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Trading concepts and definitions

Neutral trading definitions: instruments, orders, markets — independent of school or trader.

School-agnostic entries: what buy means, what a derivative is, how to read an order book. Valid for Hurst, Wyckoff, and any other approach.

Menu → Encyclopedia → Concepts — You are at the first encyclopedia layer: shared vocabulary. Use the Trading map to see the full vertical; for guided routes go to Fundamental paths.


Fundamental paths — start here

If you are new, do not pick a school yet. Follow the three rings in order:

Medal Level Hub
Bronze Beginner
Silver Intermediate
Gold Advanced

Full overview: Fundamental paths.


Encyclopedia — dedicated areas

Area What you find When to use
Concepts ← you are here Buy, timeframe, trend, liquidity… First steps, neutral definitions
Stocks, ETFs, bonds, Forex, commodities, and derivatives Before choosing what to trade
Contract, premium, chain, IV/RV, surface, parity, assignment, strategies and Greeks From a first contract to professional nonlinear-risk reading
Specification, point-in-time data, biases, costs, OOS, robustness and monitoring To design or assess a repeatable strategy without confusing a simulation with a track record
Orders, books, routing, costs, and post-trade Before turning an idea into a live order
Sizing, exposure, leverage, drawdown, and risk of ruin Before deciding how much capital to expose
Asset allocation, dependencies, rebalancing, returns, benchmarks, and attribution To build a governable portfolio and assess it on comparable bases
VaR, Expected Shortfall, scenarios, portfolios, liquidity and resilience After the foundations, to read the full system
Capital, concentration, contributions, beta, Greeks, duration and DV01 After aggregate measurement, to read exposures and factors
RSI, MACD, ATR, Bollinger… How to use indicators
Systematic term index Look up what a word means
Bias, emotions, discipline The human factor in every discipline
Plan, checklist, process How to build a method
Entities, permissions, assets, compliance, and fraud Before depositing or entrusting data and orders
Bios and «Start» paths Choosing a tradition to follow

Market Cycles (separate menu) = Hurst theory (Cyclic theory), traditions and operational techniques: Hurst tradition, Wyckoff tradition, Methodologies.


If you are new to trading

Follow the same order as the Trading map:

  1. Trading: what it is and how it works — definition, orders, costs, risk and the visual Zero path;
  2. Bronze path — the extended curriculum for vocabulary, prices, orders and risk;
  3. Markets and instruments — distinguish exposure, contract and venue;
  4. Instrument types — understand what you hold or trade;
  5. Orders, execution and market microstructure — understand what you send, how it is matched, and which costs or post-trade risks remain;
  6. Risk management — connect the budget, size, exposure, and capital survival;
  7. Portfolio construction and performance — combine exposures and measure outcomes without confusing returns, cash flows, and risk;
  8. Technical analysis — read price and context;
  9. Methodologies — choose a school only after the basics, without mixing its rules.

Hurst, Wyckoff and the other traditions are later, autonomous paths, not the encyclopedia's mandatory entry point.


Operations and positions

Entry Summary
Buy and sell
Long and short
Stop loss and take profit

Markets, execution, and costs

Entry Summary
Verified hub: exposures, contracts, venues, and risks
Verified hub: lifecycle, order types, matching, routing, costs, and settlement
Source-checked visual chapter: planned risk, sizing, leverage, drawdown, and ruin
Source-checked visual chapter in 25 nodes, from policy to attribution
Source-checked visual second ring in 13 nodes
Source-checked visual third ring in 14 nodes
Economic exposure distinguished from the vehicle
Ownership, debt, fund shares, and derivatives
Corporate ownership interests
Exchange-traded funds, NAV, replication, and costs
Debt, coupons, yield, and risks
Currency pairs and OTC/listed instruments
Physical, spot, futures, and ETPs
Calls, puts, strikes, premiums, and expiry
Methodology, weights, divisor, and return variants
Spot (cash) market
Futures, options, CFDs — overview
Futures contracts
Daily settlement, expiry, cash settlement, and delivery
Sign convention, fair value, convergence, and basis risk
Term structure, shift, twist, and curvature
Local curve regimes without directional shortcuts
Two legs, timing, recalibration, and costs
Proxies, decomposition, and measurement limits
Contract for difference
Liquidity
Bid-ask spread
Mid price
Market order
Limit order
Trigger and limit as distinct instructions
From decision to settlement
DAY, GTC, IOC, FOK, and venue variants
Passive instruction with rulebook-defined handling
Position-reduction constraint for supported products
Queues, allocation, and executed quantity
Display quantity, reserve, replenishment, and priority
Venues, internalisation, and the order path
Clocks, timestamps, and path segments
Slippage
Movement attributable to the execution programme
Spread, fees, slippage, impact, and opportunity cost
Time-weighted benchmark and execution algorithm
Searching for liquidity across venues, time, and aggressiveness
Benchmark, price, fill, and speed
Duty and policy, not a guaranteed price
Order book
Market maker
Matching engine
Distinct post-trade functions

Reading methodologies

Entry Summary
Volume, supply/demand, Wyckoff
Systematic and quant strategies

Reading the chart

Entry Summary
OHLC candlestick
Timeframe
Trend
Support and resistance
Volatility
Trading volume

Analysis

Entry Summary
Moving average
Market cycle

Market integrity

Market abuse and manipulation separates an unusual event from an investigation based on data, context, and the applicable rule. It connects pump and dump, spoofing, layering, and wash trading without turning a signal into proof.

Sources

  • U.S. Securities and Exchange Commission, Introduction to Investing, Investor.gov.
  • Cyclepedia, Editorial coverage matrix, version 1.3, 2026-08-03; specialist sources are declared in the individual linked entries.