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Trading Glossary

Glossary trade refers to a type of trading strategy where traders use a predefined set of terms, definitions, or concepts to make informed decisions. It often involves industry-specific jargon, financial metrics, and analytical tools to navigate markets effectively.

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Liquidity

Liquidity is an asset’s ease of conversion into cash without losing value, assessed by metrics like bid-ask spread and trade volume.

Liquidity provider

A market participant that provides liquidity by offering to buy and sell financial instruments.

Lock limit

A price limit beyond which trading is not allowed for a product, typically exercised in the futures market.

London session

The time period during which the London financial markets are open for trading.

Long-legged doji

A rare candlestick pattern showing a balance between buying and selling pressure in the same trading period, appearing as a candlestick with a small body and equally long shadows.

Lot

A measurement used to count the size of a single trade. Typically, investors start trading with 1 lot.

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