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Algorithmic & Prop Trading Glossary

Clear, math-backed definitions of quantitative risk metrics, MetaTrader algorithmic parameters, and prop firm evaluation rules.

Market Mechanics

Pip Value

The monetary gain or loss generated by a one-pip price movement for a specified lot volume in a currency pair or commodity.

Market Mechanics

Slippage

The difference between the expected execution price of an order and the actual price at which the order is filled by the broker.

Market Mechanics

Forex Leverage

The ratio of borrowed funds provided by a broker that enables a trader to control larger market positions with a smaller upfront deposit.

Market Mechanics

Average Daily Range (ADR)

The average number of pips or price distance an asset moves between its daily high and daily low over a specified period (e.g. 14 or 20 days).

Market Mechanics

Cryptocurrency Trading

The act of speculating on cryptocurrency price movements via a CFD trading account, or buying and selling the underlying coins via an exchange.

Market Mechanics

Crypto Market Volatility

The rate at which the price of a cryptocurrency increases or decreases over a given set of returns.

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