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 skill of interpreting real-time order flow — watching the time & sales (the "tape"), Level 2 quotes, and print sizes — to gauge the bala
Theta is the options Greek that measures time decay — the rate at which an option's extrinsic (time) value decreases each day as expiration
Tilt is a trading state of emotional dysregulation — usually triggered by a string of losses, a missed trade, or a violation of your plan —
Time-in-force (TIF) is an order instruction that tells the broker how long your order should remain active before automatically cancelling —
A written or digital record of every trade you take, capturing entry, exit, setup rationale, position size, emotions, and outcome. A consist
A trading plan is a written document that defines your strategy, the specific setups you trade, entry and exit rules, risk management parame
A trailing stop is a dynamic stop-loss order that automatically moves in your favor as the trade profits — locking in gains incrementally —
A trend is a sustained directional movement in price over time — an uptrend is characterized by a sequence of higher highs and higher lows,
Trend following is a systematic trading approach that identifies an established price trend and enters in that direction, holding the positi
A trendline is a straight line drawn connecting two or more swing highs (in a downtrend) or swing lows (in an uptrend) that defines the slop
