Glossary

Plain-English definitions of the market and trading terms used across this site.

AIStockInfo Terms

AI

Artificial Intelligence

The simulation of human intelligence in machines that are programmed to think and learn like humans, often used in various industries for automation and decision-making.

AIaaS

AI as a Service

The delivery of AI capabilities as a cloud service, allowing businesses to access and use AI functionalities without the need for heavy investment in infrastructure.

AI Chip

Specialized hardware designed to accelerate AI-related tasks such as training and inference, improving the efficiency of AI models.

AI Conference

Events, symposiums, or gatherings focused on discussing and sharing knowledge about advancements, challenges, and applications of AI technologies.

AI ETF

AI Exchange-Traded Fund

An investment fund that includes a portfolio of stocks related to the AI industry, allowing investors to gain exposure to AI-related companies.

AI Ethics

The study and practice of responsible and ethical AI development and use, addressing issues such as privacy, bias, and accountability.

AI in Autonomous Vehicles

The incorporation of AI technologies in self-driving or autonomous vehicles to enable navigation, decision-making, and real-time response to the environment.

AI in Finance

The use of AI in the financial industry for tasks such as algorithmic trading, risk management, fraud detection, and customer service.

AI in Healthcare

The application of AI technologies in the healthcare sector, including diagnosis, treatment planning, and personalized medicine.

AI Regulation

Government or industry regulations and policies addressing the ethical, legal, and societal implications of AI development and use.

AI Startups

Newly established companies focused on developing and implementing AI technologies and solutions.

AI Stock Picks

Stock recommendations generated by AI algorithms based on analysis of various factors, including financial data and market trends.

Algorithm

A set of rules or instructions designed to perform a specific task or solve a particular problem, often used in AI and machine learning for data analysis and decision-making.

Bias in AI

The presence of unfair or prejudiced outcomes in AI systems, often stemming from biased training data or algorithms.

Big Data

Extremely large and complex datasets that cannot be easily managed or analyzed using traditional data processing applications, often used in AI for training models.

Chatbot

A computer program designed to simulate conversation with human users, often used in customer support or as virtual assistants.

Cloud Computing

The delivery of computing services (such as storage, processing power, and AI capabilities) over the internet, allowing users to access and use resources remotely.

CV

Computer Vision

An area of AI that enables machines to interpret and understand visual information from the world, similar to how humans perceive and understand visual data.

Data Mining

The process of discovering patterns and knowledge from large sets of data, often used in AI applications to extract valuable insights.

DL

Deep Learning

A type of machine learning that uses neural networks with multiple layers (deep neural networks) to analyze and process data.

Edge Computing

The practice of processing data near the source of data generation (at the edge of the network) rather than relying on a centralized cloud-based system.

Explainable AI

AI systems designed to provide clear and understandable explanations for their decisions and actions, enhancing transparency.

IoT

Internet of Things

The network of interconnected devices and sensors that collect and exchange data, often used in conjunction with AI for automation and analysis.

ML

Machine Learning

A subset of AI that enables machines to learn and improve from experience without being explicitly programmed.

Neural Network

A system of algorithms designed to recognize patterns, modeled after the human brain's structure and functioning, commonly used in deep learning.

NLP

Natural Language Processing

A field of AI that focuses on the interaction between computers and humans using natural language, enabling machines to understand, interpret, and generate human language.

Quantum Computing

A type of computing that uses the principles of quantum mechanics to perform certain types of calculations much faster than traditional computers.

Robo-Advisor

A digital platform that uses AI algorithms to provide automated, algorithm-driven financial planning services with little to no human supervision.

RPA

Robotic Process Automation

The use of software robots (bots) to automate repetitive and rule-based tasks within business processes.

Sentiment Analysis

The use of natural language processing and machine learning to analyze and determine the sentiment expressed in text data, often used to gauge public opinion.

General Trading Terms

ADA

Cardano (cryptocurrency)

A blockchain platform for the development of decentralized applications and smart contracts.

