Glossary

This glossary provides quick-reference definitions for technical terms used throughout the Market Mechanics book. Market terminology can feel dense on first encounter—exchanges, clearing firms, order types, and regulatory concepts create a language barrier for new traders. Rather than memorizing definitions, reference this glossary as you encounter unfamiliar terms, then dive deeper into the relevant article for fuller context. Many terms in financial markets have both technical definitions and colloquial usage; here we emphasize technical accuracy while noting where casual usage differs.

The glossary is organized alphabetically to support quick lookup. When a definition references another glossary term, that term appears in bold for easy cross-reference. Understanding market terminology is foundational to understanding how markets actually work—precision in language reveals precision in structure. Many market inefficiencies stem from retail traders not fully understanding the technical meaning of terms used by professionals. A "limit order" is not the same as a "stop order," and conflating them can be costly. This glossary aims to eliminate that confusion through clear, precise definitions that serve both beginners and experienced traders.

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📄️ Glossary

Market mechanics glossary — order book, NBBO, dark pool, PFOF, T+1, margin call, short squeeze, SIPC and 40+ more terms defined.