243 terms, defined precisely

The cash in your trading account, before any profit or loss on open positions is counted.

The currency your account is denominated in. At Onys Kapital this is USD, and deposits in other currencies are converted when credited.

A phase where large participants build positions gradually without moving price much, often before a trend begins.

Trading executed automatically by coded rules rather than by hand.

Anti-Money Laundering. The rules requiring funds to come from and return to an account in the client's own name.

Profiting from the same asset being priced differently in two places. Rarely available to retail traders in any durable form.

A pattern of a flat resistance level with rising lows beneath it, often resolving upward.

The price at which you can buy. Always the higher of the two prices quoted.

Average True Range. Measures how far an instrument typically moves in a period, and is widely used to size stops to current volatility.

Adding to a losing position to lower the average entry price. It increases exposure precisely when the original idea is failing.

Applying a set of rules to historical data to see how they would have performed. Only meaningful if costs are included and the rules are fixed in advance.

When futures prices sit below the expected spot price, often signalling immediate scarcity.

A chart style showing open, high, low and close as a vertical bar with ticks either side.

The first currency in a pair. In EUR/USD, the euro is the base currency and the quote is how many dollars one euro buys.

One hundredth of a percentage point. Central bank moves are usually described in basis points.

A market in a sustained decline, usually defined as a fall of 20% or more from a recent high.

Expecting prices to fall.

The obligation to take reasonable steps to obtain the best available result when executing client orders.

The price at which you can sell. Always the lower of the two prices quoted.

The first and largest cryptocurrency, traded here as a CFD around the clock.

The chain a crypto transfer travels on. Sending to the wrong network usually means the funds cannot be recovered.

Bands set a number of standard deviations around a moving average, expanding and contracting with volatility.

Moving a stop to the entry price once a trade is sufficiently in profit, removing the initial risk.

Price moving decisively beyond an established level of support or resistance, often with increased volume.

The firm that gives you access to markets and acts as counterparty to your CFD trades.

A market in a sustained rise, driven by optimism and steady buying.

Expecting prices to rise.

A chart element showing four prices for a period: open, high, low and close. The body spans open to close; wicks show the extremes.

Holding a higher-yielding currency against a lower-yielding one to collect the interest differential.

The institution setting a country's monetary policy and interest rates. Its decisions are among the largest drivers of currency markets.

Contract for Difference. An agreement to settle the price change of an asset between opening and closing, without owning the asset.

A visual record of price over time. The starting point of technical analysis, and a record of the past rather than a forecast.

A recognisable formation in price such as a triangle, flag or head and shoulders, used to anticipate continuation or reversal.

A market with no clear direction and frequent reversals. Difficult for trend strategies.

Exiting a trade, which converts floating profit or loss into realised profit or loss.

The final traded price of a period. Widely used in indicator calculations because it represents where the period settled.

A per-lot charge applied on some account types in exchange for tighter spreads.

A physical good traded on markets, such as gold, silver, oil or natural gas. Traded here as CFDs.

Several independent signals pointing the same way at the same price. Stronger when the signals come from different categories rather than similar indicators.

A period where price moves sideways in a range, usually after a strong move, while the market absorbs it.

When futures prices sit above the expected spot price, typically reflecting storage and financing costs.

How many units of an asset one lot represents. In forex a standard lot is 100,000 units of the base currency.

The cost of converting between your account currency and the currency of an instrument or deposit.

A decline of roughly 10% from a recent high, generally seen as a pause rather than a trend change.

The tendency of two instruments to move together. Highly correlated positions multiply risk without feeling like a bigger trade.

The risk that the firm on the other side of your contract fails to meet its obligations. Managed through regulation and segregation of client funds.

Cost Per Acquisition. A one-off payment to a partner for each client who meets the qualifying criteria.

Consumer Price Index. The headline measure of inflation and a major scheduled market event.

A currency pair that does not include the US dollar, such as EUR/GBP or AUD/JPY.

Traded as WTI or Brent. Driven by inventory data, production decisions and geopolitics.

A contract tracking a cryptocurrency's price without holding the coin. Trades around the clock, including weekends.

Two currencies quoted against each other. The price shows how much of the quote currency one unit of the base currency buys.

Tuning a strategy so tightly to past data that it describes history rather than any real market behaviour. The main reason backtests mislead.

An order that expires at the end of the trading day if it has not been filled.

Opening and closing positions within the same session, avoiding overnight financing and gap risk.

Reducing exposure across positions, usually after losses or a rise in volatility.

An area where buying previously overwhelmed selling, producing a sharp move up.

A practice account using virtual funds on the live platform with real prices. The correct place to test a strategy before risking money.

