ATR
Average true range, a measure of recent range size that incorporates gaps rather than predicting direction.
Link to this termBLACK GOLD MARKET / FREE RESOURCES
Trading glossary
80 plain-language definitions for forex, gold, risk and crypto. Search by term or browse by topic.
A
Ask
The price available to buy an asset from the quoted market, subject to size and execution conditions.
Link to this termB
Backtest
A simulation applying stated rules to historical data, subject to biases and execution assumptions.
Link to this termBase currency
The first currency in a pair; EUR is the base in EUR/USD.
Link to this termBid
The price available to sell an asset into the quoted market, subject to size and execution conditions.
Link to this termBlockchain
A linked transaction record maintained under a network's consensus and validation rules.
Link to this termBreakout
A move beyond a defined price boundary under an explicit observation rule.
Link to this termBridge
A mechanism connecting assets or messages across networks, adding its own security assumptions.
Link to this termC
CPI
A consumer price index tracking changes in a defined basket; methodology and coverage depend on the publisher.
Link to this termCarry trade
A position seeking a financing or yield difference while accepting exchange-rate and other risks.
Link to this termCommission
A transaction charge that may apply on opening, closing or both sides of a trade.
Link to this termConfirmation
Evidence that a transaction has been included and further accepted under a network's rules.
Link to this termCorrelation
A statistic describing co-movement in an aligned sample; it is not causation or a fixed future relationship.
Link to this termCustody
The arrangement determining who controls keys or holds assets and who bears the related responsibilities.
Link to this termD
DeFi
Financial applications using blockchain-based contracts, often with multiple technical and economic dependencies.
Link to this termDepeg
A departure of an asset's traded price from the reference value it is intended to track.
Link to this termDivergence
A mismatch between extremes in price and an indicator over selected observations.
Link to this termDrawdown
The decline from a previous equity peak to a later value, often expressed as a percentage of that peak.
Link to this termE
Equity
Account value including unrealized gains and losses under the platform's accounting rules.
Link to this termExpectancy
The average outcome implied by win probability, average wins, average losses and costs in a sample or model.
Link to this termF
FOMC
The Federal Open Market Committee, responsible for US monetary policy decisions within its mandate.
Link to this termFalse breakout
A break followed by a return inside the previous boundary under a specified rule.
Link to this termFibonacci retracement
Levels drawn at selected fractions of a chosen swing; their usefulness depends on context and testing.
Link to this termForward test
A test using new observations after the rules are defined, often initially on a demo account.
Link to this termFree margin
Equity remaining after required margin, subject to the broker's calculation rules.
Link to this termFully diluted valuation
Price multiplied by a stated maximum or total supply measure, which may differ from circulating supply.
Link to this termFunding rate
A periodic transfer mechanism between derivative positions under the venue's rules; direction and amount can change.
Link to this termG
Gas
A measure or fee concept for network computation on some blockchains; it is not a universal fixed charge.
Link to this termGold futures
Exchange-traded contracts with defined quantity, expiration and settlement terms.
Link to this termL
Leverage
Exposure relative to account equity, which magnifies gains and losses in equity terms.
Link to this termLimit order
An instruction to trade at a specified price or better, with no guarantee of a fill.
Link to this termLiquidation
Forced closure or transfer of a position when collateral requirements are breached.
Link to this termLiquidity
The ability to execute transactions in size without materially changing available prices.
Link to this termLong
A position that generally benefits from a rise in the asset or base currency relative to its quote.
Link to this termLook-ahead bias
Using information in a historical decision that would not have been known at that time.
Link to this termLot
A standardized contract quantity whose size depends on the instrument and broker.
Link to this termM
MACD
An indicator based on differences between exponential moving averages and a signal average.
Link to this termMargin
Collateral required to support an open position; it is not the same as maximum potential loss.
Link to this termMargin call
A warning or action triggered when account margin conditions fall below defined requirements.
Link to this termMarket capitalization
Price multiplied by a specified supply measure; it does not equal available exit liquidity.
