Trading Dictionary
139+ Trading Terms Explained
Plain-English definitions for active traders - from order types and chart patterns to options Greeks and trader slang.
The former Pattern Day Trader rule — an SEC/FINRA regulation that required retail traders to maintain at least $25,000 in a margin account t
Position size is the number of shares, contracts, or dollar value you deploy in a single trade — determined by the relationship between your
A profit target is a predetermined exit price where you plan to close a winning trade and lock in gains — defined before you enter the posit
Risk per trade is the maximum dollar amount you're willing to lose on a single position if your stop is hit — typically expressed as a perce
The risk-reward ratio compares the potential profit of a trade to the maximum loss if the stop is hit — a 3:1 risk-reward means you stand to
