M — Trading Terms Starting With M
Explore trading terms beginning with M, with clear definitions covering market structure, execution, risk, instruments, analysis, psychology, and performance concepts used by traders.
Trading terms beginning with M
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Margin
Margin is the amount of capital required to open and maintain a leveraged position. It acts as collateral but does not represent the full notional value controlled by the trade.
Read full definitionMargin Call
A margin call occurs when account equity falls below the broker’s required margin level. The trader may need to deposit funds, reduce exposure, or face forced liquidation.
Read full definitionMarket Capitalization
Market capitalization is the total market value of a company’s outstanding shares. It is calculated by multiplying current share price by the number of shares outstanding.
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A market order instructs a broker to execute immediately at the best available price. It prioritizes execution certainty but does not guarantee the final fill price.
Read full definitionMarket Sentiment
Market sentiment is the overall attitude of traders and investors toward an asset or market. It may be bullish, bearish, fearful, optimistic, neutral, or uncertain.
Read full definitionMarket Structure
Market structure describes the arrangement of highs, lows, trends, ranges, breakouts, and reversals in price movement. Traders use it to identify direction, invalidation, and important levels.
Read full definitionMean Reversion
Mean reversion is the idea that price, return, or another variable tends to move back toward an average after becoming unusually extended. It is used in range, statistical, and relative-value strategies.
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A moving average smooths price data over a selected period. Traders use it to study trend direction, support, resistance, momentum, and market regime.
Read full definitionMaximum Adverse Excursion
Maximum adverse excursion, or MAE, measures the greatest unrealized loss reached during a trade before it closed. It helps traders review stop placement, entry quality, and normal adverse movement.
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