A trading glossary defines the market, order, risk and software terms needed to read a trading rule or investigate its result. These 201 entries cover Forex and CFDs, execution, performance metrics, backtesting, TradingView, Pine Script, MetaTrader 5 and automation. Definitions state important conventions because the same label can mean different things across platforms.
How to use this trading glossary
Use the A–Z index to find a term, then follow its guide for formulas, examples and limitations. Platform descriptions reflect the cited local captures available on 25 September 2026. A definition is not a recommended instrument, setting or strategy.
Start with the trading mechanics library for units and orders, the metrics library for measurement conventions and the Pine Script library for script behaviour.
A–Z index
A: Absolute drawdown (MT5) · Account currency · AHPR · Alert message · Alert snapshot · alert() · alertcondition() · Algo Trading permission · Ask · Average loss · Average True Range (ATR) · Average win
B: Backtest · Balance · Balance drawdown · Bar close · Bar Magnifier · barstate.isconfirmed · Base currency · Benchmark · Bid · Bollinger Bands · Break-even win rate · Breakeven trade · Broker · Broker acceptance · Broker emulator · Broker-side stop · Buy limit · Buy stop
C: Calmar ratio · Commission · Commission model · Contract for difference (CFD) · Contract size · Crossover · Crossunder · CSV trade export · Currency pair
D: Deal · Demo account · Demo reconciliation · Downside deviation · Drawdown · Duplicate signal
E: Equity · Equity drawdown · Expectancy in currency · Expectancy in R · Expert Advisor (EA) · Experts log (MT5)
F: Fibonacci retracement · Fill · Fill or Kill (FOK) · Forex · Forward test · Free margin · Freeze level · Fundamental analysis · Futures contract
G: Gap · Generated ticks · GHPR · Gross loss · Gross profit
H: Hedge · Hedging account · Higher-timeframe data · Historical bar
I: Immediate or Cancel (IOC) · In-sample data · Indicator · Initial risk (R)
L: Leverage · License ID · Liquidity · Liquidity provider · Live account · Long position · Look-ahead bias · Lookback · Losing streak · Loss rate · Lot
M: Magic Number · Magic Restriction · Margin call · Margin level · Market order · Maximum adverse excursion (MAE) · Maximum drawdown · Maximum favourable excursion (MFE) · MetaEditor · MetaTrader 5 (MT5) · Micro lot · Mini lot · Modelling mode · Moving Average Convergence Divergence (MACD) · MQL5 · MT5 forward period
N: Net profit · Netting account · Notional exposure
O: OHLC · One-cancels-all (OCA) group · Optimisation · Order · Order expiration · Order rejection · Order-fill alert · Out-of-sample data · Over-the-counter (OTC) · Overfitting
P: Parameter · Partial close · Partial fill · Payoff ratio · Pending order · Period return · Pine Script · PineConnector Syntax · Pip · Pip value · Pipette · Planned risk-reward ratio · Point (MT5) · Position · Position reversal · Position sizing · Profit factor · Pyramiding (Pine)
R: R-multiple · Real ticks · Realtime bar · Recovery factor · Relative drawdown (MT5) · Relative Strength Index (RSI) · Repainting · request.security · Requote · RETURN filling policy · Return on investment (ROI) · Risk of ruin · Rollover
S: Sample size · Selection bias · Sell limit · Sell stop · Shadow Targets · Sharpe ratio · Short position · Signal authentication · Signal processing · Simple moving average (SMA) · Slippage · Slippage model · Sortino ratio · Spot market · Spread · Standard chart · Stop activation · Stop loss · Stop-limit order · Stop-out · Stops level · Strategy (Pine) · Strategy report · Strategy Tester (MT5) · strategy.close · strategy.entry · strategy.exit · strategy.order · Swap charge or credit · Symbol mapping · Synthetic chart · System Quality Number (SQN)
T: Take profit · Technical analysis · Tick (data update) · Tick size · Tick volume · Timeframe · Trading journal · Trading session · Trading volume · TradingView · Trailing stop
U: Used margin
V: Volatility · Volume step · Volume-weighted average price (VWAP)
W: Warm-up period · Webhook · Webhook URL · Win rate
Forex, CFD and market mechanics
- Account currency
- Account currency is the denomination used for account reporting, which can differ from the currencies of the traded instrument.[2][3] Trading mechanics.
- Ask
- Ask is the price offered to sell an instrument; a market buy normally executes against the available ask.[1][8] Bid and ask spread.
- Base currency
- The base currency is the first currency in a pair and the unit being priced by that quotation.[44] Pips and price units.
- Bid
- Bid is the price offered to buy an instrument; a market sell normally executes against the available bid.[1][8] Bid and ask spread.
- Broker
- A broker provides a route for customer trading orders under its account and execution terms; available instruments and contract specifications can differ between brokers.[1][2] Trading mechanics.
- Commission
- Commission is a trading charge whose calculation and collection may depend on size, transaction value, entry, exit or the broker's schedule.[2] Trading costs.
