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Market glossary, A to Z

378 terms in plain English, each with how it is used, what to watch out for and, where it helps, a diagram.

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• Accumulation (Wyckoff)In Wyckoff's model, the phase where large buyers gradually build a position in a quiet, sideways market.
• Activist investorAn investor who buys a large stake and pushes a company to change strategy, management or capital use.
• ADR (American Depositary Receipt)A certificate that lets US investors buy a foreign company's shares on a US exchange.
• ADX (Average Directional Index)An indicator of how strong a trend is, not which way it points.
• After-hours tradingTrading that takes place after the regular session closes.
• All-time high (ATH)The highest price an asset has ever traded at.
• AlphaA fund's return above what its level of risk would explain.
• AltcoinAny cryptocurrency other than Bitcoin.
• Analyst price targetA Wall Street analyst's estimate of where a stock could trade in the next 12 months.
• AnchoringFixating on a particular price, such as what you paid, and judging everything against it.
• ARR (Annual Recurring Revenue)The yearly value of a company's active subscription contracts.
• Ascending triangleA flat resistance line with rising lows underneath, usually seen as a continuation pattern.
• Ask (offer)The lowest price at which a seller is currently willing to sell.
• Asset allocationHow a portfolio is divided between stocks, bonds, cash and other assets.
• AssignmentWhen an option seller is required to fulfill the contract because the buyer exercised it.
• At the money (ATM)An option whose strike price is at or very near the current stock price.
• ATM offering (at-the-market)A program where a company sells new shares gradually into the open market at current prices.
• ATR (Average True Range)The average size of a price's daily range, used to measure volatility.

• Bag holderAn investor stuck holding a stock that has fallen far below what they paid.
• Balance sheetA snapshot of what a company owns, what it owes and what is left for shareholders.
• Basis point (bp)One hundredth of a percentage point: 0.01%.
• Bear flagA sharp drop followed by a small upward-sloping pause, usually a continuation pattern.
• Bear marketA fall of 20% or more from a recent high, usually with widespread pessimism.
• Bear trapA drop below support that quickly reverses, catching sellers and short sellers on the wrong side.
• Bearish engulfingA large red candle whose body completely covers the prior green candle's body.
• Beat and raiseWhen a company beats current-quarter estimates and also raises its future guidance.
• BetaHow much a stock tends to move compared with the overall market.
• BidThe highest price a buyer is currently willing to pay.
• Bid-ask spreadThe gap between the best bid and the best ask.
• Bitcoin (BTC)The first and largest cryptocurrency, with a fixed supply of 21 million coins.
• Bitcoin dominanceBitcoin's share of the total crypto market value.
• Bitcoin halvingA scheduled event that cuts the reward for mining new Bitcoin blocks in half.
• Black swanA rare, extreme event that few expected and that has outsized effects.
• Block tradeA very large order, typically 10,000 shares or more, arranged away from the regular order book.
• BlockchainA shared, tamper-resistant ledger made of linked blocks of transactions.
• Blue-chip stockA large, well-established company with a long record of stable operations.
• Bollinger BandsA moving average with bands drawn two standard deviations above and below it.
• BondA loan to a government or company that pays interest and returns the principal at maturity.
• Book valueA company's assets minus its liabilities, as recorded on the balance sheet.
• BreakoutA move through a support or resistance level that had held before.
• Bull flagA sharp rise followed by a small downward-sloping pause, usually a continuation pattern.
• Bull marketA sustained rise in prices, commonly a gain of 20% or more from a recent low.
• Bull trapA rise above resistance that quickly reverses, catching buyers on the wrong side.
• Bullish engulfingA large green candle whose body completely covers the prior red candle's body.

