Letter W

W — Trading Terms Starting With W

Explore trading terms beginning with W, with clear definitions covering market structure, execution, risk, instruments, analysis, psychology, and performance concepts used by traders.

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Trading terms beginning with W

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W

Watchlist

A watchlist is a selected group of assets monitored for possible trading or investment opportunities. It helps traders focus on instruments that match their strategy and market conditions.

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Weighted Average Price

Weighted average price calculates an average by giving different importance to each price based on quantity or volume. It is commonly used for multiple entries, exits, and transaction analysis.

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Whipsaw

A whipsaw occurs when price moves in one direction and then quickly reverses, often triggering entries and stops on both sides. It is common in choppy or news-driven conditions.

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Wick

A wick is the thin part of a candlestick showing the highest and lowest prices reached outside the candle body. Wicks can indicate rejection, volatility, and intraperiod movement.

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Win Rate

Win rate is the percentage of completed trades that produced a net profit. It should be reviewed together with average winner, average loser, expectancy, and costs.

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Winning Streak

A winning streak is a sequence of consecutive profitable trades. It can increase confidence but may also lead to overconfidence, larger size, and rule-breaking.

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Working Order

A working order is an active order that has been submitted but has not yet been fully executed, cancelled, or expired. It remains exposed to future market movement.

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Wash Sale

A wash sale occurs when an investor sells an asset at a loss and repurchases the same or a substantially identical asset within a restricted period under applicable tax rules.

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Warrant

A warrant is a security that gives the holder the right to buy company shares at a specified price before expiry. Warrants are often issued by companies and may dilute existing shareholders when exercised.

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