Field Guide to Trading Terms

Market & styles


Family VII · 48 entries

This family covers the vocabulary of market conditions and the trading styles used to operate within them. The terms answer two linked questions: what state a market is in, and how a participant chooses to engage with that state over a given time horizon. A newcomer should read liquidity first, because it underpins the meaning of bid ask spread, volatility and every style from scalping to position trading.

The most common mistake is treating style labels such as day trading or swing trading as fixed categories, when they describe holding periods that shift with liquidity and volatility.