• CAD/USD exchange rateHow many US dollars one Canadian dollar buys, which affects returns on cross-border investments.
• Call optionA contract giving the right, not the obligation, to buy 100 shares at a set price before it expires.
• CandlestickA price bar that shows the open, high, low and close for a period.
• Capital expenditure (capex)Money a company spends to buy or upgrade long-term assets such as equipment and facilities.
• Capital gainsThe profit from selling an investment for more than its cost basis.
• Capital gains inclusion rate (Canada)The share of a capital gain that counts as taxable income in Canada.
• Cash burnHow fast an unprofitable company is spending its cash.
• Cash flow statementA report of the cash a company actually brings in and pays out.
• Cash-secured putSelling a put while holding enough cash to buy the shares if assigned.
• CatalystA specific event that can change how the market values a stock.
• CDR (Canadian Depositary Receipt)A Canadian-dollar-traded certificate that gives exposure to a US stock, with currency hedging.
• Central bankThe institution that manages a country's money supply and interest rates.
• ChannelTwo parallel trendlines that contain price as it rises, falls or moves sideways.
• Churn rateThe share of customers or revenue lost over a period.
• Circuit breakerA rule that pauses trading after a sharp, rapid drop.
• Cold wallet (self-custody)A wallet whose private keys are kept offline, such as on a hardware device.
• CommodityA basic raw material that is traded in standardized form, such as oil, gold or wheat.
• CompoundingEarning returns on your earlier returns, so growth speeds up over time.
• Confirmation biasFavoring information that supports what you already believe.
• Congressional tradesStock trades by members of the US Congress, disclosed under the STOCK Act.
• ConsolidationA period where price moves sideways in a narrowing or steady range.
• Contango and backwardationWhether a futures contract's price is above or below the current (spot) price.
• Contribution roomThe amount you are allowed to put into a registered account such as a TFSA or RRSP.
• Convertible noteA loan that can be turned into shares of the company at a set price.
• CorrectionA decline of 10% to 20% from a recent high.
• Corrective wave (A-B-C)In Elliott Wave, the three-wave move against the trend after a five-wave advance.
• CorrelationA measure of how closely two assets move together, from -1 to +1.
• Cost basisWhat you paid for an investment, used to work out your gain or loss.
• Covered callOwning 100 shares and selling a call against them to collect premium.
• CPI (Consumer Price Index)A monthly measure of how much prices have changed for a typical basket of consumer goods and services.
• Credit spreadA two-option position opened by receiving a net premium, with defined risk.
• Crypto Fear & Greed IndexA 0 to 100 sentiment score for the crypto market built from several inputs.
• Cup and handleA rounded base followed by a small pullback, then a possible breakout above the prior high.
• Currency-hedged ETFA fund that uses contracts to remove the effect of exchange-rate changes from its returns.
• Cyclical stockA stock whose earnings rise and fall with the economic cycle.

• Dark cloud coverA red candle that opens above the prior green candle's high and closes below its midpoint.
• Dark poolA private trading venue where orders are not shown to the public before they execute.
• Day tradingOpening and closing positions within the same trading day.
• Days to coverHow many days of average trading volume it would take short sellers to buy back all their shorted shares.
• Dead cat bounceA brief rally inside a downtrend that fails before the decline continues.
• Death crossWhen the 50-day moving average falls below the 200-day moving average.
• Debit spreadA two-option position opened by paying a net premium, with defined risk.
• Debt-to-equity ratioA company's debt compared with its shareholders' equity.
• Defensive stockA stock in a business people need in any economy, such as food, utilities or health care.
• DeFi (Decentralized Finance)Financial services such as lending and trading built on blockchains without a central intermediary.
• DeltaHow much an option's price is expected to change for a $1 move in the stock.
• Descending triangleA flat support line with falling highs above it, usually seen as a bearish continuation pattern.
• DEX (decentralized exchange)An exchange that runs as smart contracts, where you trade from your own wallet.
• Diamond handsSlang for holding a position through big swings with conviction.
• DilutionA fall in each owner's share of a company when it issues new shares.
• Discounted cash flow (DCF)A valuation method that adds up a business's expected future cash flows, shrunk back to today's value.
• Distribution (Wyckoff)In Wyckoff's model, the phase where large holders gradually sell into strength near a high.
• DivergenceWhen price and an indicator move in opposite directions.
• DiversificationSpreading money across different assets so no single holding can sink the portfolio.
• DividendA payment a company makes to shareholders out of its profits.
• Dividend aristocratA company in the S&P 500 that has raised its dividend every year for at least 25 years.
• Dividend tax creditA Canadian tax credit that reduces the tax on dividends from Canadian corporations.
• Dividend yieldThe annual dividend divided by the share price.
• DojiA candle where the open and close are nearly equal, showing indecision.
• Dollar-cost averaging (DCA)Investing a fixed amount at regular intervals, regardless of price.
• Double bottomTwo lows at about the same level, forming a W, followed by a break above the middle peak.
• Double topTwo peaks at about the same level, forming an M, followed by a break below the middle low.
• Dow Jones Industrial AverageAn index of 30 large US companies, weighted by share price rather than size.
• Dow TheoryAn early framework of market trends built on the writings of Charles Dow.
• DowntrendA series of lower highs and lower lows.
• DrawdownThe decline from a portfolio's or stock's peak to its subsequent low.
• DRIP (Dividend Reinvestment Plan)A plan that automatically uses dividends to buy more shares of the same stock.
• DurationA measure of how sensitive a bond's price is to changes in interest rates.
• DXY (US Dollar Index)An index that tracks the US dollar against a basket of six major currencies.

