Trading terms, explained plainly

The amount you accept losing if the stop-loss is hit, usually set as a fixed percentage of the account, such as 1%.

How much of a coin you buy or sell. With a fixed risk it equals the amount at risk divided by the distance from entry to stop.

A result measured in units of the initial risk. If you risk 100 USDT, a 200 USDT profit is +2R and a full stop-out is −1R.

The planned profit to the target divided by the planned loss to the stop. A 1:2 trade aims to make twice what it risks.

The share of trades that end in profit. On its own it says little; it only matters together with the average win and loss.

The average result per trade over many trades, usually in R: win rate × average win − loss rate × average loss.

The fall from an account's peak to a later low, in percent. A 40% drawdown needs a 67% gain to get back to the peak.

An order filled immediately at the best available price. Fast, but the fill can be worse than the last price in a thin or fast market.

An order to buy at or below, or sell at or above, a price you set. It may not fill if price never reaches it.

An order that closes the position when price reaches a level where the trade idea is proven wrong, capping the loss.

An order that closes all or part of a position at a planned target price.

The difference between the price you expected and the price you actually got, common with market and stop orders in fast moves.

The gap between the best buy (bid) and best sell (ask) price. Wider spreads make every trade start a little behind.

A bar showing the open, high, low and close for one period. A green body means the close was above the open, red means below.

The general direction of price: higher highs and higher lows in an uptrend, lower highs and lower lows in a downtrend.

Price zones where buying (support) or selling (resistance) has repeatedly stopped a move. Best drawn as zones, not single lines.

How much was traded in a period. Rising volume on a breakout suggests real participation; a move on thin volume is easier to reverse.

A momentum indicator from 0 to 100 that compares recent gains with recent losses, usually over 14 periods.

An average of recent closing prices that gives more weight to the latest ones. The 50- and 200-day EMAs are common trend filters.

The difference between the 12- and 26-period EMAs, shown with a 9-period signal line. The histogram is the gap between the two.

The average size of one candle's range, including gaps, usually over 14 periods. It measures volatility in price units.

The volume-weighted average price over a period: the average price paid, with heavily traded prices counting more.

Levels drawn between a swing high and low, such as 38.2%, 50% and 61.8%, used to mark where a pullback might pause.

When price and an indicator such as RSI move in opposite directions, for example a higher high in price with a lower high in RSI.

A long position profits when price rises; a short position profits when price falls.

A futures contract with no expiry date. A periodic funding payment keeps its price close to the spot market.

The periodic payment between longs and shorts on perpetual futures. When it is positive, longs pay shorts.

Trading a position larger than the margin you post, such as 10×. It reduces the margin needed, not the loss if price moves against you.

The collateral you post to open and keep a leveraged position.

The forced closing of a leveraged position when losses use up the margin down to the maintenance level.

The reference price an exchange uses for unrealised profit and liquidation, built from spot index prices to resist short spikes.

The total value of futures positions still open. Rising open interest means new money is entering positions, not which side will win.

Price multiplied by circulating supply. It measures a coin's size, not how easily it can be traded.

Bitcoin's share of the total crypto market capitalisation. A rising share often means money is moving away from smaller coins.

A token designed to hold a steady value, usually 1 US dollar, such as USDT or USDC.

How much price moves. Often quoted as the annualised standard deviation of daily returns.

How easily you can trade without moving the price. Deep order books and tight spreads mean good liquidity.

A daily 0–100 sentiment score for Bitcoin built from volatility, momentum, social data, dominance and search trends.