About Trading Defined
An independent reference that explains trading the way a good teacher would: simply first, precisely after.
How every article is built
Each entry follows the same learning sequence, so you always know where to find what you need:
- A one-sentence definition that someone with no trading experience can understand.
- A plain-language explanation using everyday comparisons before any jargon.
- How it works, step by step, in the order things actually happen.
- Worked examples with real numbers, including what happens when the trade goes wrong.
- Diagrams that teach: every figure shows a relationship you would otherwise have to imagine.
- Deeper levels — beginner, intermediate, advanced — that you can open when you are ready.
- Common mistakes, a short self-check and the key points to remember.
Editorial standards
Examples state their assumptions. We separate gross results (the price difference alone) from net results (after fees, interest and other costs), because confusing the two is one of the most expensive beginner mistakes. Where rules differ between countries or brokers, we say so, and where we cite a specific rule we name the jurisdiction.
We do not pad articles with filler to reach a word count, and we do not present a term as covered until its full article is written. Terms whose articles are still in preparation are clearly labelled and show only their definition.
Sources and originality
Every article is written from scratch in our own words. We do not copy or paraphrase other publishers’ text. Instead, every rule, legal requirement or specific figure is checked against a primary source and marked with a numbered citation, which links to the full reference list at the end of the article.
- Primary sources first: regulators and the rules themselves, such as the SEC and Investor.gov, FINRA, the CFTC, ESMA and the text of US federal regulations.
- Established references second: broker and exchange education (for example CME Group, Charles Schwab and Fidelity) for market conventions that no regulator defines.
- Read more elsewhere: each entry also links to well-known reference sites such as Investopedia, so you can compare explanations. Where our sister site Trading Metrics, which has the same owner, covers the topic, it is listed first. Those links are suggestions for further study, not the source of our text.
- Checked dates: every reference shows when its link was last confirmed. Rules change; entries that depend on a specific jurisdiction say so.
Trading Metrics is our sister site and shares our ownership. Apart from it, we are not affiliated with, sponsored by or endorsed by any organisation we link to. All trademarks belong to their respective owners. If you believe we have used your work without credit or permission, or made a mistake, please see copyright, takedown and attribution requests.
What this site is not
This is an educational resource. Nothing here is a recommendation to buy or sell any asset, and nothing here is investment, financial, legal or tax advice. Trading — particularly with leverage or short positions — can lose more money than you put in.
Where to start
If you are new, begin with how to read a trading chart, then long positions and short selling, or follow a learning path. Press / on any page to search.