ADR

Average Day Range (e.g., ADR(30) – average range over 30 days)

The average price range a stock experiences within a specific period, often used to gauge volatility.

AH

After Hours trades

Trades that occur after the regular market hours, typically between 4:00 PM and 8:00 PM Eastern Time.

AMM

Automatic Market Maker

A decentralized finance (DeFi) algorithmic trading protocol that provides liquidity to decentralized exchanges.

AON

All Or None

An order that must be executed in its entirety, or not at all.

ATH

All-Time High (price)

The highest historical price reached by a financial asset.

ATL

All-Time Low (price)

The lowest historical price reached by a financial asset.

ATM

At The Money

An option where the strike price is equal to the current market price of the underlying asset.

AUD

Australian Dollar

The official currency of Australia.

Aussie

AUD/USD currency pair

Refers to the currency pair involving the Australian Dollar and the U.S. Dollar.

BBL

Be back later

A quick way to inform others that you will be back later.

B/O

Breakout

A significant price movement above a certain level of resistance or below a level of support.

BPR

Buying Power Reduction

The amount of capital required to open and maintain a particular options position.

BRB

Be right back

A quick way to inform others that you will be right back.

BTC

Bitcoin (cryptocurrency)

The first and most well-known cryptocurrency, often referred to as digital gold.

BTD

Buy the dip

A strategy of purchasing an asset when its price experiences a temporary decline.

Cable

GBP/USD currency pair

Refers to the currency pair involving the British Pound and the U.S. Dollar.

CAD

Canadian Dollar

The official currency of Canada.

Carry

Carry Trade - strategy exploiting interest rate differentials

A trading strategy that involves borrowing in a currency with a low-interest rate and investing in a currency with a higher interest rate.

CBOE

Chicago Board Options Exchange

The largest options exchange in the U.S., facilitating the trading of options contracts.

CC

Covered Call

A strategy where an investor holds a long position in an asset and sells a call option on the same asset to generate income.

CHF

Swiss Franc

The official currency of Switzerland.

CP

Centerpoint Securities

A brokerage firm providing trading services for equities and options.

DAO

Decentralized autonomous organization

An organization represented by rules encoded as a computer program that is transparent, controlled by the organization members, and not influenced by a central government.

DAS

DAS Trading Software

A trading platform/software used for day trading.

DD

Due Diligence

Research and analysis conducted before making an investment decision.

DeFi

Decentralized Finance

A financial system built on blockchain technology that aims to recreate and improve upon traditional financial systems.

DEX

Decentralized Exchange

A cryptocurrency exchange that operates without a central authority or intermediary.

DITM

Deep In The Money

An option with a strike price significantly favorable compared to the current market price of the underlying asset.

D/R

DayRanger - stocks with the highest average day range

Stocks with the highest average daily price range, indicating higher volatility.

DYOR

Do Your Own Research

Encourages individuals to conduct their own thorough research before making investment decisions.

EOD

End of Day

The closing time of a trading session.

E/R

Earnings Report

The public release of a company's financial performance, including revenue and profit, usually on a quarterly or annual basis.

ETH

Ethereum (cryptocurrency)

A blockchain platform enabling the creation of decentralized applications and smart contracts.

EUR

Euro

The official currency of the Eurozone.

FA

Fundamental Analysis

Analyzing a security's intrinsic value by examining related economic, financial, and other qualitative and quantitative factors.

FOMO

Fear of missing out

The fear that others are making profitable investments and one might miss out on potential gains.

FTR

Fade the rip

A trading strategy that involves selling after a rapid price increase.

FUD

Fear, Uncertainty, Doubt

Negative information or rumors spread to create fear and uncertainty in the market.

FWIW

For what it’s worth

Used to qualify or emphasize a statement, often when providing information.

FX

Forex (foreign exchange)

The global marketplace for trading national currencies against one another.

FYI

For your information

Used to inform someone about a piece of information.

GBP

British Pound

The official currency of the United Kingdom.

GL

Good luck

Wishing someone success or good fortune.

