Trading Glossary

A specific candlestick or zone where institutional market participants (banks, market makers) have placed large buy or sell blocks. These areas typically act as strong support or resistance upon mitigation.

An imbalance in price delivery caused by heavy buying or selling pressure where only one side of the market is serviced. It appears as a 3-candle pattern where the first candle's wick and third candle's wick do not overlap.

The difference between the peak balance of a trading account and its current balance. Cap-prop challenges enforce strict limits on both daily and maximum drawdown (typically 5% daily / 10% max).

The smallest price unit measurement of change in a currency pair, usually equal to 0.0001 (or 0.01 for JPY pairs). For gold, pip changes represent $0.10 price movements.

The use of borrowed capital to increase trading exposure and position size. While leverage amplifies potential gains, it exponentially increases risk if stop-losses are not set.

The difference between the bid price (selling price) and the ask price (buying price) of an asset. Spreads represent the primary transaction cost charged by brokers and typically widen during high-impact news.

A market movement where price surges past recent swing highs or lows to trigger stop-losses (liquidity pools) before reversing direction. Sweeps are used by banks to accumulate position inventory.

A trading methodology that bypasses standard retail indicators (like RSI or trendlines) to track institutional orders, market structure breaks, and liquidity runs.

The mathematical ratio comparing the potential loss of a trade to its potential gain. F2X Capital enforces a minimum R:R of 1:3 on all setups (risking $100 to make $300).