Funding your trading account. Card and wallet deposits are instant; crypto takes minutes; wire takes days.

Flat support with falling highs above it, often resolving downward.

The opposite of accumulation: large holders offloading into strength, often near the end of a trend.

When price and a momentum indicator disagree — price makes a new high while the indicator does not. A warning about momentum, not an entry signal.

Spreading exposure across instruments that do not move together. Ineffective if the instruments are correlated.

A credit or debit applied to open share CFD positions when the underlying company pays a dividend.

A candle whose open and close are almost the same, signalling indecision between buyers and sellers.

A central bank stance favouring lower rates or looser policy, generally negative for the currency.

The fall from a peak in account value to the following trough, usually expressed as a percentage. The key measure of how much pain a strategy inflicts.

A system where maximum leverage falls as position size rises, automatically requiring more margin on larger trades.

A company's scheduled results announcement. A significant source of gap risk for share CFD positions.

Electronic Communication Network. A system matching orders between participants directly rather than through a dealing desk.

A schedule of upcoming economic releases with their expected impact. Checking it before a session is a basic risk control.

A published statistic describing economic conditions, such as inflation, employment or growth.

Exponential Moving Average. Weights recent prices more heavily, so it reacts faster than a simple average.

The specific condition in your plan that triggers opening a trade.

Your balance adjusted for the profit or loss on open positions. The number that determines whether you meet margin requirements.

A chart of account value over time. Its shape says more about a strategy than any single result.

A major cryptocurrency and smart contract platform, traded as a CFD.

How an order is filled. Market execution fills at the best available price rather than a guaranteed one.

The predefined rules for closing a trade, whether at a stop, a target or on time.

A currency pair involving a less traded currency. Wider spreads, thinner liquidity and sharper moves than majors.

The average amount a strategy makes or loses per trade, combining win rate with average win and loss.

An automated program running inside MetaTrader that can analyse and place trades according to coded rules.

The total value of your open positions. With leverage this is far larger than the margin posted against it.

A move beyond a level that immediately reverses, trapping traders who entered on the break.

A break of a level that fails to follow through. Common when volume is thin behind the move.

Horizontal levels drawn at set percentages of a prior move, used to anticipate where a pullback might end.

The execution of your order. The fill price may differ from the requested price in fast markets.

An order that must be executed immediately and completely, or cancelled entirely.

A short consolidation against the prevailing trend, often preceding continuation.

The unrealised profit or loss on open positions, which changes with every tick until the position is closed.

Fear of missing out. Entering a move already underway because being out feels worse than being wrong.

Running a strategy in real time on a demo account to test execution as well as rules. Reveals problems backtests cannot.

Equity minus used margin. The buffer available to absorb losses and open new positions.

A position whose stop has been moved to breakeven, so no capital is at risk.

Assessing value from economic data, interest rates, earnings and policy rather than from price patterns.

A jump between one price and the next with no trading in between, typically at a market open after news. Stops cannot protect against the gap itself.

Gross Domestic Product. The total value of goods and services produced by an economy, and a headline measure of its health.

Another word for leverage — controlling a large exposure with a small deposit.

Buying, in the expectation that price will rise.

Selling, in the expectation that price will fall. With CFDs this requires no borrowing arrangement.

Traded as XAU/USD. Behaves partly as a currency and partly as a safe haven, strengthening in periods of fear.

An order that stays active until it is filled or you cancel it.

A central bank stance favouring higher rates or tighter policy, generally positive for the currency.

A three-peak reversal pattern with a higher middle peak, completed when the neckline breaks.

A pooled investment fund using a wide range of strategies, including leverage and short selling.

Opening a position to offset risk in another. It reduces directional exposure but does not remove cost.

The percentage of trades that are profitable. Meaningless without the average size of wins against losses.

A market with few participants, where spreads are wide and orders move price noticeably.

A strong directional move with little retracement, usually the first leg of a new trend.

A contract tracking a stock index, giving exposure to a whole market in one position.

A calculation derived from price or volume, displayed on a chart. Cannot contain information price does not already hold.

The rate at which prices rise across an economy. A primary driver of central bank policy and therefore of currency values.

A professional trading on behalf of a bank, fund or company, usually in far larger size than retail.

The rate set by a central bank, which influences currency demand, financing costs and asset prices generally.

Within the same trading day. Intraday positions are closed before the session ends.

A partner who introduces clients to a broker and earns an ongoing rebate on their trading activity.

Weekly reports on energy stockpiles that routinely move oil prices sharply on release.

A swap-free account that pays no overnight financing, structured to comply with Sharia principles.

Departing from your written plan because a trade feels different. The most common source of unexplained losses.

An informal term for a high-activity window traders focus on, typically around a session open.

