Bid
The highest price a buyer is currently willing to pay. It is not the same as the last traded price.
Trading Glossary
Plain-English definitions for the terms traders keep hearing.
Use this glossary before lessons, during chart review, and after reading market commentary. Each term includes what it means and the beginner mistake to avoid.
NAKAMOTO Trading Academy teaches market structure, risk, vocabulary, and process. It does not provide trade signals, investment advice, profit guarantees, or personal financial recommendations.
Core Terms
The first trading vocabulary set.
Ask
The lowest price a seller is currently willing to accept. Immediate buying usually interacts with the ask.
Spread
The distance between bid and ask. Wider spreads can increase execution cost.
Liquidity
The ability to enter or exit without heavily moving price. Liquidity is about available depth, not just volume.
Volatility
The size and speed of price movement. Volatility expands opportunity and risk at the same time.
Market Order
An order to execute immediately at available prices. It prioritizes speed over price certainty.
Limit Order
An order to trade only at a specified price or better. It controls price but may not fill.
Stop Order
An order that activates after price reaches a trigger. It is often used for risk control or breakout logic.
Higher High
A swing high above the prior meaningful swing high. Context decides whether it matters.
Higher Low
A pullback low above the prior meaningful swing low. It can show buyers defending higher prices.
Break of Structure
A move through a meaningful prior swing level. Beginners often over-label small breaks.
CHoCH
Change of character. A possible behavior shift, not an automatic entry signal.
Point of Control
The price area with the most traded activity in a profile. It can mark accepted value.
Delta
The difference between aggressive buying and aggressive selling. It shows participation, not guaranteed direction.
Liquidity Sweep
A move through obvious highs or lows that triggers orders before price reverses or rebalances.
Drawdown
The decline from an equity peak to a trough. It measures the depth of a losing period.
Expectancy
The average expected result per trade after win rate, average win, and average loss are included.
Revenge Trading
Entering impulsively after a loss to recover emotionally. It usually breaks the plan.
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