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Risk Warning: CFDs are complex instruments and carry a high risk of rapid money loss due to leverage. 72% of retail investor accounts lose money when trading CFDs with this provider. Consider carefully whether you understand how CFDs work and if you can afford the high risk of losing your money.
Key Trading Terms and Concepts
Ask
  • The ask price is the current market price at which you can purchase an asset.
Bull
  • Bulls are traders who expect the asset price to rise. They buy assets with the goal of selling them at a higher price in the future.
Bull Market
  • A market characterized by rising asset prices, where bulls play a key role. The term likely originates from the upward motion seen in price charts, similar to the way a bull raises its horns.
Return
  • On platforms like Qption, traders may receive up to 45% of their investment amount even in a losing trade. The return percentage is determined when an asset is purchased.
Volatility
  • The degree of price fluctuation of an asset over a set time period. Higher volatility indicates larger price swings.
Deposit
  • The balance available in a trader's account, which can be used to execute trades.
Diversification
  • A risk management strategy that involves spreading investments across various assets to minimize exposure to any single asset.
Indicator
  • A technical tool used in chart analysis to predict asset price direction and assist in trading decisions.
Bid
  • The bid price is the current market price at which you can sell an asset.
Price Corridor
  • A segment of the chart that shows asset price movement between support (lower boundary) and resistance (upper boundary) levels.
Correction
  • A temporary reversal in price direction following a strong trend.
Correlation
  • A measure of how two assets move in relation to each other, ranging from -1 (inverse) to +1 (direct correlation). For example, EUR/USD and GBP/USD pairs often move in the same direction.
Liquidity
  • The ease with which an asset can be bought or sold. Higher trading volume often results in greater liquidity.
Support Line
  • A price level at which buyers prevent further declines in an asset's price, acting as a support level.
Resistance Line
  • A price level where sellers resist further price increases, acting as a resistance level.
Trend Line
  • A line drawn along price lows in an uptrend (support) or along highs in a downtrend (resistance) to illustrate the trend's direction.
Bear
  • Investors who profit from falling prices by selling assets and repurchasing them at lower prices.
Bear Market
  • A market where prices are declining, characterized by downward trends driven by bears. The term may come from the downward swipe of a bear's paw.
Bear Raid
  • A strategy where traders, or bears, coordinate to drive down an asset's price by selling in large volumes.
Trader Sentiment
  • An indicator reflecting the overall direction of trades, showing whether the majority of traders are buying or selling an asset.
Bar
  • A type of chart that shows price movement over a specific time period, commonly called a bar chart.
Bonus
  • Extra funds added to a trader's account by the platform, typically as a promotional incentive or deposit bonus.

Risk Warning: CFDs are complex instruments and carry a high risk of rapid money loss due to leverage. 72% of retail investor accounts lose money when trading CFDs with this provider. Consider carefully whether you understand how CFDs work and if you can afford the high risk of losing your money.