Know Your Customer. The identity verification required before an account can be fully used.

An indicator that confirms what price has already done rather than anticipating it.

An indicator that attempts to anticipate price movement. Generally less reliable than it sounds.

The ratio between position value and the margin required to hold it. Enlarges gains and losses equally.

An instruction to trade at a specified price or better. It guarantees price but not execution.

The forced closing of positions when margin requirements are no longer met.

How much can be traded without moving the price. High liquidity means tighter spreads and smoother execution.

An institution quoting prices and absorbing order flow, forming part of the pricing a broker passes on.

A period during which funds cannot be withdrawn, usually tied to a promotion or bonus condition.

An open buy position, profitable if price rises.

The standard unit of position size. One standard lot in forex is 100,000 units of the base currency; the minimum here is 0.01 lot.

The number of lots in a position. The main lever you control to manage risk.

Moving Average Convergence Divergence. The difference between two moving averages, used to read momentum and its changes.

The most traded currency pairs, all involving the US dollar. The most liquid and tightest-spread instruments in forex.

Funds set aside as collateral to hold an open position. Not a fee — it is returned when the position closes.

A warning that equity has fallen close to the minimum needed to keep positions open. It is not guaranteed to arrive before a stop out.

Equity divided by used margin, as a percentage. Falling levels signal that positions are at risk of being closed.

Revaluing open positions at current prices, which is what makes floating profit and loss change tick by tick.

The volume of orders resting at each price level, showing how much size the market can absorb.

A participant that quotes both bid and ask continuously, providing liquidity and earning the spread.

An instruction to trade immediately at the best price available. Guarantees execution but not price.

The prevailing attitude of participants toward a market, ranging from fear to greed.

The sequence of swing highs and lows that defines whether a market is trending or ranging.

The trading platform used at Onys Kapital, available on desktop, browser and mobile with the same account across all three.

0.01 of a standard lot — 1,000 units. The minimum trade size at Onys Kapital.

0.1 of a standard lot — 10,000 units.

The speed and strength of a price move, as distinct from its direction.

The average price over a set number of periods, used to smooth noise and read trend direction. Lags by design.

Reading several timeframes together: the higher for direction, the middle for the setup, the lower for entry timing.

An account balance below zero after a severe adverse move, typically following a gap. Protections vary by broker and jurisdiction.

Trading around scheduled economic releases. High volatility, wide spreads and significant slippage risk.

Monthly US employment data. One of the most volatile scheduled releases of the month.

The full market value of a position, as opposed to the margin posted against it.

A trade that has been entered but not yet closed, whose profit or loss changes with every tick.

The first traded price of a period, forming one edge of a candle's body.

The list of outstanding buy and sell orders at each price level. Not centrally visible in spot forex, which trades over the counter.

The platform window where you set instrument, direction, size, stop and target before confirming.

Building a model so closely matched to past data that it fails on new data.

The charge or credit applied to a position held past the daily rollover. Also called swap.

Taking more trades than your plan allows, usually from boredom or a need to act. Costs compound quickly.

Practising without real money, on a demo account or on paper.

An instruction to open a position when price reaches a specified level in the future.

The standard smallest increment for a currency pair — the fourth decimal place for most, the second for yen pairs.

What one pip of movement is worth in money for a given position size. On EUR/USD a standard lot is roughly $10 per pip.

A tenth of a pip, shown as a fifth decimal place on many platforms. Easy to confuse with a pip when setting stops.

Levels calculated from the previous period's high, low and close, used to mark likely support and resistance.

An open trade in a given instrument, either long or short.

Choosing lot size so that the distance to your stop equals the money you are willing to risk. The core discipline of risk management.

Analysing raw price movement and structure without relying on indicators.

A classification for clients meeting experience and asset criteria, with fewer regulatory protections than retail status.

The price at which you plan to close a winning trade, decided before entry.

A temporary move against the prevailing trend, often used as an entry opportunity in the trend's direction.

A central bank buying assets to inject money into an economy, typically weakening the currency.

The second currency in a pair, in which the price is expressed. In EUR/USD the dollar is the quote currency.

A market moving sideways between fairly consistent boundaries, with no clear trend.

A central bank's scheduled announcement on interest rates, and one of the highest-impact events on the calendar.

Profit or loss locked in once a position is closed, as opposed to floating profit or loss on open trades.

A share of trading costs paid back to an introducing broker based on the activity of clients they introduced.

Oversight by a financial authority setting rules on conduct, client money and reporting. Onys Kapital Ltd is regulated by the FSA of Seychelles under licence SD128.

A price area where selling has previously overcome buying, causing price to stall or reverse.

