$1 trading room
centre strip
daily videos
Your Name
First name or nickname
Your Email Address
We will not share your email address

Delivered straight to your inbox.

Be kept up to date with full profit potential and information about the Emini S&P market; without all the fluff!

Watch how Just Eminis day trading methods are used.

Trading Glossary and Terms

We are always adding to our glossary page. Your input is always welcome.

Analysis paralysis - Too many studies and indicators will lead to indecision. This often happens to traders who have been around the block a few times. Over complicated trading makes entry extremely difficult. Keep it simple.

Austin - Austin is short for Austin Passamonte; a Professional Trader who once held a very informative webinar. He explains a simple and easy to understand price action tool that has become highly traded. We now call this leading indicator, 'The Austin'.

Bear (-ish) - A falling market. Price has been moving in a downward direction for a period of time. Opposite to Bullish.

Broker - Is somebody who handles your trade. He/she charges a commission for their services. Normally, there isn't a need to call your broker to place a trade. E-mini futures is fully electronic. Your broker should only be phoned in case of an electronic breakdown for which you need to exit the trade immediately. A good broker usually doesn't let the phone ring more than once.

Bull (-ish) - A rising market. Price has been moving in an upward direction for a period of time. Opposite to Bearish.

Buy (-ing) - Market going upwards. When we anticipate price rising, we 'buy' into the market. Also known as 'going long'. The opposite would be to 'sell' or 'go short' for a market moving downwards.

Cash Market - Trading hours for the Chicago Mercantile Exchange (CME). This is between 9:30am to 4:15pm Monday to Friday (excluding public holidays).

Contract - Also known as a Futures Contract. It's simply an agreement between two traders. Trader number one thinks price will rise and trader number two says it will fall. So the trade is now a contract for which your broker controls. Your broker can handle multiple contracts on any one trade; provided you have sufficient funds in your trading account.

DOM - Short for 'Depth of Market'. Commonly pronounced as 'DOME'. This is the most common execution platform used by futures traders. Displayed in a price ladder format, it makes for easy order placement.

Economic News - People react to news. Found on websites such as Bloomberg and Barrons to name a few. The economic news can affect financial markets worldwide. We need to be aware of the news items which hold great importance so we can anticipate price movement.

Eminis - Electronic Futures traded online. The entry requirement is a lot less than it's main instrument. The e-mini S&P requires a $500 margin. Where as the well known S&P 500 instrument has an entry of close to $30,000 as a margin.

ES - The symbol used for the e-mini S&P. Every tradable instrument has its own unique symbol.

Execution - When the order fills and we are now in the trade.

Fibonacci - In brief, Leonardo Fibonacci was an Italian mathematician, considered by some "the most talented western mathematician of the Middle Ages." He found a golden ratio (approximately 1 : 1.618 or 0.618 : 1). When applied to price charts, these levels become targets. A very good leading indicator.

Fill - Price meets the order and the agreement is made. We are now in the market. The trade usually executes when price moves through the order. Also see 'Magic Fill'.

FOMC - Short for 'Federal Open Market Committee'. A major meeting held eight times a year, approximately once every six weeks. It is the biggest, organized news event which moves price erratically. It's strongly advised never to trade during FOMC. The cowboy traders see opportunity, the smart traders stay out.

Front Running - Price falls slightly of a target. Usually a method used by the professionals to either entry or take profits before the general retail trader.

Gap Fill - A target reached today of yesterdays closing price

Handles - An floor traders term for a full point movement. eg: Ten Handles would be a ten point move in price.

Instrument - The market we are using. Also known as the trading instrument. The e-mini S&P is our trading instrument.

Limit Order - A type of order entry. This is used when we require a price to reach a certain level, then turn back in the direction it came from. It is very useful when a particular price is required for a fill.

Long - Market going upwards. When we anticipate price rising, we enter 'long' into the market. Also known as 'buy' into the market. The opposite is 'short' or 'sell' for a market moving downwards.

Magic Fill - Similar to being filled in the market, price only needs to touch the order for an execution. This is a rare occurrence and is known to be more frequent on professional platforms. This is very favorable when waiting on a limit order.

Participation - When a group of traders take action at a designated level.

Pivot - This is a level calculated from yesterdays price action. The actual pivot line is the sum of yesterdays high, low and closing price, divided by 3.

Point (ES) - One full point on the e-mini S&P (ES) comprises of four ticks. Each tick movement has a price of $12.50. Therefore, a full point movement would be a total of $50.00 ($12.50 X 4 ticks). See 'tick'.

Pre-Market - After hours price action. From the cash market close to the following opening time.

Resistance - The opposite of support. This is a level above the current price which may stop (or slow) its momentum when reached. There are a group of traders participating at this level. Reacting when this level is reached.

Roll Over - Each contract lasts for three months. There is a cross-over point between the old contract to the new contract. This is the roll over period.

Sell (-ing) - Market going downwards. When we anticipate price falling, we 'sell' into the market. Also known as 'shorting'. The opposite would be to 'buy' or 'go long' for a market moving upwards.

Stop Loss - Known as a physical stop loss, it limits your maximum loss in any trade. We must trade with a stop loss otherwise we have unlimited, unsustainable losses.

Short - Market going downwards. When we anticipate price falling, we enter 'short' into the market. Also known as 'sell' into the market. The opposite is 'long' or 'buy' for a market moving upwards.

Support - The opposite of resistance. This is a level below the current price which may stop (or slow) its momentum when reached. There are a group of traders participating at this level. Reacting when this level is reached.

Targets - A price level where we exit a trade so we can lock in any unrealised gains.

Tick (ES) - The minimum increment in movement. One tick is $12.50. There are four ticks in one point.

Tick Chart - Is a chart different from a time chart. As an example; a time chart displays a candle each minute, for a one minute chart. A tick chart displays a candle on how many transactions have been accepted. A 377 tick chart will create a new candle everytime 377 transactions have taken place in the market. This is a great chart during high volume, high volatilty times in the market.

Trend - A sustained direction for a length of time. There can be pull backs opposing the main direction, although price tends to continue with its original trend.

Trend Break - When a clear trend change has been recognised. This would require a pre-determined level to be broken. If this level can not be held and defended, we can call this a trend break.

Unrealized Gains/Losses - Whilst in an open position, we have acquired either unrealized gains or losses. This is the amount the market has travelled from our original entry. Until the time we physically close out the trade, we are yet to bank the profits from a gain or accept the withdraw of a loss.

Yesterdays Close - Where price ends at the 4:15pm close of the previous trading day. Many traders use the 4:00pm close of the New York Stock Exchange also. Both price levels hold importance to some degree. See 'Gap Fill'.