- Contract for difference (CFD)
- A CFD is a derivative giving exposure to changes in an underlying price or value without requiring ownership of the underlying asset.[20] CFD, futures and spot.
- Contract size
- Contract size is the quantity of the underlying currency, commodity or asset represented by one lot.[2] Lots and contract size.
- Currency pair
- A currency pair quotes one currency in units of another, such as EUR/USD expressing US dollars per euro.[30][44] Pips and price units.
- Forex
- Foreign exchange is the market activity of exchanging or trading currencies, usually expressed through currency-pair quotations.[8] Trading mechanics.
- Futures contract
- A futures contract is a standardised agreement for a future transaction, subject to its contract's delivery, settlement and offset rules.[8] CFD, futures and spot.
- Gap
- A price gap is a discontinuity between available prices, such as one bar's close and the next bar's open; an order's trigger and fill prices can therefore differ.[5] Gaps and market opening.
- Liquidity
- Liquidity describes the ability to transact a stated size without a large price impact or execution difficulty; it depends on available counterparties and prices.[19] Trading mechanics.
- Liquidity provider
- A liquidity provider supplies tradable prices or available volume to a market or execution venue; its presence does not establish that a particular request will fill.[1] Trading mechanics.
- Lot
- A lot is a unit of trading volume whose underlying quantity is set by the instrument's contract size.[2] Lots and contract size.
- Micro lot
- A conventional Forex micro lot represents 1,000 base-currency units, or 0.01 lot when the broker's one-lot contract is 100,000 units.[19] Lots and contract size.
- Mini lot
- A conventional Forex mini lot represents 10,000 base-currency units, or 0.10 lot when the broker's one-lot contract is 100,000 units.[19] Lots and contract size.
- Over-the-counter (OTC)
- OTC describes trading outside an exchange listing or central exchange order book, under the counterparties' applicable arrangements.[8] CFD, futures and spot.
- Pip
- A pip is a conventional Forex price increment, commonly 0.0001 for many pairs and 0.01 for yen-quoted pairs, rather than necessarily the smallest quoted increment.[30] Pips and price units.
- Pip value
- Pip value is the money represented by one pip for a stated position size, converted to the account currency when necessary.[30] Pips and price units.
- Pipette
- A pipette is one tenth of a pip and is used when a Forex quote includes an extra fractional-pip digit.[30] Pips and price units.
- Point (MT5)
- An MT5 point is a price unit associated with the symbol's quote precision; it need not equal a conventional Forex pip or the tradable tick size.[2][31] Pips and price units.
- Quote currency
- The quote currency is the second currency in a pair and expresses the price of one unit of the base currency.[44] Pips and price units.
- Rollover
- Rollover is the process of carrying a position across a settlement or trading-day boundary, potentially creating financing adjustments under the product's terms.[2] Swap and rollover.
- Slippage
- Slippage is the difference between a chosen reference price and the actual execution price, with its sign depending on the direction and measurement convention.[5] Slippage.
- Spot market
- A spot market concerns transactions for near-term delivery or settlement, in contrast with contracts specifying future delivery; settlement conventions vary by instrument.[8] CFD, futures and spot.
- Spread
- Spread is ask minus bid, measured in price units or converted into points, ticks or pips using the stated convention.[19] Bid and ask spread.
- Swap charge or credit
- Swap is the broker-specified holding adjustment for a position carried across its charging boundary; the long and short rates can differ.[2] Swap and rollover.
- Tick (data update)
- A tick is an update in market data, such as a quote or trade update; it is distinct from tick size, which is a price increment.[2][22] MT5 modelling modes.
- Tick size
- Tick size is the minimum permitted price-change step for an instrument, as specified for that symbol.[2] Pips and price units.
- Tick volume
- Tick volume counts market-data activity rather than traded quantity; MetaTrader describes Forex volume as the number of price changes in the selected period.[29] Technical indicators.
- Trading session
- A trading session is a scheduled period in which an instrument or venue permits specified trading activity, defined in a particular clock and calendar.[2] Trading sessions.
- Trading volume
- Trading volume measures the quantity transacted over an interval, in units such as contracts, shares or currency; it differs from counting quote updates.[8][29] Trading mechanics.
- Volatility
- Volatility describes variability in prices or returns over a specified interval; the measurement and sampling convention must be named.[8] Risk management.
- Volume step
- Volume step is the permitted increment between valid order sizes, separate from the minimum and maximum volume.[2] Lots and contract size.
Orders, fills and positions
- Broker acceptance
- Broker acceptance means a request has passed a processing stage; acceptance alone does not establish a completed fill or resulting position.[1] Order types.
- Buy limit
- A buy limit requests a purchase at its limit price or lower, subject to execution availability.[1] Order types.
- Buy stop
- A buy stop requests a purchase when its upward price-trigger condition is met; the trigger price is not necessarily the fill price.[1] Order types.
- Deal
- A deal is an executed transaction in MetaTrader; one order can produce multiple deals and several deals can affect one position.[1] Order types.
- Fill
- A fill is an execution of all or part of an order's requested quantity at a resulting price.[1] Filling policies.