• Earnings reportA company's quarterly results, usually with a call where management discusses them.
• Earnings yieldEarnings per share divided by price: the inverse of the P/E ratio.
• EBITDAEarnings before interest, taxes, depreciation and amortization.
• Economic moatA lasting advantage that keeps competitors from copying a business.
• Elliott Wave TheoryA theory that price moves in repeating five-wave advances and three-wave corrections.
• EMA (Exponential Moving Average)A moving average that gives more weight to recent prices.
• Enterprise value (EV)A company's total value including its debt, net of its cash.
• EPS (Earnings per share)A company's profit divided by its number of shares.
• ETF (Exchange-Traded Fund)A fund that holds a basket of assets and trades on an exchange like a stock.
• Evening starA three-candle bearish reversal: a long green candle, a small candle, then a long red candle.
• Ex-dividend dateThe first day a stock trades without its upcoming dividend attached.
• ExpectancyThe average amount a strategy earns or loses per trade, over many trades.
• Expense ratioThe yearly fee a fund charges, as a percentage of your investment.
• Expiration dateThe last day an option contract can be exercised.
• Extrinsic value (time value)The part of an option's price above its intrinsic value.

• Falling wedgeTwo converging downward-sloping lines, often read as a bullish reversal.
• False breakout (fakeout)A move through a level that fails and returns back inside the range.
• FCF yieldFree cash flow divided by a company's market value.
• Federal funds rateThe interest rate banks charge each other for overnight loans, the Fed's main policy rate.
• FHSA (First Home Savings Account)A Canadian registered account for saving toward a first home, with tax advantages going in and out.
• Fibonacci extensionLevels projected beyond a prior move, used as possible price targets.
• Fibonacci retracementHorizontal levels, based on Fibonacci ratios, marking where a pullback might pause.
• Fifty-two-week high / low (52-week range)The highest and lowest prices a stock has traded at over the past year.
• FloatThe number of a company's shares that are actually available for the public to trade.
• FOMC (Federal Open Market Committee)The Federal Reserve committee that sets US interest rate policy.
• FOMO (fear of missing out)The urge to jump into a trade because it has already moved a lot.
• Foreign withholding taxTax taken at the source from dividends paid by foreign companies.
• Form 13F (institutional holdings)A quarterly report of the US stock holdings of large institutional managers.
• Forward P/EA P/E ratio that uses expected future earnings instead of past earnings.
• Fractional sharesOwning part of a single share instead of a whole one.
• Free cash flow (FCF)The cash left after a company runs its business and pays for equipment.
• FUDFear, uncertainty and doubt: negative news or talk that spreads worry about an asset.
• Fundamental analysisJudging a company's value from its business, financials and industry.
• Funding rateA periodic payment between long and short traders in perpetual futures that keeps their price near spot.
• Futures contractA standardized agreement to buy or sell something at a set price on a future date.

• GAAP vs non-GAAPGAAP follows standard US accounting rules; non-GAAP adjusts those results.
• GammaHow quickly an option's delta changes as the stock moves.
• Gamma exposure (GEX)An estimate of how options dealers' hedging could push a stock up or down as its price moves.
• Gamma squeezeA rapid price rise driven by dealers buying shares to hedge a surge of call options.
• GapA price jump that leaves an empty space on the chart between one session and the next.
• GDP (Gross Domestic Product)The total value of goods and services an economy produces.
• Golden crossWhen the 50-day moving average rises above the 200-day moving average.
• Golden ratioThe number about 1.618, whose inverse 0.618 underlies the main Fibonacci levels.
• Good-til-canceled (GTC)An order that stays active until it fills or you cancel it.
• GoodwillThe amount paid for an acquisition above the fair value of the assets it brought in.
• Gross marginThe share of revenue left after the direct cost of producing what was sold.
• Growth stockA company expected to grow revenue and earnings faster than the market.
• GuidanceManagement's forecast for future revenue and earnings.

