Your Go-ToTrading Dictionary: The 2025 Edition

Whetheryou interpret price charts or read through market commentary, fluency in keyterms is essential for new traders as it enables them to build a robustfoundation of knowledge for sustained success in trading. Octa broker presentsthis 2025-ready glossary that unites classic concepts and trending terms fortoday’s markets.

Foundational Concepts

Ask / Bid PriceThe askprice is the lowest price a seller will accept; the bid price is the highestprice a buyer is willing to pay. If you buy a financial instrument (forexample, a forex pair), you buy it at an ask price (and pay it to the seller).If you then decide to sell it, you sell it at a bid price, which is paid by thebuyer.

Spread

A spread isthe difference between the ask and bid price.A deep and liquid market (for example, EURUSD) would usually havea narrow, or ‘tight’, spread. Conversely, markets with fewer sellers and buyerswould normally have a relatively wide, or ‘loose,’ spread.

Pip

A pipmeasures a small movement in exchange rates, usually 0.0001. Example: a movefrom 1.2040 to 1.2045 is five pips.

Leverage

Leveragelets traders control big positions with less capital. Depending on the broker’srules, leverage can multiply gains as well as losses.Example: With 1:100 leverage, an account with £1,000 would be able to control aposition worth £100,000.

Long / Short Position

Going long means buying an asset, anticipatingthat its price will rise. Going shortmeans selling an asset, anticipating that its price will fall.

Lot Size

Forex tradesuse standardised units called lots.One standard lot equals 100,000 units of currency. There are also mini lots and micro lots.

Stop-Loss / Take-Profit

Thesenormally refer to pending orders on open positions to automatically close themat pre-set levels. This is vital for risk control.

CFD (Contract for Difference)

A CFD is afinancial instrument that lets traders speculate on the price moves of an assetwithout actually owning it.

Bullish / Bearish

Refer toinvestors' and/or traders’ expectations. ‘Bullish’ describes positive marketoutlook and expectations for higher prices, while ‘bearish’ indicates anegative perception and anticipation for lower prices.

Technical Terms

Support / Resistance

A supportlevel is where a lot of buyers are expected to enter the market, thussupporting the price and preventing it from falling further. Likewise, aresistance level is where sellers are anticipated, preventing the price fromrising higher.

Trend / Trendline

A trendshows overall price direction. The trend is bullishif an asset’s price is rising, with each consecutive peak and trough higherthan the previous one. A trend is bearishif the price is falling and each successive peak and trough is lower than theprevious one. A trend can also be sidewaysor range-bound when the price ismoving within a specific trading range. Traders would normally draw trendlines to identify a trend.

Moving Average (MA)

A movingaverage calculates the average price of an asset over a specific timeframe, usually measured in candles.
Example: A 50-day MA calculates the average price over the last 50 tradingsessions.

Candles (Candlesticks)

Visualrepresentations of price movements over a specific timeframe. Each candle showsthe opening, closing, high, and low prices within that period, helping tradersinterpret market sentiment at a glance.

Timeframe

Refersto the length of time each candlestick or bar represents on a chart. It defineshow much market data is condensed into a single price unit.

Example:On a 1-hour timeframe, each candlestickshows the price movement during one hour of trading.

Volatility

Measures theextent and the speed of price moves. More volatility usually means higher riskand greater potential reward.

Breakout

A breakouthappens when price smashes through support or resistance, often precipitating anew trend in the direction of a breakout.

Volume

The numberof contracts, shares, or lots traded during a specific timeframe. Surging volume usually confirms strong moves.

Market-Related Vocabulary

Liquidity

How easilysomething can be bought or sold. High liquidity equals faster execution andtighter spreads.

Slippage

When a tradefills at a worse price than expected or planned. This is common duringhigh-impact events, when the price moves very fast and ‘slips through’ thedesired price.

Correction / Reversal / Retracement /Pullback

All describea pause or change in trend. Often used interchangeably, though with subtledifferences.

Consolidation

A phase ofsideways movement—markets catch their breath before choosing direction.
Example: Gold consolidated in August-November 2022, before turning bullish inQ1 2023.

Trading Slang / Jargon

FOMO

Stands for ‘fear of missing out'—a common feelingof anxiety stemming from the fear of missing out on pleasant or rewardingexperiences. In trading, FOMO frequently refers to a trader's apprehensionabout not participating in a significant upward or downward price movement,thereby missing potential gains.

HODL

Born from atypo, now gospel in crypto circles. Means “hold on through the chaos.”

Pump and Dump

An asset’sprice is deliberately pushed up, only to be quickly sold off for profit—oftenseen in new, thinly traded cryptocurrencies.

Whipsaw

Rapid pricereversals that hurt both buyers and sellers, making it difficult to spot asustainable trend

Bagholder

Stuckholding a crashing asset, hoping for a comeback.

Rekt

Trader-speakfor taking a major loss.

Dead Cat Bounce

A briefrecovery during a strong downtrend—often misleading.

Trending Terms in 2025

DePIN (Decentralised PhysicalInfrastructure Network)

Ablockchain-based system that manages real-world infrastructure—such as wirelessnetworks, sensors, or energy grids—by allowing users to contribute hardware andearn rewards for supporting the network.

AI Agent Trading

AI bots thattrade autonomously based on market signals, news, and historical data.

Gas Fees

Fees paid toprocess blockchain transactions—can spike during congestion, especially onEthereum.

Learningthese terms is just the beginning of facilitating market understanding. Themore fluent traders are in the language of the markets, the quicker they adapt.For those just starting out, it’s advised to study educational resources andwebinars from market experts—similar to those offered by global brokers likeOcta. In markets that never sleep, knowledge really is power.

Disclaimer: Trading involves risks and may not besuitable for all investors. Use your expertise wisely and evaluate allassociated risks before making an investment decision.

About Octa

Octa is aninternational broker that has been providing online trading services worldwidesince 2011. It offers commission-free access to financial markets and variousservices used by clients from 180 countries who have opened more than 52million trading accounts. To help its clients reach their investment goals,Octa offers free educational webinars, articles, and analytical tools.

The company is involved in acomprehensive network of charitable and humanitarian initiatives, including theimprovement of educational infrastructure and short-notice relief projectssupporting local communities.

Since its foundation, Octa has wonmore than 100 awards, including the 'Most Reliable Broker Global 2024' awardfrom Global Forex Awards and the 'Best Mobile Trading Platform 2024' award fromGlobal Brand Magazine.