- Fill or Kill (FOK)
- FOK requires the requested volume to be filled in full or the order not to execute, although the full volume may come from multiple available offers.[1] Filling policies.
- Freeze level
- Freeze level is a symbol-specific distance within which some order or position operations can be restricted; it is distinct from Stops level.[31] Stops and freeze levels.
- Hedge
- A hedge is an exposure intended to offset some risk in another exposure, with possible costs, imperfect matching and residual risk.[8] Correlated exposure.
- Hedging account
- An MT5 hedging account permits multiple separate positions in one symbol, including opposite positions; an opposite entry does not automatically close the earlier one.[1] Netting and hedging.
- Immediate or Cancel (IOC)
- IOC executes the immediately available quantity within the request and cancels any unfilled remainder.[1] Filling policies.
- Long position
- A long position represents buying exposure to an instrument, whose price increase benefits that exposure before costs and other adjustments.[1] Order types.
- Market order
- A market order requests execution at an available market price, without setting a protective execution-price limit.[1] Order types.
- Netting account
- An MT5 netting account maintains one aggregate position per symbol, which later deals can increase, reduce, close or reverse.[1] Netting and hedging.
- Order
- An order is an instruction to perform a trading operation, distinct from the deal that may execute it and the position that may result.[1] Order types.
- Order expiration
- Order expiration is the time or validity boundary after which an unfilled pending order is cancelled under its accepted settings.[2] Order types.
- Order rejection
- An order rejection means the broker or server did not accept the requested operation under the relevant conditions; inspect the specific result before deciding what to do next.[1] Order types.
- Partial close
- A partial close reduces an existing position without eliminating its entire volume.[1] Netting and hedging.
- Partial fill
- A partial fill executes less than the requested order quantity, with the remaining quantity handled according to the order's filling policy.[1] Filling policies.
- Pending order
- A pending order waits for its specified activation or price conditions; placement is not the same as execution.[1] Order types.
- Position
- A position is the current holding or trading exposure resulting from executed transactions, under the account's position-accounting rules.[1] Netting and hedging.
- Position reversal
- A position reversal changes net exposure from one direction to the other; the transaction quantity can exceed the final position size because it also offsets earlier exposure.[1][5] Netting and hedging.
- Requote
- A requote is a broker response offering a different executable price in a price-confirmation execution mode, rather than a completed transaction at the original requested price.[1] Order types.
- RETURN filling policy
- RETURN retains an unfilled remainder for further processing where the symbol, order type and execution mode permit that policy.[1][31] Filling policies.
- Sell limit
- A sell limit requests a sale at its limit price or higher, subject to execution availability.[1] Order types.
- Sell stop
- A sell stop requests a sale when its downward price-trigger condition is met; the trigger price is not necessarily the fill price.[1] Order types.
- Short position
- A short position represents selling exposure to an instrument, whose price decrease benefits that exposure before costs and other adjustments.[1] Order types.
- Stop activation
- Stop activation is the event that makes the stop's next action eligible; it is separate from execution, especially when the activated order is a limit order.[1] Order types.
- Stop loss
- A stop loss defines a protective exit trigger for adverse movement; reaching the trigger does not prove a completed close or cap the realised loss at that price.[1] Order types.
- Stop-limit order
- A stop-limit order activates a limit order when the stop condition is reached, so activation can leave an unfilled limit order.[1] Order types.
- Stops level
- In MT5, Stops level specifies a broker-defined minimum distance in points for certain protective levels and pending orders relative to current prices.[2] Stops and freeze levels.
- Take profit
- A take-profit level defines an intended exit condition for favourable movement, with execution and the resulting position still requiring verification.[1] Order types.
- Trailing stop
- A trailing stop updates a protective exit level according to a stated rule as prices move; MT5's built-in trailing logic runs in the terminal.[1] Order types.
Risk, account values and performance metrics
- Absolute drawdown (MT5)
- MT5 absolute drawdown measures the amount by which the minimum value falls below the initial deposit, rather than below a later peak.[4] MT5 report fields.
- AHPR
- AHPR is the arithmetic mean of trade holding-period factors, with the factor minus one expressing the corresponding average proportional change.[4] MT5 report fields.
- Average loss
- Average loss is absolute gross loss divided by the number of losing trades, expressed here as a positive magnitude.[4] Payoff ratio.
- Average win
- Average win is gross profit divided by the number of winning trades, and is undefined when there are no winners.[4] Payoff ratio.
- Balance
- Balance is the account value after booked transactions and adjustments, excluding unrealised profit or loss on currently open positions.[3] Margin and stop-out.
- Balance drawdown
- Balance drawdown measures peak-to-trough decline in the realised balance series and can omit losses still floating in open positions.[4] Drawdown.
- Break-even win rate
- Break-even win rate is the win rate at which expectancy is zero before costs: average loss / (average win + average loss), which equals 1 / (1 + payoff ratio); per-trade costs raise it.[38] Break-even win rate.
- Breakeven trade
- A breakeven trade has zero result under the stated cost convention; an exit at the entry price can still produce a net loss after costs.[5] Win rate.
