Forex & Crypto Trading Glossary
Search key trading concepts, technical analysis definitions, and institutional price action terms.
Order Block (OB)
A specific price area where institutional market participants (banks/hedge funds) placed massive buy or sell orders prior to a strong market expansion.
Fair Value Gap (FVG)
A 3-candlestick pattern where rapid price movement leaves an imbalance/gap between Candle 1's high and Candle 3's low, which price often returns to fill.
Pip (Percentage in Point)
The standardized unit of measure representing the smallest price change in a Forex currency pair (typically 0.0001 for EUR/USD or 0.01 for USD/JPY).
Risk-to-Reward Ratio (RRR)
The ratio comparing potential dollar loss against expected profit target. A 1:2 RRR means risking $100 to potentially gain $200.
Liquidity Sweep
A sharp price push above equal highs or below equal lows designed to trigger retail trader stop losses before reversing in the intended direction.
Drawdown
The peak-to-trough decline in a trader's account balance, expressed as a percentage of total capital.
FOMO (Fear Of Missing Out)
An emotional state driving a trader to enter a market late after a big price move, often resulting in buying the top or selling the bottom.
Funding Rate
Periodic payments exchanged between long and short traders in crypto perpetual futures contracts to keep contract prices anchored to spot index price.
Non-Farm Payrolls (NFP)
A major US economic indicator published monthly reporting total paid workers, generating heavy volatility in USD pairs and Gold.