The lowest price at which a seller is willing to sell an asset at a given time. This is the price a trader pays when executing a buy order (going long).

The highest price a buyer is willing to pay for an asset at a given time. This is the price a trader receives when executing a sell order (going short).

Moving the stop-loss order to the entry price after a trade moves into profit, ensuring that if the market turns, the trade will close without a loss.

A fee charged by a broker or prop firm for executing a trade. It is common in futures and sometimes charged alongside or instead of the spread in Forex.

The quotation of two different currencies. Examples include EUR/USD and GBP/JPY.

A schedule of major economic events, news announcements (like NFP), and data releases that are likely to impact the financial markets.

The real-time monetary value of your trading account. It is the sum of your Balance and the running profit or loss of all Open Positions.

The time taken for a trade order to be processed. Faster execution reduces slippage and improves accuracy.

An agreement to buy or sell an asset at a predetermined price in the future. Popular with Prop Firms due to their centralized exchange nature (e.g., CME).

The degree to which an asset can be quickly bought or sold without affecting the price. High liquidity results in tighter spreads.

A buy order placed with the expectation that the asset’s price will rise.

A unit of measurement for volume. A Standard Lot is 100,000 units. A Micro Lot (1,000 units) is used for risk control.

An instruction to immediately buy or sell at the best available current market price. Guarantees execution but not the price.

Percentage in Point. The smallest unit of price movement in a currency pair, usually the fourth decimal place.

A company that provides capital to qualified traders in exchange for a profit split, contingent on passing a rigorous evaluation or challenge.

The interest paid or earned for holding a position overnight.

A high-frequency trading strategy focused on making small profits from very minor price changes.

A sell order placed with the expectation that the asset’s price will fall.

The difference between the expected price and the executed price. Occurs often during high volatility.

The difference between the Bid Price and the Ask Price.

An order to automatically close a position when the price reaches a predefined loss level to protect capital.

An order to automatically close a position when the price reaches a predefined profit level.

The initial phase where a trader must prove their skill by meeting profit targets and strict risk rules.

The maximum amount of money an account is allowed to lose in a single trading day.

The maximum loss limit measured from the highest Equity level achieved. It “trails” your profits.

The percentage of profits the trader keeps versus the firm. Often starts at 80/20.

The minimum percentage return required to pass an evaluation or withdraw funds.

A plan to increase the funded account size once the trader meets consistent performance milestones.

The cost required to restart a Challenge after violating a rule.

The tendency to favor information that confirms prior beliefs (e.g., only seeing buy signals when you want to buy).

Reinvesting profits to generate larger returns, increasing position size as the account grows.

Fear of Missing Out. Entering a trade late out of fear of missing profits, often leading to losses.

The maximum percentage of equity to risk on a single trade. Professionals limit this to 1% or less.

A detailed record of every trade, emotion, and result. Essential for improvement.

The percentage of profitable trades. Less important than a strong Risk/Reward Ratio.