- Calmar ratio
- Calmar ratio divides annualised return, usually the compound growth rate (CAGR), by maximum drawdown over the same window; Terry W. Young introduced it in 1991.[39] Calmar ratio.
- Downside deviation
- Using the all-period convention, downside deviation is √[Σ min(0, returnᵢ − target)²/n], counting all n periods rather than only those below target.[15] Sortino ratio.
- Drawdown
- Drawdown is the decline from a running peak in a named balance or equity series, expressed in money or relative to that peak.[4] Drawdown.
- Equity
- Equity includes the account's current marked value, with floating results and applicable credit, commission or blocked-amount adjustments; it is not always simply balance plus floating profit.[3] Margin and stop-out.
- Equity drawdown
- Equity drawdown measures decline in a series that includes open-position valuation, subject to the report's sampling and reference conventions.[4][5] Drawdown.
- Expectancy in currency
- Cash expectancy is win frequency × average win minus loss frequency × average loss magnitude; zero-result trades remain in the closed-trade denominator.[4][5] Expectancy.
- Expectancy in R
- Expectancy in R is the mean of each trade's result divided by that trade's own initial risk, so trades must be normalised before averaging when risk varies.[13] Expectancy.
- Free margin
- Free margin is equity minus used margin under the broker's applicable calculation rules.[3] Margin and stop-out.
- GHPR
- GHPR is the geometric mean of trade holding-period factors, reflecting multiplication rather than addition of proportional changes.[4] MT5 report fields.
- Gross loss
- Gross loss is the sum of negative trade results, commonly used as a positive magnitude when calculating ratios.[4] Profit factor.
- Gross profit
- Gross profit is the sum of positive trade results under the report's accounting convention; the word “gross” does not by itself establish whether commissions were excluded.[4][5] Profit factor.
- Initial risk (R)
- Initial R is the cash risk assigned from the entry to the original protective stop for the stated size, and it remains the reference if that stop later moves.[13] R-multiples.
- Kelly criterion
- The Kelly criterion chooses a stake to maximise expected logarithmic capital growth under a specified probability model; estimated inputs do not make that stake a recommendation.[16] Kelly criterion.
- Leverage
- Leverage expresses exposure relative to supporting capital or margin, so the stated denominator matters; higher permitted leverage does not itself require a larger position.[20] Leverage.
- Losing streak
- A losing streak is a consecutive run of losing trades under a specified treatment of zero-result trades, and its historical maximum is not a future ceiling.[4] Losing streaks.
- Loss rate
- Loss rate is losing closed trades divided by all closed trades; it equals one minus win rate only when there are no breakevens.[4][5] Win rate.
- Margin call
- A margin call is a margin-shortfall notification, requirement or account state under the provider's rules, distinct from the actual liquidation of a position.[3][8] Margin and stop-out.
- Margin level
- Margin level is equity divided by used margin, multiplied by 100, when used margin is nonzero.[3] Margin and stop-out.
- Maximum adverse excursion (MAE)
- MAE is the greatest adverse movement or unrealised loss experienced during a trade, measured in stated price, money or R units.[4][5] MAE and MFE.
- Maximum drawdown
- Maximum drawdown percentage is the largest value of (running peak − current value)/running peak over the measured series and interval.[4] Drawdown.
- Maximum favourable excursion (MFE)
- MFE is the greatest favourable movement or unrealised profit experienced during a trade; it is distinct from the result captured at exit.[4][5] MAE and MFE.
- Net profit
- Net profit is the aggregate signed trading result after the costs included in the chosen record; disclose any excluded costs.[4][5] Trading metrics.
- Notional exposure
- Notional exposure is the underlying value represented by a position, distinct from the margin posted and the planned loss at a stop.[20] Leverage.
- Payoff ratio
- Payoff ratio is average win divided by average loss magnitude; it describes outcome sizes rather than their frequencies.[4] Payoff ratio.
- Planned risk-reward ratio
- Planned reward-to-risk is target distance divided by initial stop distance; for a long, it is (target − entry)/(entry − stop).[13] Planned risk-reward.
- Position sizing
- Position sizing determines the quantity of a trade from specified inputs such as capital, initial risk and instrument value, subject to valid broker volume increments.[2][13] Position sizing.
- Profit factor
- Profit factor is gross profit divided by absolute gross loss, and has no finite defined value when gross loss is zero.[4] Profit factor.
- R-multiple
- An R-multiple is a trade's result divided by that trade's initial cash risk, with the result's cost treatment stated consistently.[13] R-multiples.
- Recovery factor
- Recovery factor is net profit divided by maximal drawdown in currency, with the drawdown series specified and a nonzero denominator.[4] Recovery factor.
- Relative drawdown (MT5)
- MT5 relative drawdown selects the greatest percentage peak-to-trough decline, which need not be the episode with the largest cash decline.[4] MT5 report fields.
- Return on investment (ROI)
- ROI compares a gain or loss with a specified invested-capital base over a stated period, without describing the path or risk taken.[5] Trading metrics.
