-A- to –C-
Definition of arbitrage with examples of how it can be used in day trading.
Definition of averaging down, with reasons why a trader would average down a position, and an explanation of why averaging down will lose money over the long term.
Description of binary betting, its advantages and disadvantages, and how it can be used as an alternative to regular day trading.
Definition of a market crash, with an explanation of the type of trading that causes a market crash.
Definition of the options phrases Call, and Put.
-D- to –F-
Definition of a database trading log, including the information that is usually included in a database trading log.
Explanation of the US SEC day trading restrictions that apply to US stock markets.
Definition of the style of trading known as day trading, with examples of the types of trade that fit within this short term trading style.
A sharp and likely temporary rise in the market price of a stock following an extensive decline.
Derivatives MarketsDefinition and examples of derivatives markets.
Definition of divergence, with examples of how divergence between the price and an indicator can be used in day trading.
Definition of diversification, including methods of diversifying an investment portfolio, and whether diversification applies to trading as well as investing.
Definition of the trading term fungible, with an example of how fungible is used in trading.
Description of futures contracts, including the information that they provide, and where they can be found.
-G- to –I-
Definition of a graphical trading log, including the information that is usually included in a graphical trading log.
Definition of the group of traders that are known by professional traders as the herd, and an explanation of why being part of the herd is something to avoid.
Definition of the options phrases in the money, and out of the money.
-J- to –L-
Definition of japanese candlestick patterns, with an introduction to how the candlesticke patterns are used in trading.
Definition of the long term index and stock options known as LEAPS or Long Term Equity Anticipation Securities.
Definition of the futures terms long and short, and examples of their use in day trading.
Definition of a live trading room, with examples of different types of live trading room.
Definition of a linear chart, and how a linear chart compares to a logarithmic chart with regard to trading.
Definition of a logarithmic chart, and how a logarithmic chart compares to a linear chart with regard to trading.
Definition of a long squeeze and explanation of how to avoid your trades being affected by a long squeeze.
-M- to –O-
Definition of the day trading term margin, with an explanation of how margin applies to day trading, and why different markets have different margin requirements.
Definition of a margin call, and reasons why margin calls should be avoided.
Definition of open interest, with explanations of how open interest is calculated and interpreted.
Definition of the day trading terms opening gap and price gap, with descriptions of the most common types of gap.
Definition of the day trading terms order book, level 2 market data, and depth of market.
Definition of the day trading phrases related to orders being executed and orders being filled.
-P- to –R-
Definition of the day trading terms points, ticks, and pips, with an explanation of which term is used for which markets, and examples of how they are used when talking about day trading.
Definition of the style of trading known as position trading, with examples of the types of trade that fit within this long term trading style.
Description of trading charts based upon price range (difference between high and low prices), including their advantages and disadvantages compared to time charts.
Definition of the day trading terms ranging and trending, and descriptions of the types of market that they describe.
Definition of the trading term realized profit, with an example of how realized profit is used in trading.
Definition of the trading term risk to reward ratio, with an explanation of how the ratio is applied to risk management and used in trading.
Explanation of the difference between points and ticks, and which one (points or ticks) is correct for which markets.
-S- to –U-
Definition of scaling in using multiple contracts, with an example of how scaling in can be used to reduce overall trade risk.
Definition of scaling out using multiple contracts, with an example of how scaling out can be used to reduce overall trade risk.
Definition of a short squeeze and explanation of how to avoid your trades being affected by a short squeeze.
Definition of spread betting, its advantages and disadvantages, and how it can be used as an alternative to regular trading.
Definition of the day trading term spread (or bid and ask spread), including what causes a small and large spread, and how they affect trading.
Definition of the form of options trading known as spread trading, with an example of an options based spread trade.
Definition of statistical trading, with an explanation of the difference between statistical trading and other trading styles, and examples of statistical trades.
Definition of the type of stop loss order known as stop and reverse, with examples of how a stop and reverse order is used in trading.
Definition of the day trading term stop loss, with descriptions of the two most common types of stop loss, and a discussion of whether or not a stop loss should be used.
Definition of the options phrases strike price, option exercise, and expiration date.
Definition of the style of trading known as swing trading, with examples of the types of trade that fit within this medium term trading style.
Description of trading charts based upon ticks (number of trades), including their advantages and disadvantages compared to time charts.
Definition of the futures terms tick size and tick value, and examples of their use in trading.
Definition of a text trading log, including the information that is usually included in a text trading log.
Description of trading charts based upon time, including short term timeframes such as 1 minute and 3 minute, and long term timeframes such as 1 hour and 1 day.
Definition of the time and sales (or tape), and descriptions of the information that is provided by the time and sales.
Definition of the type of stop loss order known as a trailing stop, and an example of how a trailing stop should and should not be used in trading.
Description and examples of upward, downward, and sideways trend lines, and explanation of the information they provide about the market's prices.
Description and examples of trend lines showing strong trends and weak trends, and explanations of the information they provide about the market's prices.
Description and examples of trend lines showing support and resistance, and explanations of the information that they provide about the market's prices.
Definition of trend line bounces, including why they occur, and examples of how they can be used as part of a trading system.
Definition of trend line breaks, including why they occur, and examples of how they can be used as part of a trading system.
Definition of the day trading phrase triple witching.
Definition of the trading term unrealized profit, with an example of how unrealized profit is used in trading.
Definition of the US stock market uptick rule, and a discussion of whether the removal of the uptick rule has increased or decreased US stock market volatility.
-X- to –Z-
Definition of the VDAX volatility index, including the markets that the VDAX is based upon, and its calculation.
Definition of the VIX volatility index, including the markets that the VIX is based upon, and its calculation.
Description of trading charts based upon volume (number of contracts), including their advantages and disadvantages compared to time charts.
Definition of the trading term win to loss ratio, with an explanation of how the ratio is applied to risk management and used in trading.
