Trading Dictionary
139+ Trading Terms Explained
Plain-English definitions for active traders - from order types and chart patterns to options Greeks and trader slang.
I
Implied Volatility
Options & Derivatives
Implied volatility (IV) is the market's forward-looking estimate of how much a stock will move, derived from current option prices — high IV
In the Money
Options & Derivatives
An option is in the money (ITM) when exercising it immediately would be profitable — a call option is ITM when the stock price is above the
IV Crush
Options & Derivatives
IV crush is the rapid collapse in implied volatility immediately after a major binary event — such as earnings, an FDA decision, or a Fed an