Bid and ask
The bid is what buyers offer; the ask is what sellers want. The spread is a cost.
Build Your Foundation
Trading language, translated.
A practical glossary of market, order, risk, and performance terms written for use—not memorization.
LEARN THE FRAMEWORK
Trading language, translated.
Trading language matters because every term describes a real decision, cost, risk, or market behavior.
PAGE RESOURCES
Visual examples for this guide.
These reference images support the lesson so visitors can connect the concepts to real trading screens, setups, and decision points.
CORE LESSONS
What to understand before you risk capital.
A practical glossary of market, order, risk, and performance terms written for use—not memorization.
Liquidity
Liquidity describes how easily you can enter or exit without moving price.
Volatility
Volatility creates opportunity and risk at the same time.
Position size
Position size connects the setup to account risk.
Drawdown
Drawdown measures decline from a peak and affects capital and psychology.
Expectancy
A system can win often and still fail if losses are too large.
Prepare
Learn mechanics terms first.
Filter
Then learn order terms.
Execute
Then learn risk terms.
Review
Finally connect them inside your journal.
COMMON MISTAKES
What usually hurts new traders.
- Using words without understanding dollar impact.
- Confusing win rate with profitability.
- Ignoring spread and slippage.
- Thinking margin is free money.
PRACTICE DRILL
Turn the lesson into skill.
For every new term, write one sentence explaining how it can cost or save you money.
Important: education should improve preparation and risk awareness, but it does not remove market risk or guarantee profit.
Trading involves risk, including the loss of capital. Use these materials for education, verify important information independently, and make decisions that fit your own circumstances.
Read the full disclaimer →