• HammerA small-bodied candle with a long lower wick, appearing after a decline.
• Hanging manA hammer-shaped candle that appears after an advance.
• HaramiA small candle contained inside the body of the prior large candle.
• HashrateThe total computing power being used to mine Bitcoin.
• Head and shouldersThree peaks with the middle one highest, a classic topping pattern.
• HedgeA position taken to offset the risk of another.
• Herd behaviorFollowing the crowd instead of your own analysis.
• Higher highs and higher lowsThe pattern of an uptrend: each rally peaks higher and each pullback bottoms higher.

• Implied volatility (IV)The volatility the market is pricing into an option, backed out from its price.
• In the money (ITM)A call whose strike is below the stock price, or a put whose strike is above it.
• Income statementA report of revenue, costs and profit over a period.
• IndexA basket of securities that tracks part of the market, used as a benchmark.
• Index fundA fund that tracks a market index instead of trying to beat it.
• InflationA broad rise in prices over time, which reduces what money can buy.
• Insider filings (Form 4)Reports in which company officers, directors and large owners disclose their trades in their own stock.
• Institutional ownershipThe share of a company held by funds, pension plans and other large institutions.
• Interest coverage ratioHow many times a company's operating profit covers its interest payments.
• Intrinsic valueThe amount an option is in the money, the value if exercised right now.
• Inverse ETFA fund designed to move opposite to an index, usually over a single day.
• Inverse head and shouldersThree troughs with the middle one lowest, a classic bottoming pattern.
• Inverted cup and handleA rounded top followed by a small bounce, then a possible break below support.
• Inverted hammerA small-bodied candle with a long upper wick, appearing after a decline.
• Inverted yield curveWhen short-term bond yields are higher than long-term yields.
• IPO (Initial Public Offering)The first time a private company sells shares to the public.
• Iron condorA four-option position that profits if the stock stays inside a range.
• ISM Manufacturing PMIA monthly survey-based index of US factory activity.
• IV crushA sharp fall in implied volatility after a known event, such as earnings.
• IV rankWhere current implied volatility sits within its 52-week high-low range, from 0 to 100.

• Jobless claimsA weekly count of people filing for unemployment benefits.

• Kelly criterionA formula for the bet size that maximizes long-run growth, given your edge and odds.

• LEAPSOptions with expirations more than a year away.
• LeverageUsing borrowed money or derivatives to control a larger position than your cash allows.
• Leveraged ETFA fund that aims to deliver a multiple, such as 2x or 3x, of an index's daily return.
• Limit orderAn order to buy or sell only at a price you set or better.
• Liquidation (crypto)The forced closing of a leveraged position when its margin runs out.
• LiquidityHow easily something can be bought or sold without moving its price.
• Lock-up periodA window after an IPO when insiders are barred from selling their shares.
• Long positionOwning a security, expecting it to rise in value.
• Loss aversionThe tendency to feel losses more strongly than equal gains.
• Lower highs and lower lowsThe pattern of a downtrend: each rally peaks lower and each decline falls further.

