Market Glossary
The glossary explains market vocabulary in original plain English: Asset, Exchange, Market Order, Limit Order, Volatility, Liquidity, Diversification, Portfolio, Risk, Return, Stop-Loss, Market Capitalization.
For educational purposes only. This platform does not provide financial advice, brokerage services, or real-money trading. All simulations use virtual funds.
Asset
Something with economic value that can be studied, owned, or represented in a portfolio.
Exchange
A structured marketplace where eligible orders are organized and matched under rules.
Market Order
An instruction that focuses on completing a transaction rather than controlling the exact price.
Limit Order
An instruction that sets a chosen price boundary for a hypothetical transaction.
Volatility
The degree to which prices move over time, sometimes gradually and sometimes sharply.
Liquidity
The ease with which an asset can be exchanged without a large price impact.
Diversification
The practice of spreading exposure instead of relying on one idea or category.
Portfolio
A collection of holdings, cash allocation, and learning decisions tracked together.
Risk
The possibility that an outcome differs from what was expected, including financial loss.
Return
The gain or loss measured over a period, before or after costs depending on context.
Stop-Loss
A preplanned risk concept that defines when a position idea should be reassessed or closed.
Market Capitalization
A common size measure calculated from a company share price and share count.
