Market mechanics
Ask
The lowest currently available price at which a seller is offering a contract.
Trading Glossary
Futures trading terms in plain English.
Search the glossary, filter by category or open one of the in-depth guides for examples and related concepts.
34
total terms
20
in-depth guides
14
quick references
Category
34
terms shown
Prop firm rules
In-depth guide
Activation Fee
A fee some prop firms charge after an evaluation is passed or when a funded-stage account is activated.
Full explanation →
Market mechanics
Bid
The highest currently available price a buyer is offering for a contract.
Market structure
In-depth guide
Breakout
A move through a commonly watched price boundary, range edge or technical level.
Full explanation →
Prop firm rules
In-depth guide
Consistency Rule
A prop-firm rule that can limit how much of total profit may come from a single trading day.
Full explanation →
Prop firm rules
In-depth guide
Daily Loss Limit
The maximum loss allowed during a defined trading day before a rule violation occurs.
Full explanation →
Risk
Drawdown
The amount an account can decline from a reference balance or equity level before a limit is breached.
Prop firm rules
In-depth guide
EOD Drawdown
A drawdown level typically recalculated from end-of-day balances rather than every intraday price movement.
Full explanation →
Prop firms
Evaluation
A qualification stage where defined objectives and rules must be met before reaching a funded-stage account.
Market structure
In-depth guide
Fair Value Gap (FVG)
A trading term for a price area where the market moved quickly with relatively little two-way trading.
Full explanation →
Futures basics
Futures Contract
A standardized exchange-traded contract linked to an underlying market.
Order types
Limit Order
An order specifying the worst price the trader is willing to accept.
Market mechanics
In-depth guide
Liquidity
How easily a market can absorb orders without large changes in price.
Full explanation →
Market structure
In-depth guide
Liquidity Sweep
A common term for price briefly moving beyond a visible high or low before the market reacts.
Full explanation →
Futures basics
Margin
Capital required to hold a futures position. It is not the full notional value of the contract.
Order types
Market Order
An instruction to buy or sell immediately at the best available market price.
Risk
Maximum Drawdown
The largest permitted account decline under a specific rule set.
Futures contracts
In-depth guide
MNQ
Micro E-mini Nasdaq-100 futures, with one-tenth the multiplier of NQ.
Full explanation →
Futures contracts
In-depth guide
NQ
E-mini Nasdaq-100 futures.
Full explanation →
Prop firm rules
Payout
A withdrawal from eligible trading profits under a prop firm's payout rules.
Prop firm rules
In-depth guide
Profit Target
A required profit amount that may need to be reached during an evaluation.
Full explanation →
Market structure
Range
A market condition where price repeatedly trades between an upper and lower area.
Prop firm rules
In-depth guide
Reset Fee
A fee some futures prop firms charge to restart or reset an evaluation when the provider supports resets.
Full explanation →
Market structure
In-depth guide
Resistance
A price area where selling interest has previously appeared or may increase.
Full explanation →
Market structure
In-depth guide
Retest
A return toward a recently broken price level.
Full explanation →
Trading infrastructure
Rithmic
Trading-data and order-routing technology commonly supported by futures prop firms.
Position management
Scaling
Increasing or decreasing position size gradually rather than all at once.
Market mechanics
In-depth guide
Slippage
The difference between an expected execution price and the actual fill price.
Full explanation →
Risk
Stop Loss
An order or predefined level intended to close a position when price moves against it.
Market structure
In-depth guide
Support
A price area where buying interest has previously appeared or may increase.
Full explanation →
Futures basics
In-depth guide
Tick
The minimum price increment in which a futures contract can move.
Full explanation →
Futures basics
In-depth guide
Tick Value
The monetary value of one minimum price movement in a futures contract.
Full explanation →
Prop firm rules
In-depth guide
Trailing Drawdown
A drawdown limit that can move upward as account performance reaches new highs.
Full explanation →
Indicators
In-depth guide
VWAP
Volume-Weighted Average Price, an intraday reference that weights traded prices by volume.
Full explanation →
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