Trading Vocabulary

The lowest price a seller is willing to accept for an asset.

The highest price a buyer is willing to pay for an asset.

The difference between the bid and ask price. A tighter spread means lower trading cost.

The price at which you open (enter) a trade. FusionTrades signals always include a recommended entry price.

The price at which you close (exit) a trade, either at your Take Profit or Stop Loss.

An order that automatically closes your trade at a set loss level to protect your capital. Always use one.

An order that automatically closes your trade when your target profit level is reached.

A price floor where buying pressure tends to increase, preventing the price from falling further.

A price ceiling where selling pressure tends to increase, preventing the price from rising further.

Expecting prices to rise. A bullish signal from FusionTrades means you should look to buy.

Expecting prices to fall. A bearish signal from FusionTrades means you should look to sell.

Buying a position with the expectation that the price will go up. Going 'long' = bullish trade.

Selling a position with the expectation that the price will go down. Going 'short' = bearish trade.

Borrowing capital to increase your trade size. Amplifies both gains AND losses — use with caution.

The deposit required to open a leveraged position. Think of it as collateral.

The smallest standard price movement in forex, usually 0.0001 (e.g. EUR/USD moving from 1.1000 to 1.1001 = 1 pip).

The quantity or volume of an asset being traded. In forex, a standard lot = 100,000 units of base currency.

A chart bar showing the open, high, low, and close price for a given time period. The backbone of technical analysis.

When price moves decisively beyond a key support or resistance level, often signalling a new trend direction.

The total number of shares or contracts traded during a period. High volume confirms the strength of a move.

A momentum indicator (0–100) showing whether an asset is overbought (>70) or oversold (<30). Used to time entries.

Moving Average Convergence Divergence — a trend-following indicator that shows momentum shifts and potential reversals.

The average price of an asset over a set number of periods. Smooths out price noise to reveal trends.

A recommended trade action (Buy or Sell) generated by FusionTrades based on technical and fundamental analysis.

How easily an asset can be bought or sold without affecting its price. High-liquidity assets are easier to trade.

How much the price of an asset fluctuates over a period. Higher volatility = larger potential gains and losses.

An order to buy or sell at the current best available price immediately.

An order to buy or sell at a specific price or better. Useful for entering at your signal's exact entry price.

The amount of capital allocated to a single trade. Risk no more than 1–2% of your total capital per trade.

Compares the potential profit of a trade to its potential loss. A 1:3 ratio means risking $1 to potentially gain $3.