Trading Glossary | Market Structure, Risk & Execution
NGF TRADING EDUCATION
Trading glossary: market structure, risk and execution terms.
A plain-English reference for concepts used across NGF indicators and the NGF Trading Library. Each definition is educational and links to a deeper guide where available.
Break of Structure (BOS)
A move beyond a relevant swing high or low that traders may use as evidence that price structure has continued. Learn about market structure.
Market Structure Shift (MSS)
A change in the sequence or behavior of price structure that can suggest momentum or directional control is changing. It is context, not certainty.
Liquidity
The ability to buy or sell without causing an unusually large price movement. Traders also use the word for areas where many orders may be concentrated. Read the liquidity guide.
Liquidity sweep
A price move through a prior high, low or other watched level before price reacts or continues. A sweep alone is not a complete trade setup. Read about liquidity sweeps.
Fair Value Gap (FVG)
A price imbalance identified across a sequence of candles. Traders may monitor it as an area of interest, but price is not required to revisit or respect it. Read the FVG guide.
Order block
A price area some traders associate with institutional buying or selling activity. Definitions differ, so the term should be used with clear rules. Read the order-block guide.
Higher-timeframe bias
A directional or contextual view taken from a timeframe above the execution chart. It can reduce noise but does not guarantee the next move. Read the HTF guide.
Confirmation
Additional evidence used before acting, such as structure, location, volume or multi-timeframe alignment. More confirmation can improve selectivity but cannot remove risk. Read the confirmation guide.
R-multiple
A way to express a trading result relative to initial risk. A +2R result is twice the amount defined as 1R; a -1R result loses the original risk amount. Read the R-multiple guide.
Risk-to-reward ratio
The relationship between the amount at risk and the potential reward. It should be considered together with win rate, costs and execution quality. Compare win rate and risk-to-reward.
Drawdown
The decline from a previous account or strategy peak to a later low. Drawdown describes loss depth and is important when evaluating risk. Read the drawdown guide.
Slippage
The difference between an expected execution price and the actual filled price. It can increase around volatility or low liquidity. Read the slippage guide.
Bid-ask spread
The difference between the highest bid and lowest offer. The spread is a trading cost and can widen in less-liquid conditions. Read the spread guide.
Break-even trade
A trade closed near its entry price before fees and slippage. It is not automatically a win, even when price reached an earlier partial target. Read the break-even guide.
Trading expectancy
The average result a process is expected to produce per trade based on wins, losses and their sizes. Positive expectancy in historical data does not guarantee future profit. Read the expectancy guide.
These definitions are educational and simplified. Trading involves risk, and NGF does not provide personalized financial advice.