Futures Trading Glossary
Key terms and concepts for futures day traders, prop firm traders, and anyone using copy trading to scale their accounts.
Copy Trading
A method of replicating trades from one account (the leader) to one or more follower accounts automatically in real time.
Fair Value Gap (FVG)
A three-candle price pattern where aggressive momentum leaves an imbalance — a gap between the high of the first candle and the low of the third candle that price tends to revisit.
Order Block
A price zone where institutional participants accumulated or distributed positions, often forming near swing highs and lows before significant moves.
Prop Firm Evaluation
A trading test where you must hit a profit target while staying within drawdown limits to earn access to a funded trading account with real capital.
Trade Copier
Software that automatically replicates trades from a source account to one or more destination accounts in real time.
Trailing Drawdown
A risk limit that moves upward as your account reaches new equity highs, reducing the maximum allowable loss from the peak balance.