Glossary
Trading terms explained in plain English — no circular definitions, no jargon explaining jargon.
Big Players
Institutions, banks, and large funds whose order flow is large enough to actually move price.
Breakout
Price moving decisively beyond a known support or resistance level.
Confirmation
Evidence that a move has genuinely held — not just a first reaction, but sustained behavior over time or across timeframes.
Fakeout (False Breakout)
A breakout that looks real at first, then reverses — often designed to trap traders who react too early.
Leverage
Borrowed buying power that lets you control a large position with a smaller deposit.
Lot
A standardized trade size. A standard lot is 100,000 units of the base currency.
Pip
The smallest standard price move in a currency pair — usually the fourth decimal place (0.0001).
Position Size
How large a trade you take, usually measured in lots — determined by your risk amount and stop loss distance.
Resistance
A price level where selling pressure has repeatedly capped how high price can rise.
Retest
Price returning to a level it just broke, to check whether that level now holds as new support or resistance.
Risk:Reward Ratio
How much you stand to gain compared to how much you're risking on a trade — e.g. 1:2 means risking 1,000 to make 2,000.
Stop Loss
A pre-set price where you exit a losing trade, limiting how much you can lose on it.
Support
A price level where buying pressure has repeatedly stopped price from falling further.
Target (Take Profit)
The price at which you plan to close a winning trade and lock in profit.
Trading Session
A window of the trading day tied to a major financial center — Asia, London, or New York.