The trading world comes with its own rules and language and like anything else, it will take a short time to be current and able to understand and speak it. Let's go over some of the more commonly used words and phrases you will hear in the trading environment. We will have you swimming with the sharks in no time.
- Instrument: An instrument is what you trade. Whether it be a stock, future, Forex or crypto pair, an instrument is anything you trade. Some of these are frequently referred to as a security.
- Position: A position is where you stand. If you have a stock, future, Forex, or crypto trade active, you have an open position. When you sell or buy back these you have a closed position.
- P&L: Profit and loss. This can refer to a static and active calculation of your current and closed positions. Daily profit and unrealized will separate the two into what you have made from what you still can make.
- Unrealized: This is the total aggregated active P/L. This is how we see how much we are stand to make, with all of our active positions.
- Filter: These are the methods of streamlining data, giving you the ability to sort and customize what you see and when you want to see it. These include a watchlist, portfolio, and dashboard.
- Watchlist: This is where we can see all of the instruments that we wish to trade. If you trade equities, futures, forex, or crypto, we can see the live status of them here.
- Portfolio: With this filter, we see all the positions that are current and active. This will display your instrument positions and the amount of money you are currently able to execute and exit.
- Opportunity: This is a chance to execute a trade in a favorable market condition.
- Dashboard: Here, you can view your total portfolio value, daily profit, unrealized profit, all while being able to view opportunities as they arise.
- Buying, selling and shorting: These are the actions used to make money on the market. When you buy an instrument it means you are trading currency for a security and will buy said instrument. From here we can sell it for a profit once the price has gone up. We also can sell or short while our position is zero. If your broker provides this service, you can "borrow" a security and then buy it back when the price has fallen.
Knowing these words will give you all the tools you need to get started trading with White Shark.
For more information on intermediate trading vocabulary please click here.