Trading Dictionary
139+ Trading Terms Explained
Plain-English definitions for active traders - from order types and chart patterns to options Greeks and trader slang.
R-multiple is a way to measure trade outcomes in units of initial risk — a 2R trade means you made twice your initial risk as profit, a -1R
A range (or trading range) is a price zone where a stock oscillates between a defined support floor and resistance ceiling without making me
A rate cut is when the Federal Reserve lowers its benchmark federal funds rate target, which reduces borrowing costs throughout the economy
A rate hike is when the Federal Reserve raises its benchmark federal funds rate target, increasing borrowing costs across the economy to slo
The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and magnitude of recent price changes on a 0–100 scale —
Relative volume (RVOL) compares a stock's current trading volume to its average volume for the same time of day, expressed as a multiple — a
Resistance is a price level where selling pressure has historically overcome buying pressure, causing price to stall, reverse, or consolidat
Revenge trading is the impulsive act of placing new trades immediately after a loss — or multiple losses — in an attempt to quickly recover
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
A rug pull is when insiders, promoters, or large holders of a low-float stock or cryptocurrency suddenly sell all of their holdings into ret
