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Glossary.

The terms you will hear on our streams and in the research library, in plain English.

NQ: The E-mini Nasdaq-100 futures contract on CME. One point is worth $20.
MNQ: The Micro E-mini Nasdaq-100 contract: one tenth of NQ. One point is worth $2, so you can size in smaller steps.
Tick: The smallest price step: 0.25 points on NQ and MNQ ($5 on NQ, $0.50 on MNQ).
Session: A block of trading hours. The New York session (9:30 AM–4:00 PM ET) usually has the most volume.
Entry, stop loss, take profit: The three levels of a trade plan: where you get in, where you get out if wrong, and where you take profit.
Risk (R): The money lost if the stop is hit. A trade risking $100 that makes $200 made 2R.
Risk-to-reward (R:R): Potential profit compared with risk. 1:2 means risking $1 to make $2. It says nothing about how often you win.
Win rate: The share of trades that win. A low win rate can still work with a good R:R, and a high one can still lose money.
Expectancy: What a trade is worth on average after wins and losses: (win rate × average win) − (loss rate × average loss).
Drawdown: The drop from an account's peak to a later low. The number that decides whether a prop-firm account survives.
Trailing drawdown: A prop-firm loss limit that rises as your account makes new highs. End-of-day versions update at the close; intraday versions follow open profit and are stricter.
Daily loss limit: A cap on how much you may lose in one day. Hit it and trading stops for the day, or the account fails, depending on the firm.
Evaluation / challenge: The test a prop firm sells: reach a profit target without breaking the loss rules to get a funded account.
Slippage: The difference between the price you expected and the price you got. Worse in fast markets and around news.
Commission: The fee per contract charged by the broker or platform, usually per side (entry and exit).
Liquidity: How easily you can trade without moving the price. Thin markets mean wider spreads and more slippage.
Economic calendar: The schedule of data releases (CPI, jobs report, FOMC). These can move NQ sharply in seconds.
Backtest: Testing rules on past data. Useful for learning, but it ignores real fills and pressure, and can be overfitted.
Overtrading: Taking trades outside your plan, usually out of boredom, impatience or the urge to win back a loss.
No setup, no trade: Our rule: if the conditions in your written plan are not met, you do nothing.

For information and education only. Not financial advice.