“Must-Know Trading Terminology for Every Trader”

You can’t be a trader without knowing all this terms , here is complete and extensive list of all trading terms

Here is an updated list of essential trading terminologies every trader should know, including the additional terms:

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Ask Price: The lowest price a seller is willing to accept for a security.
Bid Price: The highest price a buyer is willing to pay for a security.
Spread: The difference between the bid and ask price.
Volume: The number of shares or contracts traded in a security or market during a given period.
Liquidity: The ability to buy or sell an asset quickly without significantly affecting its price.
CMP (Current Market Price): The most recent price at which a security was traded.
ATH (All Time High): The highest price a security has ever reached.
52-Week High: The highest price a security has traded at during the last 52 weeks.
52-Week Low: The lowest price a security has traded at during the last 52 weeks.

Market Order: An order to buy or sell immediately at the current market price.
Limit Order: An order to buy or sell at a specific price or better.
Stop Order: An order to buy or sell a security once it reaches a specific price.
Stop-Limit Order: A combination of stop order and limit order; once the stop price is reached, the limit order is executed.
Good Till Cancelled (GTC): An order that remains active until it is executed or canceled.
Trailing Stop Loss: A stop order that can be set at a defined percentage or dollar amount away from a security’s current market price. It adjusts as the price fluctuates.
GTT (Good Till Triggered): An order that remains active until a specified trigger price is reached, at which point it turns into a limit order.
MTF (Margin Trading Funding): A facility offered by brokers where traders can borrow money to buy more stocks than they could afford with their available capital.
MTM (Mark to Market): The process of measuring the fair value of accounts that can fluctuate over time, such as assets and liabilities.
BTST (Buy Today Sell Tomorrow): A trading strategy where an investor buys stocks today and sells them the next trading day.

Bull Market: A market condition where prices are rising or expected to rise.
Bear Market: A market condition where prices are falling or expected to fall.
Correction: A short-term decline in stock prices following a sustained period of rising prices.
Recession: A significant decline in economic activity spread across the economy, lasting more than a few months.
Upper Circuit (UC): The maximum price limit that a stock can reach during a trading session.
Lower Circuit (LC): The minimum price limit that a stock can reach during a trading session.
Breakout: A situation where a stock price moves above a resistance level.
Breakdown: A situation where a stock price falls below a support level.
Consolidate: A period during which a stock trades within a range, often after a significant move in price.
Volatility: The degree of variation of a trading price series over time, typically measured by the standard deviation of returns.

Support Level: A price level where a security tends to find support as it falls.
Resistance Level: A price level where a security tends to face resistance as it rises.
Moving Average: An indicator that shows the average value of a security’s price over a set period.
Exponential Moving Average (EMA): A type of moving average that gives more weight to recent prices to make it more responsive to new information.
Relative Strength Index (RSI): A momentum oscillator that measures the speed and change of price movements.
MACD (Moving Average Convergence Divergence): A trend-following momentum indicator that shows the relationship between two moving averages.

Day Trading: The buying and selling of securities within the same trading day.
Swing Trading: A strategy that involves holding a position for several days to weeks to capitalize on expected price moves.
Scalping: A trading strategy that involves making dozens or hundreds of trades in a day, aiming to “scalp” a small profit from each trade.
Momentum Trading: A strategy that aims to capitalize on the continuance of existing trends in the market.

Stop-Loss Order: An order placed with a broker to buy or sell once the stock reaches a certain price to limit potential losses.
Trailing Stop Loss: (See above)
Risk/Reward Ratio: A measure of the potential reward one can earn for every dollar risked on an investment.
Diversification: The practice of spreading investments across various financial assets to reduce risk.

Broker: An individual or firm that charges a fee or commission for executing buy and sell orders submitted by an investor.
Market Maker: A firm or individual who actively quotes two-sided markets, providing bids and offers along with the market size of each.
Retail Investor: An individual investor who buys and sells securities for their personal account, and not for another company or organization.
Institutional Investor: An organization that invests large sums of money into securities, such as mutual funds, pension funds, and insurance companies.

Equities: Stocks or shares that represent an ownership interest in a company.
Bonds: Debt securities issued by corporations or governments to raise capital, with a promise to repay the principal along with interest.
Options: Financial derivatives that give the buyer the right, but not the obligation, to buy or sell an asset at a set price within a specific period.
Futures: Financial contracts obligating the buyer to purchase an asset, or the seller to sell an asset, at a predetermined future date and price.
ETFs (Exchange-Traded Funds): Investment funds traded on stock exchanges, much like stocks.
FnO (Futures and Options): Financial derivatives that include futures contracts and options contracts, used for hedging or speculation.

Understanding these terms will help traders navigate the complexities of financial markets and make more informed trading decisions.