Glossary
Ask Price
The ask price is the lowest price a seller is willing to accept for a financial instrument. Also known as the offer price, it is one half of a currency quote.
ATR (Average True Range)
ATR measures market volatility by calculating the average range of price candles over a specified period. Widely used for setting stop-loss levels.
Balance
Account balance is the total cash in your trading account, excluding any open positions. It reflects deposits, withdrawals, and realized profit/loss.
Bear Market
A bear market is a sustained period of declining prices, typically defined as a drop of 20% or more from recent highs. Characterized by pessimism and negative investor sentiment.
Bid Price
The bid price is the highest price a buyer is willing to pay for a financial instrument. It represents the demand side of a market quote.
Bollinger Bands
Bollinger Bands consist of a middle SMA and two outer bands that measure volatility. They expand during high volatility and contract during low volatility.
Broker
A broker is a financial intermediary that facilitates trades between traders and the market. In forex, brokers provide trading platforms, liquidity, and leverage.
Bull Market
A bull market is a sustained period of rising prices, typically defined as an increase of 20% or more. Characterized by optimism, strong economy, and high investor confidence.
Buy Limit / Sell Limit
Pending orders to buy below or sell above the current price. Buy limit executes at a lower price; sell limit executes at a higher price.
Candlestick Pattern
Candlestick patterns are visual formations on price charts that indicate potential price reversals or continuations. Originated in Japanese rice trading.