- Risk of ruin
- Risk of ruin is the estimated probability that equity reaches a defined loss level, before a stated target or within a stated horizon, under assumed trade outcomes and sizing; most real strategies need simulation to estimate it.[40] Risk of ruin.
- Sharpe ratio
- Sharpe ratio is mean period differential return divided by the standard deviation of the same differential-return series, with the benchmark matched to each period.[14] Sharpe ratio.
- Sortino ratio
- Sortino ratio is mean period return minus a period-matched target, divided by downside deviation relative to that target.[15] Sortino ratio.
- Stop-out
- Stop-out is forced position liquidation under the broker's margin rules; its threshold and handling depend on the account terms.[3] Margin and stop-out.
- System Quality Number (SQN)
- System Quality Number is Van K. Tharp's measure of a trading system's R-multiple results, commonly computed as √N × mean(R) / stdev(R); with N uncapped, it equals the one-sample t-statistic of mean R against zero.[41][42] System Quality Number.
- Used margin
- Used margin is the amount reserved or required to support positions and relevant orders, not a limit on the loss they can produce.[3] Margin and stop-out.
- Win rate
- Win rate is winning closed trades divided by all closed trades, including breakevens in the denominator when using this glossary's convention.[5] Win rate.
- Z-score (MT5)
- MT5's report Z-score is a runs-based diagnostic of win/loss sequencing, with positive values associated with alternation and negative values with clustering.[4] MT5 report fields.
Backtesting and research
- Backtest
- A backtest applies a specified trading model to historical data using defined cost, sizing and execution assumptions.[5] Backtesting.
- Bar Magnifier
- Bar Magnifier is the former name of TradingView's high historical detail option, now set in the Bar detalization menu with
use_bar_magnifieras the default; it uses available lower-timeframe data to refine historical fills.[37][5] TradingView report metrics. - Benchmark
- A benchmark is the reference used for comparison, such as a period-matched cash return or a clearly specified buy-and-hold model.[5][14] Trading metrics.
- Broker emulator
- TradingView's broker emulator simulates order fills and positions from the data and assumptions available to the strategy; it is not the receiving broker account.[5] TradingView report metrics.
- Commission model
- A commission model specifies how a simulation charges fees by transaction, quantity or value, including which sides of a trade are charged.[5] Trading costs.
- Forward test
- A forward test observes a fixed rule on data arriving after the rule was set; TradingView uses the term for realtime evaluation.[5] Backtesting.
- Generated ticks
- Generated ticks are an estimated intrabar sequence constructed from coarser price data under a tester's rules.[22] MT5 modelling modes.
- In-sample data
- In-sample data is the dataset used to develop or select a model, so performance on it is not an independent test of that selection.[5] Out-of-sample testing.
- Look-ahead bias
- Look-ahead bias uses information in a historical decision before that information would have been available at the decision time.[5] Backtest biases.
- Modelling mode
- An MT5 modelling mode determines how historical price information is used or generated during an EA test.[22] MT5 modelling modes.
- MT5 forward period
- An MT5 optimisation forward period is a later historical segment used to check selected parameter sets after optimisation on the earlier segment.[23] Out-of-sample testing.
- Optimisation
- Optimisation searches among parameter choices using a selected objective and data sample, without establishing future trading performance.[5][23] Overfitting.
- Out-of-sample data
- Out-of-sample data is held apart from model selection for later evaluation; repeatedly tuning to its results removes that independence.[5] Out-of-sample testing.
- Overfitting
- Overfitting tailors a rule to features of its development sample that may not persist in new data.[5] Overfitting.
- Parameter
- A parameter is a configurable input to a rule or calculation, such as a lookback length or explicitly defined threshold.[5] Backtesting.
- Period return
- Period return is the change in investment value relative to the chosen starting value over a stated interval, with cash flows and costs handled explicitly.[14] Trading metrics.
- Real ticks
- Real ticks in MT5 testing are broker-supplied historical tick records, whose availability and completeness still need inspection.[22] MT5 modelling modes.
- Sample size
- Sample size is the number of observations used in an estimate; a count of trades is different from a count of bars, and dependence affects the information in either.[4][5] Backtest sample size.
- Selection bias
- Selection bias distorts evaluation by selecting instruments, periods or outcomes while ignoring relevant alternatives, such as failed tests.[5] Backtest biases.
- Slippage model
- A slippage model alters simulated fill assumptions to represent a chosen price difference; a fixed adjustment is not a full model of actual execution.[5] Slippage.
- Standard chart
- A standard time-based price chart presents the source's bar prices without the synthetic transformations used by chart types such as Heikin Ashi.[5] Backtesting.
- Synthetic chart
- A synthetic chart derives displayed price values using a transformation, so simulating fills at those values can misrepresent tradable prices.[5] Backtesting.
- Warm-up period
- A warm-up period supplies preceding observations for indicator or strategy calculations before the interval being evaluated.[7] Backtesting.
TradingView and Pine Script
- Alert snapshot
- An alert snapshot is the copy of the script, its inputs and the chart context that TradingView saves when a script alert is created; later script or chart edits do not update it.[36] Pine alert methods.
