Don’t understand some of the trader lingo being thrown around in our trading community?
Catch up to speed here with the glossary!
Missing some of the jargon? Let us know in chat and we’ll add it!
Air – A stock moving up on very small volume.
Air Pocket – A large space/gap between support or resistance levels
Ask/Offer – Price that seller is willing to sell.
All or none – Order that has to be executed in the entire position or nothing at all.
ATM – At the market. This means a broker-dealer will sell shares on the open market to raise money for a company.
Bag Holder – Someone who is holding a devaluing position at a bad price
Bearish – Having a bias that a stock or market will go down.
Bid – Price that a buyer is willing to pay.
#BigMacs – any win of $1,000 or less.
Block order – Block orders are large orders placed to buy or sell a security usually over 10,000 shares.
Blow up – Losing a huge amount of money compared to what you normally make in the market or
potentially losing your entire account/accounts.
Breakdown – A stock’s price falls below prior support.
Breakout – A stock’s price goes above prior resistance.
Bullish – Having a bias that a stock or market will go up.
Candlestick – A type of chart used to show how much a stock has moved in the timeframe designated. A single candle will show the open, close, low, and high of the specified time the candlestick represents.
Circuit Breaker – The mechanism which controls whether or not the stock gets halted due to volatility reasons.
Consolidation – When a security is neither continuing up or down but is stuck in a limited price range.
Closing Price/Print – The final price of the day for an equity.
Dark pool – An exchange where traders/ institutions are able to anonymously make trades.
Dead Cat Bounce – A temporary recovery in the price of a stock after a very substantial fall. Comes from the idea that “even a dead cat will bounce if it falls from a great height.”
Dilution – Company issuing new shares of a security or when option holders or employees exercise their options. Outstanding shares increases and shareholders have less percent ownership of a company.
Easy to borrow (ETB) – The ability to short an equity without having to locate shares.
EFFECT – when the SEC acknowledges and confirms a company’s intention to register securities (i.e. an S-3 filing followed by an EFFECT filing means the shelf offering is now live and can be officially implemented)
Falling Knife – a term used to describe a stock that is going down quickly in an extreme manor, opposite of parabolic.
Fill – The amount of shares executed within a trade.
Financial Institution – Entity that deals with financial transactions such as loaning money or investments, deposits etc.
#FiveFigureClub – When you finish a trading day with $10,000 in realized profits or more.
Float -Shares that are available for the public to trade.
Fear of Missing Out (FOMO) -anxiety that an exciting or interesting event may currently be happening elsewhere, often aroused by posts seen on a social media website
Gap – Any space or void in between candles on a chart; usually acts as a strong support/resistance level
Gap Fill – When the price of a securities reaches and covers that space or void (gap)
Grinding – Stock moving in a slow tight range either up or down.
Halt (T1) – Trading suspension of a security due to news pending.
Halt (T2) – News has been disseminated on the security that was previous marked as a T1 halt but remains halted.
Halt (T3) – Security previous marked as a T2 halt now has a definitive time for resumption.
Halt (T12) – Trading suspension of a security due to request for more info, security technically has no timetable for resumption and theoretically could halt indefinitely.
Halt Bands – The lower and upper bands in which the stock will halt if trading were to exceed them and persist for more than 15 seconds. Also known as LULD.
Hard to Borrow (HTB) – This means you will have to locate shares to be able to short a specific security.
Infinite dump – A dramatic and very sudden drop in the price of a stock, usually characterized by a very large red candle blowing through multiple support levels with little to no bounces.
Initial Public Offering (IPO) – Shares of a company are offered for sale to the public.
Institutional Investor – Company that uses money to purchase securities and other assets to invest in.
IO – Institutional Ownership; usually the higher the number (>40%) the more manipulated the stock may be.
Invest – To put money into something that may offer the opportunity to profit from.
#KISS – Keep It Simple, Stupid; Madaz’s no non-sense approach to trading which involves keeping things basic and simple.
Limit Order – Specified price to buy or sell a security.
Line in the Sand – see Over/Under (o/u)
Liquidity Event – a dramatic move in the price action of a stock that allows the insiders/manipulators to liquidate their shares into, such as News or a Stop Hunt
Lull – The middle portion of the day (typically between the hours of 11AM – 2PM EST) when volume dries up and the edge is usually significantly lower.
Margin – Borrowing money from a broker to trade larger size than you would be able to on your accounts cash value.
Margin Call– When the broker closes your position because you are red on your position beyond their risk threshold
Market Capitalization (Market Cap) – Signifies the value of a company in dollars by its outstanding shares.
