Future Glossary
Glossary
A setup with entry + stop loss + take profit placed together.
Broker fees per contract; it adds up and should be included in planning.
What one contract represents (varies by symbol, like ES vs MES).
How far your account or trade is down from a recent high (realized or unrealized).
Extended Trading Hours (overnight session outside the main hours).
An agreement to buy or sell something at a set price on a set date, traded on an exchange.
Control a larger position with a smaller deposit; magnifies gains and losses.
An order that fills only at your price or better.
How easily you can buy/sell without moving price much.
Buying because you expect price to rise.
The deposit required to hold a futures position (not the full contract value).
An order to enter or exit immediately at the best available price.
A smaller version of a standard contract with smaller tick value and risk.
A scheduled release (CPI, jobs, FOMC, etc.) that can spike volatility.
Practice trading with simulated money to learn execution and rules.
A one‑unit move in price (points are made up of ticks).
How many contracts you trade (your exposure).
The maximum loss you accept on one trade, defined before entry.
A comparison of what you risk vs what you aim to make on a trade.
Regular Trading Hours (the main session for many U.S. futures markets).
Selling because you expect price to fall.
When your fill is worse than expected due to speed or liquidity.
The gap between the best bid and best ask price.
An order that exits a trade if price goes against you, capping the loss.
A fast move that triggers many stops near a level before reversing.
An order that locks a gain by exiting when price reaches your target.
The smallest price step a futures contract can move.
How much money one tick is worth for a specific contract.
A stop that moves with price to protect profits as a trade works.
How much price moves around; higher volatility usually means larger swings.