- alert()
-
alert()is a Pine function that can emit an alert event when executed, subject to its frequency setting and the script's execution timing.[6] Pine alert methods. - alertcondition()
-
alertcondition()declares selectable alert conditions for indicators; it is not a strategy order-placement command.[6] Pine alert methods. - Bar close
- Bar close is the end of a bar's observation interval, when its own realtime prices become final for that bar, subject to later data corrections.[7][21] Bar confirmation.
- barstate.isconfirmed
-
barstate.isconfirmedidentifies historical bars and the closing update of a realtime bar; it remains true during historical-tick strategy executions and does not confirm every external input.[5][21] Bar confirmation. - Crossover
- A crossover above means series A is greater than B now and was less than or equal to B on the previous observation.[45] Crossover and crossunder.
- Crossunder
- A crossunder below means series A is less than B now and was greater than or equal to B on the previous observation.[46] Crossover and crossunder.
- CSV trade export
- A CSV trade export is a text-form record of available individual trades, whose coverage may differ from full-period aggregate metrics.[5] TradingView report metrics.
- Higher-timeframe data
- Higher-timeframe data aggregates a longer interval than the chart's interval; its current bar can remain unfinished after a chart bar closes.[7] Pine data requests.
- Historical bar
- A historical bar is a past bar available to a script's historical execution, whose calculation behaviour depends on the script and selected execution settings.[5][21] Pine Script library.
- Indicator
- An indicator calculates or displays measurements from data; an indicator signal alone does not define a complete trading strategy or prove execution.[6][21] Technical indicators.
- Lookback
- A lookback is the number of earlier observations used by a calculation, with inclusion of the current bar needing an explicit definition.[21] Technical indicators.
- OHLC
- OHLC means open, high, low and close, summarising a bar without necessarily recording the order of every price movement inside it.[5] Backtesting.
- One-cancels-all (OCA) group
- An OCA group links simulated orders so a fill can cancel or reduce other group members according to the configured group type.[5] Pine strategy orders.
- Order-fill alert
- A TradingView strategy order-fill alert is triggered by a simulated broker-emulator fill, not by confirmation of a fill in MetaTrader.[6] Pine alert methods.
- Pine Script
- Pine Script is TradingView's language for chart-based calculations, indicators and strategy simulations, with version-specific behaviour.[5][21] Pine Script library.
- Pyramiding (Pine)
- Pine pyramiding limits successive same-direction entries created with
strategy.entry(); it does not apply in the same way tostrategy.order().[5] Pine strategy orders. - Realtime bar
- A realtime bar is the current developing bar receiving new updates, whose high, low and close can change before it closes.[21] Bar confirmation.
- Repainting
- Repainting describes differences between historical and realtime calculations or plots, including changing unfinished values, backdated information or revised data.[7] Pine data requests.
- request.security
-
request.security()evaluates an expression in another data context and returns its series, with timing and look-ahead settings affecting what is visible.[7] Pine data requests. - Strategy (Pine)
- A Pine strategy is a script that can simulate orders and expose performance data through TradingView's broker emulator.[5] Pine strategy orders.
- Strategy report
- TradingView's strategy report shows the simulated strategy's Metrics and Trades, with results dependent on its test range and properties.[5] TradingView report metrics.
- strategy.close
-
strategy.close()creates a simulated market order to close trades associated with an entry ID; calling it is distinct from its later fill.[5] Pine strategy orders. - strategy.entry
-
strategy.entry()creates simulated entry orders, supports automatic reversal of opposite exposure and is affected by strategy pyramiding settings.[5] Pine strategy orders. - strategy.exit
-
strategy.exit()creates simulated price-based exit orders, including stop/limit brackets and supported trailing orders, optionally tied to an entry ID.[5] Pine strategy orders. - strategy.order
-
strategy.order()creates a general simulated order whose signed filled quantity changes net exposure, without automatically adding reversal volume asstrategy.entry()does.[5] Pine strategy orders. - Timeframe
- A timeframe defines the aggregation interval or chart resolution used for a data series, distinct from the timezone used to display timestamps.[5][24] Trading clocks.
- TradingView
- TradingView provides charting and a Pine Script environment in which indicators, strategy simulations and alert events can be defined.[5][6] Pine Script library.
- XLSX report export
- An XLSX report export is TradingView's spreadsheet export of strategy-report data and applicable properties, distinct from the individual Trades CSV.[5] TradingView report metrics.
MetaTrader and automation
- Alert message
- An alert message is the payload attached to an alert event, whose format must match the receiving service's documented interface.[6][12] Pine alert methods.
- Algo Trading permission
- Algo Trading permission controls whether an EA is allowed to request trading operations in its environment; permission alone does not establish that an order was accepted or filled.[18] MT5 library.
- Broker-side stop
- A broker-side stop is a protective level held in the broker's order or position system, distinct from a strategy-only condition or an EA-monitored target.[1][17] Order types.
