CMP (Current Market Price)
The live price at which a stock is currently trading in the market. This changes constantly during market hours.
OHLC
Open, High, Low, Close - the four key prices for a trading period. O is opening price, H is highest price, L is lowest price, C is closing price.
Gap Up / Gap Down
Gap Up occurs when a stock opens higher than previous close. Gap Down is when it opens lower. These indicate significant news or events.
Float
The total number of shares available for public trading. A lower float means fewer shares are available to trade.
52-Week High/Low
The highest and lowest price a stock has traded in the past 52 weeks. Used to understand current price position.
Derivatives
Financial instruments whose value is derived from underlying assets like stocks. Includes Futures and Options.
IV (Implied Volatility)
Measures expected price movement in options trading. Higher IV means higher option premiums and expected volatility.
Delta
In options trading, delta shows how much an option price changes with a 1 rupee change in stock price. Range is 0 to 1.
Gamma
Measures the rate of change of delta. Shows how delta changes as the stock price moves.
Support
A price level where a stock tends to stop falling and bounce back up. Acts as a floor for the price.
Resistance
A price level where a stock tends to stop rising and reverse down. Acts as a ceiling for the price.
Breakout
When a stock price moves above resistance or below support with increased volume. Signals potential trend change.
RSI (Relative Strength Index)
A momentum indicator that measures speed and magnitude of price changes. Range 0-100. Above 70 is overbought, below 30 is oversold.
MACD (Moving Average Convergence Divergence)
A trend-following momentum indicator that shows relationship between two moving averages. Used to identify trend changes.
Moving Average
Average price over a specific period (e.g., 50-day MA). Smooths price data to identify trends.
PE Ratio (Price-to-Earnings)
Stock price divided by earnings per share. Shows how many times investors pay for each rupee of earnings. Lower is generally better.
PB Ratio (Price-to-Book)
Stock price divided by book value per share. Indicates if a stock is undervalued or overvalued relative to assets.
ROE (Return on Equity)
Profit divided by shareholder equity. Shows how efficiently a company uses shareholder money. Higher is better.
ROCE (Return on Capital Employed)
Shows how efficiently a company uses its capital to generate profits. Higher ROCE indicates better business quality.
NSE (National Stock Exchange)
India's primary stock exchange. Headquarters in Mumbai. Largest and most modern exchange in India.
BSE (Bombay Stock Exchange)
India's oldest stock exchange established in 1875. Second major exchange after NSE.
Demat Account
Dematerialized account where shares are held electronically. Required to buy/sell stocks in India.
Trading Account
Account with a broker to execute buy/sell orders. Usually linked with Demat account for settlement.
SEBI
Securities and Exchange Board of India. Regulatory body that oversees stock market and investor protection.
Candlestick
A charting method showing Open, High, Low, Close prices. Used extensively in technical analysis.
Doji
Candlestick pattern where open and close prices are same or very close. Signals indecision in the market.
Hammer
Candlestick with small body and long lower wick. Bullish reversal pattern. Signals potential uptrend.
Engulfing Pattern
When a large candle completely engulfs previous candle. Bullish or bearish depending on direction.
Swing Trading
Trading strategy holding stocks for days to weeks. Takes advantage of short-term price swings.
Scalping
Very short-term trading (minutes to hours). Profits from small price movements. Requires active monitoring.
Positional Trading
Long-term trading strategy holding stocks for weeks to months. Based on fundamental analysis.
Intraday Trading
Buying and selling stocks within the same trading day. Position closed before market close.
Stop Loss
Pre-set price level to exit a losing position. Limits losses and protects capital.
Take Profit
Pre-set price level to exit a winning position. Locks in profits.
Volume
Number of shares traded in a period. High volume indicates strong interest. Low volume indicates weak trend.