A client classification carrying the highest level of regulatory protection, as distinct from a professional client.

An individual trading their own money through a broker.

Increasing size after a loss to recover it. The most reliable way to turn a bad day into a disaster.

A change in the prevailing direction, confirmed by a break in market structure rather than by feel.

Money you can afford to lose entirely without affecting your living standards. The only money that should be traded.

The size of the potential gain against the size of the risk. A 1:2 ratio can be profitable at a win rate around 40%.

The daily point at which open positions are carried to the next value date, triggering a swap charge or credit.

A price level ending in round figures, which often attracts orders and acts as informal support or resistance.

Relative Strength Index. A 0 to 100 momentum measure. High readings mean strength, not an automatic sell signal.

An asset that attracts buying during market stress, such as gold, the US dollar, the Swiss franc or the yen.

Taking many small, very short trades. Extremely sensitive to spread and commission because costs are paid on every trade.

Client money kept in accounts separate from the firm's own funds.

The overall mood of market participants. Useful as context, unreliable as a standalone signal.

The hours when two trading sessions are open together. The London–New York overlap is the most active window.

A combination of conditions your strategy recognises as a trading opportunity.

A contract tracking a listed company's share price without ownership, voting rights or ordinary dividend entitlement.

A measure of return relative to volatility. Higher values indicate steadier returns for the risk taken.

An open sell position, profitable if price falls.

Traded as XAG/USD. More volatile than gold because of its heavier industrial demand.

The difference between the price you requested and the price you received. Most severe in fast or thin markets.

A sudden sharp move that quickly retraces, common around news and in thin liquidity.

The current market price for immediate settlement, as opposed to a futures price.

The gap between bid and ask. Paid the moment you open a position. Standard accounts here start from 1.7 pips, Pro from 0.8.

A cryptocurrency designed to hold a fixed value against a currency, such as USDT or USDC.

An order that closes a position at a set price to cap the loss. An instruction, not a guarantee of price in a gap.

An order triggered when price reaches a level, then executed at market. Guarantees execution, not price.

Automatic closure of positions when margin level falls below the broker's threshold.

An area where selling previously overwhelmed buying, producing a sharp move down.

A price area where buying has previously overcome selling, causing price to stall or turn up.

The interest adjustment applied to positions held overnight, positive or negative depending on instrument and direction.

An account type that pays no overnight financing on any instrument.

Holding positions for days to weeks. Less screen time and lower cost sensitivity, but exposed to overnight and weekend risk.

An order that closes a position at a set favourable price, removing the decision from the moment.

Studying price and volume history to inform decisions, on the basis that participant behaviour repeats.

A single change in price. Tick volume counts these changes and is used as an activity proxy in forex.

A count of price changes in a period, used as an activity proxy in forex where true volume is not centrally reported.

How long a pending order stays active before expiring.

The period each candle represents. Lower timeframes carry more noise and more cost per unit of movement.

A single record covering a trade's reasoning, execution, result and lesson.

The full cost of trading: spread, commission, overnight financing, conversion and slippage.

A record of every trade including reasoning and emotional state, used to find repeated errors.

A written set of rules covering what you trade, when, how much you risk and when you stop.

Building procedures so that emotion cannot set position size, entries or exits.

A stop that follows price at a fixed distance as a trade moves in your favour, locking in progress.

A sustained directional move. An uptrend makes higher highs and higher lows; a downtrend the reverse.

A quote showing both bid and ask, so you can see the cost of trading in either direction.

The instrument a CFD tracks. You gain exposure to its price without owning it.

A loss on an open position that has not yet been locked in by closing it.

A dollar-pegged stablecoin accepted for funding on the ERC20 network.

Tether. A dollar-pegged stablecoin, accepted for deposits and withdrawals on the TRC20 and ERC20 networks.

The portion of equity currently held as collateral against open positions.

The date a trade settles. Rolling past it is what triggers the overnight swap.

Approval of your identity documents, required before a first withdrawal.

How much and how fast prices move. Rising volatility should reduce position size, not increase enthusiasm.

A sudden increase in price movement, usually around news or a liquidity shortage.

How much is traded in a period. Confirms whether a move has real participation behind it.

The exposure created by holding a position while markets are closed, when news can move the reopening price past your stop.

Rapid price reversals that trigger entries and stops in quick succession, common in ranges.

Taking money out. Funds return by the method they arrived, up to the amount deposited.

The German electronic trading venue behind several European index products.

A currency pair quoted against the Japanese yen, where a pip is the second decimal place rather than the fourth.

The return on a bond, which moves inversely to its price and strongly influences currency values.

A market where one participant's gain is another's loss. Leveraged derivatives trading is close to zero-sum before costs, and negative-sum after them.