- Demo account
- A demo account provides simulated trading funds and a testing environment; its conditions do not establish the future results of a live account.[11][43] Demo verification.
- Demo reconciliation
- Demo reconciliation compares the intended condition and message with alert, processing and broker records to establish what happened in each receiving demo account.[11] Demo verification.
- Duplicate signal
- A duplicate signal repeats an instruction or intended action; inspect existing orders and positions before resending an instruction whose outcome is uncertain.[11] Demo verification.
- Expert Advisor (EA)
- An Expert Advisor is a MetaTrader program that can analyse data and request trading operations under its code, permissions and account conditions.[18] MT5 library.
- Experts log (MT5)
- The Experts log records messages associated with Expert Advisors and indicators, which can help diagnose a request without replacing broker-result checks.[32] MT5 library.
- Journal log (MT5)
- The MT5 Journal records platform events useful for investigating activity and errors, separately from the account's executed-deal history.[32] MT5 library.
- License ID
- A PineConnector License ID identifies the receiving connection scope used in a signal, and every attached account must be checked before creating an executable test alert.[9][11] Automation workflow.
- Live account
- A live trading account involves real-money exposure, so an executable instruction reaching it can have an actual financial result.[11] Demo verification.
- Magic Number
- In the PineConnector EA, Magic Number identifies the EA's position scope; it is separate from a trade comment, symbol or License ID.[10] Automation workflow.
- Magic Restriction
- Magic Restriction controls whether PineConnector EA actions are restricted to matching magic-number scope or can include other positions for the symbol.[10] Automation workflow.
- MetaEditor
- MetaEditor is the development environment used for editing and compiling MQL programs; compilation does not establish correct trading behaviour.[35] MT5 library.
- MetaTrader 5 (MT5)
- MetaTrader 5 is a trading platform with broker-account access, charting and an environment for Expert Advisors and strategy testing.[18] MT5 library.
- MQL5
- MQL5 is the programming language used to develop MetaTrader 5 applications such as Expert Advisors and custom indicators, distinct from Pine Script.[35] MT5 library.
- PineConnector Syntax
- PineConnector Syntax is the documented message format for instructions to PineConnector, with explicit commands, symbol targeting and parameter units.[9] Automation workflow.
- Shadow Targets
- PineConnector Shadow Targets use EA monitoring for intended exits while sending more distant visible broker targets; the feature has documented dependencies and incompatibilities.[10] Automation workflow.
- Signal authentication
- PineConnector signal authentication checks the supplied signal secret against the receiving setup; the secret is not the broker password and does not prove a fill.[9] Automation workflow.
- Signal processing
- Signal processing is the receiving service's handling of a message, separate from the broker's acceptance, deal execution and resulting position.[11] Demo verification.
- Strategy Tester (MT5)
- The MT5 Strategy Tester runs Expert Advisors on historical data under selected inputs and modelling settings; it does not automatically backtest an external TradingView alert route.[4][22] MT5 report fields.
- Symbol mapping
- Symbol mapping matches a chart instrument to the broker's exact order symbol, including any prefix, suffix and case required by the receiving platform.[11][17] Broker symbol mapping.
- Webhook
- A webhook sends an event message to an external service; TradingView sends its alert message in an HTTP POST request to the configured URL.[12] Pine alert methods.
- Webhook URL
- A webhook URL is the destination to which an event sender addresses its request; a configured URL is not evidence that any particular message arrived.[12] Pine alert methods.
Analysis and trading process
- Average True Range (ATR)
- ATR is a measure of average price movement used as an input to volatility-related rules, including explicitly defined stop-distance calculations.[34] Technical indicators.
- Bollinger Bands
- Bollinger Bands place bands around a moving average using a stated standard-deviation multiplier; a touch of a band is not itself a trading instruction.[27] Bollinger Bands rules.
- Fibonacci retracement
- A Fibonacci retracement uses ratios to mark reference levels within a selected price swing; the anchor choices are part of the definition.[8] Fibonacci drawing alerts.
- Fundamental analysis
- Fundamental analysis studies economic or other underlying factors that may affect an instrument's value or supply and demand; it does not establish a certain future price.[8] Technical indicators.
- Moving Average Convergence Divergence (MACD)
- MACD measures the difference between selected fast and slow moving averages, with a signal line and a histogram of the MACD-minus-signal difference.[26] MACD conditions.
- Relative Strength Index (RSI)
- RSI is Wilder's momentum oscillator comparing smoothed gains and losses on a scale from 0 to 100; a reference-level reading is not proof of a reversal.[25] RSI rules.
- Simple moving average (SMA)
- An SMA is the arithmetic mean of a selected data series over a specified number of observations, giving each observation equal weight.[33] Technical indicators.
- Technical analysis
- Technical analysis studies market observations such as price patterns, momentum and volume to formulate trading hypotheses rather than certain forecasts.[8] Technical indicators.
- Trading journal
- A trading journal records the intended setup, actions, outcomes and deviations so rule adherence can be reviewed separately from profit or loss; for an automated route, that includes whether each intended alert matched its processing record and broker trade.[11] Trading journal.
