Glossary

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

EsgStockInfo Terms

Board Diversity

The representation of individuals from diverse backgrounds on a company's board of directors, including considerations of gender, race, ethnicity, and other factors.

Carbon Footprint

The total greenhouse gas emissions, typically measured in carbon dioxide equivalents, produced directly or indirectly by an individual, organization, event, or product.

Carbon Neutrality

Achieving a balance between the amount of greenhouse gases emitted and the amount removed from the atmosphere, resulting in a net-zero carbon footprint.

Circular Economy

An economic system that emphasizes minimizing waste and making the most of resources by promoting recycling, reuse, and sustainable production.

Climate Risk

The potential financial and non-financial impacts of climate change on a company's operations, supply chains, and overall business strategy.

CSR

Corporate Social Responsibility

A business practice that involves initiatives to assess and take responsibility for a company's impact on environmental and social well-being.

Diversity, Equity, and Inclusion (DEI)

Diversity, Equity, and Inclusion

A set of principles and practices aimed at promoting diversity, equity, and inclusion within organizations.

Divestment

The process of selling or liquidating investments in companies or sectors that do not align with ESG criteria.

Emissions Intensity

The amount of greenhouse gas emissions produced per unit of economic activity, revenue, or other relevant metrics.

ESG

Environmental, Social, and Governance

An investment approach that considers a company's environmental impact, social responsibility, and governance practices alongside financial performance.

ESG Disclosure

The transparency and reporting of a company's ESG-related policies, practices, and performance to investors and other stakeholders.

ESG Integration

The practice of incorporating ESG factors into traditional financial analysis and decision-making processes.

ESG Ratings

Scores or ratings assigned to companies based on their environmental, social, and governance performance.

Ethical Investing

A form of investing that aligns with an individual's personal values and ethical principles, often excluding investments in controversial industries or companies.

Greenwashing

The practice of making false or exaggerated claims about a company's environmental or social initiatives to appear more environmentally friendly or socially responsible than it is.

Impact Investing

Investments made with the intention of generating positive, measurable social and environmental impact alongside financial returns.

Materiality

The significance of an ESG issue in relation to a company's business operations, financial performance, and stakeholder interests.

Net-Zero

Achieving a balance between the amount of greenhouse gases emitted and the amount removed from the atmosphere, resulting in a net-zero carbon footprint.

Proxy Voting

The practice of voting on corporate resolutions and policies as a shareholder, often related to ESG issues, during annual shareholder meetings.

Renewable Energy

Energy derived from natural resources, such as sunlight, wind, rain, tides, and geothermal heat, which are naturally replenished.

Shareholder Advocacy

The use of shareholder influence to encourage companies to adopt better ESG practices and policies.

Social Justice

The pursuit of equal rights and opportunities for all members of society, addressing issues such as income inequality, discrimination, and human rights.

Socially Responsible Companies

Companies that actively incorporate social and environmental considerations into their business practices.

SRI

Socially Responsible Investing

An investment strategy that seeks to generate financial returns while also promoting social and environmental goals.

Stewardship Code

A set of principles and guidelines that institutional investors follow to promote good corporate governance and responsible investment practices.

Sustainalytics

A provider of ESG research and ratings that assesses the sustainability performance of companies.

Triple Bottom Line

An accounting framework that considers financial, social, and environmental performance, often referred to as "profit, people, and planet."

Water Stewardship

The responsible use, conservation, and protection of water resources by companies and investors.

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.