• MACDA momentum indicator built from the difference between two moving averages.
• MarginBorrowing from your broker to buy securities, using your holdings as collateral.
• Margin callA broker's demand that you add money or sell positions because your account fell below its minimum.
• Margin of safetyBuying at a price well below your estimate of a stock's value, to cushion errors.
• Markdown (Wyckoff)In Wyckoff's model, the downtrend that follows distribution.
• Market breadthHow many stocks are participating in a market move.
• Market capitalizationThe total market value of a company's shares: share price times shares outstanding.
• Market makerA firm that continuously quotes buy and sell prices to provide liquidity.
• Market orderAn order to buy or sell immediately at the best available price.
• Market sentimentThe overall mood of investors toward the market or a stock.
• Markup (Wyckoff)In Wyckoff's model, the uptrend that follows accumulation.
• MarubozuA candle with a full body and little or no wicks.
• Max painThe strike at which option holders, in total, would lose the most at expiration.
• Mean reversionThe tendency for prices that stretched far from an average to move back toward it.
• Measured moveA projection that assumes a pattern's move will repeat in size after a breakout.
• Mergers and acquisitions (M&A)Deals in which one company buys or combines with another.
• MomentumThe speed and strength of a price move.
• Morning starA three-candle bullish reversal: a long red candle, a small candle, then a long green candle.
• Moving average (MA)The average closing price over a set number of recent periods, plotted as a line.
• Moving average stackWhen short, medium and long moving averages line up in order with price above them all.
• Mutual fundA pooled fund priced once per day after the market closes.

• Nasdaq-100An index of the 100 largest non-financial companies listed on the Nasdaq.
• NAV (Net Asset Value)The per-share value of a fund's holdings.
• NecklineThe line connecting the lows or highs between a pattern's peaks, which confirms the pattern when broken.
• Net incomeA company's profit after all costs, interest and taxes.
• Net marginThe share of revenue that ends up as profit.
• Net revenue retention (NRR)How much revenue a company keeps and grows from its existing customers.
• Nonfarm payrolls (NFP)The monthly report of how many jobs the US economy added or lost.
• Norbert's gambitA way to convert between Canadian and US dollars cheaply by trading an interlisted security.

• OBV (On-Balance Volume)A running total that adds volume on up days and subtracts it on down days.
• On-chain dataInformation read straight from the blockchain, such as transaction volume and wallet balances.
• Open interestThe number of option contracts that are currently open and not yet closed.
• Operating marginThe share of revenue left after operating expenses, before interest and tax.
• Options chainA table of all available option contracts for a stock, by expiration and strike.
• Options sweepAn options order split across several exchanges so it fills immediately.
• OTC (over-the-counter)Trading that happens through dealer networks rather than on a major exchange.
• Out of the money (OTM)A call whose strike is above the stock price, or a put whose strike is below it.
• Overbought / oversoldDescriptions of an indicator at an extreme: overbought after a big rise, oversold after a big fall.
• OvertradingTrading too often or in too large a size.

• PaaS and IaaSTwo cloud service models that sit below SaaS: platforms for building software, and rented computing infrastructure.
• Paper handsSlang for selling quickly out of fear when a position moves against you.
• Paper tradingPracticing trades with simulated money.
• Pattern day trader (PDT) ruleA US rule that limits frequent day trading in margin accounts below a minimum balance.
• Payout ratioThe share of earnings a company pays out as dividends.
• P/B ratio (price-to-book)A stock's price compared with its book value per share.
• PCE price indexThe inflation measure the Federal Reserve uses for its 2% target.
• PDUFA dateThe date by which the FDA aims to decide on a drug application.
• P/E ratio (price-to-earnings)A stock's price divided by its earnings per share.
• PEG ratioThe P/E ratio divided by expected earnings growth.
• PennantA small symmetrical triangle after a sharp move, a short consolidation before a possible continuation.
• Penny stockA very low-priced share of a very small company, often under $5.
• Phase 3 trialThe last stage of clinical testing before a drug is submitted for approval.
• Piercing lineA green candle that opens below the prior red candle's low and closes above its midpoint.
• Pivot pointsIntraday support and resistance levels calculated from the prior day's high, low and close.
• Position sizingDeciding how much money to put into a single trade.
• Position tradingHolding positions for months to years, following larger trends.
• PPI (Producer Price Index)A measure of the prices producers receive for their goods and services.
• Pre-market tradingTrading that happens before the regular session opens.
• Premium (option)The price of an option contract.
• Price actionReading the chart itself, such as candles, trends and levels, without relying on indicators.
• Private keyThe secret code that proves ownership of crypto and authorizes spending it.
• Profit factorGross profits divided by gross losses over a set of trades.
• Proof of stakeA way of securing a blockchain where validators lock up coins as collateral.
• Proof of workA way of securing a blockchain where miners compete using computing power.
• Protective putOwning shares and buying a put as insurance against a drop.
• P/S ratio (price-to-sales)A company's market cap divided by its yearly revenue.
• PullbackA short dip inside a larger uptrend.
• Put optionA contract giving the right, not the obligation, to sell 100 shares at a set price before it expires.
• Put/call ratioPut volume divided by call volume, used as a gauge of market sentiment.

