Trading Glossary

Glossary trade refers to a type of trading strategy where traders use a predefined set of terms, definitions, or concepts to make informed decisions. It often involves industry-specific jargon, financial metrics, and analytical tools to navigate markets effectively.

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Market risk

The risk of losses resulting from unfavorable movements in market prices.

Market sentiment

The overall attitude or perception of market participants toward an asset or market, influencing price behavior.

Micro lot

A forex trade size equal to 1,000 units of the base currency.

Mid-price

The price located halfway between the bid and ask prices.

Mini lot

A forex trade size equal to 10,000 units of the base currency.

Momentum trading

A trading strategy that seeks to profit by following strong price trends, buying in rising markets and selling in falling ones.

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