1. Alpha
Extra return you make above the market’s return.
2. Beta
Shows how risky a stock is compared to the market.
3. Sharpe Ratio
Tells if your returns are worth the risk you took.
4. Standard Deviation
Measures how much a stock’s price moves away from its average.
5. Arbitrage
Risk-free profit by buying in one market and selling in another instantly.
6. Hedging
Protecting yourself from losses by taking an opposite position.
7. Futures
An agreement to buy or sell something at a fixed price in the future.
8. Options
A contract that gives you the right, but not the obligation, to buy/sell something at a set price.
9. Call Option
Right to buy an asset at a fixed price.
10. Put Option
Right to sell an asset at a fixed price.
11. Strike Price
The pre-decided price used in options.
12. Premium
The price you pay to buy an options contract.
13. Open Interest
Number of active futures and options contracts in the market.
14. Gamma
How fast the delta of an option changes when price moves.
15. Delta
How much an option’s price will move if the stock moves ₹1.
16. Theta
How much an option’s price decreases as time passes (time decay).
17. Vega
How sensitive an option is to volatility.
18. Intrinsic Value
Actual value of an option if exercised now.
19. Time Value
Extra amount you pay for time left until option expiry.
20. Margin
Money you must keep with your broker to trade futures/options.
21. Mark-to-Market (MTM)
Daily profit/loss adjustment in futures trading.
22. Short Selling
Selling shares you don't own — you borrow and sell, hoping price falls.
23. Short Covering
Buying back the shares you shorted earlier.
24. Algo Trading
Computer-based automatic trading using algorithms.
25. High-Frequency Trading (HFT)
Ultra-fast trading using powerful computers.
26. Block Deal
Large-volume trade done between two big investors at a fixed price.
27. Bulk Deal
Any trade exceeding 0.5% of a company’s total shares.
28. Promoter Pledge
Promoters use their shares as loan collateral.
29. Buy on Dips
Buying when price falls within an uptrend.
30. Sell on Rise
Selling when price rises within a downtrend.
31. Sector Rotation
Moving money from one sector to another as the economy changes.
32. Yield Curve
Shows interest rates for different time periods — used to predict recession.
33. Quantitative Easing (QE)
Government pumps money into the economy to boost growth.
34. Quantitative Tightening (QT)
Government removes liquidity from the economy.
35. Market Breadth
Shows how many stocks are rising vs falling — tells market strength.
36. Float
Shares available to trade in the open market (excluding locked shares).
37. Free Cash Flow
Cash left after paying all expenses — indicates real business strength.
38. EBITDA
Earnings before interest, taxes, depreciation, and amortization — shows core profit.
39. Cash Conversion Cycle
Time taken to convert goods into cash.
40. Insider Trading
Illegal trading based on non-public company information.
41. Corporate Governance
How honestly and efficiently a company is run.
42. SPAC
A company formed only to buy another company and take it public.
43. Unicorn
A startup valued at over $1 billion.
44. Moat
Company’s competitive advantage that protects it from rivals.
45. Drawdown
The fall from your portfolio’s highest value.
46. Risk-Adjusted Return
Return calculated after considering risk taken.
47. Dead Cat Bounce
Temporary price rise in a falling stock — a trap.
48. Reversal
When a trend (up or down) changes direction.
49. Consolidation
Stock moves in a small range before a big breakout.
50. Breakout
Price moves strongly above resistance or below support — fresh trend begins.
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