Trading dictionary2 results
Trading terms
Look up market language before opening a lesson or reviewing a chart.
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2 terms
Basics
Spread
Spread is the gap between the price a trader can buy at and the price a trader can sell at. It is one of the first trading costs a beginner sees. Wider spread means the trade starts further behind, and it can affect entries, exits, stop placement, and short-term strategies.
Example: If EUR/USD shows a bid of 1.1000 and an ask of 1.1002, the spread is 2 pips. A buy order starts from the ask price, so price must move enough to cover that 2-pip cost before the trade is actually ahead. During news or low-liquidity hours, spread can widen and make a clean setup less attractive.Chart Reading
Support
Support is a price area where buyers previously stepped in strongly enough to slow, pause, or reverse a decline. It should be treated as a zone, not a magic exact line. Traders study how price reacts there, whether buyers return, and whether the level breaks with strong selling.
Example: If BTC falls near 60,000 several times and each visit creates a strong bounce, that area may be support. A learner should watch the next visit carefully: a weak bounce may show demand is fading, while a strong break below the zone can turn old support into possible resistance later.