139+ Trading Terms Explained

Level 2 data shows the full order book — all the bids and asks queued at multiple price levels beyond the inside bid and ask — giving trader

A limit order is an instruction to buy or sell a security at a specified price or better — a buy limit will only execute at your price or lo

Liquidity in trading refers to how easily you can enter and exit a position at a fair price — a liquid stock has high volume and a tight bid

LOD stands for Low of Day — the lowest price a stock has traded at during the current regular session, and a critical reference point for su

Loss aversion is the psychological tendency to feel the pain of a loss approximately twice as intensely as the pleasure of an equivalent gai

A lower high is a swing high that is below the previous swing high — paired with lower lows, it's the second component that confirms a downt

A lower low is when price makes a swing low that is below the previous swing low, confirming a downtrend in market structure — the mirror im