Glossary · Risk & money management
Flash crash
A sudden, very fast price collapse and rebound, usually in thin liquidity, that can blow through stop losses.
Related terms
Liquidity
How easily a currency can be bought or sold without moving the…
Slippage
The difference between the price you expected and the price you…
Black swan
A rare, unpredictable event with extreme market impact, such as…
Backtesting
Testing a strategy on historical data to see how it would have…
Correlation
A measure from −1 to +1 of how closely two pairs move together.…
Drawdown
The fall from an account’s peak to its lowest point before a new…