P — Trading Terms Starting With P
Explore trading terms beginning with P, with clear definitions covering market structure, execution, risk, instruments, analysis, psychology, and performance concepts used by traders.
Trading terms beginning with P
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Paper Trading
Paper trading is simulated trading using virtual money. It allows traders to test strategies, platforms, and execution rules without risking real capital.
Read full definitionParabolic SAR
Parabolic SAR is a trend-following indicator that places dots above or below price. Traders use it to study trend direction, trailing stops, and possible reversals.
Read full definitionPartial Fill
A partial fill occurs when only part of an order is executed because insufficient quantity is available at the requested price.
Read full definitionPartial Profit
A partial profit is realized by closing part of an open position while keeping the remaining quantity active. It can reduce exposure but may also lower average reward.
Read full definitionPip
A pip is a standard unit of price movement in forex. For many currency pairs, one pip equals 0.0001, though conventions differ for yen pairs and some instruments.
Read full definitionPosition Size
Position size is the number of shares, lots, contracts, or units included in a trade. It should normally be calculated from account risk and stop distance.
Read full definitionPrice Action
Price action is the study of raw market movement, including candles, structure, support, resistance, momentum, and breakouts, without depending entirely on indicators.
Read full definitionProfit Factor
Profit factor is calculated by dividing total gross profit by total gross loss. It shows how much profit was generated for each unit of loss.
Read full definitionPullback
A pullback is a temporary move against the current trend. Traders may use it to enter continuation trades at a better price or to manage existing positions.
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