• Quantitative easing and tighteningA central bank buying bonds to add money to the system (QE), or letting them run off to remove it (QT).

• Range-boundTrading sideways between a clear floor and ceiling.
• RebalancingAdjusting a portfolio back to its target mix after market moves have shifted it.
• RecessionA significant, widespread and lasting decline in economic activity.
• REIT (Real Estate Investment Trust)A company that owns income-producing real estate and pays most of its income to shareholders.
• Relative strengthHow a stock performs compared with a benchmark or its sector.
• Relative volume (RVOL)Today's volume compared with the stock's usual volume.
• ResistanceA price area where selling has repeatedly stopped a rise.
• RESP (Registered Education Savings Plan)A Canadian account for saving toward a child's post-secondary education, with government grants.
• RetracementA partial reversal of a prior move.
• Revenge tradingTrading to win back a loss immediately, often with bigger size and weaker setups.
• RevenueThe total sales a company generates before any expenses.
• ReversalA change in the direction of a trend.
• Rising wedgeTwo converging upward-sloping lines, often read as a bearish reversal.
• Risk toleranceHow much loss you can accept, financially and emotionally, without abandoning your plan.
• Risk-on / risk-offA description of whether investors are favoring riskier assets or safe ones.
• Risk/reward ratioThe amount you stand to gain compared with the amount you risk.
• ROE (Return on equity)Profit as a percentage of the money shareholders have invested.
• ROIC (Return on invested capital)How much profit a company earns on every dollar put into the business.
• Rounding bottomA long, gradual U-shaped recovery that can take months or years.
• RRSP (Registered Retirement Savings Plan)A Canadian retirement account where contributions are tax-deductible and growth is tax-deferred.
• RSI (Relative Strength Index)A momentum oscillator from 0 to 100 that compares recent gains with recent losses.
• Rug pullA scam where project creators take investors' money and abandon the project.
• Rule of 40A software rule of thumb: revenue growth rate plus profit margin should be at least 40%.
• Russell 2000An index of about 2,000 small-cap US companies.

• SaaS (Software as a Service)Software sold on a subscription and delivered over the internet.
• SectorA broad group of companies that do similar business, such as energy or technology.
• Sector rotationThe shift of money from one sector to another as the economic cycle changes.
• Settlement (T+1)The point at which a trade is final and cash and shares change hands.
• Share buybackA company using its cash to repurchase its own shares.
• Shares outstandingAll the shares a company has issued and that are currently held by investors and insiders.
• Sharpe ratioReturn above the risk-free rate, divided by volatility.
• Shooting starA small-bodied candle with a long upper wick, appearing after an advance.
• Short interestThe number of a stock's shares that have been sold short and not yet bought back.
• Short sellingSelling borrowed shares in the hope of buying them back cheaper.
• Short squeezeA sharp rise that forces short sellers to buy back shares, adding to the buying.
• SlippageThe gap between the price you expected and the price you actually got.
• SMA (Simple Moving Average)The plain average of the last N closing prices.
• Smart contractA program on a blockchain that runs automatically when its conditions are met.
• Smart moneyAn informal term for professional and institutional investors.
• S&P 500An index of 500 large US companies, weighted by market cap.
• Spinning topA small-bodied candle with wicks on both sides.
• Spin-offWhen a company separates a division into its own, independently traded company.
• Spring (Wyckoff)A brief dip below support at the end of accumulation that quickly reverses.
• S&P/TSX CompositeThe main benchmark index for Canada's stock market.
• StablecoinA cryptocurrency designed to hold a steady value, usually one US dollar.
• StagflationA combination of high inflation, weak growth and high unemployment.
• StakingLocking up coins to help secure a proof-of-stake network in return for rewards.
• Stochastic oscillatorA momentum indicator comparing the close with the recent high-low range.
• Stock exchangeA regulated marketplace where securities are listed and traded.
• Stock screenerA tool that filters stocks using criteria such as size, valuation, growth or technical conditions.
• Stock splitA change that divides each share into several, lowering the price without changing the company's value.
• Stop lossA pre-set exit point that limits how much you lose on a position.
• Stop order (stop loss)An order that becomes a market order once a set price is reached.
• Stop-limit orderA stop order that becomes a limit order, not a market order, once triggered.
• StraddleBuying a call and a put at the same strike and expiration to bet on a big move in either direction.
• StrangleBuying an out-of-the-money call and put to bet on a big move in either direction.
• Strike priceThe fixed price at which an option can be exercised.
• Sunk-cost fallacyLetting money already lost influence what you do next.
• Superficial loss rule (Canada)A rule that denies a capital loss if you buy back the same security too soon.
• SupportA price area where buying has repeatedly stopped a decline.
• Support/resistance flipA broken level that reverses its role: old resistance becomes support, or the reverse.
• Swing high and swing lowA local peak or trough on a chart that stands out from the bars around it.
• Swing tradingHolding positions for several days to a few weeks to capture a price swing.
• Symmetrical triangleTwo converging lines, one falling and one rising, forming a coil.

