JoymistaTrading glossary
One page per term: a clear definition, a simple example with made-up numbers, related terms, and the Joymista tool or lesson that puts it to work.
Forex basics and risk
- PipA pip is the unit used to measure price moves in forex: 0.0001 for most pairs and 0.01…
- LotA lot is the unit of trade size: a standard forex lot is 100,000 units of the base…
- SpreadThe spread is the gap between the buy price (ask) and the sell price (bid), a cost you…
- Bid and AskThe bid is the price you can sell at right now, the ask is the price you can buy at, and…
- LeverageLeverage lets you open a trade bigger than your balance by putting up only part of it as…
- MarginMargin is the amount your broker sets aside from your balance as collateral for an open…
- Free MarginFree margin is the money in your account available to open new trades or absorb losses on…
- Margin LevelMargin level is a ratio that shows how healthy an account is: equity divided by used…
- Margin CallA margin call is a broker warning when your margin level falls to a set threshold,…
- Stop OutA stop out is the broker closing your trades automatically when the margin level falls to…
- EquityEquity is your account balance plus the current profit or loss of your open…
- Long and ShortLong means a buy trade that profits if price rises; short means a sell trade that profits…
- Market OrderA market order fills your trade at once at the best price available now, without you…
- Limit OrderA limit order is a pending order filled at the price you set or better: a buy limit below…
- Stop OrderA stop order is a pending order that triggers once price moves past a level you set: a…
- Stop-LossA stop-loss is an order that closes your trade automatically at a price you set in…
- Take-ProfitA take-profit order closes your trade automatically at a target price you set in advance,…
- Trailing StopA trailing stop is a stop-loss that follows price at a fixed distance when it moves in…
- Risk-Reward RatioThe risk-reward ratio compares what you risk to your stop with what you aim for at your…
- Position SizingPosition size comes from the amount you accept to lose: size in lots = risk amount ÷…
- DrawdownDrawdown is how far an account falls from its highest peak to the lowest point after it,…
- SlippageSlippage is the difference between the price you asked for and the price your trade…
- SwapA swap is an amount added to or taken from your account when you hold a trade overnight,…
- Trading SessionsThe forex market runs 24 hours on weekdays across four main sessions: Sydney, Tokyo,…
- XAUUSD (Gold)XAUUSD is the platform symbol for gold against the US dollar, priced in dollars per…
Technical analysis
- Support and ResistanceSupport is a price zone where falls stopped before because buyers took over; resistance…
- Trend LineA trend line joins two rising lows in an uptrend, or two falling highs in a downtrend, to…
- BreakoutA breakout is price closing clearly outside a support or resistance zone; a false…
- CandlestickA Japanese candlestick draws four prices for a period: the open and close (the body) and…
- DojiA doji is a candle whose close is equal or very close to its open, so its body looks like…
- Engulfing PatternAn engulfing pattern is two candles: the second has the opposite colour and its body…
- HammerA hammer is a candle with a small body at the top of its range and a long lower wick at…
- Head and ShouldersHead and shoulders is a reversal pattern: three peaks with the middle one highest (the…
- Double Top and Double BottomA double top is a bearish reversal pattern: two similar peaks with a dip between them,…
- Fibonacci RetracementFibonacci retracements are levels that measure how far price pulls back from a prior…
- Harmonic PatternsHarmonic patterns are five-point price patterns, X, A, B, C and D, defined by Fibonacci…
- Moving AverageA moving average is the average closing price over a set number of candles, updated each…
- Golden Cross and Death CrossA golden cross is a short moving average (usually the 50) crossing above a long one…
- RSI (Relative Strength Index)RSI is a momentum indicator that moves between 0 and 100, with a default of 14 candles;…
- MACDMACD is a momentum and trend indicator: its line is the 12-period EMA minus the 26-period…
- DivergenceDivergence is a mismatch between the direction of price and a momentum indicator such as…
- ATR (Average True Range)ATR measures the average price range per candle over a number of candles (14 by default),…
- Bollinger BandsBollinger Bands are three lines: a simple moving average (usually 20) with two bands set…
- VolatilityVolatility is how much price swings up and down over a period: the bigger and faster the…
SMC and order flow
- Market Structure: BOS and CHoCHMarket structure is the order of highs and lows: higher highs and lows in an uptrend,…
- LiquidityIn general, liquidity is how easily you can buy and sell without moving price much. In…
- Order BlockIn SMC, an order block is the last opposite candle before a strong move that broke…
- Fair Value Gap (FVG)A fair value gap is a three-candle pattern where price leaves a void: in a bullish one,…
- Order BookAn order book is a live list of resting buy orders (bids) and resting sell orders (asks)…
- CVD (Cumulative Volume Delta)Delta is market-buy volume minus market-sell volume in a candle, and CVD is its running…
- VolumeVolume is how much of an instrument changed hands over a period, such as the number of…
- Open InterestOpen interest is the number of futures or options contracts that are still open and have…
- Funding RateThe funding rate is a periodic payment between longs and shorts on perpetual futures that…
- LiquidationLiquidation is the exchange force-closing your leveraged trade when the margin can no…
Fundamentals and reports
- COT ReportThe COT report is a weekly report from the US CFTC showing the positions of different…
- CorrelationCorrelation is a measure from −1 to +1 of how two markets move together: +1 always the…
- SeasonalitySeasonality is a market’s tendency to move in a repeated way in certain months of the…
- Non-Farm Payrolls (NFP)NFP is a monthly report from the US Bureau of Labor Statistics showing how many jobs the…
- CPI (Consumer Price Index)CPI measures the change in prices of a basket of goods and services consumers buy, and…
- Fundamental AnalysisFundamental analysis judges an asset from its real data: a company’s earnings, debt and…
- P/E RatioThe P/E ratio is the share price divided by the annual earnings per share (EPS): how many…
- EPS (Earnings Per Share)EPS is a company’s net profit divided by its number of shares: each share’s slice of the…
- Market CapitalisationMarket cap is the share price times the number of shares outstanding; in crypto, the coin…
- Dividend YieldDividend yield is a company’s yearly dividend per share divided by the share price,…
- ETF (Exchange-Traded Fund)An ETF is a basket of assets, such as all the stocks in an index, that is bought and sold…
- DCA (Dollar-Cost Averaging)DCA means buying an asset with a fixed amount at regular intervals, such as every month,…
- Short SellingShort selling is selling a borrowed share in the hope of buying it back cheaper later and…
- Insider Trades and Form 4Form 4 is an official US SEC filing in which a company’s executives and major holders…
- 13F FilingA 13F is a quarterly SEC filing made by institutional investment managers with 100…
Crypto
- StablecoinA stablecoin is a crypto token built to keep its price steady near another asset, usually…
- Rug PullA rug pull is a scam where a crypto project’s team collects buyers’ money, then suddenly…
- TokenomicsTokenomics is a crypto token’s economics: how many units exist, how many will be issued…
- Fear and Greed IndexThe fear and greed index is a number from 0 to 100 that gauges the crypto market’s mood:…
The trader’s workflow
- BacktestingBacktesting is running a trading strategy’s rules on past price data to see how it would…
- Trading JournalA trading journal is a record of every trade: the instrument, direction, reason for…
- Prop Firm (Funded Account)A prop firm gives a trader an account with its capital after the trader passes an…
More pages
Put it to work in Joymista
Signing up is free, some tools are free, and one subscription unlocks the rest.
Open JoymistaEducational content, not investment advice.