Trading Dictionary

139+ Trading Terms Explained

Plain-English definitions for active traders - from order types and chart patterns to options Greeks and trader slang.

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Scalping
Strategies & Setups

Scalping is a trading style that targets very small price moves — often just cents or a few ticks — entering and exiting positions within se

Sector
Market Basics

A broad grouping of companies that operate in the same segment of the economy — such as Technology, Healthcare, Energy, or Financials. Stock

Short Interest
Market Basics

Short interest is the total number of a stock's shares currently sold short, expressed as a percentage of the float — it measures the collec

Short Selling
Order Types & Execution

Short selling is borrowing shares from a broker and selling them at the current price with the intention of buying them back later at a lowe

Slippage
Order Types & Execution

Slippage is the difference between the price you expected to receive when placing a trade and the actual fill price you got — it occurs beca

Squeeze
Trader Slang

A squeeze (short squeeze) occurs when a stock that is heavily shorted rises sharply, forcing short sellers to buy back shares to cover their

Stop Order
Order Types & Execution

A stop order (also called a stop-market order) becomes a market order and executes immediately at the best available price once the stock to

Stop-Limit Order
Order Types & Execution

A stop-limit order combines a stop price (trigger) and a limit price (maximum/minimum acceptable fill) — once the stock hits the stop price,

Stop-Loss Order
Order Types & Execution

A stop-loss order is a predetermined exit point placed below a long position (or above a short) that automatically closes the trade if price

Strike Price
Options & Derivatives

The strike price (or exercise price) is the fixed price at which an options contract can be exercised — for a call option, it's the price at

Support
Market Basics

Support is a price level where buying pressure has historically overcome selling pressure, causing price to stop declining and reverse — it'

Swing Trading
Strategies & Setups

Swing trading is a style that holds positions for days to weeks, aiming to capture one directional swing within a larger trend — it requires