G/R

Green to Red (Stock was above prior day’s close but dropped below it)

Indicates a stock that was initially above the prior day’s close but has dropped below it.

Green

Price or account has increased

Indicates an increase in price or account value.

GTFO

Get The Fuck Out / Got The Fuck Out

A slang expression urging someone to leave or expressing that someone has left.

HF

Have fun

Wishing someone an enjoyable experience.

HOD

High of Day (nHOD = new high of day)

The highest price reached by a security during a particular trading day.

HODL

Hold On for Dear Life

A term used in the cryptocurrency community to encourage holding onto assets despite market volatility.

IB

Interactive Brokers

A popular brokerage firm providing online trading services.

ICO

Initial Coin Offering

A fundraising method for new cryptocurrency projects, similar to an initial public offering (IPO) in the stock market.

ICYMI

IDK

I don’t know

Indicates uncertainty or lack of knowledge.

IIRC

If I remember correctly

Indicates that the following statement is based on the speaker's memory and may not be entirely accurate.

IMHO / IMO

In my (humble) opinion

Indicates a personal opinion on a matter.

IOW

In other words

Used to rephrase or clarify a statement.

ITM

In The Money

An option with intrinsic value, meaning the option's strike price is favorable compared to the current market price of the underlying asset.

IV

Implied Volatility

A measure of the market's expectations for the future volatility of an underlying asset, derived from option prices.

JPY

Japanese Yen

The official currency of Japan.

Kiwi

NZD/USD currency pair

Refers to the currency pair involving the New Zealand Dollar and the U.S. Dollar.

KYC

Know your customer

A process used by financial institutions to verify the identity of their customers.

L2

Level 2 stock quotes

Provides detailed market data, including the best bid and ask prices, for a particular security.

LBB

Lower Bollinger Band

The lower boundary in a Bollinger Bands chart, indicating potential oversold conditions.

L/F

Low Float

Refers to stocks issued with a low number of shares, leading to higher volatility.

LITM

Long In The Money

Holding a long position in an option that is in the money.

LOD

Low of Day

The lowest price reached by a security during a particular trading day.

LOL

Laughing out loud

An expression used to convey laughter or amusement.

Loonie

USD/CAD currency pair

Refers to the currency pair involving the U.S. Dollar and the Canadian Dollar.

LOTM

Long Out Of The Money

Holding a long position in an option that is out of the money.

Low Float

Usually small-cap companies with fewer shares issued, leading to higher volatility

Stocks with a limited number of shares available for trading, often resulting in price volatility.

MCP

Market Center Price

The midpoint between the national best bid and national best offer for an option.

MM

Market Maker

A financial institution or individual that facilitates the buying and selling of financial instruments.

MOC

Market on Close

An order to buy or sell a security at the closing price, typically entered near the close of the trading day.

NFT

Non-Fungible Token

A unique digital asset, often representing ownership of digital or physical items.

NZD

New Zealand Dollar

The official currency of New Zealand.

OEX

S&P 100 Index Options

Options based on the S&P 100 Index.

OI

Open Interest

The total number of outstanding options contracts for a particular security.

OMG

Oh my God

An expression of surprise or shock.

O/N

Over Night

Refers to positions or trades held overnight.

OTM

Out Of The Money

An option with no intrinsic value, meaning the option's strike price is not favorable compared to the current market price of the underlying asset.

P2P

Peer to peer

A decentralized network where participants interact directly with each other without intermediaries.

Perking Up

Stock is starting to move up off consolidation

Indicates a stock showing signs of upward movement after a period of consolidation.

PH

Power Hour (the last hour of trading)

The final hour of the trading day, often characterized by increased trading activity.

PIP

Percentage in Point (measure of price movement)

A standardized unit of movement in the foreign exchange market.

PM

Portfolio Margin

A margin system that bases margin requirements on the overall risk of a portfolio of positions.

POP

Probability of Profit

The likelihood that a trade will be profitable based on statistical analysis or option pricing models.