- Volume-weighted average price (VWAP)
- VWAP is sum(price × volume) divided by sum(volume) from a specified anchor, using the feed's actual supplied volume measure.[28] Technical indicators.
- Yield to maturity
- Yield to maturity is a fixed-income return measure based on holding a security to maturity under its calculation assumptions, not a general forecast for a trading strategy.[8] Trading metrics.
Worked examples: units, exposure and account values
Illustrative arithmetic, not a recommendation or trading results. These constructed examples preserve the useful numerical distinctions from the earlier Forex-term guides. Currency conversion, fees, credits and blocked amounts are excluded unless stated.
Scroll horizontally to read every column.
| Term | Working and meaning |
|---|---|
| Pip | EUR/USD from 1.1500 to 1.1501: (1.1501 − 1.1500)/0.0001 = 1 pip. A smaller quoted change can be a fractional pip. |
| Spread | EUR/USD bid 1.1000 and ask 1.1002: (1.1002 − 1.1000)/0.0001 = 2 pips. |
| Lot fractions | With an assumed 100,000-unit contract, 0.10 lot = 10,000 units and 0.01 lot = 1,000 units. Verify the broker's actual contract. |
| Simple leverage/margin relationship | 100,000 USD notional/100 = 1,000 USD margin at an assumed 100:1 ratio, before any other margin adjustments. The ratio is an input, not a recommendation or loss cap. |
| Planned stop distance | EUR/USD from 1.1000 to 1.0950 and GBP/USD from 1.3000 to 1.2950 each span 50 pips under a 0.0001 pip convention. Neither distance establishes the actual close price. |
| Planned target distance | EUR/USD from 1.1000 to 1.1050 spans 50 pips. USD/JPY from 110.00 to 109.50 spans 50 pips using a 0.01 pip convention, favourable to a short before costs. |
| Planned reward-to-risk | A 60-pip target distance/30-pip stop distance = 2, often written as risk:reward of 1:2. Realised average win/loss can differ. |
| Drawdown | (10,000 − 7,500)/10,000 × 100 = 25% from the stated peak in the chosen account-value series. |
| Balance and equity | A 10,000 USD deposit with no other booked activity leaves balance at 10,000 USD. Adding 500 USD floating profit gives 10,500 USD equity only under the stated no-other-adjustments assumption. |
Worked example: average each trade's own R-multiple
Illustratively, a 100 USD gain with initial risk of 50 USD is +2R. A 100 USD loss with initial risk of 200 USD is −0.5R. Their cash results sum to zero, but their average R-multiple is positive because their risk amounts differ.
Mean R = [(100/50) + (−100/200)] / 2 = (2 − 0.5)/2 = 0.75R
Normalise each trade before averaging. Dividing average cash result by average initial risk would give a different statistic. Neither calculation from two constructed trades establishes future expectancy.
Which definitions need extra care?
- Units: a pip, point, tick and lot are not interchangeable. Read the symbol's actual specification.
- Percentages: identify the denominator, observation period and treatment of breakevens. A drawdown percentage of initial capital differs from one measured against a running peak.
- Platform state: a Pine simulated position is not an MT5 position. An accepted request is not a deal, and stop activation is not a completed close.
- Product rules: margin, filling policies, costs and account settings vary. These definitions do not establish eligibility, regulatory status or a universal broker rule.
For executable PineConnector testing, follow the documented demo procedure. Before creating an alert, verify that every account sharing the chosen License ID is a demo account, then verify the actual outcome in each intended broker account.[11]
Frequently asked questions
What are the most important Forex terms to learn first?
Start with currency pair, bid, ask, spread, pip, lot, contract size, leverage and margin. Then distinguish an order, a fill and a position. Those terms establish the units, exposure and execution states needed to understand a rule without assuming that an instruction produced the intended trade.
What is the difference between a pip and a point?
A pip is a conventional Forex increment, commonly 0.0001 for many pairs or 0.01 for yen-quoted pairs. An MT5 point follows the symbol's quote precision, while tick size is the minimum tradable price step. Check the symbol specification because these values are not necessarily equal.
Does a stop loss mean the trade closed at that price?
A stop-loss level defines a trigger or protective instruction, not proof of a completed close at an exact price. Execution conditions, gaps and order type can affect the outcome. Verify the resulting deals and remaining position instead of inferring closure from the trigger alone.
Is a TradingView strategy position the same as my MT5 position?
A TradingView strategy position belongs to its broker emulator, while an MT5 position belongs to the receiving broker account. Their sizes, fills and exits can differ. Alert delivery and signal processing also remain separate checkpoints, so reconcile the intended action with actual broker orders, deals and positions.
Reviewed 25 September 2026. Facts were checked against the linked sources on that date. Nothing in this article was tested on a trading account and no code was compiled.
Related reading
- Trading mechanics library
- Trading metrics library
- Pine Script library
- Backtesting library
- Technical indicators library
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PineConnector executes the instructions you send it. It does not select trades, manage money, or hold funds. Trading carries risk, and past performance of any strategy does not indicate future results.
