Crypto scalping glossary: every term in plain English
This crypto scalping glossary explains the words you will meet on a futures chart. Each term gets a short, plain answer, so you can get back to trading quickly.
Also, the terms are grouped by topic. In addition, many of them link to a full guide when you want more depth.
- This crypto scalping glossary explains each term in one or two short lines.
- Terms are grouped by topic, so you can find related ideas together.
- Many terms link to a full guide, so you can learn more when you need it.
- Also, bookmark this page while you learn the terminal.
Crypto scalping glossary: orders and execution
- Market order: buys or sells right away at the best price, so it is fast but can slip.
- Limit order: waits at your price, so it may not fill when price runs away.
- Stop loss: an order that closes a losing trade at a set price, because the idea was wrong. See the stop order overview.
- Slippage: the gap between your planned price and your fill, especially when markets move fast.
- Break-even: moving the stop to entry, so the trade can no longer lose.
- Trailing stop: a stop that follows price toward profit. Our Bybit trailing stop bot guide explains it.

Futures and leverage
- Perpetual futures: contracts with no expiry, so you can hold them as long as you like. See perpetual futures.
- Leverage: trading a bigger position than your margin, so profits and losses both grow.
- Isolated margin: each trade uses only its own margin, so one loss cannot drain the account.
- Liquidation: the exchange closes your trade when margin runs out. Also see crypto liquidation levels.
- Funding rate: a small payment between longs and shorts, so the futures price stays near spot.
- Open interest: the number of open futures positions. When it rises with price, new money is joining.
Order flow terms
- Order flow: the stream of orders behind each candle. Our order flow guide explains it.
- Delta: buy volume minus sell volume, so it shows which side pushed harder.
- Footprint: a view of buying and selling at each price inside a candle, so you see where each side was strongest.
- Order book: the waiting limit orders above and below price.
- Absorption: heavy orders hit, yet price does not move, because a big player takes the other side.
- Stop hunt: a quick move into a cluster of stops, often followed by a turn.
Trading Armour draws the entry, stop loss and two take profit targets on every signal. Also, it runs in your browser for Bybit and Binance futures.
Chart and indicator terms
- ATR: the average size of recent candles, so it helps set stop distance.
- VWAP: the average price weighted by volume, so many traders use it as a fair-value line.
- FVG: a fair value gap, where price moved so fast it left a hole. See the fair value gap scanner.
- Repainting: when an indicator changes past signals. Therefore, look for closed-candle tools.
- Heikin Ashi: smoothed candles that make trends easier to see, although prices differ from real candles.
- VPVR: volume at each price level over the visible chart, so it shows busy and empty zones.
Money and risk terms
- Risk per trade: the amount you lose if the stop hits, usually 0.5% to 1% of the account.
- R multiple: a result measured in units of risk, so +2R means you won twice your risk.
- Reward to risk: the target distance compared with the stop distance, so 2:1 means the target is twice the stop.
- Drawdown: the drop from your highest balance, which shows how deep a losing run went.
- Daily loss limit: a cap on losses for the day, after which you stop trading.
- Position size: how big the trade is. Use the position size calculator to set it.
Trading Armour terms in this crypto scalping glossary
- Smart Signals: closed-candle BUY and SELL signals, each with a stop and two targets.
- AI verdict: one BUY, SELL or AVOID answer from 20+ AI agents. See AI crypto trading agents.
- PROP SCAN: a scanner for your prop firm coin list.
- SIMILAR: finds the current setup on other coins, and shows what happened next.
- Beginner view: a clean chart, so new traders see only the basics.
Finally, when you are ready to put these terms to work, start with our crypto scalping strategy for beginners.
Crypto scalping glossary FAQ
What is the most important term for a new scalper?
Risk per trade. It decides how much each loss costs, so it decides how long your account survives while you learn.
What is the difference between delta and volume?
Volume counts all trades. Delta subtracts sells from buys, so it shows which side was more aggressive.
What does repainting mean?
It means an indicator changes its past signals. As a result, its history looks better than anything you could trade live.
- Scalping strategy for beginnersA simple daily routine, so you trade with fixed risk and clear exits.
- Crypto order flow indicatorRead big orders, delta and the order book, so you see who is pushing price.
- Crypto liquidation levelsWhere leveraged traders get forced out, and why price is drawn there.
- Non repaint crypto indicatorHow to spot repainting, and why closed-candle signals keep your history honest.