PoS

Proof of stake

A consensus algorithm used in blockchain networks, where validators are chosen to create new blocks based on the number of coins they hold and are willing to "stake."

PoW

Proof of work

A consensus algorithm used in blockchain networks, where validators (miners) solve complex mathematical problems to validate transactions and create new blocks.

Pre

Pre-market trades

Trades that occur before the regular market hours, typically between 4:00 AM and 9:30 AM Eastern Time.

PROPS

Proper respect / Proper recognition

An informal expression conveying proper acknowledgment or respect.

Red

Price is below the previous day’s close

Indicates that the current price is below the closing price of the previous trading day.

Res

Resistance

A price level at which a security often faces selling pressure, preventing it from moving higher.

R/G

Red to Green (Stock was below prior day’s close but rose above it)

Indicates a stock that was initially below the prior day’s close but has risen above it.

ROC

Return on Capital

A measure of the return generated on invested capital.

ROI

Return on Investment

A measure of the profitability of an investment, calculated as the gain or loss relative to the initial investment.

R/R

Risk/Reward

The ratio of potential profit to potential loss in a trade.

R/S

Reverse Split

A corporate action that reduces the number of a company's outstanding shares, increasing the share price proportionally.

SPX

S&P 500 Index Options

Options based on the S&P 500 Index

S/R

Support/Resistance

Levels on a chart where the price of an asset might experience a pause in its movement or change direction.

SS or S/S

Short Sell

The sale of a borrowed security with the expectation of buying it back later at a lower price.

SSR

Short Sell Restriction/Downtick Rule

A rule that prevents short selling on a downtick, designed to prevent excessive downward pressure on a stock's price.

STC

Sell To Close

Closing out an existing options position by selling the contract.

STD

Straddle

A strategy where an investor holds a position in both a call and a put option with the same strike price and expiration date.

STO

Sell To Open

Opening a position by selling an options contract.

STP

Stop

A conditional order to buy or sell an option at a specific price or better.

STT

Strangle

A strategy where an investor holds a position in both a call and a put option with different strike prices but the same expiration date.

Sup

Support

A price level at which a security often faces buying interest, preventing it from moving lower.

SV

Skewness Volatility

A measure of how the implied volatility of options varies with different strike prices.

T+1

Trade Date Plus One

The settlement date for securities transactions that occur on a trade date.

T+2

Trade Date Plus Two

The settlement date for most securities transactions, occurring two business days after the trade date.

T+3

Trade Date Plus Three

The settlement date for certain securities transactions, occurring three business days after the trade date.

TA

Technical Analysis

The analysis of historical price and volume data to forecast future price movements.

TIA

Thanks in advance

Expressing gratitude for anticipated assistance or information.

TOS

Thinkorswim

A trading platform owned by TD Ameritrade.

TTM

Time To Maturity

The remaining time until an options contract expires.

TTYL

Talk to you later

A casual way of saying goodbye with the intention of talking again in the future.

TY

Thank you

Expressing gratitude or appreciation.

UBB

Upper Bollinger Band

The upper boundary in a Bollinger Bands chart, indicating potential overbought conditions.

USD

United States Dollar

The official currency of the United States.

VIX

Volatility Index

The CBOE Volatility Index, which measures market expectations for future volatility.

WITM

Warrant In The Money

A warrant where the current market price is higher than the exercise (strike) price.

WOTM

Warrant Out Of The Money

A warrant where the current market price is lower than the exercise (strike) price.

WTB

Write To Buy

A trading strategy involving writing options and using the premium received to buy other options.

XSP

Mini S&P 500 Index Options

Options based on the Mini S&P 500 Index.

XYZ

Generic Stock Symbol

Used to represent an unknown or generic stock in examples or discussions.

Yen

USD/JPY currency pair

Refers to the currency pair involving the U.S. Dollar and the Japanese Yen.

Yen

USD/JPY currency pair

Refers to the currency pair involving the U.S. Dollar and the Japanese Yen.

YW

You’re welcome

A polite response to someone expressing gratitude.