A comprehensive glossary of 107 stock market terms, trading jargon, and financial definitions. Perfect for beginners and experienced traders alike.
The highest price a buyer is willing to pay for a security.
The difference between the bid price and ask price. A measure of market liquidity.
A three-leg order with entry, target, and stop loss placed simultaneously.
A market condition where prices are rising or expected to rise.
A market condition where prices are falling or expected to fall, typically 20% or more decline.
When price moves above resistance or below support with increased volume.
When price falls below a support level, often signaling further decline.
The net asset value of a company - total assets minus total liabilities.
Volatility bands placed above and below a moving average.
Bombay Stock Exchange - Asia's oldest stock exchange.
NSE index tracking the performance of banking sector stocks.
Free shares issued to existing shareholders from company reserves.
An intraday order with a compulsory stop loss, offering higher leverage.
A contract giving the buyer the right to buy an asset at a specified price within a specific time.
A decline of 10% or more in the price of a security from its recent high.
A period when prices move sideways within a defined range.
Trading halt triggered when an index or stock moves beyond specified limits.
A chart type showing open, high, low, and close prices for a period.
The rate of change of option price with respect to changes in the underlying asset's price.
Total debt divided by shareholder equity, measuring financial leverage.
Annual dividend per share divided by stock price, expressed as percentage.
A candlestick pattern where open and close prices are nearly equal, signaling indecision.
An account that holds securities in electronic form.
The peak-to-trough decline in account value before a new high is reached.
The date on which an options or futures contract becomes void.
Earnings Per Share - company's profit divided by outstanding shares.
A two-candle reversal pattern where the second candle completely engulfs the first.
Exponential Moving Average - gives more weight to recent prices.
The date on or after which a stock trades without the right to receive a dividend.
The average amount you can expect to win or lose per trade.
A standardized agreement to buy or sell an asset at a predetermined price on a future date.
The nominal value of a share as stated by the company, used for accounting.
The portion of shares available for public trading, excluding promoter holdings.
Foreign Institutional Investors and Domestic Institutional Investors.
Horizontal lines indicating potential support/resistance at key Fibonacci levels.
Follow-on Public Offering - additional shares issued by an already listed company.
Buying and selling securities within the same trading day, closing all positions before market close.
The difference between the current price of the underlying asset and the strike price of an option.
An option with intrinsic value - calls when price > strike, puts when price < strike.
The market's expectation of future volatility, derived from option prices.
Initial Public Offering - when a company first sells shares to the public.
An order to buy or sell a security at a specific price or better.
Buying a security with the expectation that its price will rise.
Using borrowed capital to increase the potential return of an investment.
The ease with which a security can be bought or sold without affecting its price.
The minimum quantity of shares in a futures or options contract.
The minimum price a stock can fall to in a single trading session.
Long Term Capital Gains - profits from selling securities held for more than 12 months.
An order to buy or sell a security immediately at the best available price.
Trading with borrowed funds from the broker, using securities as collateral.
Daily settlement of gains and losses in futures positions based on closing prices.
The total market value of a company's outstanding shares (share price × shares outstanding).
An indicator that smooths price data by calculating the average over a specified period.
Moving Average Convergence Divergence - trend-following momentum indicator.
A trading style that holds positions for weeks to months based on longer-term trends.
A contract giving the buyer the right to sell an asset at a specified price within a specific time.
The price paid by the option buyer to the option seller for the contract.
Price-to-Earnings ratio - stock price divided by earnings per share.
Price-to-Book ratio - stock price divided by book value per share.
The percentage of shares held by company promoters and founders.
Support and resistance levels calculated from previous day's high, low, and close.
A period of sustained increases in stock prices.
Return on Equity - net income divided by shareholder equity, measuring profitability.
Return on Capital Employed - measures how efficiently a company uses its capital.
A price level where selling pressure is strong enough to prevent further rise.
Relative Strength Index - momentum indicator measuring speed and change of price movements.
The date set by a company to determine which shareholders are eligible for dividends.
The ratio between potential loss and potential profit on a trade.
An order to sell a security when it reaches a certain price, used to limit losses.
A trading style that holds positions for days to weeks to profit from price swings.
A trading strategy that profits from small price changes, making many trades per day.
Selling borrowed securities hoping to buy them back at a lower price.
The price at which an option can be exercised to buy or sell the underlying asset.
A bearish reversal candlestick with a small body and long upper shadow.
A price level where buying interest is strong enough to prevent further decline.
Simple Moving Average - the arithmetic mean of prices over a specified period.
A trend-following indicator that uses ATR to plot support and resistance levels.
Securities and Exchange Board of India - the regulatory body for securities markets.
BSE's benchmark index comprising 30 large-cap stocks.
Dividing existing shares into multiple shares, reducing price proportionally.
Short Term Capital Gains - profits from selling securities held for less than 12 months.
Securities Transaction Tax - tax levied on buying and selling securities.
Risk-adjusted return measuring excess return per unit of risk.
A stop order that moves with the price, maintaining a set distance from the market price.
The portion of an option's premium that exceeds its intrinsic value, based on time until expiry.
The rate at which an option loses value as time passes, also known as time decay.
A line connecting successive highs or lows to identify trend direction.
An account used to buy and sell securities in the stock market.
Trade settlement occurring one business day after the transaction date.
A measure of how much a security's price fluctuates over time.
The number of shares or contracts traded in a security during a given period.
The sensitivity of an option's price to changes in implied volatility.
Volume Weighted Average Price - average price weighted by volume throughout the day.
Understanding trading terminology is the first step to becoming a successful trader. This glossary covers essential terms used in:
Browse alphabetically or use the quick navigation at the top. Each term includes a clear definition and links to related terms for deeper learning. Bookmark this page for quick reference during your trading sessions.
