Preferred stock is a class of shares that may have priority over common stock for dividends or claims, but often has limited voting rights.
Equities
#dividend
Dividend
A dividend is a payment a company may distribute to shareholders from profits or reserves. Not all companies pay dividends.
Equities
#dividend-yield
Dividend Yield
Dividend yield compares annual dividends to the stock price. It helps investors assess income potential but should be reviewed with company fundamentals.
Equities
#earnings-per-share
Earnings Per Share
Earnings per share, or EPS, measures company profit allocated to each outstanding share. It is commonly used in stock valuation.
Equities
#price-earnings-ratio
Price/Earnings Ratio
The price/earnings ratio, or P/E ratio, compares a stock’s price to its earnings per share. It is one way to assess valuation expectations.
Equities
#market-capitalization
Market Capitalization
Market capitalization is a company’s share price multiplied by its outstanding shares. It is commonly used to classify companies by size.
Equities
#free-float
Free Float
Free float is the number of shares available for public trading, excluding restricted or closely held shares. Lower float can affect liquidity and volatility.
Equities
#outstanding-shares
Outstanding Shares
Outstanding shares are the total shares issued by a company and held by investors, insiders, and institutions.
Equities
#stock-split
Stock Split
A stock split increases the number of shares while reducing the price per share proportionally. It does not by itself change the company’s market value.
Equities
#reverse-split
Reverse Split
A reverse split reduces the number of shares and increases the price per share proportionally. It may be used to meet exchange requirements or restructure share count.
Equities
#initial-public-offering
Initial Public Offering
An initial public offering, or IPO, is when a private company sells shares to the public for the first time.
Equities
#secondary-offering
Secondary Offering
A secondary offering is when a public company or existing shareholders sell additional shares after the IPO. It can affect supply and dilution.
Equities
#blue-chip-stock
Blue-Chip Stock
A blue-chip stock is a large, established company with a strong reputation, significant market presence, and often more stable investor demand.
Equities
#growth-stock
Growth Stock
A growth stock is a company expected to grow revenue or earnings faster than the broader market. Growth stocks may trade at higher valuations.
Equities
#value-stock
Value Stock
A value stock is a company trading at a lower valuation relative to fundamentals. Value investing focuses on potential mispricing and long-term revaluation.
Equities
#small-cap-stock
Small-Cap Stock
A small-cap stock is a company with a relatively smaller market capitalization. Small caps can offer growth potential but often carry higher volatility and liquidity risk.
Equities
#mid-cap-stock
Mid-Cap Stock
A mid-cap stock is a company between small-cap and large-cap size. Mid caps may combine growth potential with more established operations.
Equities
#large-cap-stock
Large-Cap Stock
A large-cap stock is a company with a large market capitalization. Large caps are often more liquid and widely followed by institutions.
Equities
#sector
Sector
A sector is a broad group of companies operating in a similar part of the economy, such as technology, energy, healthcare, or financials.
Equities
#industry-group
Industry Group
An industry group is a more specific classification within a sector. It helps traders compare companies with closer business models.
Equities
#exchange-traded-fund
Exchange-Traded Fund
An exchange-traded fund, or ETF, is a basket of assets that trades like a stock. ETFs can track indices, sectors, commodities, themes, or strategies.
Equities
#stock-index
Stock Index
A stock index tracks the performance of a selected group of stocks. Indices help traders understand broader market direction and sector performance.
Equities
#sp-500
S&P 500
The S&P 500 is a major US stock index tracking 500 large public companies. It is widely used as a benchmark for US equity performance.
Equities
#nasdaq-composite
Nasdaq Composite
The Nasdaq Composite is a stock index heavily associated with technology and growth companies listed on the Nasdaq exchange.
Equities
#dow-jones-industrial-average
Dow Jones Industrial Average
The Dow Jones Industrial Average tracks 30 major US companies. It is one of the oldest and most widely recognized stock market indices.
Equities
#earnings-report
Earnings Report
An earnings report is a company’s periodic update on revenue, profit, margins, guidance, and performance. Earnings can create significant stock volatility.
Equities
#earnings-guidance
Earnings Guidance
Earnings guidance is management’s outlook for future revenue, profit, or business performance. Guidance changes can move a stock sharply.
Equities
#analyst-rating
Analyst Rating
An analyst rating is a research opinion on a stock, such as buy, hold, or sell. Ratings can affect sentiment but should not replace independent analysis.
Equities
#share-buyback
Share Buyback
A share buyback occurs when a company repurchases its own shares. Buybacks can reduce share count and influence earnings per share or investor sentiment.
Equities
#short-selling
Short Selling
Short selling is selling borrowed shares with the intention of buying them back later at a lower price. It carries significant risk if price rises.
Equities
#short-interest
Short Interest
Short interest measures how many shares have been sold short and not yet covered. High short interest can affect sentiment and volatility.
Equities
#borrow-fee
Borrow Fee
A borrow fee is the cost paid to borrow shares for short selling. Hard-to-borrow stocks may have high fees and execution constraints.
Equities
#margin-account
Margin Account
A margin account allows traders to borrow from a broker to increase buying power. It can amplify gains and losses and may trigger margin calls.
Equities
#cash-account
Cash Account
A cash account requires trades to be paid for with settled cash. It avoids margin borrowing but may have settlement-related restrictions.
Equities
#settlement-date
Settlement Date
Settlement date is when cash and securities officially exchange after a trade. Traders must understand settlement rules to avoid account restrictions.
Equities
#t-plus-one
T+1
T+1 means a securities transaction settles one business day after the trade date. Settlement rules can affect cash availability and trading behavior.
Equities
#market-halt
Market Halt
A market halt temporarily stops trading in a stock or market. Halts may occur due to volatility, news, regulatory concerns, or exchange rules.
Equities
#circuit-breaker
Circuit Breaker
A circuit breaker is a market-wide trading pause triggered by large index declines. It is designed to slow panic and stabilize market conditions.
Equities
#pre-market-trading
Pre-Market Trading
Pre-market trading occurs before the regular stock market session. Liquidity can be thinner and spreads wider than during normal hours.
Equities
#after-hours-trading
After-Hours Trading
After-hours trading occurs after the regular market close. Earnings, news, and lower liquidity can create larger price swings.
Equities
#regular-trading-hours
Regular Trading Hours
Regular trading hours are the standard exchange session when most stock market activity occurs. Liquidity is usually deeper than pre-market or after-hours trading.
Equities
#level-2-data
Level 2 Data
Level 2 data shows bid and ask prices beyond the best quote, helping traders assess market depth, liquidity, and order book pressure.
Equities
#order-book
Order Book
An order book shows pending buy and sell orders at different price levels. It can help traders understand liquidity and short-term supply or demand.
Equities
#dark-pool
Dark Pool
A dark pool is a private trading venue where institutional orders can be executed without displaying full order details publicly before execution.
Equities
#stock-beta
Beta
Beta measures how sensitive a stock is to movements in the broader market. A beta above 1 usually indicates higher market sensitivity.
Equities
#equity-alpha
Alpha
Alpha measures performance relative to a benchmark after accounting for market exposure. Traders and investors use it to evaluate skill or excess return.
Equities
#american-depositary-receipt
American Depositary Receipt
An American Depositary Receipt, or ADR, allows shares of a foreign company to trade on a US exchange in a US-dollar denominated form.
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