Home / Trading Glossary / Trading
T

Trading

Trading Glossary

Definition

Trading is the act of buying and selling financial instruments — such as stocks, currencies, commodities, or derivatives — to generate profit from price movements. It can be conducted across different time frames, from high-frequency algorithmic trading to long-term position trading. Trading requires a combination of market knowledge, technical skills, and disciplined risk management.

Example

A trader who identifies a bullish setup on a currency pair during the London session might enter a long position, manage the trade using a stop-loss and take-profit level, and close the position before the end of the session. Regardless of the instrument or strategy used, successful trading consistently comes down to having an edge, applying sound risk management, and maintaining the discipline to follow a defined plan. In a prop trading environment, these qualities are especially important, as traders must consistently perform within the firm's risk framework to retain their funded status.

All glossary terms in "T"

Understanding terms is the first step

Learn the language behind real trading decisions with clearer definitions, better context, and structured examples.

Back to Glossary