Glossary of Trading
The main market terms explained simply and directly — from candlestick to risk management.
55 terms · technical analysis, binary options, crypto and risk management
A
Altcoin
Any cryptocurrency other than Bitcoin, such as Ethereum, Solana and thousands of others.
Asset
A financial instrument available for trading, such as a crypto pair. The trader predicts the price movement of the chosen asset.
B
Backtest
Testing a strategy on historical data to see how it would have performed in the past, before risking real capital.
Bankroll management
A set of rules for managing trading capital: how much to risk per trade, when to stop and how to protect the bankroll from losing streaks.
Binary option
An instrument where you predict whether an asset price will be above or below a level at a set time, with a fixed return (payout) if you are right.
Bitcoin
The first and largest cryptocurrency, created in 2009. Decentralized and capped at 21 million units, it is the benchmark of the crypto market.
Blockchain
A distributed digital ledger that stores transactions in chained, immutable blocks — the technology behind cryptocurrencies.
Bollinger Bands
A volatility indicator formed by a moving average and two bands that widen and narrow as the market becomes more or less agitated.
Booster
An item that temporarily boosts your gains or rewards inside the platform.
Breakout
The moment price crosses a key support or resistance level, usually followed by a stronger move.
C
Candlestick
A chart type that shows the open, close, high and low of an asset in each period, revealing the strength between buyers and sellers.
Copytrading
A way to trade by automatically copying the orders of more experienced traders: you follow a trader and their trades are mirrored in your account.
Cryptocurrency
A decentralized digital currency that uses cryptography and runs on a blockchain, with no central bank. Bitcoin and Ethereum are the best known.
D
Demo account
A practice account with virtual balance that lets you trade and test strategies without risking real money.
Divergence
When price and an indicator such as RSI or MACD point in opposite directions, suggesting the current trend is weakening.
Doji
A candlestick pattern where open and close are nearly the same, forming a tiny body. It signals indecision between buyers and sellers.
Drawdown
The drop in capital from a peak to a trough during a losing streak. It measures the size of the decline and helps assess a strategy risk.
E
Engulfing
A two-candle pattern where the second candle fully engulfs the body of the first, signaling a possible trend reversal.
Ethereum
The second-largest cryptocurrency. Beyond a currency, its network runs smart contracts and decentralized applications.
Expiration
The exact moment a trade is closed and settled. In a binary option, it defines when the prediction is checked.
F
Fibonacci
A tool that uses Fibonacci sequence ratios (38.2%, 50%, 61.8%) to project potential support, resistance and price targets.
FuturaCoins
Futura Broker virtual reward currency, earned through activity on the platform and redeemable for benefits.
H
Halving
A scheduled event that cuts the issuance of new bitcoins in half. It happens roughly every 4 years and tends to draw strong market attention.
Hammer
A candlestick with a small body at the top and a long lower wick, signaling a possible reversal from down to up after a decline.
Higher / Lower
The two sides of a binary option: Higher bets on the price rising by expiration; Lower bets on it falling.
I
In / Out of the money
The status of an option at settlement: in the money when the prediction was right and pays out; out of the money when it was wrong.
Indicator
A mathematical calculation applied to price and volume, shown on the chart to help read trend, momentum or volatility.
Indicator Store
A space where traders publish and get ready-to-use indicators and strategies for the platform.
L
Leverage
A mechanism that lets you control a position larger than your available capital, amplifying both potential profits and potential losses.
Liquidity
How easily an asset can be bought or sold without moving its price much. Liquid assets like BTC/USD have many participants and fast execution.
M
MACD
A momentum indicator showing the relationship between two moving averages, with a signal line and a histogram to spot turns and trend strength.
Martingale
A strategy that doubles the stake after every loss to recover everything in a single win. Mathematically seductive, but it usually destroys the bankroll in practice.
Moving average
An indicator that smooths price by averaging the last N periods, revealing the trend direction and filtering out short-term noise.
N
NeuroScript
FuturaBroker own language for building custom indicators and strategies that run directly on the platform chart.
P
Payout
The percentage return paid on a winning binary option trade. An 85% payout means 85 profit for every 100 invested.
Pivot
A reference point calculated from the previous period price, used to estimate the day support and resistance levels.
Pullback
A temporary move of price against the main trend, seen as a pause before the dominant move resumes.
Q
Quote
The current market price of an asset, updated in real time as buy and sell orders come in.
R
Risk/reward
The ratio between how much you risk and how much you aim to win on a trade. A 1:2 ratio risks 1 to try to gain 2.
ROYAL Club
Futura Broker exclusive benefits program, with perks and rewards for the most active traders.
RSI (Relative Strength Index)
An indicator that measures the speed and magnitude of price changes on a 0 to 100 scale, helping to identify overbought and oversold zones.
S
Signal
An indication of a possible buy or sell opportunity, generated by technical analysis, indicators or strategies.
Soros
A strategy where the profit from a winning trade is reinvested in the next one, aggressively increasing exposure after wins.
Spread
The difference between an asset buy price (ask) and sell price (bid). It is a trading cost: the smaller the spread, the cheaper to trade.
Stochastic
An oscillator that compares the current close to the price range of a period, marking overbought and oversold zones on a 0 to 100 scale.
Stop loss
An order that automatically closes a trade when it hits a preset loss level, capping the damage. It is every trader basic protection.
Strategy
A set of objective rules defining when to enter, when to exit and how much to risk on a trade, removing emotion from trading.
Strike
The strike price: the reference level used to measure whether the option finished above or below at expiration.
Support and resistance
Price levels where an asset tends to stop or reverse: support holds drops (buyers step in) and resistance caps rallies (sellers step in).
T
Take profit
A preset level where the trader closes a trade in profit, locking in the gain before the market reverses.
Timeframe
The time span of each candle on the chart (1 minute, 5 minutes, 1 hour). It sets the level of detail and the analysis horizon.
Trend
The predominant direction of price over time: up (higher highs and higher lows), down (lower highs and lower lows) or sideways (no clear direction).
Trendline
A line drawn connecting successive highs or lows to visualize trend direction and spot where price may react.
V
Volatility
A measure of how fast and how strongly an asset price moves. High volatility means wide swings — more opportunity, but also more risk.
Volume
The amount of an asset traded over a period. High volume confirms the strength of a move; low volume suggests weaker conviction.