Reward risk ratio is another trading tool that can help a trader determine whether the risk they are taking with a certain trade is worth all of the potential winnings. in combinations with win rate can be one of the most important trading tools in the market.

A win rate is a ratio of your trading win to your trading losses. The higher is the ration, the more wins you have. Win rate can also be used as a trading tool that defines how many traders have gone out of a trade with profits rather than losses. Works the best together with reward-risk ratio.

A deal slip is an accurate record of all of the conducted forex trades in a certain span of time. Different jurisdictions and regulations ask for the deals slips for different amounts of time. Although the term goes mainly for forex trading, it can also be used in other segment of the market like stocks trading, bonds trading and others.

It goes like this – the situation in the market influences every trade that is put down for a certain direction. And that is quite common that the situation in the market is changing rapidly. That is where one has to adapt to the new situation and look for the new trading scenario that is going to be completely different from the previous variants of the trades.

Trading scenario can’t be developed beforehand and has to be made up and changed on the spot.

Liquidity is a term that describes the speed with which the asset can be sold or bought with the current price in a market without its price being affected by the selling-buying process. It also refers to the speed with which the market itself allows the assets to be bought and sold without the change in price.