Glossary / Terminology


What a drag!!!
Indian Exchange

NSE National Stock Exchange
BSE Bombay Stock Exchange
MCX Multi Commodity Exchange of India Limited
NCDEX National Commodity & Derivatives Exchange Limited
MSE Madras Stock Exchange
CSE Coimbatore Stock Exchange [Not active presently]

Market profile

IBH Initial Balance High
IBL Initial Balance Low
UA Unfinished Auction


BO Bracket Orders
CO Cover Orders
SL-L Stop Loss - Limit orders
SL-M Stop Loss - Market Orders
MIS Margin Intraday Square off
Last edited:


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NR = Narrow Range

ATR = Average True Range

RTD = Real Time Datafeed

API = Application Program Interface

TWAP = Time Weighted Average Price (an execution strategy which trades in slices of Order Quantity at regular intervals of time as specified by user)
Terminology collection so far is given below in alphabetical order. Requesting the members to continue their contributions, much appreciated.

Terminology	:	Explanation
ADX	:	Average directional index
AFL 	:	Amibroker Formula Language
AMA	:	adaptive moving average
API	:	Application Program Interface
ATM	:	At the Money
ATP	:	Average traded price
ATR	:	Average True Range (Average Traded Range)
Averaging Down	:	This is when an investor buys more of a stock as the price goes down. This makes it so your average purchase price decreases.
BD/BO	:	breakdown/breakout
Bear Market	:	This is trading talk for the stock market being in a down trend, or a period of falling stock prices. This is the opposite of a bull market.
Beta	:	A measurement of the relationship between the price of a stock and the movement of the whole market. If stock XYZ has a beta of 1.5, that means that for every 1 point move in the market, stock XYZ moves 1.5 points and vice versa.
Blue Chip Stocks	:	These are the large, industry leading companies. They offer a stable record of significant dividend payments and have a reputation of sound fiscal management. The expression is thought to have been derived from blue gambling chips, which is the highest denomination of chips used in casinos.
BNF	:	Banknifty future
BOF	:	breakout failure.
Broker	:	A person who buys or sells an investment for you in exchange for a fee (a commission).
BSE	:	Bombay Stock Exchange
Bull Market	:	This is when the stock market as a whole is in a prolonged period of increasing stock prices. Opposite of a bear market.
CE	:	Call Option European Style
Day Trading	:	The practice of buying and selling within the same trading day, before the close of the markets on that day. This is what Tim typically does, although he does have a long-term portfolio as well. Traders that participate in day trading are often called “active traders” or “day traders.”
Dividend	:	This is a portion of a company’s earnings that is paid to shareholders, or people that own hat company’s stock, on a quarterly or annual basis. Not all company’s do this.
DP	:	Depository Participant
EOM	:	Ease Of Movement
ERL	:	early reversal line.
Exchange	:	An exchange is a place in which different investments are traded. The most well-known in the United States are the New York Stock Exchange and the Nasdaq.
Execution	:	When an order to buy or sell has been completed. If you put in an order to sell 100 shares, this means that all 100 shares have been sold.
F&O, FNO, FO	:	Futures & Options
Hedge	:	This is used to limit your losses. You can do this by taking an offsetting position. For example, if you hold 100 shares of XYZ, you could short the stock or futures positions on the stock.
IB	:	Inside Bar
IBH	:	Initial Balance High
IBL	:	Initial Balance Low
IDF/Itf	:	intraday flow method.
Index	:	An index is a benchmark which is used as a reference marker for traders and portfolio managers. A 10% may sound good, but if the market index returned 12%, then you didn’t do very well since you could have just invested in an index fund and saved time by not trading frequently. Examples are the Dow Jones Industrial Average and Standard & Poor’s 500.
IPO (Initial Public Offering)	:	The first sale or offering of a stock by a company to the public, rather than just being owned by private or inside investors.
ITM	:	In the Money
IV	:	Implied Volatility
Margin	:	A margin account lets a person borrow money (take out a loan essentially) from a broker to purchase an investment. The difference between the amount of the loan, and the price of the securities, is called the margin.
MCX	:	Multi Commodity Exchange of India Limited
MFI	:	Money Flow Index
Moving Average	:	A stock’s average price-per-share during a specific period of time. Some time frames are 50 and 200 day moving averages.
MP	:	Market Profile
mph	:	minor pivot high
mpl	:	minor pivot low
MTM	:	Mark to Market
NCDEX	:	National Commodity & Derivatives Exchange Limited
NF	:	Nifty future
NR	:	Narrow Range
NS	:	nifty spot
NSE	:	National Stock Exchange
O/B Zone	:	Over Bought Zone
O/S Zone	:	Over Sold Zone
OI	:	Open Interest
Order	:	An investor’s bid to buy or sell a certain amount of stock or option contracts. You have to put an order in to buy or sell 100 shares of stock.
OTM	:	Out of Money
PA	:	price action = trading by watching candles, and not using indicators
PCR	:	Put Call Ratio
PE	:	Put Option European Style
Pip(s)	:	same as "tick", used in Forex
POC	:	Point Of Control
Portfolio	:	A collection of investments owned by an investor. You can have as little as one stock in a portfolio to an infinite amount of stocks.
Quote	:	Information on a stock’s latest trading price. This is sometimes delayed by 20 minutes unless you are using an actual broker trading platform.
Rally	:	A rapid increase in the general price level of the market or of the price of a stock.
ROC	:	Rate Of Change (%)
RR ratio	:	Risk Reward Ratio
RS	:	Comparative Relative Strength
RSI	:	Relative strength index
RTD	:	Real Time Datafeed
S/L (SL)	:	Stop Loss
S/R, SR	:	Support(S) & Resistance (R)
SAR	:	Stop & Reverse
Sector	:	A group of stocks that are in the same business. An example would be the “Technology” sector including companies like Apple and Microsoft.
Spread	:	This is the difference between the bid and the ask prices of a stock, or the amount someone is willing to buy it and someone is willing to sell it.
Stock Symbol	:	A one-character to three-character, alphabetic root symbol, which represents a publically traded company on a stock exchange. Apple’s stock symbol is AAPL.
STT	:	Securities Transaction Tax
TF	:	Timeframe
TSL	:	Trailing Stop Loss
TWAP	:	Time Weighted Average Price (an execution strategy which trades in slices of Order Quantity at regular intervals of time as specified by user)
UA	:	Unfinished Auction
VAH	:	Value Area High 
VAL	:	Value Area Low
VIX	:	Volatility Index
Volatility	:	This refers to the price movements of a stock or the stock market as a whole. Highly volatile stocks are ones with extreme daily up and down movements and wide intraday trading ranges. This is often common with stocks that are thinly traded, or have low trading volumes. This is also common with the stocks that Tim trades.
Volume	:	The number of shares of stock traded during a particular time period, normally measured in average daily trading volume.
VP	:	Visual Pivot
VPOC	:	Virgin Point Of Control
VWAP	:	Volume weighted average price
Yield	:	This usually refers to the measure of the return on an investment that is received from the payment of a dividend. This is determined by dividing the annual dividend amount by the price paid for the stock. If you bought stock XYZ for $40-a-share and it pays a $1.00-per-year dividend, you have a “yield” of 2.5%
There are websites like , etc where you can find better results.


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