Market Maker (MM) – Bank or brokerage that provides liquidity for bids and offers.
Market Order – Buy or sell to be executed at current prices of a given security.
#NoBlowUpChallenge – A commitment to trade responsibly without any major drawdowns.
Odd lot – Order that consists of less than 100 shares of stock.
Offering – When a company wants to raise capital and shares of the equity are sold. This also increases the float.
Order – A decision to buy or sell a stock.
Outstanding shares – Amount of shares held by its shareholders.
Over/Under (o/u) – The point of inflection of terms of price where sentiments and biases change from bullish to bearish or bearish to bullish; also known as the Line in the Sand.
Parabolic – Extreme and rapid rise in a stocks price compared to prior price action, opposite of falling
Panic Pop – A sudden and dramatic spike in the price of a stock.
Panic Pop Short – The immediate reversal following the sudden and dramatic spike in the price of a stock.
Piker – a person who exits a position too early thereby leaving [often a lot] of money on the table
Pocket change – see Wallet Padders.
Position – When someone has shares long or short of a stock.
PMH – Premarket Highs
PPS – Price Per Share
Prop – a large buy order sitting on the bid, which may or may not be a spoof, that is holding up the price of the security; often used as part of the two-word, compound word: Bid Prop
Quote – Price at which a security is trading.
Range – The high and low prices for a stock during a specific period of time.
Range bound – When the price of a security is stuck in a tight range.
Real time – The actual time something is happening, in trading it is current prices without any delay.
Resistance – A price level where supply exceeds demand in which a stock has a hard time going above.
Reverse Split (R/S) – When a company decreases the amount of shares in the market and proportionally increases the price of the stock such that the valuation or market capitalization of the company does not change in the process.
Route – An order directed to a specific market maker.
Rug Pull – When the bid support or bid prop gets pulled or yanked resulting in a dramatic drop in the price of a stock
S/R – Support/Resistance
Scalp – Quick trade that takes advantage of small market fluctuations.
Share – Ownership certificates of a company.
Short Squeeze – A quick increase in stocks price when demand outweighs supply. Shorts scramble to cover their positions driving up the stocks price with their buying.
Shelf – A provision that allows an entity to sell parts of the security over a period of time; a common way for a company to file for a shelf offering is to submit a form S-1 or S-3
Short – Selling a security that one doesn’t own in hopes to buy back a lower price for profit. Buying back higher results in a loss.
Size – The amount of shares you are trying to fill or the shares you have in a current position.
Soak – a large buy order sitting on the bid or sell order sitting on the ask, which may or may not be hidden, that is absorbing all the transactions going through at that specific price
Spike – Quick panic to the upside.
Squeeze From Hell – A huge spike in the stock usually out of nowhere characterized by a very large green candle blowing through multiple resistance levels like they don’t even exist. The opposite of an infinite dump.
Short Sale Restriction (SSR) – a restriction on short sales that is triggered when a security hits -10% intraday. Short sales are now only allowed to open a position on an uptick in the price of the security. Carries over to the next trading as well on the security.
Stock – Ownership in a company signified by a share.
Stop Hunt – When a bunch of stop orders left open get taken out in a fake breakout or fake breakdown move in one swoop; usually characterized by a wick back candle.
Stop-Limit Order – Limit order to buy or sell a stock automatically at limit price or better when triggered.
Support – A price level where demand exceeds supply in which a stock has a hard time going below.
Swing trade – A trade that typically is held overnight and tries to capture a longer term move in a stock.
Thin – A stock that has a relatively small bid or offer and could have a wide spread.
Trade – Buy or sell.
#TraderNap – a preventive measure taken by Madaz, where he takes a nap, as a means to avoid trading during hours where there is no edge, typically during the hours of 11AM-2PM EST.
Trading platform – Software used to execute trades.
Trend – Direction in which a security is moving.
VWAP– Volume Weighted Average Price, a popular indicator. See this blog for more info about VWAP.
Wall– a large sell order sitting on the offer, which may or may not be a spoof, that is holding down the price of the security; often used as part of the two-word, compound word: Ask Wall
Wallet Padders – Any win of $500 or less.
Warrant – A derivative that gives the option to buy or sell a security and is dilutive.
Washout – Sudden and dramatic drop in the price of a stock.
Washout Long – The immediate bounce that occurs after a sudden and dramatic drop in the price of a stock.
Wick Back – A candle with a very large wick; could be to the upside or downside, usually occurs on a fake breakout or breakdown.