Link to this termMarket order
An instruction seeking execution at available prices, without guaranteeing the quoted price.
Link to this termMoving average
A rolling average of observations that smooths a series and lags new price changes.
Link to this termN
NFP
US nonfarm payroll employment, a measure published in the monthly Employment Situation report.
Link to this termO
OHLC
Open, high, low and close prices for a defined interval.
Link to this termOverfitting
Selecting rules that match noise in the development sample and may fail on unseen data.
Link to this termP
Perpetual futures
Derivative contracts without a fixed expiry, commonly using funding and margin mechanisms.
Link to this termPip
A conventional price increment, commonly 0.0001 for many FX pairs and 0.01 for many JPY pairs; check the symbol specification.
Link to this termPivot point
A reference level computed from prior-period prices under a specified formula.
Link to this termPoint
A platform's quoted increment, which may be smaller than a conventional pip.
Link to this termPosition sizing
Choosing quantity from a risk budget, invalidation distance and contract specification.
Link to this termPrivate key
Secret signing information that can authorize control over assets; sharing it can surrender that control.
Link to this termQ
Quote currency
The second currency in a pair, used to express the price of one unit of the base currency.
Link to this termR
R multiple
A trade result divided by its initial planned monetary risk.
Link to this termRSI
A momentum indicator based on the balance of recent upward and downward price changes.
Link to this termRange
A period in which price oscillates between approximate boundaries without a sustained trend.
Link to this termReal yield
A yield adjusted for inflation or inflation expectations under a stated measurement method.
Link to this termResistance
An area where selling previously interrupted a rise; it is not a guaranteed ceiling.
Link to this termRisk of ruin
The chance of reaching a defined unacceptable loss threshold under a specified model and assumptions.
Link to this termRisk-reward ratio
A comparison of planned loss distance with planned gain distance; always state which quantity is first.
Link to this termS
Safe haven
An asset sought during some periods of stress; the label does not guarantee protection in every crisis.
Link to this termSeed phrase
Recovery words used by some wallets to reconstruct keys; never disclose them to unsolicited support or websites.
Link to this termShort
A position that generally benefits from a fall in the asset or base currency relative to its quote.
Link to this termSlippage
The difference between an expected execution price and the price actually obtained.
Link to this termSmart contract
Code executed under a blockchain's rules, potentially exposed to bugs, permissions and dependency risks.
Link to this termSpot gold
Gold priced for near-term settlement; retail products using spot quotes can have different contractual structures.
Link to this termSpread
The difference between an executable bid and ask quote.
Link to this termStablecoin
A crypto asset intended to track a reference value, with mechanism, liquidity and redemption risks.
Link to this termStaking
Committing assets under a protocol's rules, potentially involving rewards, restrictions and penalties.
Link to this termStop order
An order activated when a trigger condition is reached; execution can differ from the trigger price.
Link to this termStop-limit order
An order that activates a limit instruction after a trigger, with a risk of remaining unfilled.
Link to this termStop-out
A broker's forced closure of positions under its margin rules.
Link to this termSupport
An area where buying previously interrupted a decline; future reactions are uncertain.
Link to this termSwap / rollover
A financing adjustment associated with carrying a position across a broker's rollover time.
Link to this termT
Token
A digital unit defined by a network or contract; its rights, purpose and risks depend on its design.
Link to this termToken allowance
Permission for a contract to spend a specified quantity of a token on behalf of an address.
Link to this termTrend
A directional pattern in price over a chosen timeframe.
Link to this termTroy ounce
A precious-metal mass unit of approximately 31.1035 grams, different from an everyday avoirdupois ounce.
Link to this termV
Volatility
The extent of price variation over a specified interval; it does not specify direction.
Link to this termW
Wallet
Software or hardware used to manage credentials and interact with digital assets.
Link to this termX
XAU/USD
A quotation of gold against the US dollar, commonly expressed per troy ounce; contract terms vary.
Link to this term