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GLOSSARY
Trading,
in plain English.
Every term the industry uses to sound clever, explained plainly. 34 of them.
All
Basics
Risk
Testing an edge
Costs
Markets
34 of 34 terms
Basics
Compounding
→
Edge
→
Expectancy
→
Leverage
→
Long / Short
→
Margin
→
Risk-to-reward (R)
→
Stop-loss
→
Take-profit
→
Win rate
→
Risk
Drawdown
→
Kelly criterion
→
Position size
→
Risk of ruin
→
Sequence of returns
→
Volatility
→
Volatility drag
→
Testing an edge
Backtest
→
Data-mining
→
Monte Carlo
→
Out-of-sample
→
Overfitting (curve-fitting)
→
Sample size
→
Sharpe ratio
→
Survivorship bias
→
Costs
Commission
→
Friction
→
Slippage
→
Spread
→
Markets
Liquidity
→
Mean reversion
→
Momentum (trend)
→
Point of Control (POC)
→
Value area
→