Market Glossary

At The Money

An option whose strike price is approximately equal to the current price of the underlying.

Call European

A European-style call option, giving the right to buy at the strike price on expiry.

Central Pivot Range

A three-line indicator (pivot, top and bottom central pivots) derived from the prior session's high, low and close, used to frame the day's area of value.

A pivot system generating multiple support/resistance levels, often used to study mean-reversion and breakout scenarios.

The rate of change of an option's price with respect to the underlying's price.

Exponential Moving Average

A moving average that gives more weight to recent prices, reacting faster than a simple moving average.

A contract to buy or sell an asset at a predetermined price on a specified future date.

The rate of change of Delta with respect to the underlying's price.

In The Money

An option with intrinsic value — a call below or a put above the current underlying price.

Implied Volatility

The market's expectation of future volatility implied by option prices.

Open Interest

The total number of outstanding derivative contracts that have not yet been settled.

Out of The Money

An option with no intrinsic value — a call above or a put below the current underlying price.

Contracts granting the right, but not the obligation, to buy (call) or sell (put) an asset at a set price.

Put-Call Ratio

The ratio of put activity to call activity (by volume or open interest), used as sentiment context.

Put European

A European-style put option, giving the right to sell at the strike price on expiry.

PP

A calculated level derived from prior price action used as a reference for potential support and resistance.

Relative Strength Index

A momentum oscillator measuring the speed and magnitude of price changes, ranging from 0 to 100.

The rate of time decay of an option's value as expiry approaches.

Volatility Index

An index measuring expected near-term market volatility; India VIX tracks the Indian market.

Volume Weighted Average Price

The average price of a security weighted by volume over a period, used as an execution benchmark.

The sensitivity of an option's price to changes in implied volatility.