• TAM (Total Addressable Market)The total revenue opportunity if a company won every possible customer in its market.
• Technical analysisStudying price and volume history to judge the likely behavior of a market.
• TFSA (Tax-Free Savings Account)A Canadian account where investment growth and withdrawals are free of tax.
• Theta (time decay)The amount an option loses in value each day as time passes.
• Three white soldiersThree consecutive long green candles, each closing higher than the last.
• Ticker symbolThe short code that identifies a stock or fund on an exchange.
• Time frameThe length of time each bar on a chart represents, such as 5 minutes, 1 day or 1 week.
• TokenomicsThe economic design of a cryptocurrency: its supply, distribution and incentives.
• Total returnThe full gain on an investment: price change plus dividends or interest.
• Trade journalingRecording your trades and the reasons behind them so you can review your process.
• Trading haltA temporary stop in trading in a stock or market.
• Trading planA written set of rules for what you trade, when you enter and exit and how much you risk.
• Trailing stopA stop that moves up as the price rises, staying a set distance behind it.
• Treasury yieldThe return investors earn on US government debt.
• TrendThe general direction of a price over time.
• TrendlineA line connecting two or more swing lows in an uptrend or swing highs in a downtrend.
• TSX (Toronto Stock Exchange)Canada's main stock exchange.
• TSX Venture Exchange (TSXV)A Canadian exchange for early-stage and smaller companies.
• TurnaroundA struggling company trying to recover through new management, cost cuts or a new strategy.

• Unusual options activityOptions trading far above normal volume or open interest for a particular contract.
• Upthrust (Wyckoff)A brief move above resistance at the end of a distribution range that quickly reverses.
• UptrendA series of higher highs and higher lows.

• Value stockA stock that looks cheap compared with its earnings, assets or history.
• Value trapA stock that looks cheap but is cheap for good reason, because the business is declining.
• VegaHow much an option's price changes for a 1-point change in implied volatility.
• Vertical spreadBuying one option and selling another of the same type and expiration at a different strike.
• VIX (Volatility Index)A gauge of the S&P 500's expected volatility over the next 30 days, based on option prices.
• VolatilityHow much and how fast a price moves.
• VolumeThe number of shares or contracts traded in a period.
• Volume climaxA very high-volume bar that can mark an exhaustion point.
• Volume profileA chart that shows how much trading occurred at each price level.
• VWAP (Volume-Weighted Average Price)The average price of the day weighted by how much traded at each price.

• Wash sale rule (US)A US tax rule that disallows a loss if you buy the same or a substantially identical security within 30 days before or after the sale.
• WatchlistA saved list of tickers you want to follow.
• WhaleA holder with enough coins to move the market with a single trade.
• Wick (shadow)The thin line above or below a candle's body marking the extreme price.
• Win rateThe percentage of trades that end in a profit.
• Working capitalCurrent assets minus current liabilities: the short-term cushion a company has.
• Wyckoff MethodA framework from the early 1900s for reading supply and demand through price and volume.

• Yield curveA line showing bond yields across different maturities.
• Yield to maturity (YTM)The total return on a bond if it is held until it matures, given its current price.
• YoY growth (year over year)A comparison of a result with the same period one year earlier.

• Zero-day options (0DTE)Options that expire the same day they trade.