Trading Dictionary
139+ Trading Terms Explained
Plain-English definitions for active traders - from order types and chart patterns to options Greeks and trader slang.
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8 terms
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
