Glossary
What is Premium / discount
Splitting a range in half: the upper half is premium (expensive), the lower half discount (cheap). Longs are sought in discount, shorts in premium.
How it works
Above the middle is premium, below it is discount.
Example
BTC range on 20.09.2024: from the 62 606 sweep to the 63 850 high, midpoint 63 228. A long from 62 960 is below the midpoint — in discount.
Common mistake
Buying in premium after an impulse: the target is close, the stop far — the RR is gone.
Read next
Related terms
Frequently asked questions
- Where can I learn Premium / discount step by step?
- In the Trading OS Academy: “Anatomy of an entry”, “A zone should improve risk, not the decision”.
- What is Premium / discount related to?
- Range; Planned R:R; Entry model.
Plan versus outcome — for every trade
The Trading OS journal keeps the planned RR and the actual R of each trade side by side and computes expectancy from real results.
No sign-up — the journal runs in your browser; an account is only needed for sync.