Master the Language of the Markets

Trading shouldn't feel like a foreign language. From "Spread" to "Stop-Loss," we provide the essential financial definitions and break down the industry's complex jargon into clear definitions.

Trading Glossary
  • A

    Ask Price

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

    Asset Class

    A category of financial instruments, such as FX or Stock CFDs.

    Account Equity

    The total value of your account, including your balance and any floating profit or loss.

  • B

    Base Currency

    The first currency listed in a forex pair (e.g., EUR in EUR/USD).

    Bear Market

    A market environment where prices are falling and investor sentiment is cautious.

    Bid Price

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

  • C

    CFD

    Contract for Difference; a way to trade price moves without owning the underlying asset.

    CopyTrading

    A social feature that allows you to follow and learn from experienced traders.

  • D

    Demo Account

    A risk-free account with $100,000 in virtual funds for practicing strategies.

    Day Trading

    The strategy of opening and closing all trading positions within a single day.

    Deposit

    The funds you add to your account to start live trading.

  • E

    Economic Calendar

    A tool used to track market-moving news and data releases.

    Execution Speed

    The time it takes for a trade to be filled; HEDG offers sub-100ms speeds.

  • F

    Forex (FX)

    The global market for trading national currencies.

    Fundamental Analysis

    Evaluating an asset based on economic news, interest rates, and financial health.

    Floating P/L

    Your current profit or loss on positions that are still open and active.

  • G

    Gap

    A break in a price chart where the price moves sharply with no trading in between.

    Going Long

    Opening a trade with the expectation that the market price will rise.

    Going Short

    Opening a trade with the expectation that the market price will fall.

  • H

    Hedge

    A strategy used to reduce risk by taking an offsetting position in a related asset.

    High/Low

    The highest and lowest prices an asset reached during a specific timeframe.

    HKEX

    The Hong Kong Exchanges and Clearing, a key market for our Phase 1 expansion.

  • I

    Instant Withdrawal

    Our system where 90% of withdrawal requests are processed immediately.

    Instrument

    A tradable financial asset such as a specific currency pair or stock.

    Initial Margin

    The amount of collateral required to open a new leveraged position.

  • J

    Jargon-Free

    Our promise to communicate in clear, simple language that anyone can understand.

    JPY

    The Japanese Yen, a major currency for our Phase 1 target market.

    Jobber

    A term for a short-term trader who looks for small, quick profits.

  • K

    KRW

    The South Korean Won, a major currency for our Phase 1 target market.

    KYC

    Know Your Customer; the process of verifying identity for a secure trading environment.

    Key Levels

    Specific price points on a chart where markets historically reverse or break through.

  • L

    Leverage

    A tool that lets you control a large position with a small amount of capital.

    Liquidity

    The ease with which an asset can be bought or sold without affecting its price.

    Lot

    A standardized unit of measurement for a trading position size.

  • M

    MT5

    MetaTrader 5; the powerful, industry-standard platform provided by HEDG.

    Margin

    The "good faith" deposit required to open and keep a leveraged position open.

    Minimum Deposit

    The smallest amount required to start live trading, which is $250 at HEDG.

  • N

    Negative Balance Protection

    A safety net ensuring you never lose more than your initial deposit.

    Net Profit

    The final profit amount after all costs and fees have been subtracted.

    News Trading

    A strategy focused on trading market volatility caused by major economic events.

  • O

    Onboarding

    Our simplified process for getting you verified and ready to trade.

    Open Position

    Any trade that has been executed but not yet closed with an offsetting trade.

    Order

    An instruction sent to the HEDG platform to buy or sell an asset.

  • P

    Pip

    Percentage in Point; the smallest price move in a currency pair.

    Portfolio

    The collection of all the different assets and trades held by a trader.

  • Q

    Quote

    The price of an asset, showing both the Bid (sell) and Ask (buy) prices.

    Quantitative Analysis

    Using mathematical models and statistics to evaluate trading opportunities.

    Quick Trade

    A feature on our mobile apps designed for fast execution.

  • R

    Rollover

    The process of extending the settlement date of an open position to the next day.

    Risk Management

    Using tools like Stop Loss to protect your capital from market volatility.

  • S

    Spread

    The difference between the buy and sell price; we focus on keeping these tight.

    Stop Loss

    An automated order to close a trade at a specific price to prevent further loss.

    Segregated Accounts

    Keeping client funds in separate bank accounts from company funds for safety.

  • T

    TradingView

    An advanced charting platform integrated directly into the HEDG interface.

    Take Profit

    An order used to automatically close a trade once it reaches a certain profit goal.

    Technical Analysis

    Predicting price moves by studying charts and historical patterns.

  • U

    Underlying Asset

    The actual stock, currency, or commodity that a CFD's price is based on.

    Uptrend

    A market direction characterized by a series of higher highs and higher lows.

  • V

    Volatility

    A measure of how much and how quickly the price of an asset changes.

    Volume

    The total amount of a specific asset that was traded during a given period.

    Virtual Funds

    Simulated currency used in demo accounts to practice without financial risk.

  • W

    WebTrader

    Our browser-based platform that allows you to trade without downloading software.

    Withdrawal

    The process of taking funds out of your trading account.

    Watchlist

    A customized list of assets you are monitoring for potential trading opportunities.

  • X

    XAU/USD

    The market symbol for trading Gold against the US Dollar.

    XAG/USD

    The market symbol for trading Silver against the US Dollar.

    X-Axis

    The horizontal line on a trading chart, usually representing the time period.

  • Y

    Yield

    The income return on an investment, such as interest or dividends.

    Year-to-Date (YTD)

    The period of time starting from the first day of the current calendar year.

    Yuan

    The primary unit of Chinese currency, relevant to our Phase 1 markets.

  • Z

    Zero Balance

    A state where your account has no funds; HEDG ensures you never go below zero.

    Z-Score

    A statistical measurement that helps traders determine market volatility.

    Zone of Resistance

    A price level where an asset's price often stops rising and begins to fall.

Ready to put your knowledge to work?

Theory is the first step, but practice builds mastery. Test these terms in a risk-free environment.