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TradeCaster

Glossary

Every trading term, in plain English

Definitions written by traders, with a worked example and links to the lessons where the term matters.

A

After Hours

Session after the regular close.

Ask

Lowest price a seller will accept.

Average True Range

Typical movement per period.

B

Bid

Highest price a buyer will pay.

Breakout

Price leaving a defined range.

Buying Power

Capital available to open positions.

C

Catalyst

The news or event driving a move.

Consolidation

Sideways pause in a move.

D

Drawdown

Decline from an equity peak.

F

Fill

Execution of an order.

Float

Shares actually available to trade.

G

Gap

Opening price away from the prior close.

H

Halt

Trading temporarily paused.

L

Level 2

Visible order book depth.

Liquidity

How easily size can be traded.

Long

A position that profits when price rises.

M

Margin

Borrowed buying power.

Market Cap

Share price times shares outstanding.

Momentum

Strength and persistence of a move.

O

Opening Range

High and low of the first minutes.

P

Paper Trading

Simulated trading without real money.

Position Size

How many shares or contracts to trade.

Premarket

Session before the regular open.

Profit Factor

Gross profit divided by gross loss.

Pullback

Counter-trend move inside a trend.

R

Relative Volume

Volume versus a normal day.

Resistance

Zone where selling has appeared before.

Risk/Reward

Potential loss versus potential gain.

S

Scalp

Very short-duration trade.

Short

A position that profits when price falls.

Short Interest

Shares currently sold short.

Short Squeeze

Shorts forced to cover, accelerating the move up.

Slippage

Difference between expected and filled price.

Spread

Gap between bid and ask.

Stop Loss

Predefined exit that caps the loss.

Support

Zone where buying has appeared before.

Swing Trade

Position held days to weeks.

T

Tape

Record of executed trades.

Trend

Persistent direction in price.

V

Volatility

How much price moves.

Volume

Shares or contracts traded.

VWAP

Volume weighted average price.

W

Watchlist

Prepared list of candidates.

Win Rate

Share of trades that are profitable.