Trading Dictionary
139+ Trading Terms Explained
Plain-English definitions for active traders - from order types and chart patterns to options Greeks and trader slang.
Open interest is the total number of outstanding (open) options contracts that have not been exercised, expired, or closed — it measures how
An Opening Range Breakout (ORB) is a trading strategy that defines the high and low of the first N minutes of the session (commonly 5, 15, o
Option premium is the total price you pay to buy an options contract, composed of two parts: intrinsic value (the amount the option is alrea
An option is out of the money (OTM) when exercising it immediately would not be profitable — a call is OTM when the stock price is below the
A technical condition where an asset has risen so far, so fast that momentum indicators suggest the move may be extended and due for a pullb
The cognitive bias where a trader overestimates the accuracy of their predictions, the quality of their edge, or their ability to handle ris
A technical condition where an asset has declined so far, so fast that momentum indicators suggest the selling may be exhausted and a bounce
Overtrading is taking too many trades — whether from boredom, greed, frustration, or an inability to sit on your hands — leading to degraded
