H — Trading Terms Starting With H
Explore trading terms beginning with H, with clear definitions covering market structure, execution, risk, instruments, analysis, psychology, and performance concepts used by traders.
Trading terms beginning with H
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Hammer Candlestick
A hammer is a candlestick pattern with a small real body and a long lower wick. It may signal rejection of lower prices, particularly after a decline and when followed by confirmation.
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A hanging man is a candlestick pattern with a small body and long lower wick that appears after an uptrend. It may warn that selling pressure is increasing, although confirmation is required.
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A hedge is a position taken to reduce the risk of another trade, investment, or portfolio. It may use options, futures, correlated assets, or an opposite exposure.
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Hedging is the process of opening or maintaining positions designed to offset part of an existing risk. It can reduce drawdown but also adds cost, complexity, and basis risk.
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High-frequency trading uses automated systems, low-latency infrastructure, and very fast execution to place large numbers of trades. Strategies often rely on small price differences and market microstructure.
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The high of day is the highest price reached by an asset during the current trading session. Traders often use it as resistance, a breakout level, or a momentum reference.
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Historical volatility measures how much an asset’s price has moved over a past period. It is usually calculated from historical returns and annualized for comparison.
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Holding period is the amount of time a trade or investment remains open. It may range from seconds in high-frequency trading to years in long-term investing.
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A head and shoulders pattern is a chart formation with three peaks, where the middle peak is highest. It is commonly interpreted as a possible bearish reversal after an uptrend.
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