If you’re new to day trading, you’ve likely seen terms flying around like “VWAP,” “RVOL,” “spread,” “float,” “gamma,” or “halt” — and maybe you’re pretending you know what they mean 😅. This glossary breaks down the most important day trading and market terms in simple, trader-friendly language.
A – E: The Foundation
Ask
The lowest price a seller is willing to accept for a stock.
ATR (Average True Range)
A volatility indicator that measures how much a stock typically moves over a period. Higher ATR = bigger intraday moves.
Bear Market
A market environment where prices are generally trending downward.
Bid
The highest price a buyer is willing to pay for a stock.
Breakout
When price moves above resistance or an existing consolidation range.
Bull Market
A market environment where prices are trending upward.
Candle / Candlestick
A graphical representation of price movement over a period of time.
Catalyst
A news event or development that sparks volume, volatility, and price movement.
Circuit Breaker Halt
A temporary pause in trading triggered by excessive volatility or rapid price movement.
EMA (Exponential Moving Average)
A moving average that gives more weight to recent price movement — faster and more responsive than SMA.
F – L: Core Trading Concepts
Float
The number of shares available to trade. Low float = more volatility.
Gap Up / Gap Down
When price opens significantly higher or lower than the previous close.
HOD / LOD
HOD — High of the Day
LOD — Low of the Day
Leverage
Using borrowed capital to increase trade size (and risk).
Limit Order
An order to buy or sell at a specific price or better.
Liquidity
How easily shares can be traded without affecting price.
M – R: Strategy Essentials
Margin
Borrowed funds used for trading. Allows bigger position sizes but increases risk.
Market Order
An order to buy or sell immediately at the current market price.
ORB (Opening Range Breakout)
Strategy where traders take positions when price breaks the opening range.
RVOL (Relative Volume)
Volume compared to its normal average volume. RVOL > 2.0 = VERY active stock.
S – Z: Advanced Trading Terms
Short Selling
Borrowing shares to sell them now with the intention of buying them back cheaper.
Slippage
Execution at a different price than expected due to fast-moving markets.
Spread
Difference between bid and ask price.
Support / Resistance
Support — price level where stock tends to bounce upward.
Resistance — price level where stock tends to reject downward.
VWAP (Volume Weighted Average Price)
Tracks the average price weighted by volume. Often used as an intraday trend indicator.
Whipsaw / Chop
Price action that moves rapidly up and down without clear direction — stops out traders frequently.
Common Trading Acronyms
| Acronym | Meaning |
|---|---|
| PnL | Profit and Loss |
| HFT | High-Frequency Trading |
| IPO | Initial Public Offering |
| ETF | Exchange-Traded Fund |
| FOMO | Fear of Missing Out |
| DD | Due Diligence |
| YOLO | “You Only Live Once” — taking high-risk trades |
Want to Actually Learn These in Practice?
Reading definitions is one thing… seeing them applied in real trades is another.
At Fusion Elite Trading, we teach these concepts live through:
- Live trading sessions
- Real-time market commentary
- Trade breakdowns
- Daily watchlists
- Strategy education