Trade Terminology

 TRADING TERMINOLOGY

Ask – the price at which a trader will buy from the dealer the
price at which a trader will buy from the dealer
Bid – the price at which a trader will sell to the dealer the price
at which a trader will sell to the dealer
Open Position – an active trade in the market an active trade in
the market
Open Order – an order to buy or sell at a specific price that an
order to buy or sell at a specific price that has not
yet been filled has not yet been filled.
Buy/Sell Order – an order to buy or sell into the market at a an
order to buy or sell into the market at a specific price
Market Order - an order to buy or sell into the market at the an
order to buy or sell into the market at the current price
Stop (Loss) Order – an order to get out of an open position an
order to get out of an open position at a specific price if
the trade goes against you at a specific price if the trade
goes against you
Stop/Limit Order - an order to get out of an open position at an
order to get out of an open position at a specific price in
order to take profits a specific price in order to take
profits
Trailing Stop – moving your Stop (Loss) Order to follow moving your
Stop (Loss) Order to follow behind the market movement so as
to begin locking in behind the market movement so as to begin
locking in profits
Trend – sustained price movement in a single direction sustained
price movement in a single direction
Resistance - a level where the market is unable to penetrate a
level where the market is unable to penetrate further up
Support – a level where the market is unable to penetrate a level
where the market is unable to penetrate further down
Band/Range/Bracketing – tight price action, moving within tight
price action, moving within a limited price range for a
sustained period of time a limited price range for a
sustained period of time
Breakout – when prices suddenly move away from the when prices
suddenly move away from the persistent price range